Bahrain's unionists plan to launch a national alliance to have a say in the government's decision to redirect subsidies on fuel, food items and other utilities.

They are hoping to be joined by other civic organisations as well as MPs in opposing the plan.

The General Federation of Bahrain Trade Unions (GFBTU) has now formed a special committee to begin the process.

The move follows Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa's announcement that the government is studying plans to redirect subsidies without compromising the middle and lower classes.

The minister said plans to 'redirect subsidies' would target opulent sectors, companies and non-Bahrainis.

He described the 'inflated subsidies' as a real challenge facing the government's capacity to honour the necessary budgeted spending schemes and to continue the development momentum.

Oil and Gas Affairs Minister and National Oil and Gas Authority (Noga) chairman Dr Abdulhussain Mirza also stated that Bahrain could no longer indefinitely maintain high fuel subsidises and that they should be redirected to benefit the most needy.

He said that at present companies, affluent people and expats benefit equally from the support and this needed urgent review to ensure fairness and to avoid waste and abuse.

'Our position as unions regarding this issue is that the government should not take a hasty decision regarding subsidies,' said GFBTU secretary-general Salman Mahfoodh.

'We at the federation understand there is a problem, but lifting subsidies is not the solution.'

He said Bahrain like any other country was not spared from inflation and that redirecting subsidies on fuel, flour and other utilities would affect Bahraini households and low-paid workers.

'The salaries have remained constant and the price of commodities has increased,' said Mahfoodh.

'The budget of families is affected and low-paid workers, including expatriates, will now have to pay extra to purchase bread or meat.'

The GFBTU has always pushed for a minimum wage in the private and public sectors, which has not yet been implemented, he said.

GFBTU activities and projects assistant secretary- general Karim Radhi said that without a minimum wage, citizens and residents would have to pay more.

'The government should carefully study all aspects and come out with a strategy that is easy on the pocket,' he said.

Meanwhile, the National Democratic Action Society is today holding a symposium at its premises in Umm Al Hassam on the issue.

Society secretary-general Ibrahim Sharif said it was imperative for the new parliament to tackle the matter.

'This is a serious issue and needs to be raised in parliament by the newly-elected MPs,' he said. 'The authorities want to reform the subsidies programme by increasing fuel prices and other items which will affect middle-income families.'-TradeArabia News Service