CPI(M) woos regional parties for Third Front

CPI(M) PREPARING FOR THE FUTURE

In a bid to win over parties for its grand plan to form an alternative alliance to the Congress and the BJP, the CPI(M) today proposed a nationwide agitation on price rise and for a higher share for states in tax revenues "" the two issues close to the heart of most regional parties, which will be key to any serious effort to form the Third Front.

The 19th Party Congress, which is focusing on creating an alternative to the BJP and the Congress, today passed resolutions on Centre-state relations and price rise.

"We will go for a nationwide agitation in consultation with other political parties. The agitation will start after April 15," said Politburo member Sitaram Yechury.

In the resolution on Centre-state relations, the party said, "The states have been correctly demanding an increase in the share of central taxes to at least 50 per cent. However, this share is only 30.5 per cent." Yechury later demanded that this share be immediately brought up to 33 per cent. In the resolution, moved by West Bengal Chief Minister Buddhadeb Bhattacharjee, the party said states had been denied access to government market borrowings at a lower rate, resulting in reduction in the states' share in total market borrowings from 50 per cent in the 1950s to 15 per cent at present.

The party plans to reach out to states ruled by the parties other than the Congress and the BJP to pressure the Centre to discuss these issues urgently keeping in mind the setting up of the 13th Finance Commission. "At the same time, discussions would also have to be taken down to the level of the common people and this party congress gives a call for a wide mass movement across states in support of a radical restructuring of the Centre-state relations," the resolution said.

While this was for parties currently in power, for others who are out of office like the Samajwadi Party, Indian National Lok Dal and the TDP, the CPI(M) placed the issue of price rise on the top of its agenda. The resolution on price rise demanded that the UPA government take four immediate measures: first, strengthen the public distribution system, take back the cut in the grain allocation and include 15 essential commodities like pulses and edible oil in the PDS; second: ban futures trading in 25 agricultural commodities; third, cut Customs and excise duties on oil; and fourth, take action against hoarders and strengthen the Essential Commodities Act.

In the discussion on the draft political resolution, moved yesterday by party General Secretary Prakash Karat, many participants supported the idea of the Third Front as they found "the two main formations "" the Congress and the BJP ""were not only committed to neo-liberal policies but also to a strategic alliance with the US".

The resolution also laid down three principles for the Third Front "" no strategic alliance with the US, no truck with communalism and opposition to neo-liberal economic policies. Shaken by the anti-industry movements in Nandigram and Singur in West Bengal and parts of Kerala, the two states where it is in power, the party also tries to send a positive message to foreign investors.

Yechury today said the party was not opposed to FDI. "We are not opposed to foreign capital, but it has to fulfil three conditions."

He said any foreign investment should enhance existing capacities, upgrade technology and enlarge employment opportunities.