AMIR AFFIRMS MEDIA ROLE FOR UNITY, ECONOMY, GCC TIES – Cuts urged to cope with low oil price

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HH the Amir during his meeting with the Board Chairman of KUNA, Minister of Information and Editors-in-Chief of Kuwaiti newspapers.
HH the Amir during his meeting with the Board Chairman of KUNA, Minister of Information and Editors-in-Chief of Kuwaiti newspapers.

KUWAIT CITY, Jan 20: His Highness the Amir has called for budget cuts and better management of spending to cope with declining revenues due to lower oil prices, state news agency KUNA said on Wednesday, in the second such call by HH the Amir since October. The remarks by Sheikh Sabah Al-Ahmed Al-Sabah, at a meeting with newspaper editors, appeared part of a drive to prepare the ground for politically difficult economic measures such as cuts in energy and food price subsidies, which could occur next year. “We are required to start with treatment and economic steps and programmes aimed at managing and reducing the budget articles, to deal with the shortages in the state financial revenues,” Sheikh Sabah said, according to KUNA. He added that any such measures must ensure that the basic needs of Kuwaitis were addressed.

In one of the first moves to curb spending, the country’s civil service department announced it was suspending all training outside the country, KUNA said. Earlier this week, HH the Amir ordered a review of the budget of the Amiri Diwan and all departments under it with a view to rationalising and cutting spending, according to KUNA. Kuwait’s parliament approved a state budget in July for the current fiscal year that began on April 1 that envisages a deficit of 8.18 billion dinars ($27.0 billion) — nearly half total spending — because of low oil prices.

The budget assumed an average oil price of $45 a barrel. Brent crude was trading at $27.75 on Wednesday. A range of subsidy cuts is under consideration. Local media reported in October that domestic gasoline prices might almost double, though they would remain among the lowest in the world, and the government has said it plans eventually to impose corporate tax on local firms. Such changes could arouse complaints among the public and in parliament, which has often had tense relations with the cabinet that have slowed or blocked economic reforms.

Kuwait’s parliament is the most independent and assertive among the Gulf monarchies. The chief executive of state energy conglomerate Kuwait Petroleum Corp, Nizar al- Adsani, said on Tuesday that Kuwait was considering several options for energy subsidy reforms but any possible rise in domestic prices would not affect citizens’ livelihoods. In October, Sheikh Sabah urged the cabinet and parliament to cut state spending in response to slumping oil prices, warning that any delay would increase the damage to the government’s finances. The mass media have to realize the responsibility placed on them for handling the issues on the local scene, to maintain the nation, its security and stability, as well as national unity. His Highness the Amir noted that media platforms must not be used to negatively affect national unity. No opportunity must ever be offered to “whosoever” to capitalize on the current conditions in the region and employ the media to inflame emotions, stir feuds or sectarian congestion, His Highness the Amir told the meeting. His Highness the Amir emphasized the necessity of keeping away from offending any of the components of the society, placing the nation’s interests, security and stability over and above all considerations.

Amid the severe falls in oil prices, impacting producers, His Highness the Amir called for joining government and popular efforts to embark on economic moves to reduce items on the state budget to handle the decline in resources. In light of the falls of oil prices, from $120 per barrel to only $20 per barrel, the government and the people must share responsibility of rationalization, following in steps of other Gulf states, His Highness the Amir said, referring to an orientation to study on subsidies on certain items of goods. In the meantime, His Highness the Amir reiterated the importance of maintaining dignified life conditions for citizens, and providing their basic living needs, urging the National Assembly to “cooperate with the government for the issuance of legislations to lessen the deficit in state budget and replenish the decline in the financial resources.” In the meantime, His Highness the Amir stressed the neutrality of the judicial authority, and emphasized the necessity of respecting the judiciary and the judicial rulings. On the Gulf scene, His Highness the Amir said that Kuwait is part of the fabric of the GCC, underlining the necessity of pushing ahead the Gulf joint work to bolster the bloc’s march toward integration in all fields to realize people’s expectations, and achieve prosperity, development, security and stability. Referring to the Divided Neutral Zone with Saudi Arabia, His Highness the Amir said there is no difference over it, adding that the issue of oil production and exporting from the area will be settled with the Kingdom soon.

Meanwhile, His Highness the Amir reiterated Kuwait’s commitment to the Saudi-led coalition supporting legitimacy in Yemen, referring to the effective participation of the Kuwaiti forces in the mission. The meeting was attended by Deputy Minister of Amiri Diwan Affairs Sheikh Ali Jarrah Al-Sabah and Undersecretary of the Ministry of Information Tareq Eid Al-Mizrem. Lawmakers have, meanwhile, lauded HH the Amir’s directive to the editors-inchief of local newspapers to refrain from exploiting the media to incite sectarian confl ict. MP Faisal Al-kandari described the Amir’s instruction as the act of a responsible and honest father who is keen on protecting the well-being of the society and its people He pointed out the Amir is fully aware of the dangerous repercussions of obnoxious rumor-mongering among some parties. He said the Amir stressed the need for the editors-in-chief to recognize their huge responsibility in addressing issues related to local affairs. He added the Amir urged the editors-in-chief to prevent anyone from using the media to instigate sectarian conflicts. He went on to say the Amir knows well the dire consequences of the oil price decline, since he emphasized the need to find appropriate solutions and to reduce the budget without any negative impact on the lives of citizens. He asserted the Amir’s directive should serve as beacon for new economic work by laying down a clear vision on the diversification of income sources. He affirmed the Amir’s emphasis on respecting the judiciary and to refrain from attacking the authority should be taken into consideration, especially since its members won the trust of institutions and the citizens. Also commenting on the Amir’s address to the editors-in-chief, MP Yousef Al-Zalzalah considers it a clear evidence of the conviction of HH the Amir that there are evil pens which aim to destabilize the country. He added this is the time for the ministries of Interior and Information to activate their role in deterring anyone who wants to harm or defame the country.

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