N E W S B A G

Millions Protest in America

THE immigrants are up and protesting for their rights. Last fortnight witnessed burgeoning protests in the U S when more than a million, mostly Hispanic immigrants and their supporters skipped work and took to the streets in a nationwide boycott leading to slowing or shutting many farms, factories, markets and restaurants. No wonder industries that rely on immigrant workers were clearly affected, though the impact was not uniform. Industry stands to gain as it gets cheap labour from among the immigrants.

The "Day Without Immigrants" attracted widespread participation from all over despite the activists being divided over the boycott. The embargo against federal legislation that would criminalize the nation's estimated 11 million illegal immigrants and fortify the U.S-Mexico border was organised by the immigrant activists.

While two major rallies in Los Angeles attracted an estimated 400,000, according to reports, Chicago too saw a similar crowd that marched through the downtown business district. Illegal immigrants from Ireland and Poland marched alongside Hispanics. In Phoenix, protesters formed a human chain in front of Wal-Mart and Home Depot stores. Protesters in Tijuana, Mexico, blocked vehicle traffic heading to San Diego at the world's busiest border crossing.

Tens of thousands more marched in New York, along with 15,000 in Houston, 50,000 in San Jose and 30,000 more across Florida. Smaller rallies were reported in cities from Pennsylvania and Connecticut to Arizona and South Dakota attracted hundreds not thousands, while Denver had some 75,000 protestors. Most demonstrations were peaceful except a few minor incidents.

Reacting to the protests, the press secretary Scott McClellan said: "The president is not a fan of boycotts. People have the right to peacefully express their views, but the president wants to see comprehensive reform pass the Congress so that he can sign it into law."

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Tax Cuts in Canada

There’s some good news for the residents of Canada. The country’s new Conservative government in its foremost federal budget has announced extensive tax sops on one hand and promised better security by allocating more funds for the same on the other. This amounts to an additional $1.3 billion for policing and arming officers at border crossings.

While the national sales tax will come down from the current 7 percent to 6 percent beginning July 1, tax cuts in income, consumption, business, corporate and excise taxes would also be implemented. The Conservative government also kept its campaign promise to give $1,075 a year for every child under age 6 for childcare, replacing a $4.5-billion child-care program initiated by the Liberals.

With the new budget, the Conservative Prime Minister Stephen Harper who had earlier managed to score points with the White House by brokering a resolution to a decade-old lumber dispute with Washington and also succeeded in renewing the North American Aerospace Defense (NORAD) agreement, expanding the 48-year-old pact with the United States to include maritime surveillance.

Canada would invest $4.7 billion in the military over the next five years, recruit an additional 23,000 regular and reserve personnel and improve infrastructure on military bases. This has invited sharp criticism across the political spectrum. The Liberals pledged similar spending last year and there is no guarantee that Harper's minority government would remain in power long enough to implement the promises.

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Social Security Chaos in America

THE Democrats and Republicans got into a battle over the issue of Social Security. According to the Social Security and Medicare trustees the financial condition of the government's two biggest benefit programs deteriorated slightly over the past year. In a repetition of last year’s pitched battle, this year too following a recent report on social security.

While Democrats accused the Bush administration of overstating the problems in the two programs as a way of getting Congress to enact draconian benefit cuts, Republicans said Democrats were refusing to face serious funding shortfalls. The arguments showed no likelihood of the issue being resolved in view of the upcoming elections in November. Some analysts said they don't expect major changes before the election of President Bush's successor.

As per the annual trustees' report, the Social Security trust fund was fast depleting and so was the Medicare hospital insurance trust fund. The problems in Medicare were far more serious because of the skyrocketing costs of health care, but the trustees presented a somber assessment of both programs facing the looming retirement of 78 million baby boomers.

The liberal Center on Budget and Policy Priorities noted that the trustees report estimated that the cost of erasing the 75-year funding shortfall in Social Security was $4.6 trillion in 2006 dollars, while the shortfall in Medicare's hospital insurance fund was put at $11 trillion. In comparison, the 75-year cost of making Bush's first-term tax cuts permanent was $13.6 trillion, the center said.

Social Security is currently running a surplus, with more money coming in from taxes than is being paid out in benefits. However things will change once the post-World War II baby boom generation begins retiring in a few years. Since the government spends the surplus on other federal programs, the Social Security and Medicare trust funds essentially are government IOUs. To redeem those IOUs to pay benefits, the government will have to do some combination of increasing borrowing, cutting spending in other areas or raising taxes. That means that the pinch will occur long before the trust funds are depleted when the cost of the programs exceeds the amount they collect in taxes and premiums each year.

According to the trustees, the Medicare hospital insurance trust fund, that crossover point was projected to occur permanently in 2006 and for Social Security, the date that taxes will not cover all benefits will occur in 2017. Even after the trust funds are depleted, Social Security taxes will cover 74 percent of benefits in 2040, the trustees estimated.

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Sardar Sarovar Oversight Group Violating its Terms of Reference
Prime Minister Must Recall Group and Halt dam's Construction

“THE Terms of Reference and responsibilities of the Sardar Sarovar Relief and Rehabilitation Oversight Group (OSG) appointed by the Prime Minister of India were to "undertake sample checks to ascertain the facts of rehabilitation.” However the Additional Solicitor General informed the Supreme Court that the sample checks would not be conducted. OSG has also not discussed or recorded any decisions regarding conducting sample-checks.  Sample checking of Narmada valley villages for rehabilitation problems should not take more than 5-7 days.  However the OSG is exceeding its terms of reference and instead of surveying samples is planning on surveying each and everyone of the 35,000 or so families. This will take up to June 19 and meanwhile the dam will be built to 121.9 mts putting thousands of families in the submergence zone.  Critical time has been lost by the OSG to actually act on its terms of reference that could have come up with a quick assessment like the one made by the Prof Soz led Group of Ministers. We urge the Prime Minister to take cognizance and recall the OSG and call halt to the construction of the Sardar Sarovar dam since rehabilitation assessment by sample-checks up to 121.9 mts has not been carried out by the OSG. We urge the National Sample Survey Organization to actually survey samples and come with a quick assessment in 5-7 days by May 17th 2006.   We urge the chair and members of the OSG to listen to their inner voice, apologize and if they deem fit resign for violating their Terms of Reference.”

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