Joint Committees OK 7 out of 9 Items in Draft Wage Scale as Kanaan, Khalil Trade Tirades

The joint parliamentary committees on Friday finished discussing “seven out of nine items” in the draft new wage scale, amid a heated exchange between Finance Minister Ali Hassan Khalil and Change and Reform bloc MP Ibrahim Kanaan.

According to several TV networks, a fierce verbal dispute erupted between Khalil and Kanaan, whose loud tirades were heard outside the meeting room.

LBCI television said the dispute broke out during the discussion of “the revenues from construction licenses.”

But during a joint press conference with Kanaan after the meeting, Khalil announced that “all political forces agreed that we are addressing a legitimate demand," adding that there were no "divergent viewpoints on this issue and there is consensus on the need to pass the wage scale as soon as possible."

"The figures of the Finance Ministry and the subcommittee were cross-checked and we reached a total sum, which is LBP 2,765 billion while taking the cost of living into account," he added.

"We discussed the sources of funding and it would be premature to talk about them now," Khalil pointed out.

The minister went on to say: "God willing, the course will be positive and it will address the concerns of all the sectors. We are seeking fairness in all our decisions, even in the tax measures that will be taken and will ensure balance for both parties."

For his part, Kanaan revealed that "there is tangible progress in finalizing seven articles and two articles were postponed for further consultations with the relevant parties."

"We finished discussions over the issue of the cost and started discussing the revenues and there is no dispute over the issue of figures," he noted.

But both Khalil and Kanaan declined to announce a date for the next session, although the former said "there is an inclination to hold a meeting prior to next week's legislative session."

Meanwhile, media outlets said the meeting will be held on Monday morning.

According to state-run National News Agency, which quoted a number of MPs who took part in the session, the lawmakers finalized the debate over articles 2, 3, 4 and 5, which are related to the revenues needed to fund the new wage scale.

One of the ministers who participated in the meeting said "there was an agreement that taxes must be imposed on luxury items, such as caviar, yachts, perfumes, fancy cars, financial stamps and deluxe buildings, while the working class and low-income people, who cannot even buy bread for their children, must be exempted from the taxes.”

The joint committees are discussing the issues of raising the minimum wage; granting cost of living compensations to employees and contract workers at state institutes, the Lebanese University and municipalities; and the salaries of civil servants, public school teachers and the armed forces.

The conferees debated the “modification and creation of some legal articles related to taxes,” which are stipulated in the two draft laws that are being mulled.

Najib Miqati's government had approved the wage increase without agreeing on the sources of funding.

“Revenues are the big problem,” al-Mustaqbal bloc MP Ahmed Fatfat told Future TV, while stressing that he supports the new wage scale because it is a legitimate right.

“The Finance Ministry must be responsible for specifying the revenues, because experts are saying that we would enter a very dangerous phase if the wage scale was approved, and the issue needs delicate scrutiny,” Fatfat added.

Y.R.

S.D.B.