AZMIN: OIL ROYALTY MEANS CASH PAYMENT

‘Don’t use the definition of royalty from a dictionary’

PAKATAN Harapan has not breached its election promise of giving 20 per cent oil royalty to oil producing states. Economic Affairs Minister Datuk Seri Azmin Ali said the use of the word “royalty” in the PH manifesto meant “cash payment”, which was in line with the use of the phrase in the Petroleum Development Act 1974 (PDA).

“I wish to stress that in the Petroleum Development Act, it did not mention ‘royalty’, but instead used the words ‘cash payment’.

“But the general term that we understand is royalty,” he said in reply to questions from members of parliament from east coast states and Sarawak.

He made the reply during his ministry’s winding-up speech.

When Azmin’s speech touched on the 20 per cent oil royalty issue, Datuk Che Abdullah Mat Nawi (Pas-Tumpat) stood and demanded the minister read out the actual oil royalty promise as stated in the PH manifesto.

Joining in the fray was Datuk Seri Mustapa Mohamed (Barisan Nasional-Jeli), who asked whether people had been misled by PH’s 20 per cent oil royalty promise.

He said the people would logically assume that the 20 per cent oil royalty promise was based on gross production as the PDA calculated royalty payments based on gross production.

When Datuk Seri Nancy Shukri (Parti Pesaka Bumiputera Bersatu-Batang Sadong) sought similar clarification, Azmin whipped out PH’s manifesto and read out from page 21, which states that PH promised to increase oil royalty to oil-producing states to 20 per cent.

Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) cited Standing Order 36(12) over Azmin allegedly confusing the Dewan Rakyat over the issue.

Taking off his spectacles, Wee squinted at his smartphone and read out the definition of royalty, which he read out as compensation or portion of proceeds paid to the owner of an oil or other mineral for use of it.

Azmin countered that one could not use the definition of royalty from a dictionary, but use its meaning in the PDA, which used the term “cash payment”, and generally understood as royalty.

He cited Section 4 of the Act, saying cash payment was made based on agreements between Federal and oil-producing state governments.

In the Petroleum Development Act, it did not mention ‘royalty’, but instead used the words ‘cash payment’.