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Iran: Ahamdinejad calls for parliament's cooperation

Source: Radio Zamaneh

Mahmoud Ahmadinejad has written a letter to the speaker of Iran's Parliament, Ali Larijani in an attempt to resolve the differences between the parliament and government over cutting public subsidies.

In the letter which was published by Fars News Agency, Ahmadinejad states that the approved bill on government subsidies is "highly complex" and riddled with "major problems for both producers and consumers which would result in irreparable damages to the country's economy."

He thus urges the parliament to create a "minimal condition" in which the bill could become "executable."

The government is trying to implement a plan to end its costly government subsidies. Ahamdinejad wants to draw upon $40 billion of saving through cutting subsidies but the parliament has only approved a more gradual process and allowed $20 billion of savings for the government which would be gradually increased in the course of five years.

Ahamdinejad had earlier announced that he will not put the subsidy act into effect and a number of lawmakers have accused him of "violating" the law.

Speaker of the executive committee of the parliament, Mohsen Kouhcan told Fars News Agency that the House will soon respond to Ahamdinejad's letter "in a friendly atmosphere toward interaction of the powers."

He also added that Ali Larijani has called a group of MPs to establish a series of meetings in order to "reach a common understanding" of the issue.

Earlier the Economic Commission of the Parliament had declared Ahamdinejad's proposal of radical cuts to the subsidies would create a leap in inflation and cause extensive pressure on people.

The new committee established to review the matter are comprised of different MPs and this could indicate that the parliament is thus planning to capitulate to Ahmadinejad's demands.

Yesterday Ruhollah Hoseinian announced that they have prepared a reform bill allowing the government savings of $35 billion through subsidy cuts, adding that the bill has been already signed by 100 lawmakers.

... Payvand News - 04/05/10 ... --

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