27 March 2006
Beirut: Rumors about the contents of Siniora's five-year economic plan have proliferated since the Prime Minister announced its imminent release. Hicham Abou Jaoude of the Association of Lebanese Industrialists spoke to The Daily Star about how the sector will be impacted by some of the reforms believed to be part of the government's program, specifically the privatization of Electricit? du Liban (EDL) and the proposed increase of the Value Added Tax (VAT).
Abou Jaoude admitted that state-run EDL is in need of urgent reform, but argued that privatization should be part of a broader strategy of restructuring the energy sector and should not be an end goal in itself.
"We don't know where the government is going with the energy sector at the level of management, production or consumption," he said. "When the government talks about privatization are they referring to production or distribution?"
Abou Jaoude also weighed in on the implications of raising the VAT from its current 10 percent to an unspecified amount, which many predict will be 15 percent or more.
"I think it will slow down the growth of the Lebanese economy and reduce the competitiveness of industry and other sectors, especially tourism," he said. - The Daily Star
