Thursday, November 25, 2010

There Is A Lump On My Dog's Tail

HOLD DIRECT ROYALTIES

EDITORIAL

The House of Representatives remained more direct royalties to producers and transport areas the legislative bill that is before the Congress, an initiative that aims to replace the use of royalties and compensation for mining and hydrocarbons.
The current constitution divides the royalties into two groups: direct and the indirect
. The first are those that benefit the producing areas or facilitate its territory to transport. Hints are going for the remaining non-mining areas.
The direct pretended to be eliminated in the project when he left the Senate
eight first two debates total, and this fact
provoked strong protests from the departments and municipalities affected, as passed to have the status of territories simple-minded access to royalties, not a constitutional right, as it always has been, and eliminated the way the autonomy they have enjoyed for of them for specific development purposes.
The decision to maintain direct royalties was taken with the approval of Government
and after a struggle into this, because there were two trends
: those who fought for the deletion, in which he played the
Minister of Finance and warned that the risks in governance and development of the country, where stood the Minister of Mines and Energy.
According to the paper that was approved, the port regions and
"are entitled to share in royalties and compensation in the
percentage defined by the law to develop and implement the legislative act directly on these resources." This, without prejudice to their access to resources from the five funds that would be created from the General System of Stock being created in the legislative bill.
"This was a first step in the right direction," said
in the recent regional meeting of journalists researcher and debater
guajiro Amylkar Acosta, who detailed
tracks the processing of the project. At the same event
Governor of Cesar, Cristian Moreno, expressed his pleasure at the fact.

But the debate continues. Still it is necessary to describe it as a law to assign regulatory
rates or allocation formulas
of all royalties, including direct and funds that creates or expands
constitutional reform to nourish them with royalties
mining. Still further because the division will now be made to
entire Colombian population.
What is being proposed by leaders of the territories
producers is a formula that seems reasonable, that the new allocation is made from higher royalties produced by the mining boom because the government is saying that will happen. If there is more money, thus enabling him to do development where it is socially necessary, but not taken away from those who need to cushion the adverse effects mining.
calculations made by the team of Adolfo Meisel, one of our best researchers and
exhibitor at the meeting indicate that this formula should
the eight departments of the Colombian Caribbean
therefore increase the amount of resources that are
can be obtained from royalties and compensation and justice for those who do not receive
today.
addition, it is the provision contained in the explanatory memorandum
the legislative bill to the effect that will focus
investment in high-impact macro
(The Mojana, etc.) and not project or works without significant impact
as swimming pools and stuff like so much damage have you done to
mining and royalties.
The Government gave a sample of synderesis to maintain direct
royalties. As we stated at the time, not just remove them one stroke
and overnight
hopes built around the royalties as a source of financing for development
, hopes that accumulated in several generations
from the moment it became known that
had hidden wealth in the ground.
But this achievement, and in return expected by all Colombians, the leaders of the regions now have a duty to properly use the royalties which constitutional law are kept. No corruption, the more effective use of those funds to be made as socially desirable, and by the State in its role of preventing and punishing corruption, steady hand.
November 25, 2010

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