The cabinet mulled possible practical ways to relieve the burdens of citizens and improve the standards of living, Deputy Premier, Foreign Minister and Acting Minister of State for Cabinet Affairs Sheikh Dr. Mohammad Al-Salem Al-Sabah said in a press briefing.
Minister of Commerce and Industry and Minister of State for National Assembly Affairs Ahmad Baqer briefed the meeting on a report outlining the reasons behind the global phenomenon of soaring prices of foodstuffs and consumer commodities.
Baqer also reviewed the recommendations of the National Assembly (parliament) meeting held on this issue in June and the relevant ministerial decrees, Sheikh Dr. Mohammad disclosed.
The cabinet also mulled the efforts of the Central Bank of Kuwait to check the soaring inflation through rationalization of credit policies, stabilizing the dinar exchange rate and enhancing the economic growth.
The policies envisage employment of fiscal controls; subsidizing more consumer items such as chickens, meat and cheese; and exempting cement, steel and other building materials from customs tariffs in line with the relevant GCC treaty.
The measures also envisage launching the smart card fund which will cost an estimated KD 20 million to maximize the benefits of Kuwait households from sales of commodities.
The project will be supervised by a specialized committee and the Sate Audit Bureau (SAB), Sheikh Dr. Mohammad went on to say.
The government plans to offer various kinds of subsidy to some companies including the Cattle and Sheep Co. and the Mills Co. to ensure provision of their products to consumers at a more reasonable prices.
The cabinet discussed launching a shareholding company to develop Al-Abdali Area and run the future public projects, logistic services and land ports there.
Another shareholding company will be launched to run the development process of Al-Shaqaya Area and the projects of warehousing and small and medium-size manufacturing industries.
The cabinet also probed the possible launching of a committee for protecting consumers in cooperation with the concerned public interest societies.
The committee will include representatives of concerned government departments will follow up all affairs relating to protection of consumer interests and safety and combat all forms of commercial foul-play.
The total cost of the new measures runs to KD 90 million, Sheikh Dr. Mohammad disclosed.
The recommendations discussed assert the importance of avoiding any measures that could lead to higher inflation rate or price rises. They encourage fair commercial competition and increase subsidy instead, he added.
The cabinet approved the recommendations in principle and decided to hold another meeting this week to continue debate and approve them. The recommendations will then be referred to relevant departments for implementation.
The cabinet thanked the committee which worked out "this special and practical report" under chairmanship of Baqer and voiced hope that the report would help relieve the burdens of citizens.
The cabinet was also briefed by Minister of Public Works and Minister of State for Municipality Affairs Dr. Fadhil Safar Ali Safar on the progress of the first phase of the infrastructure works of Jaber Al-Ahmad Al-Sabah Hospital.
A tender has been announced on the second phase of the project which will be complete in early 2012.
The cabinet also dealt with political issues relating to the latest developments of the situations in the Arab region and the world at large, Sheikh Dr. Mohammad added.
