MCA president Dr Chua Soi Lek has clarified that he was not present during the National Economic Council meeting that recommended the removal of the diesel subsidy given to several types of vehicles, including the C2 class deep sea fishing trawlers.

Responding to a minister's claim that MCA had not objected to the unpopular move, Chua said that he has had no chance yet to address the council on the matter.

As such, he said, MCA had issued statements to voice the grievances of the trawler operators, who are now on strike.

NONE "MCA feels that the government has to listen to the fishermen's complaint if it has basis. We feel that the complaint is reasonable," Chua told reporters after opening the Klang MCA annual general meeting yesterday evening.

Domestic Trade, Cooperatives and Consumer Affairs Minister Ismail Sabri criticised Chua yesterday for not raising the issue with the council, on which Chua sits, when it discussed the subsidy cuts.

Ismail said that MCA should not be making a fuss over the issue, now that the subsidy removals had been decided.

Chua said his presence at the meeting was not the main issue because the removal of special subsidies for the C2 class trawlers and eight other types of commercial heavy vehicles from June 1 was decided by cabinet.

Gov't can't flip-flop

He also called on the fishermen to be practical as their decision to go on strike would not solve any problem.

There was no chance of the government returning the diesel price to RM1.25 a litre for trawler operators, Chua said, but noted that attempts were being made to lobby for a RM1.50/litre price.

The trawlers operators had earlier said that they would be willing to settle for diesel at RM1.40 a litre.

"It is not easy to change a cabinet decision. Otherwise the government will be seen as flip-flopping," said Chua.

The decision to remove what has been known as‘super subsidies' for nine types of commercial vehicles had caused a shortage of deep sea fish, with the commercial hauling cost also going up.

The electricity tariff was also raised by an average of seven percent, hitting the industrial sector most.

Economists believe that a sharp inflationary spike looms, which is threatening the Najib administration's economic growth targets and fuelling dissatisfaction against the BN regime, which is accused of turning a blind eye to graft and acting in favour of business cronies.

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