Vote set on proposal to boost future fund

MORE money could be saved for future generations under a new law set to be debated in Parliament on Tuesday.

MPs have coupled a fresh proposal with a government-drafted legislation to amend the 2006 Future Generations Fund Set-up Law.

Currently, $1 is saved from every barrel of oil exported if the international price is above $40 per barrel.

Under the new government plan, $2 would be saved from every barrel of crude oil exported if the price is above $80 per barrel, and $3 if it shoots to $120 per barrel or more.

However, MPs have proposed that $1.25 be saved if oil prices range between $50 and $60, $1.50 if it hovers between $60 and $70 and so on, until it reaches $3 – two years after implementing the government plan.

Recovery

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa told MPs that the government plan would allow the fund to recover the $450 million taken to help combat Covid-19.

“The fund is in a solid state and should always remain a strong safety valve,” the minister said.

“The new revenues pumped into the fund would be directed into profitable investments, that allow it to further grow and develop, for use in crisis as in the case of Covid-19 or any other future emergency.”

The debate comes as global oil prices reached seven-year highs yesterday with geopolitical tensions and a winter storm in the US fuelling concerns over supply disruptions. Brent crude rose to $92.82 a barrel while US West Texas Intermediate crude rose to $91.72 a barrel after scaling a seven-year peak at $91.91.

Amendments

Meanwhile, MPs are set to reject amendments made by the Shura Council to the same law that would see $1 deducted from exported or locally-sold barrels.

MPs will also take a vote on plans to prioritise Bahraini teachers and lecturers for posts in schools and educational institutes. It was put on hold last week following a stalemate between MPs arguing over the finer details of the proposed legislation.

Two equal set of MPs were in favour of introducing prioritisation should there be multiple candidates including expatriates, while others believed that all posts should be open for Bahrainis only, with existing expat tutors gradually being removed from the profession here altogether.

MPs approved concept amendments to the 1998 Private Educational and Training Establishments Law which would see principal and faculty roles reserved for Bahrainis. However, if no suitable candidates are found and the only option is to look further afield, the school concerned would have to seek approval from the Education Minister.

The proposed legislation was approved by MPs in November 2020 and drafted by the government last year.

However, the Cabinet and the Education, and Labour and Social Development Ministries urged MPs to reconsider the move.

MPs are also set to take retrospective votes on two royal decrees issued during the National Assembly’s recess last year amending the 2002 Judicial Authority Law and the 1996 Civil and Commercial Evidence Law.

Source: https://www.gdnonline.com/Home/Details/1031842