Oil royalty: State Govt did pursue issue, but...
Kota Kinabalu: The State Government will look at any possibility available to improve the quantum of the oil royalty payable to Sabah. "This is not an easy issue because it has gone on for too long.
"I just think that maybe Yang Berhormat Tengku Razaleigh Hamzah, as the architect of the agreement (on the oil royalty between the Federal and State governments) should have voiced this out when he was still holding office in the Government," said State Tourism, Culture and Environment Minister, Datuk Masidi Manjun, Monday.
He was responding to former Finance Minister Tengku Razaleigh who had said at a talk on the petroleum royalty organised by NGOs at the Hongkod Koisaan, last Friday, that there was nothing to stop Sabahans from asking for an oil royalty increase.
He had said that Sabahans could ask the State Government to hold fresh negotiations on the royalty with the Federal Government.
The agreement was signed by Datuk Harris Salleh in 1976 and witnessed by Datuk Joseph Pairin Kitingan.
"However, we will take notice of this and surely the Government through the State Cabinet will discuss this," Masidi said, while suggesting that oil-producing states like Sabah, Sarawak, Terengganu and Kelantan should talk with each other before making demands for better oil royalties.
Razaleigh, who was also former Petronas Chairman, was responsible for drawing up the Petroleum Development Act (PDA) 1974 that led to the setting up the national petroleum company.
Masidi said the State Government had previously sought to get Federal to revise the State's oil royalty with a view to raising it from the present five per cent. The request was made during the administration of then Prime Minister Tun Abdullah Ahmad Badawi.
However, the Sabah Government decided to stick with that amount after the central government promised to channel more funds into the State, in lieu of increasing the royalty.
"It was only (agreed) after taking opinions and the fact that there were other ways for the Federal Government to source allocations for development into Sabah other than raising the royalty," he said.
"We have to look at it in totality (and) don't just focus on oil revenue (because) funds to develop Sabah do not depend on oil alone.
"We look also at the wider aspect of the Federal-State relationship where there are existing arrangements (where) perhaps Sabah got more than the other states, other than Sarawak of course."
Meanwhile, Masidi, who is also State Minister in-charge of Education, welcomed a proposal to increase the allowance of teachers in the rural areas but pointed out more effort should be made on improving basic infrastructures for teachers in these areas.
This will attract more teachers of better quality to be willing to be stationed in rural areas, he added.
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