UPA's austerity, an exercise in tokenism

The Congress-led UPA Government is on an austerity drive. UPA chief Sonia Gandhi flew down to Mumbai on an Air India flight and traveled in Economy class. But add to the expenses, the costs of fares for five rows reserved for the security personnel and the three SUVs flown down to Mumbai by another aircraft at the cost of rupees three lakh.

Sonia Gandhi’s status of ‘the most guarded VIP in Delhi’ necessitated that she travels with security personnel. The total expenses of the economy class travel with 15 seats in all were Rs 55,000 compared to the travel in business class with six security personnel at the cost of Rs 62,000. The savings were a mere Rs 7,000.

Face The Nation debates: Is the Government’s austerity drive simply not going beyond tokenism?

On the panel of experts to debate the issue were Managing Trustee of Consumer Voice Sri Ram Khanna, Congress MP and spokesperson Abhishek Manu Singhvi and MD of the Chemon group Chetan Seth.

Penny wise and Pound foolish

Is the UPA chief’s travel in economy class just a matter of political symbolism in her drive to be an example of austerity? If the UPA Government is really interested in rationalising costs, then the drive is really not serving its purpose. Given the expenses that go into the exercise, cost-saving is not really achieved.

Congress party spokesperson Abhishek Manu Singhvi felt that the larger picture was being missed totally. “Yes, it is about symbolism, it is about sending a message. It is about reminding people about Gandhi, the simplicity movement, the charkha.,” Singhvi said.

“It is not about counting Business class minus Economy class equals net savings seven thousand. It’s trying to propagate a way of life during times of drought. It is as simple as that,” Singhvi added.

PAGE_BREAK

When faced with choices, chose the simpler one is how he put it. After all, there were certain security-related concerns that even Sonia Gandhi herself cannot get rid of. The SPG cover, for example cannot be thrown off even by her. Singhvi said that such small, seemingly insignificant savings across the board by all politicians would add up to a large sum.

Some believe that morality is contained in lifestyles and travel may be incorrect. The Indian government should figure out ways of cutting costs by downsizing excess staff instead of the politicians being made to travel economy class.

Prestige issue

“Can you imagine what impression it would create if while on a trip abroad, our ministers arrive from Economy class. What kind of an image is that giving to the country?” asked Chemon group MD, Chetan Seth.

Seth said that he always felt our ministers should be like the chief executive officers (CEOs) of companies. They are very bright people; they are working very hard and serving the nation. “What is this talk of Business class if not absolutely rubbish?” asked Seth.

“They should travel Business class, travel First class. Why should they not travel First class?...The American embassy for example gets the cheapest rates for hotels anywhere in the world. They call for a tender. Right now if they want a ticket and they approach any airline, they can get Business class tickets at Economy rates,” added Seth.

Sri Ram Khanna said that he loved travelling Business class but the expense deterred him.

Khanna said all India airlines provide tickets at exorbitant rates. “The Indian airlines provide Business class tickets at four times the rate of Economy class,” Khanna slammed the aviation sector.

“Our regulation and civil aviation administration has failed. They are giving a free rein to the Mallyas and others to make money out of others without providing services. If the US government can buy Business class tickets at economy prices around the world, for their bureaucrats and secretaries of states, why can’t the Government of India?” Khanna demanded.

Over-priced services and market economy compulsions

Chetan Seth felt that there was no point calling the pricing of tickets or services as over-priced.

“It is a market economy. They are providing a service. If you cannot afford it, please do not go,” Seth urged.

“One of the principles of a market economy is competition. Tendering is a part of the competitive systems. Why does the Government of India ask for tenders from all airlines?” Khanna argued.

PAGE_BREAK

For every five ministers who will travel on Economy class, there are 200 bureaucrats travelling Business class at exorbitant prices, Seth felt.

Manu Singhvi said that the Government has already begun downsizing its strength and several ministers have cut back on tours planned earlier.

“Even if you miss the wood for the trees and even if you look at the pennies only; if you add up all those government departments, it comes to a lot and it is happening,” Singhvi argued the case for the UPA government.

Anachronism

“This is the problem of being in politics in India,” said Seth. “You have to wear your khadi here and then you wear your tweed jackets when you go outside.”

“I think that it is a terrible thing that our people are made to behave like this,” Seth said.

Khanna called these acts as actions driven by double standards and attempts to appear what one is not. He said that these people could instead save money for millions of people by governing well, allocating money properly and avoiding wastage; as well as by controlling consumer price indices.

“I think the equations are being drawn completely wrongly. Austerity drive does not mean that you should not go after corruption, not give good governance,” said Singhvi.

Singhvi said austerity and good governance are not mutually exclusive.

Please do not flash your personal riches

Khanna said that even if leaders and politicians are rich, they should lead austere lifestyles. They should lead nearly 3000 people in the ministry, by examples, he felt.

That would be hypocricy, felt Seth.

So must all politicians adopt austere lifestyles by default?

“If you have budgets overflowing, everybody has got food, clothing and shelter, and then if you want to spend money, go ahead. You have people dying of hunger, you have 150 districts of Naxalite activities and terrorism to tackle,” reminding about sections that want to secede from the Union, calling extravagance a shameless act.

Seth felt that where can the rich hide? If they are rich, they are rich.

Khanna said that those wanting to lead society must live an austere life, certainly not comparable to many CEOs who are socially irresponsible.

Mayawati, not austere?

Mayawati holds press conferences in five-star hotels. She wears expensive jewellery and clothes. So does that mean she needs lessons in austerity?

Singhvi skirted that debate to answer it at a national level. He wanted to deal with the debate of politicians and austerity with a number of points.

PAGE_BREAK

“Number one, how you behave in personal life cannot be decided by a law. You cannot make a law and say you shall wear this and do this and be austere in this way,” Singhvi said.

“Number two, for a country the size and population of India; we have one of the smallest cabinets. We cannot have a smaller cabinet.”

“Number three, this whole argument between being rich and simple is skewed. There is no contradiction between being rich and being simple.”

Singhvi mentioned the example of CEOs Warren Buffet and Wipro chief Azim Premji.

“It is not immorality It is setting an example in a country not only poor but at the moment also afflicted by drought,” Singhvi.

Singhvi said he was not trying to hold a brief for anyone who is on the face of it trying to seem austere but on the other side was leading a corrupt life. That would be hypocricy. He still felt the UPA’s austerity drive was a move on the right track.

Final results of the SMS poll: Is the Government’s austerity drive simply not going beyond tokenism?

Yes: 82 per cent

No: 18 per cent