BusinessMirror November 3, 2015

Hotel occupancy slipped in H1 2015–U.N. report

By Ma. Stella F. Arnaldo

Special to the BusinessMirror

L ALYSA SALEN

ONDON, United Kingdom—Hotel occupancy rates in Manila slipped to an average of 68 percent in the first half of the year, just 1.6 percentage points lower than the rates a year ago, according to a report by the United Nations World Tourism Organization (UNWTO) in August this year.

Citing data provided by STR Global Ltd. and Smith Travel Research Inc., the UNWTO World Tourism Barometer, likewise, noted that in Southeast Asia, the Philippines recorded the smallest dip in hotel occupancy rates from January to June this year, compared to its neighbors and

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resident Aquino is taking advantage of a strengthening budget to overhaul the salaries of about 1.3 million government workers in his final months in office, a move that could boost both civil service morale and the economy as the nation prepares for an election next year.

plums for the young and crafty On COntritiOn BasiC Guide, LOuie M. LaCsOn Word&Life Publications • teacherlouie1965@yahoo.com

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‘24 Oras’ rallies GMa back tO tOp Of priMe tiMe

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Plums for the young and crafty

By Samito Jalbuena

goes to the aforementioned Gatus of UP for her project.

Meanwhile, for the architecture category, the gold winner is Jose Augustine Ricarte of UST for “Marikina Link,” followed by silver winner Marko Alab Adviento, also of UST, for “Sibol: Interactive Community Park.” Again, Best Supporting College or University is UST. Also marvelous are the works of Best Color Choice Award winner Ruben Felizarte of Far Eastern University for “Conart Park” and Best Green Innovation winner Kae Ann Aguila of UST for “UrbaNature.”

This winning list was selected from a broad set of finalists, which included a hefty number of students from UP, UST, University of San Carlos, Technological Institute of the Philippines, and Eulogio “Amang” Rodriguez Institute of Science and Technology, among others.

Commented Michael Chung, general manager of Nippon Paint (Coatings) Philippines: “With the official launch of the Nippon Paint Young Designers Awards in the Philippines [years ago], we have noticed how Filipino designers have this genuine passion in creating spaces which are people-oriented and environment-friendly.

We are very sanguine [in the thought] that this year’s [winners] can maximize their innate talent to step up and compete with [the rest of the world].”

That should truly be an award in itself, but what was also tantalizing for the young contestants were the prizes. Each of the gold awardees were given P50,000 in cash, aside from a six-month internship at Lor Calma & Partners (for interior design) and Casas Architects (for architecture).

This comes on top of an all-expense-paid overseas trip for a once-in-a lifetime learning program that includes an exclusive workshop crafted especially for learners, featuring internationally renowned speakers in the fields of architecture and interior design. As of press time, the name of the program or the overseas destination has not yet been announced.

But here are more prizes. The winner’s professor or adviser also received bounty in the form of P10,000 in cash, while each academic institution received P10,000 in cash, aside from a gift voucher of paint worth P10,000.

These amounts may be small for some, but most compelling is the opportunity to work at an internship at some of the best design firms in the country. Such a stepping stone can lead to other golden opportunities. That said, perhaps more students can be encouraged to join the competition next year.

For more information on how to compete for the next round, point your browser to www.youngdesigneraward.ph.

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ATURATE the world with color and design, and we can make the world a better place—but be sure to take note that some paints are brighter and some designs are bolder than others. This seemed to be the guiding principle behind the Nippon Paint Young Designer Award, which selected as its theme the phrase “Design With Heart” for this year’s iteration.

The Nippon Paint Young Designer Award is a platform and an opportunity for architecture and interior design students to think beyond the contemporary and the commonplace. First launched in 2008, the award’s aim is to inspire students to be more innovative and to motivate them to a higher degree of professionalism.

“It is where young interior designers and architects alike can break through the limits and confines of conservative and acceptable thinking, and deliver ideas and environments that everyone will enjoy, cherish and thrive in,” according to a Nippon Paint statement.

Indeed, improving architectural and interior design functionality, enhancing lifestyle experiences and transforming ordinary lives to become most awesome was the core ethos of “Design With Heart,” as seen from the selection of winners, who were culled from the lot of third- and fourth-year interior design and architecture students. If we go by the winning designs available for perusement at www.youngdesigneraward.ph, we can see that this year’s winners have risen to the challenge of creating environments that will benefit people from all walks of life, including the elderly, the young, nursing mothers and the disabled, among others.

As per the project briefs, which are guidelines to the competition, interior designers were encouraged to share their vision of an ideal work space that promotes work-life balance by being engaging and innovative, as well as eco-sustainable.

Architects were tasked with creating an ideal community-interactive space that could provide a wholesome environment to nurture family and community relationships, advocate good values and inspire people to think creatively.

With that said, here are the winners of the Nippon Paint Young Designers Awards 2015: For the interior design category, the gold winner and recipient of the Best Green Innovation Award is Martha Joyce Tomas of the University of Santo Tomas (UST) for “Biojet,” followed by silver awardee Courtney Gatus of the University of the Philippines (UP) for “Project Eversmile.”

Best Supporting College or University is UST, while best color choice once again

An entry for the interior design category

Green innovation in architecture

COuntrY’s First BCa Green MarK-CertiFied serViCed residenCe

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PREMIER serviced residence, The Ascott Limited’s Citadines Salcedo Makati was recently awarded the Green Mark Award by the Building and Construction Authority (BCA) of Singapore. The property had undergone BCA’s stringent comprehensive framework of assessment, which is focused on the building’s sustainable design, construction and operational practices aimed at reducing the adverse impacts of the building on the environment and occupant health over the entire building life cycle. Citadines Salcedo Makati is the first serviced residence in the Philippines to be BCA Green Mark-certified.

The BCA Green Mark evaluates buildings to primarily shape a more environmentally friendly and sustainable built environment. The buildings are assessed based on energy and water efficiency, environmental protection, indoor environmental quality, and green

and innovative features that contribute to enhanced building performance.

The Ascott Limited has been a strong advocate of green living, adopting a global campaign “Go Green @Ascott.”

With the vision of being the leading green serviced-residence company, Ascott is constantly on the lookout for breakthroughs in green technology and practices, and more green products available.

Managed by The Ascott Limited, Citadines Salcedo Makati (www.theascott.com) has incorporated energyand water-saving features throughout the property to help reduce carbon footprint. The building was built to conform to global environmental specifications by using energy-efficient lighting, which makes use of LED lights that burn less energy, practically maintenance-free and lasts longer than traditional incandescent light.

Apartment toilets feature water-

saving fittings, such as dual flush toilet cisterns, to cut down on water consumption. Citadines Salcedo Makati is also designed to make good use of natural lighting and ventilation, aimed at minimizing its environmental impact while ensuring users’ comfort.

Staff and residents have, likewise, been encouraged to pitch in via segregation of biogradable and non-biogradable items and utilize reusable eco bags for shopping, etc.

Situated in Salcedo Village, within the Makati Central Business District, Citadines Salcedo Makati is within walking distance to various financial and corporate offices, including Citibank Tower, Ayala Tower and the Philippines Stock Exchange. The property is just a stone’s throw away to lifestyle and wellness hubs, as well as recreational facilities and attraction, including the Makati Sports Club and Velazquez Salcedo Park.

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royals celebration!

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| Tuesday, November 3, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

BusinessMirror

ROYALS

CELEBRATION! There was no better example of it than during their coronation on Sunday night in a stunned Citi Field. The Royals are World Series champions for the first time in 30 years and the second time in their franchise’s history. They clinched because of their eighth come-frombehind victory in 16 postseason games.

METS catcher Travis d’Arnaud looks back as the Royals’ Eric Hosmer celebrates after scoring on a fielders’ choice on a hit by Salvador Perez in the ninth inning. AP

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By Jake Kaplan

The Philadelphia Inquirer

dugout and told him his night was over. “No way,” the 26-yearold right-hander responded, and minutes later he was sprinting out to the mound to cheers.

The heart of the Royals order separated the Mets from sending the series back to Kansas City for Game Six on Tuesday. Against Lorenzo Cain, Harvey missed low with a full-count slider. The Royals speedy centerfielder stole second base and then scored easily on a double by Hosmer. Mets manager Terry Collins ambled out to the mound to get Harvey. That was it.

Collins called on closer Jeurys Familia to face Mike Moustakas, whose groundout advanced Hosmer, representing the tying run, to third base. Salvador Perez followed with a broken-bat ground ball to Mets third baseman David Wright, who cautiously looked Hosmer back to third before throwing to first base for the easy out.

But when Wright threw, Hosmer made his mad dash for home.

Lucas Duda, the Mets’ first baseman, rushed his throw and sailed it wide of catcher Travis d’Arnaud. Hosmer slid head first across home plate to tie the score with two outs. Citi Field fell quiet. Duda was charged with an error.

Both teams’ bull pens threw up zeros until the 12th. Perez led off the frame with a single off Reed and was replaced on first base by Dyson, who promptly stole second base and advanced to third on an Alex Gordon groundout. That brought up Colon, a pinch-hitter.

Colon, a former fourth-overall draft pick, lined a single to score Dyson, a former 50th-round draft pick. The Royals led for the first time on the night. Then they piled on.

Harvey, admittedly not his best in Game One, was sharp from

The government will propose a bill that would raise the president’s monthly pay to almost P400,000 ($8,500), from P120,000 now. The change would put the wage at about 70 percent of the average salary of top executives in private companies, up from 23 percent, Budget Secretary Florencio B. Abad said. Compensation for state workers will rise to about 84 percent of the average market rate from the current 55 percent, he added.

By Marc Carig

a few hours before, Citi Field emptied out, the fans forced to stomach an unfulfilling end.

Wilmer Flores struck out and the Royals swarmed the field champions at last.

The outcome had been clear in the ninth, when the Royals rallied from 2-0 down. For the third time in the World Series, the Mets inched within a handful of outs of a victory. For the third time, they let the lead slip away, their hopes vanishing in a hail of heartache.

For eight innings, Matt Harvey hoisted the Mets on his shoulders, outdueling Edinson Volquez.

As the Mets batted in the eighth, their lead at 2-0, the 44,859 in attendance aimed their chants at the Mets dugout.

“We want Har-vey!” they roared. “We want Har-vey!”

Collins obliged. Harvey sprinted back to the mound, the entire season left in his hands. When he walked Lorenzo Cain to start the inning, Collins didn’t move, allowing the ace to continue. But for all of Harvey’s heroics, this was a mistake.

Eric Hosmer ripped a run-scoring double that silenced Citi Field and cut the Mets lead in half. Harvey left to a rousing ovation, the tying run at second base, the closer Familia jogging in from the bull pen.

Mike Moustakas’s grounder moved Hosmer to third base, setting the stage for heartbreak.

Salvador Perez hit a grounder to third base, where it was fielded by Wright, who turned to freeze Hosmer at third. But when Wright threw, Hosmer broke for the plate, a move that was both risky and reckless.

First baseman Lucas Duda’s throw home sailed well wide of catcher Travis d’Arnaud. The Royals had tied it.

A stunned Citi Field sat in silence. Harvey was charged with two runs in eight-plus innings.

Familia was charged with his third blown save of the World Series. And once again, the Mets burned for their shaky defense, which haunted them in their pursuit of a championship.

In Game One, Harvey looked to be only a shell of himself. He allowed three runs in six innings, but more than that, it was the way the start unfolded that stoked questions about what he had left.

After the game, he admitted that he shied away from his fastball because it lacked life. He didn’t trust his command, making matters worse.

Harvey recorded only seven swings-and-misses and two strikeouts—abnormal low totals for a pitcher accustomed to dominance. But inactivity, not fatigue, was the cause, pitching coach Dan Warthen insisted.

The Mets’ sweep of the Cubs in the National League Championship Series (NLCS) meant Harvey’s first start in Game One would come after a 10-day layoff. The rust corroded his mechanics.

He came back feeling “too strong,” a common complaint among pitchers accustomed to rhythm.

The remedy was simple, Warthen insisted.

Pitching on regular rest in Game Five would cure Harvey’s ills. He was right. His signature slider returned, spring-loaded with movement. His fastball touched 98 miles per hour, and he guided it with the deft touch of an All-Star.

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roperty developer Megaworld Corp. on Monday said it will allocate some P65 billion for its integrated resort and casino project in the Entertainment City, which will now be called Westside City (previously Bayshore City Resorts World).

The company said the development will house its upscale residential condominiums, a luxury mall and a 3,000-seater grand opera house and a host of other hotel brands. There will be nine towers for the residential component with a total of 1,236 units.

“Part of the company’s vision for Westside City is to become the ‘Broadway of Asia,’ as the township highlights facilities for the performing arts,”the company said.

High taxes, political dynasties and other unfinished business in 16th Congress

By Jovee Marie N. dela Cruz

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Second of three parts

“We are very excited to see Westside City rising to be a showcase of Manila as a truly world-class Philippine capital,” said Andrew Tan, chairman and CEO of Alliance Global Group Inc., the mother company of Megaworld and Travellers International Hotel Group Inc., the two firms that will jointly develop the integrated resort.

Westside City is Megaworld’s 20th integrated urban township and also the company’s second leisure and entertainment township next to Newport City in Pasay City.

Tan’s 31-hectare integrated resort will have a total of 1,500 hotel rooms from brands such as Westin Hotel of the Starwood Asia Pacific Hotels and Resorts See “Megaworld,” A2

Continued on A2

“This is going to be one of the more aggressive enhancements in the pay of our government work force,” Abad said in an interview on October 29 in Manila. Congressional leaders have committed to pass the bill before they go on a break in December, he added.

But the motive behind the planned raise in government pay was immediately questioned.

See “Raising pay,” A2

Megaworld to spend P65 billion for Westside City resort project

THE Royals’ catcher is named Most Valuable Player of the World Series. AP

the get-go in Game Five, and through six innings had permitted only four-base runners, three on singles and one via a walk. He had each of his four pitches working, his fastball reaching 98 mph.

Over the fourth and fifth innings, Harvey recorded six consecutive outs via strikeout. In succession, he punched out Cain, Hosmer, Moustakas and Perez. He finished his outing with nine strikeouts against a contact-heavy lineup that struck out at by far the lowest rate in the majors this season.

Chants of “Har-vey,”“Har-vey” grew only louder as the “Dark Knight” pitched through the seventh and eighth innings and triumphantly returned for the ninth. After he induced an inningending groundout from Alex Rios to end the seventh, he pumped his fist and screamed, “Let’s go!” as he walked back to the dugout.

The Royals’ Edinson Volquez pitched a great game in his own right, especially considering the circumstances. Five days earlier, his father, Daniel, had died of heart failure at the age of 63. This was the pitcher’s first start since he learned of the news following his outing in Game One, after which he flew home to the Dominican Republic for the funeral.

After rejoining the Royals late on Saturday, Volquez took the ball on Sunday night. The 32-year-old righthander turned in six innings of two-run baseball. The only earned run he allowed came against the first batter he faced, Curtis Granderson, who drilled an 0-2 change-up over the center-field fence. The Mets scored the other run on a Duda sacrifice fly in a sixth inning extended by a Hosmer fielding error.

Three innings later, Hosmer redeemed himself, in typical Royals fashion.

TEARS, AGONY AND MISERY Newsday

HERE will be time for perspective. The bitter winter will pass, the spring will come, and the memories of this franchise’s revival will warm the souls of even the most hardened. But first, there will be mourning.

There will be tears for what might have been, agony for just how close they came to greatness, misery for how it all fell apart at the end. The Mets couldn’t get out of their own way.

This is what allowed the Royals to ascend to the championship for the first time since 1985, winning Game Five of the World Series, 7-2, in 12 innings, and ending what had been a splendid summer.

Their relentlessness never in doubt, the Royals scored five runs in the 12th inning to break open a tense game. Christian Colon, in his first postseason appearance, ripped a single to knock in the goahead run. Half of the Royals spilled onto the field in front of their dugout, their joy unrestrained.

One year before, they had been denied on this stage. Now, the Royals stood alone.

David Wright arrived at the brink of a championship after nine long years filled with pain and losing. Terry Collins got here after 45 years in professional baseball. The Mets signaled their return after a financial scandal brought the franchise to its knees.

Now, the Mets must wait through the winter to chase their first title since 1986. Electric just

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special report

he lack of legislative sessions in what’s left of the 16th Congress already killed the proposals lowering individual and corporate incometax rates, according to Speaker Feliciano Belmonte Jr. This is despite the strong lobbying from business chambers and labor groups.

While admitting that the government needs to tweak the income-tax regime to increase the take-home pay of ordinary workers, Belmonte said the lower chamber no longer has the time to pass the tax-reform measure, especially now that lawmakers are focusing on the upcoming 2016 national elections. Under the law, all tax measures must emanate from the House.

Add to this the biggest stumbling block to the passage of the income-tax reform bill—the strong position of the Palace.

With this, Belmonte said it is now up to the next administration to find solutions on how to increase the take-home pay of Filipino workers.

“Personally, I could have wanted discussions on it, more in-depth study. Let’s get momentum in its favor and then make it one of the first priorities of the next administration.

Let them reap the reward of this,” he said.

THE Royals run aggressively and relentlessly, and simply make things happen and are now crowned World Series champions. AP

EW YORK—This is what the Kansas City Royals do.

They make contact at an abnormal high rate. They run aggressively and relentlessly. They simply make things happen.

There was no better example of it than during their coronation on Sunday night in a stunned Citi Field. The Royals are World Series champions for the first time in 30 years and the second time in their franchise’s history. They clinched because of their eighth come-from-behind victory in 16 postseason games.

Eric Hosmer’s break for home in the ninth inning, a stunning play that resulted in the tying run, encapsulated Kansas City’s style of baseball. Three innings later, after dynamite closer Wade Davis nailed down their 7-2 win by striking out Wilmer Flores, the Royals celebrated on the infield.

Kansas City broke the 12th-inning gridlock with five runs charged to Mets reliever Addison Reed. Christian Colon, in his first plate appearance of the postseason, drove in pinch-runner Jarrod Dyson for the go-ahead run.

The night was supposed to belong to Matt Harvey, the polarizing New York ace who through eight innings had pitched the game of his life: eight scoreless innings of four-hit baseball.

At 102 pitches, Mets Pitching Coach Dan Warthen approached Harvey in the

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Thursday 2014 Vol.3,10 2015 No. 40 Tuesday,18, November Vol. 11 No. 26

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P-Noy raising pay of 1.3M state workers in last hurrah P

INSIDE

Sinning no more

Continued on A4

nony lacza

2006, 2010, 2012

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due to the increase in number of rooms available with more hotels opening and in the pipeline. Under the National Tourism Development Plan (NTDP) from 2011 to 2016, about 70,000 rooms are needed to accommodate foreign visitors targeted to reach 10 million by 2016.

In an exclusive interview with Tourism Secretary R. Ramon Jimenez Jr., he said the country is on track in reaching the additional rooms target for 2016. “As far as I know, yes we are on track. But remember, because in terms of arrivals we’re not on track, we can hit that additional rooms target even more. We gained a little more elbow room.”

As such, he attributed the slip in hotel

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three-time rotary club of manila journalism awardee

ear Lord, teach us that contrition, or sorrow for sin is hatred of sin and a grief of the soul for having offended You, with a firm purpose of sinning no more. Our sorrow for our sins should be interior, we must have the sorrow in our hearts, not just in words. Our sorrow should be supernatural, prompted

by Your grace and excited by motives which spring from faith. It must be universal, we should be sorry for all our sins, without exception. And must be sovereign, we should grieve more for having offended You than for any other evil that can befall us. Oh Lord, we are in a state of grace of sinning no more. amen!

traditional tourism rivals in the region, where drops ranged from 2.1 percentage points (Singapore) to as high as 8.6 percentage points (Bali).

Only Bangkok, Phuket and Hanoi recorded higher hotel occupancy rates in the first half of 2015 at 76 percent, 73.1 percent and 74.9 percent, respectively, according to the UNWTO report.

The UNWTO said the dip in hotel occupancy rates from January to June 2015 was “partly a reflection of the appreciation of the US dollar in relation to many of the regional currencies, rendering revenue earned in local currencies lower in US dollars terms.”

The government and private sector said the softening hotel rates was largely

‘Great offer’ for MRT Line 3 rehabilitation lost to technicality

By Lorenz S. Marasigan

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ilipinos may have lost a “great offer” for the P4.2-billion rehabilitation of the Metro Rail Transit (MRT) Line 3 due to technicality.

The joint venture between Schunk Bahnund Industrietechnik-Comm Builders & Technology Philippines (SBI-CB&T) has filed a motion for reconsideration to appeal the Department of Transportation and

Communications’s (DOTC) nonacceptance of its offer, citing certain loopholes in the agency’s notices to bidders.

The negotiating team, led by Transportation Undersecretary Rene K. Limcaoco, reportedly refused the group’s proposal to conduct a major rehabilitation and overhaul of the deteriorating trains of the train line along Edsa for submitting the offer “late.”

The Filipino-German group failed to submit its bid on or before 10 a.m. on October

PESO exchange rates n US 46.8590

28, hence, the proposal for the negotiated contract was not accepted. This technicality, however, was questioned by the group.

The joint venture’s authorized representative, Roehl B. Bacar, explained that there was no specific time set as a deadline by the DOTC team for the submission of compliance documents on October 28 at the prior negotiation meeting on October 21.

“It should be noted that in the course of the proceedings of the said opening of the

eligibility and technical documents on October 21, the negotiating team, as well as the offerors, have not fixed nor discussed the time for the submission of the compliance documents on October 28, 2015,” he said in a letter addressed to Limcaoco.

Hence, the negotiation bulletin “is not binding, considering that it is clearly a unilateral declaration and, therefore, could not be enforced against SBI-CB&T and/or the party or parties who had not given their

assent neither consented thereto, especially that the rights of SBI-CB&T was prejudiced by such fixing of time for the submission of compliance documents.”

“Moreover, the bulletin does not specifically state that, any submissions made beyond 10 a.m., shall not be accepted. Such being the case, SBI-CB&T’s compliance documents shall be allowed for proper consideration by the negotiating team,” Bacar said.

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n japan 0.3884 n UK 72.2472 n HK 6.0463 n CHINA 7.4173 n singapore 33.4683 n australia 33.3920 n EU 51.5496 n SAUDI arabia 12.4950

Source: BSP (2 November 2015)

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High taxes, political dynasties and other unfinished business in 16th Congress Continued from A1

No tax cut On September 14 Malacañang, taking the cue from the Department of Finance (DOF), already rejected the passage in Congress of a long-pending bill mandating adjustments in individual and corporate income-tax rates, saying the government “cannot put our fiscal sustainability and credit rating at risk by doing piecemeal revenue-reducing legislation.”

The DOF has warned lawmakers that reducing the individual income- and corporate-tax rates may cause the government to lose revenues totaling as much as 1.5 percent of the country’s GDP, or P30 billion.

But amid strong calls to pass the tax-reform measure, House Committee on Ways and Means Chairman and Liberal Party (LP) Rep. Romero S. Quimbo of Marikina and Senate Committee on Ways and Means Chairman Sen. Juan Edgardo Angara said the DOF is currently reconsidering the tax-reform proposals as instructed by the President during their meeting on September 24.

According to Angara, he and Quimbo presented before President Aquino “various arguments and reasons for tax reform, from the level of individual households at the micro level and the benefits to society and the economy at large.”

But last week Mr. Aquino, himself, rejected anew the proposal slashing income- and corporate-tax rates.

Under the lower chamber’s version of the bill, individuals earning below P180,000 annually will be exempted from

paying income tax. In the current setup, those earning P10,000 or less per month pay 5-percent income tax.

The bill also reduces the income-tax rate of those earning above P180,000 to 5 percent. The highest rate at 30 percent will be paid by those earning P1.1 million annually, he said.

Currently those with yearly earnings of P500,000 and above pay 32-percent income tax.

The country’s current individual income-tax brackets remained unchanged since 1997.

However, Senior Deputy Minority Leader and Party-list Rep. Silvestre “Bebot” Bello III of 1-BAP and Independent Minority Bloc Leader and Lakas Rep. Martin Romualdez of Leyte said the leadership of the House of Representatives should still pass the proposal to pressure President Aquino into signing it into law. “[Chairman of the House Committee on Ways and Means] Miro [Quimbo of Marikina] should pass it first at the committee level and the House and Senate leadership [on final reading] and after that let P-Noy face his bosses,” Bello said.

Romualdez also urged his fellow lawmakers to support the measure so as to pressure the Palace to change its position in support of the measure. “We would definitely want this measure to get passed as this stands to benefit millions of Filipino workers,” Romualdez, a lawyer, said.

But given the remaining session days of the Congress and the position of the Palace, Quimbo said only the proposal adjusting the levels of taxable income to inflation is viable.

Quimbo, citing government data, said

the P500,000 income bracket, currently taxable by 32 percent, needs to be adjusted, considering that this amounts to P1.2 million today.

Belmonte and Drilon are set to convince Mr. Aquino to at least accept the proposal adjusting the levels of taxable income to inflation, after the Palace repeatedly rejected anew the proposal lowering income- and corporate-tax rates.

“We [Senate President Franklin Drilon and I] will still convince President Aquino [at least] on the proposal adjusting levels of taxable income to inflation,” he said.

Dynasties remain

Also considered as a “dead bill” this Congress is the antidynasty bill. Belmonte, in a recent news conference, said the measure—approved in the committee chaired by Capiz Rep. Fredenil Castro—was never recommended for plenary debates.

The committee-approved version allows only two members of the second degree of consanguinity and affinity of the family to run in one place. It, however, allows the relatives affected to run in other places.

“We have mixed opinions on the number of members who will be allowed to run,” Belmonte said. “We have complied with our obligation under the Constitution, which prescribes anti-dynasty as may be provided by law. But I do not want to support any antidynasty law which has full of holes,” Belmonte said.

Under the Constitution the state shall guarantee equal access to opportunities for public service and prohibit political dynasties as may be defined by law.

NORTHEAST MONSOON AFFECTING EXTREME NORTHERN LUZON EASTERLIES AFFECTING EASTERN SECTION OF THE COUNTRY (NOVERMBER 2, 5:00 PM)

The author of the antidynasty bill, LP Rep. Egay Erice of Caloocan, said a measure against political dynasties should be passed, as there is a strong link between poverty and the extended dominance of political families. Erice said nine of the 10 poorest provinces were either ruled or are still being ruled by political dynasties.

Erice, citing a 2012 survey of the National Statistical Coordination Board, said the top 10 poorest provinces are: Lanao del Sur, Apayao, Eastern Samar, Maguindanao, Zamboanga del Norte, Davao Oriental, Ifugao, Sarangani, Negros Oriental and Masbate.

He said the survey showed that these provinces have the highest percentage of families who failed to meet the minimum monthly income of P7,820 in the first quarter of 2012. “One could hardly argue that this then is merely coincidental,” Erice said.

The lawmaker added: “Instead of focusing on how to better serve the public, oftentimes, these political dynasties are more preoccupied on crafting ways on how to make their government positions profitable businesses or milking cows.”

“And since there is no proper check and balance because the people who were supposed to do that are related to them, these political dynasties were able to get away with stealing the money of the people,” he added.

“Let us pass this antipolitical dynasty bill and let our sons and daughters and the next generation see and remember how we have been instrumental in redirecting the path of our country. That would be our legacy, not a dynasty,” Erice said.

To be continued

Raising pay. . .

President Aquino’s proposal could also be seen as a move to bolster support for his party, which is putting forward former Interior Secretary Manuel A. Roxas II as its presidential candidate in the May election, said Sonny Africa, executive director of IBON Foundation Inc. in Manila.

“The timing of the proposed salary increase, even if it is not immediately implemented, shows that it is for purposes of politicking,” Africa said. “It dangles the thought that to implement this increase, we need continuity, so you need to support our slate, our team.”

From efforts to speed up state outlays to higher wages, Mr. Aquino is accelerating bids to boost an economy that the World Bank forecasts will expand less than 6 percent this year for the first time since 2011. Higher tax revenue provides room for President Aquino, who steps down in June 2016, to raise the pay of state workers and help lure better-educated graduates to join the government.

“This is a welcome boost to consumption spending and, coupled with election-related spending, the government has a strong chance of boosting growth to more than 6 percent next year,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila. “With an improved balance sheet, it’s ensuring that its workers are more motivated and having a competitive salary will help that.”

Megaworld. . .

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Middle managers

The government allotted at least P50 billion in the proposed 2016 budget to cover the pay increase, Abad said.

Middle managers, including directors and executive directors, are set to receive the largest wage increase as they face the biggest disparity compared with their private-sector counterparts, Abad said. The last public pay rise was in 2012.

Should the bill get passed, Mr. Aquino will earn more than Malaysian Prime Minister Najib Razak who is paid 22,826 ringgit ($5,300) a month.

Wages of Southeast Asian leaders vary widely, with Singapore Prime Minister Lee Hsien Loong earning S$2.2 million ($1.57 million) a year, while in Vietnam, Prime Minister Nguyen Tan Dung was paid a net salary of 17.17 million dong ($770) a month in 2013.

The Philippine budget deficit in the January-to-August period was P3.4 billion, as state spending faltered. That compares with the full-year deficit goal of P283.7 billion.

“The government has fiscal space to implement this and it wouldn’t affect their fiscal position,” said Michael Wan, a Singapore-based economist at Credit Suisse Group AG. “The key would be implementation. They shouldn’t raise wages too fast as it could have a knock-on impact on other sectors where they’ll be forced to increase wages also to prevent losing people to the government.”

Bloomberg News

Continued from A1

Group; Hotel Okura Manila of the Okura Hotels and Resorts; the Genting Grand and Crockfords Tower of the Genting Group; and Kingsford Hotel.

Travelers will build the international brand of hotels, while Megaworld will carry out the development of the local brand of hotels.

Megaworld currently has around 4,000 hectares of land in its portfolio, the bulk of which are dedicated for its mixed-use communities, the concept of property development that started in the Philippines way back in the1990s.

The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Tuesday, November 3, 2015 A3

Palace hangs on to Naia execs despite ‘tanim-bala’ scandal

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By Butch Fernandez & Jovee Marie N. dela Cruz

ALACAÑANG is not yet ready to kick out Ninoy Aquino International Airport (Naia) officials, led by Naia General Manager Jose Honrado, for failing to stop the tanim-bala racket by suspected airport insiders planting bullets to extort money from airline passengers.

Presidential Spokesman Edwin Lacierda said President Aquino instead ordered Department of Transportation and Communications (DOTC) officials to first “cast a wide net” in verifying the allegations before the Palace acts on a public clamor for a top-to-bottom revamp to rid the main international airport of racketeers.

In a news briefing, Lacierda confirmed Aquino’s directive issued during a meeting with DOTC and airport officials at the Palace on Monday.

“The President is not belittling the problem,” Lacierda added, “that is why he called the meeting with the transport officials.”

Asked if the President would push through a revamp of airport officials to effectively stop the tanim-bala racket, he said: “The President said we first have to look at all assumptions and identify the problem so we come up with a correct solution to the problem. That is his marching orders...there are more data that need to be looked into, including alegations of extortion.”

Lacierda reported that the DOTC is expected to come up with a full report “within this week.”

But, he declined to go into details when asked about the specifics of the President’s directive saying, “we defer to the DOTC as to what those instructions are.”

The Palace official, however, repeatedly pointed out at the briefing that a Japanese tourist recently arrested by airport authorities for carrying a round of ammunition admitted he just came from target practice, in contrast with other passengers who complained the rounds found in their luggage were probably planted by still-unidentified persons on their arrival at the airport.

“There are suggestions that we just confiscate such bullets and let the passenger go but we have laws,”

Lacierda said. “Let us wait for the DOTC [findings],” he added even as he confirmed that the existence of a syndicate behind the tanim-bala racket is “one of the assumptions the DOTC will look into.”

He said Aquino’s instructions to the DOTC was to “cast a wide net on the data and processes at the airport.” Aquino also left it to the DOTC to update the public on its findings, Lacierda said. “We are looking at the data. That is a general statement but we are taking a hard look at it,” he said, referring to the airport racket. “The DOTC’s task should not be difficult. There is enough data.”

Lawmakers in uproar

LEGISLATORS on Monday asked the leadership of the House of Representatives to act on a pending resolution seeking an investigation into the series of tanim-bala (ammunitionplanting) incidents at the Naia.

House Resolution 2419, filed

by Nationalist People’s Coalition Rep. Sherwin Gatchalian of Valenzuela, directs the House Committees on Good Government and on Transportation to conduct an inquiry, in aid of legislation, on the tanim-bala racket at the country’s premier airport.

Gatchalian issued the call amid reports that may Filipino workers abroad would rather spend Christmas out of the Philippines rather than be victimized by the tanim-bala extortion scheme at the Naia.

Gatchalian said it is alarming that the Office of Transportation Security (OTS) personnel carry rounds of live ammunition in their pockets, thus, violating security measures at the airport.

The OTS is under the DOTC. The lawmaker also said that since OTS personnel have already lost credibility, it is but proper that a top-to-bottom revamp be made

by Transportation Secretary Joseph Emilio A. Abaya Jr. in order to rectify the breakdown in security at the airport.

He added it is high time for Abaya to personally address the issue by ordering a total revamp of the OTS by assigning new personnel with untarnished record to man the x-ray machines in all Naia terminals.

More than 5,000 people have signed the Change.org petition calling on both houses of Congress to immediately conduct an investigation on the tanim-bala racket, which have already victimized a number of overseas workers Party-list Rep. Neri Colmenares of Bayan Muna, who also called for an investigation, said the lower chamber should determine “first, if whether we need to review the law which criminalizes mere possession of one or two bullets, and second, if we need to draft a law that will simply allow the confiscation of one to two bullets but will not criminalize it.”

“We need to consult on this possible review because this has been going on for sometime and it is possible that many of the commanding officers knew about the scam but tolerated it or are part of the scam,” Colmenares said.

Meanwhile, the House Committee on Labor chairman, Liberal Party Rep. Karlo Alexei Nograles of Davao, said that Manila International Airport Administration Manager Angel Jose Honrado “should spare President Aquino by voluntarily resigning his post and allow more competent and reputable managers to run the country’s airports.”

Nograles said, “Honrado is causing pain and anguish not only to the Aquino administration but to the entire nation, as well.”

Party-list Rep. Jonathan de la Cruz of Abakada, on the other hand, said Honrado and all other officials involved in the operations and security of Naia and other international airports around the country must all submit their courtesy resignation, especially in the light of the coming Asia-Pacific Economic Cooperation (Apec) Leaders’ Summit.

“Even as we are rushing with our last-minute preparations for Apec, we must enjoin all the heads of agencies in charge of operations and security at the international airport to submit their courtesy resignation. We need to put in an entirely new

Delfin Lee assails jail transfer

By Joel R. San Juan

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ELFIN LEE, founder of the controversial real-estate company Globe Asiatique Realty Holdings Corp., has asked the Supreme Court (SC) to look into the legality of the directive issued by the executive judge of the Regional Trial Court (RTC) in San Fernando City ordering his transfer from the Pampanga Provincial Jail to a nearby prison facility under the supervision of the Bureau of Jail Management and Penology (BJMP).

In an omnibus motion filed before Judge Maria Amifaith Fider-Reyes of Branch 42 of the RTC in San Fernando, Lee through his lawyer Salvador Viste Jr., asked the latter to conduct further verification of insinuations of special treatment being hurled against him before heeding the advise of Executive Judge Divina Luz Aquino-Simbulan.

Lee branded as mere “conjectures and hearsay” the allegations that he is being accorded special treatment at the provincial jail.

“Thus, it will be truly unfair for herein accused to be transferred to the BJMP Telabastagan and be incarcerated together with 100, more or less, common and hardened

criminals, especially so that herein accused is not even a convicted felon,” Lee said.

He added that allowing his transfer would violate his constitutional right to be presumed innocent until proven guilty, considering that the advise to transfer him to BJMP Telabastagan has no legal and factual bases.

Simbulan, in a letter addressed to Fider-Reyes, who is handling the syndicated estafa case filed against Lee and several others, insinuated that Lee was enjoying special treatment at the provincial jail where he has been detained since 2014.

Simbulan told Fider-Reyes that during her surprise quarterly jail visitations she observed that Lee is detained at the second floor of the provincial jail that was newly reconstructed and rehabilitated.

She said there was a number of vacant detention cells at the said second floor and Lee was a solo inmate in his cell.

The executive judge added that she was surprised to see that there is a small gym in the vacant cell adjoining Lee’s cell and that the detainee has a bodyguard.

Likewise, Simbulan pointed out that Lee’s transfer to the BJMP fa-

cility in Telabastagan in San Fernando City, would be beneficial to his lawyer Wille Rivera who holds office near the prison facility.

Lee asked Fider-Reyes to compel Simbulan to testify and produce evidence to support his allegations if the latter would insist on his transfer.

Lee said Simbulan should also be asked to execute a written personal undertaking to secure his safety in case his transfer pushes through and to take full responsibility for any consequence of such action.

Lee’s camp has also provided the SC through the Office of the Court Administrator (OCA) a copy of its motion, with a corresponding request for the latter to look into the validity of Simbulan’s “advise.”

Lee, is currently detained at the Pampanga Provincial Jail on earlier charges of syndicated estafa for allegedly defrauding the government of P6.6 billion in housing loan proceeds for home buyers, whom investigators later found to be fictitious or had incomplete documents.

Earlier, Lee’s camp asked the Court of Appeals to quash a warrant issued by the RTC in Pampanga.

The CA (CA) quashed the warrant but the SC has enjoined the CA from implementing its order.

PASSENGERS wait for their baggage at a conveyor in the Ninoy Aquino International Airport Terminal 3. Several government agencies are set to investigate the alleged tanim-bala incidents at the country’s premier airport. NONIE REYES

crew in charge of inspection and security and file charges against those involved in this tanimbala racket,” de la Cruz said.

At the Senate, Sen. Ralph G.

Recto said the unspent P1.4 billion from the Airport Security Fee collection, as of December 31, 2014, could be used to fund the purchase of equipment to bolster security

at the premier airport, including a closed-circuit television system that can take images of objects that pass through the airport security’s x-ray system. With Recto L. Mercene

Economy

A4 Tuesday, November 3, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

More teachers, construction workers lost their jobs in Q2, PSA data show

M

By Cai U. Ordinario

ore teachers and construction workers were laid off in the second quarter of the year, according to the Philippine Statistics Authority (PSA).

Data showed that layoffs in the construction sector reached 22.81 percent, while layoffs in private education reached 10.96 percent.

Separation through layoffs in the construction sector was higher than quits, or employee-initiated separation, at only 3.94 percent.

As a result, the construction sector recorded a higher separation rate of 26.74 percent compared to an accession of only 22.24 percent.

The low accession rate may be linked to the slow uptake of construction projects in the second quarter.

PSA construction data showed

that the total number of constructions from approved building permits in the second quarter of 2015 was recorded at 32,974.

This represented a growth of only 0.7 percent compared with the 32,729 constructions recorded during the same quarter of 2014.

In terms of private education, layoffs were also higher than quits which only recorded a rate of 3.17 percent.

However, despite the high rate of layoffs, the overall accession rate of 17.78 percent was still higher than the separation rate of 14.13 percent.

Local exporters told: Focus on Canada consumer market

T

he Trade Facilitation Office (TFO) of Canada is prevailing upon local exporters to capitalize on the North American country’s increasing consumption of health, specialty and personal-care products, and increase their access to that market.

In an information session organized by the Department of Trade and Industry’s Export Marketing Bureau, Steve Tipman, executive director of the TFO of Canada, urged local enterprises to look more to Canada as another potential export destination considering its large population of Filipinos with substantial spending power.

On household spending, Canadians allot 34 percent of their income for shelter and accommodation, 14 percent for income taxes, 8 percent for food and 20 percent for “discretionary” spending, or the disposable income after bills after paying taxes.

Moreover, consumption trends in the North American country points to an increasing demand for agricultural foods, halal foods, cosmetics, as well as organic food for health-conscious Canadians.

Tipman said personal-care products is an especially promising consumer good category, worth to be $2 billion by 2018 with the annual demand growing at 3 percent annually.

However, Tipman also cautioned interested exporters of the high standards of the Canadian market when it comes to compliance to food safety, environmental, management and fair trade regulations.

The onset of the K to 12 Program has forced many private colleges and universities to lay off many faculty members.

This is largely because of the expected low turnout of enrollees in tertiar y education due to the addition of two more years in high school under the K to 12 Program.

Overall, the PSA reported employment growth in large enterprises in Metro Manila in the second quarter of 2015.

Employment growth for the second quarter of 2015 was posted at 1.15 percent—a modest increase compared with the less than 1-percent growth recorded a year ago at 0.88 percent.

“Positive performance recorded during the period was mainly contributed by the agriculture and services sectors offsetting the employment cutbacks in the industry sector,” the PSA said.

Data showed that the overall accession rate of 10.75 percent surpassed the total separation rate

Oil firms raise LPG, gasoline pump prices

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RICES of fuel and cooking gas have shoot up, reflecting the price movement of petroleum products and liquefied petroleum gas (LPG) contract prices in the international market. Eastern Petroleum Corp. implemented a P2.95-per- kilogram (kg) upward adjustment in its EC gas brand effective 6 a.m. on Tuesday. Liquigaz hiked its LPG price by P2.50 per kg at 12:01 on Tuesday.

Ahead of them, Petron Corp., Solane LPG and Petronas Gas Philippines increased their LPG price by P2.95 per kg, with an equivalent adjustment of more than P32 per 11-kg cylinder, effective on Tuesday.

Meanwhile, Pilipinas Shell and Chevron informed the Department of Energy (DOE) on Monday that they would increase the price of gasoline by P0.25 per liter and kerosene by P0.10 per liter from 6 a.m. on Tuesday.

The price of diesel remain unchanged, the DOE said.

Phoenix Petroleum Philippines and PTT Philippines, in separate advisories, would, likewise, implement the same price adjustment from 6 a.m.

Last week oil firms lowered pump prices by P1 per liter, diesel by P0.35 per liter and kerosene by P0.40 per liter.

Fernando L. Martinez, Eastern Petroleum chairman and CEO, said the October 27 price adjustments reflected the downward trend in world oil prices at the close of last week’s trading owing to oversupply against slow demand outlook. Lenie Lectura

Hotel occupancy slipped in H1 2015–UN report. . . continued from a1 occupancy rates “to a combination of both [lower visitor arrivals] and we really have a significant growth in room availability.”

In a separate interview via email, Nian Liwanag-Rigor, assistant vice president for public relations and corporate communications of Manila Hotel, a landmark heritage hotel in the country, confirmed a tougher and competitive environment for the establishment, adding that the increased number of tourist accommodations have affected occupancy rates of many hotels in the Philippines capital. Also, she said, cheaper air fares have also encouraged tourists to go to other Asian cities, instead of the Philippines.

“Yes, it is true that the rising number of hotels in the metro affects the digits [occupancy rates].

There are more hotel choices, therefore, the pie each one gets becomes smaller,” she said. “We have experienced tough competition for the past quarters, but it is our commitment to serve our distinguished clientele.”

She said: “There is also a factor on attractive airline fares. People would rather go to other Asian countries because they can have a return ticket for the same rate of staying in a five-star hotel in the Philippines.”

Rigor said hotels in Manila can improve their occupancy rates by

tapping into their respective markets. “The continuous challenge for all hotels is to become the choice destination. While there seem to be a lot of new properties coming up, we all have our respective markets. For instance, others are more for entertainment; others might be for leisure, [for tourists] looking for a serene and tranquil atmosphere; while other visitors are simply here on business.”

She believes hotel occupancy rates in Manila will pick up as the Christmas season nears. “The Manila Hotel will continue to be strong and a competitive player.

We are now fully equipped to serve guests with the most discriminating tastes, requirements and preferences.”

She added that the hotel is “preparing well for the holiday season.

We have come up with different promotions and activities for our guests that would make them stay at the heart of the Manila during the Christmas season.”

For his part, John Patrick Chan, managing director of The Bellevue Hotel group, said the 1.6 percentage point dip in hotel occupancy rates in Manila “isn’t much.”

He added: “For Bellevue Manila and Bohol, we have done better in occupancy, year-to-date, compared to the same period last year.” But he added the hotel group’s budget

hotel, The B Hotel, has recorded a “slight” drop in occupancy. Chan failed to disclose the actual hotel occupancy rates of its boutique and budget hotels.

Jimenez, meanwhile, noted that “part of the spirit of the NTDP is to encourage investment in the right areas. You can have an increase in rooms in all the wrong places. For example, you have limited capacity for now in air travel to Bohol, or Panglao, and yet, your room capacity in Panglao is growing faster than it would in other places in the Philippines, so you would see a surplus. Some of our biggest developments are in Panglao such as Hennan Resorts, which has 450 rooms, and Be Grand Resort [208 rooms], malaki din.” “[The hotels are] growing faster than the [visitor arrivals]. Unaunahan ’yan e—‘Will I build my resort faster than the Panglao, airport?’ If I build later, it may be too expensive to build after the airport is completed. So ’di na sila naghintay [to build the airport].”

A number of big hotel chains recently opened offering boutique to luxurious high-end accommodations. These include Solaire Resort’s Sky Suites; Marco Polo Ortigas; Nobu Hotel, Crown Tower, and Hyatt at the City of Dreams complex; Megaworld Corp.’s Belmont Hotel at the Newport City; and the SM group’s Conrad Hotel

of 9.59 percent.

This resulted in a labor turnover rate or percentage point difference of 1.15 percent.

The PSA said this also means an addition of 12 workers per 1,000 employed across industries. “[Some] 108 workers per 1,000 employed were added to the enterprise work force due to expansion or replacement, while 96 workers per 1,000 employed were laid off or quit their jobs,” the PSA said.

The data was based on the results of the Labor Turnover Survey (LTS), a quarterly sample survey of enterprises conducted by the Philippine Statistics Authority (PSA) since the third quarter of 2002.

The survey aims to capture “job creations” and “job displacements” in large business enterprises based in Metro Manila by collecting quarterly data on accessions and separations of workers.

A total of 921 enterprises served as respondents to the Second Quarter 2015 Labor Turnover Survey.

news@businessmirror.com.ph

Government agencies prepare for holiday rush

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overnment agencies concerned with trade and traffic are now in touch with mall operators in Metro Manila and other urban areas as commercial activities are expected to increase in view of the upcoming Christmas season.

Presidential Spokesman Edwin Lacierda told in an interview over Radyo ng Bayan on Sunday that the Philippine National Police (PNP) and the Department of Trade Industry (DTI) are making the necessary preparations in time for the holiday rush.

“We are all conscious and cognizant of the attendant concerns pagdating ng Christmas season, nakahanda po ang ating kapulisan, ang ating mga ahensya na tumutulong—ang DTI, ang PNP—lahat po ng ahensya na involved po dito sa preparation for the Christmas season in terms of the commercial activities,” Lacierda said.

Lacierda said the PNP Highway Patrol Group remains involved in mending traffic along Edsa, where so many malls are located, and policemen are very much aware of additional measures needed to ensure the safety of the people.

“Ang ating mga kapulisan are very cognizant of the normal increase

in commercial activities dito sa mga mall.… Itong mga kapulisan natin are in touch with the mall operators to make sure that mas may security po sa ating mga shopping mall dahil nga, alam naman po natin, some people would like to take advantage of the bustling activity during the Christmas season,” he said.

The Department of Tourism also takes part in the effort, Lacierda said, as it looks forward to having visitors from abroad who would be spending their Christmas break in the country.

“We have the longest Christmas season in the world so it’s a good opportunity for us also to invite our friends from abroad to come visit and celebrate Christmas in the Philippines with us,” Lacierda said.

The Palace official, meanwhile, reminded the public that they should not forget the reason behind the season, which is the birth of Jesus Christ, despite all the hustle and bustle of the cities.

“Christmas is really a time for celebration, marami po talagang activities, commercial activities. But, you know, ipaalala po natin kung bakit tayo nagse-celebrate ng Christmas. This is the birth of Jesus, which is really the reason for the season,” he said. PNA

‘Great offer’ for MRT Line 3 rehabilitation lost to technicality. . .

He added that video recordings of the proceedings conducted during the opening of the eligibility and technical documents on October 21 would confirm “the fact that the parties have not mentioned neither had they fixed the time during which they will submit the compliance documents.”

Officials from the transportation department were sought for comment, but none were available as of press time.

Deprived of a ‘great offer’

IN rejecting the Filipino-German group’s offer, the government will be deprived of a great offer—at least in Bacar’s perspective.

He pointed out that his group will provide the government access to vital original equipment and parts right from the Czech Republic firm that originally built the MRT trains, CKD Tatra, which is now SKD Trade A.S. Comm Builders & Technology Philippines, which Bacar heads as president and chief executive, forged a cooperation deal with SK Trade A.S. last month.

Bacar said as the incumbent short-term maintenance contractor of the MRT, SBI-C&T was “intimately knowledgeable” of the necessary repair and rehabilitation works required by the MRT, particularly on 43 of the train line’s 73 trains, and signaling systems, as well as other systems, to make it run smoothly, efficiently and comfortably to the benefit of the more than 600,000 passengers that take the train line daily.

“I can confidently say that with our experience and commitment, as well as the breakthrough cooperation deal we struck with CKD Tatra that is now SKD Trade A.S., we are the group that is best positioned to do the best rehabilitation and overhaul job on the MRT,” he said.

Only one of the three bidders was declared qualified to bid for the three-year maintenance contract. The Korean-led Busan Transport Corp.-Edison Construction & Development Corp.-Tramat Mercantile-TMI Corp.-Castan Corp. joint venture will likely bag the deal by year-end.

The transport department resorted to the negotiated scheme after two failed auctions last year.

To recall, the agency launched the bidding for the contract in early September last year, but no private company wanted to take the risk of maintaining a system so degraded it has been tagged by railway experts

as a “danger” to the riding public.

In the hopes that companies would be enticed to vie for the much-needed project, the department decided to sweeten the terms of the deal. But, despite the relaxing of rules and the improvement in cost, railway upkeep-services companies still decided to evade a “potential risk.”

The risk, industry observers said, is obvious: the train system itself is already dilapidated.

Hence, “maintaining” it, in the literal sense, would mean risking the lives of daily commuters coming from the northern and southern corridors of Metro Manila.

Currently, several different companies are maintaining the line, each focusing on a specific discipline.

The subcontractors were engaged directly under a multidisciplinary approach to increase the efficiency of work per component until the long-term maintenance provider is procured.

Under the multidiscipline approach, the management of the MRT 3 has been able to increase the number of operating coaches during peak hours to 45 as of the beginning of August.

But once the new maintenance provider comes in, it will start managing all of the maintenance components of the MRT. The agency aims to award the contract before end-2015.

Today the rail line’s average daily ridership is already over 560,000 and its highest single-day passenger count is 620,000.

The government aims to augment the capacity of the railway system by adding new train cars. The prototype for the new coaches arrived last month, but delivery of the actual cars is scheduled for next year.

Once the 48 new train cars come in, MRT 3’s trips per hour will increase from 20 to 24, which will translate to a 60-percent rise in the number of passengers per hour per direction.

This means that there will be 37,824 passengers who can avail themselves of the rail service every hour heading toward one direction.

Currently, only about 23,640 people ride an MRT service per way every hour. But that still depends on the number of trains running that day.

Aside from adding new coaches to the current MRT fleet, the government is also rolling out P9.7 billion worth of projects to improve the train line. The state also wants to buy out the corporate owner of the line.

But several private groups are pro-

continued from a1

posing a different scheme to modernize the train system, which has been under fire for years now for its mediocre services.

The group of businessman Robert John L. Sobrepeña is proposing to do a “quick fix” solution to make the train system safe for public transport.

Together with foreign firms Sumitomo Corp. of Japan and Globalvia Infrastructuras of Spain, Metro Global Holdings Inc. is proposing to “fix” the ailing system through a $150-million investment that involves the procurement of a total of 96 new train cars, and the rehabilitation of the existing 73 coaches, increasing its capacity by fourfold to 1.2 million daily passengers.

Under the proposal, a single point of responsibility will be implemented: meaning the rehabilitation and the maintenance of the line will be handled by a single company.

Separately, Metro Pacific Investments Corp. is proposing to shoulder the upgrade costs of the train system and release the government from the bondage of paying billions of pesos in equity rental payments.

The group of businessman Manuel V. Pangilinan, which earlier entered into a partnership agreement with the corporate owner of the MRT, intends to spend $524 million to overhaul the line.

The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimilliondollar expansion plan would double the capacity of the line to 700,000 passengers a day from the current 350,000 passengers daily.

It was submitted in 2011, but the transportation agency’s chief back then rejected the proposal.

On the other hand, German firms Schunk Bahn -und Industrietechnik GmbH and HEAG Mobilo GmbH are seeking to place whole train system under a massive transformation program to augment its capacity and to provide a safe and comfortable travel to commuters from the northern and southern corridors of Metro Manila.

The P4.64-billion proposal, submitted in February with Filipino partner Comm Builders & Technology Philippines Corp., calls for the complete overhaul of the 73 light-rail vehicles of the MRT, the replacement of the rails, the upgrading of the line’s ancillary system, the upgrade of the track circuit and signaling systems, the modernization of the conveyance system and a three-year maintenance contract.

Economy BusinessMirror

news@businessmirror.com.ph

briefs e.i.t.i. compliance eyed in 2015

The Department of Budget and Management (DBM) is eyeing compliance with the Extractive Industries Transparency Initiative (EITI) by 2016 as part of its commitment to the Open Government Partnership (OGP) that promotes transparency and good governance.

Budget Secretary Florencio B. Abad lined up the commitments of Philippine government to transparency, good governance and citizen empowerment that include an EITI compliance certificate.

The Philippines remains a candidate country to the EITI body that provides compliance certificates to ensure transparency regarding countries’ oil, gas and mineral resources.

The EITI is an international standard to ensure that governments do not exploit their countries’ oil, gas and mining resources. Compliance to the EITI Standard requires countries to submit reports on their governments’ activity in the oil, gas and mining sectors.

Under the EITI standards, governments should also ensure that the information is available to the public. The standard also covers areas such as license transparency, transit and state oil sales.

“To attain EITI compliance, [the department seeks to] publish its second, third and fourth Philippine reports to the EITI on time and be declared as an Extractive Industries Transparency Initiative-compliant country by 2016,” Abad said in a news statement released on Monday.

The Aquino administration also aims to sustain transparency in local government plans and budget, Abad said. Estrella Torres

reduced supply forces cotabato power firm to ration electricity

COTABATO CITY—Power consumers in Cotabato City, Datu Odin Sinsuat and Sultan Kudarat towns in Maguindanao have experienced rotational power interruption of two to three hours due to limited power supply from the National Grid Corp. of the Philippines (NGCP) and state-run Power Sector Assets and Liabilities Management Corp. (PSALM), the Cotabato Light and Power Co. (Cotabato Light) said on Monday.

In a news statement, Arlene Hepiga of the firm’s communications office, said the Aboitiz-owned utility has been receiving only 13-megawatt power supply from PSALM and NGCP due to low water level of Pulangi 4 and Agus 4 hydropower plants in Bukidnon.

Cotabato Light’s franchise area demand at its peak is 28 MW. Hepiga said the power rationing may still change or be canceled depending on NGCP allocation, power-plant capability and behavior of demand at a given period of time. PNA

nwrb submits el niño action plan to malacañang

The National Water Resources Board (NWRB) has submitted its El Niño action plan to Malacañang for approval. ”We came up with an El Niño action plan. It was already submitted to Malacañang for approval,” NWRB Executive Director Sevillo David said during a recent media briefing on El Niño at the “Kapihan sa Media ng Bayan.”

David added he expects Malacañang’s approval for the action plan’s draft memorandum by this year.

He explained that the action plan consists of water-conservation tips for government offices.

The director stressed that the bureau is currently giving tips to avoid water leakage in the offices and on how to recycle water.

Sevilla added that the NWRB is working with the Department of Tourism to also convince restaurants and hotels to conserve water. PNA

Tuesday, November 3, 2015 A5

Infra spending in H2 seen to offset El Niño losses

H

By Cai U. Ordinario

igher infrastructure spending in the second semester of the year will likely offset agriculture losses from the ill effects of the El Niño.

Sea jewels A lady stall owner from the south displays her collection of cultured and south sea pearls in Quiapo, Manila. The jewels from the sea sell from a cheap P100 to pricey P3,500 per set depending on class and design. Nonie Reyes

Makati City govt’s takeover of portions of MRT 3 remains valid, CA rules

By Joel R. San Juan

T

HE Court of Appeals (CA) has denied the bid of the government to regain control of portions of Metro Rail Transit (MRT) Line 3, which was seized by the Makati City government for its failure to pay more than P1 billion worth of property taxes for the period covering 2000 to 2004.

In a 10-page decision penned

by Associate Justice Zenaida Galapate-Laguilles, the CA’s Tenth Division dismissed for lack of jurisdiction the petition filed by the Department of Transportation and Communications (DOTC) and Metro Rail Transit Corp. (MRTC) seeking the reversal of the ruling issued by the Regional Trial Court (RTC) of Makati City on September 20, 2010.

The Makati RTC, in the said decision, junked the DOTC and MRTC's complaint for the declaration of real-property tax assessment and warrant of levy issued by the Makati Cty government.

The CA held that under Republic Act (RA) 9282, or the law expanding the jurisdiction of the Court of Tax Appeals (CTA), the latter is a coequal body of the CA which has jurisdiction over decisions, orders and resolutions of the RTC in local tax cases, which

includes real property taxes.

The appellate court noted that the DOTC and MRTC filed the complaint against the Makati City government when RA 9282 was already in effect.

“In sum, this Court has no jurisdiction to review the decision rendered by the RTC Branch 66, Makati City...dismissing the complaint for declaration of nullity of real-property tax assessment and warrant of levy. Thus, the instant appeal must fail,” the CA explained.

Concurring with the ruling were Associate Justices Mariflor Puzalan Castillo and Florito Macalino.

Court records showed that in 2000, the Makati City government issued a tax declaration for real property in the name of MRTC over the railways of MRT 3 traversing the barangays of Guadalupe Nuevo, Guadalupe Viejo, Pinagkaisahan, Bel-Air, Urdaneta and Forbes Park, including four MRT 3 stations.

In 2001 the Makati City government issued a new additional tax declaration of real property over the railways of MRT 3 traversing the barangays of Dasmarinas, San Lorenzo, Magallanes and Bangkal.

For the said period, the Makati City government held that MRTC’s tax accountability has reached

P222.5 million.

Subsequently, it issued second, third and fourth statements of real-tax accountability for the years 2000 to 2003 in the total amount of P705.15 million.

The Makati City government informed MRTC that it has been delinquent in the payment of real-estate tax for the period 2000 to 2004 in the total amount of P1,019,568,313.60.

As a consequence, the Makati City government issued a warrant of levy declaring the MRT 3 portions as tax delinquent.

On November 10, 2004, a public auction was conducted by the city government for the MRT 3 properties, but no one participated in the proceedings, thus, a certificate of sale was issued in its favor.

The Makati RTC initially issued a status quo order preventing the Makati City government from taking over the property until it decides on the merit of the complaint filed by the DOTC and MRTC. However, on September 20, 2010, issued the assailed decision dismissing the complaint and affirming the power of the Makati City government to impose real property tax on MRT 3.

The trial court junked the contention of DOTC and MRTC that the Light Rail Transit System is owned by the government.

Meralco unlikely to meet prepaid-electricity service target this year

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By Lenie Lectura

he Manila Electric Co. (Meralco) will likely fall short of meeting its internal target to install 40,000 prepaid-electricity meters this year.

The utility firm was earlier given the green light by the Energy Regulatory Commission (ERC) to deploy 40,000 electricity meters to customers within its franchise area. Meralco had wanted to finish the rollout by the end of the year.

However, Alfredo S. Panlilio, Meralco’s senior vice president, said that “by year-end” only “close to 30,000 meters” would be activated.

As of end-September this year, he added that Meralco has activated 14,295 prepaidelectricity meters.

Pilot tests for Meralco’s prepaid retail electricity service (PRES) were conducted starting in February 2014. PRES is now available in Manila, and parts of Angono, Taytay and Cainta, in Rizal.

“Manila is fully covered,” Panlilio added.

Meralco has a pending application with the ERC to install an additional 100,000 meters. “We are running a bit short on meters. We are still waiting approval from the ERC to act on our proposal.

For next year we will continue to push that and

educate the market,” the Meralco official said.

A check with the ERC showed that Meralco’s application is still being deliberated. “It is still for resolution,” ERC Executive Director Francis Saturnino Juan said in a text message when sought for comment on Monday.

In another text message reply, lawyer Vanessa Reynoso of the ERC said the commission awaits the submission of concerned parties before Meralco’s application is deemed submitted for resolution.

“Once all required submissions are in, the Commission can already start deliberating on the matter,” she added.

Meralco First Vice President and Head of Regulatory Management Ivanna de la Peña, meanwhile, said a portion of the 100,000 meters targeted for next year would be allotted for the National Housing Authority’s (NHA) new housing projects.

Should demand exceeds supply, de la Peña said Meralco would have to go back to the ERC to apply for more meters. “If necessary, we will have to ask the ERC for more meters, depending on the requirements and take-up on the prepaid service,” she said.

Property developer 8990 Holdings Inc. tapped

Meralco’s PRES last month for its project sites.

Both firms entered into a memorandum of agreement for the implementation of PRES to 8990 Holdings’ property developments, starting with Bella Vista, which is under its Deca Homes brand.

Meralco President Oscar Reyes said Bella Vista is the first private subdivision enrolled in PRES, providing its homeowners a more flexible, convenient and budget-friendly option that fits a modern family lifestyle.

Meralco has tapped General Electric as the system integrator for the advanced metering structure of the service; Orga Systems for the billing aspect of the service; and Ecologic Analytics for the meter data-management system.

The system will enable customers to monitor their electricity consumption, balance, creditpurchase history and account information.

Customers may purchase credits in denominations of P100, P200, P300, P500 or P1,000 for every transaction. Load will be available at Meralco business centers, bayad center outlets and participating retail outlets, which include sari-sari stores, convenience stores, drugstores and department stores.

In its latest Market Call report, First Metro Investment Corp.-University of Asia and the Pacific (FMICUA&P) Capital Markets Research said infrastructure spending may have risen by over 50 percent in July and August.

“We expect NG [national government] spending to sustain its double-digit growth pace into the coming months due to the upcoming elections, heavy infrastructure spending and lower inflation,” the research group said.

FMIC-UA&P Capital Markets Research added that the P829.6billion allocation for public works and communication infrastructure in the P3-trillion-worth 2016 budget will support economic growth next year.

Data showed that the government stepped up its spending at the start of the third quarter. In July 2015 public spending posted a year-on-year growth (YOY) of 25 percent while in August, it posted an annual growth of 15 percent.

The group added that the government’s spending on infrastructure posted a YOY growth of 93 percent in July. It also estimated that the government’s August spending for infrastructure likely grew 30 percent.

“Favorable responses from major spending agencies on the NG’s catchup measure primarily contributed to this spending acceleration,” the

group added.

Higher spending will be supported in part by low commodity prices.

The group believes inflation will continue to average below 1 percent due to low oil prices.

FMIC-UA&P Capital Markets Research said that while inflation will likely pick up in December on account of holiday spending, fullyear inflation will likely average below the central bank’s target of 2 percent to 4 percent.

In terms of other sectors of the economy, the local think tank was not as optimistic given the still weak global economy.

“Exports should remain challenged as US growth in third quarter appears unexciting, while China’s industrial output has sputtered as well.

However, we expect a good bounce back in these two economies in the fourth quarter,” the group said.

As a result, FMIC-UA&P Capital Markets Research said the peso will continue to depreciate against the US dollar to average 45.77 and 45.67 to a dollar in November and December, respectively.

The local think tank, however, said this will be affected by the occasional weakness in the US dollar on the back of supporting economic data.

The group said the US economy may not be as robust and the Federal Reserve may already start to raise policy rates by December 2015.

DOE targets to complete bid review for OCSP in November

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he Department of Energy (DOE) is completing the final stages of review for the bids made for the Open and Competitive Selection Process (OCSP) involving potential hydro- and geothermalpower plant sites. ”We’re still finishing the final stage of review, hopefully, we [will] finish it this November,” Renewable Energy Management Bureau Director Mario Marasigan told reporter’s in a chance interview.

The director added that the review will be followed by the awarding of bids.

In May the DOE received a total of 31 bids for 14 hydropower sites and eight bids for two geothermal prospects.

Marasigan also said that the department was happy with the bid turnout. Eighty percent of the hydrosites were bid for, while developers had a taking of 50 percent.

He noted that both resources have a development cost of $2.5 million per megawatt (MW).

The Mandongan 1 hydropower project in Nueva Era, Ilocos Norte attracted four companies that submitted bids, namely, Pachydro Energy Inc., Clean and Green Energy Solutions, FGS Renewable Energy Inc., and Alternergy Hydro Partners Corp.

Mandongan 2 hydropower project in Nueva Era, Ilocos Norte had two bidders, FGS Renewable Energy Inc. and Alternergy Hydro Partners Corp.

Area 3 in Solsona and Nueva Era, Ilocos Norte, was bidded for by FGS Renewable Energy Inc. and Alternergy Partners Corp.

For Area 4, the Binongan-Tineg hydro project in Abra, two firms submitted their bids. The firms are FGS Renewable Energy Inc. and First Gen Mindanao HydroPower Corp.

Area 7, the Ilog hydropower project in Mabinay, Negros Oriental, had received bid proposals from Trans-

Asia Oil and Energy Development Corp., FGS Renewable Energy Inc. and Almana Power Corp.

Southeast Asia and Almana Power Corp. submitted bids for Area 8, the Binalbagan 1 hydropower project in Negros Occidental.

Almana Power Corp., was the lone bidder for Areas 9 and 10, namely Binalbagan and Binulog.

Both areas offered are in Negros Occidental.

For Area 12—the Tubig hydropower project in Taft, Eastern Samar, where there were many bidders, namely, Vivant Corp., FGS Renewable Energy Inc., Almana Power Corp., Iraya Energy and Renagmec Hydro-Power Corp.

Area 13 or the Buhid hydropower project in Maydolong, Eastern Samar got three bidders, namely, Vivant Corporation, FGS Renewable Energy Inc., and Almana Power Corp.

Area 14, the Bugtong Falls hydropower project in Calbayog, Samar, was solely bid for by Clean and Green Energy Solutions.

First Gen Mindanao Hydro Power Corp., had solely submitted a bid for Area 15 or the Cateel, Davao Oriental run-of-river project.

Area 16 or Cagayan 1N in Talakag, Bukidnon, had bid proposals from Southeast Asia Mining and Power Corp., Markhan Resources Corp., and First Gen Mindanao Hydro Power Corp.

Mindanao Energy Corp. was the sole bidder for Agus 3 in Lanao del Norte and Lanao del Sur. For the offered geothermal sites, Area 2, based in Southern Leyte, the bidders were Repower Energy Development Corp., Cabalian Co. Inc. and Aboitiz Renewables Inc. Amacan Geothermal, offered as Area 3, received bids from Repower Energy Development Corp., APC Energy Resources Inc., Biliran Geothermal Inc., Energy Development Corp. and Emerging Power Inc. PNA

A6 Tuesday, November 3, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

How to sabotage a government

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T seems like every week or two, there is another valid reason to complain about the way the government handles its jobs.

A section of flooring collapses at the airport or the light-rail trains just stop in the middle of the track. Car-license plates are not available or when they are, tend to break too easily. Homes built for victims of disasters are substandard or the funds for relief, somehow, were held back and not made available for the intended purposes.

Is the government just unlucky or is it something more sinister?

Some are saying that the current controversy about airport personal possibly planting “evidence” to illicit bribes is just a conspiracy to discredit the administration. Although we do not accept that, we must admit that looking back a long time on the continuing history of government infectiveness, inefficiency and blatant failures from big to small, something is unquestionably wrong.

In 1944 the forerunner to the US Central Intelligence Agency, the Office of Strategic Services (OSS), created the Simple Sabotage Field Manual. The booklet provided detailed plans how to sabotage the US World War II enemies. On orders of the OSS Director William “Wild Bill” Donovan, the manual was distributed to citizens in enemy states that might have wanted to destabilize their governments.

There were five particular techniques that ordinary but unhappy people, even in low positions both in and out of government, could use to disrupt productivity and order.

For managers and supervisors, this was the advice: “To lower morale and production, be pleasant to inefficient workers; give them undeserved promotions. Discriminate against efficient workers; complain unjustly about their work.”

Normal employees could do the following: “Work slowly. Think of ways to increase the number of movements needed to do your job: use a light hammer instead of a heavy one; try to make a small wrench do instead of a big one.”

If involved in larger organizations: “When possible, refer all matters to committees, for ‘further study and consideration.’ Attempt to make the committees as large and bureaucratic as possible.

Hold conferences when there is more critical work to be done.”

Although the following may not especially apply to the 21st century, the principle is exactly the same today. “At office, hotel and local telephone switchboards, delay putting calls through, give out wrong numbers, cut people off ‘accidentally,’ or forget to disconnect them so that the line cannot be used again. Prevent reliable and timely communication.”

Transportation is always vital, and if you had anything to do with that sector, here is the tip: “Make train travel as inconvenient as possible for enemy personnel. Issue two tickets for the same seat on a train in order to set up an ‘interesting’ argument.”

For those in top positions of authority: “Speak arrogantly. Make promises that cannot be kept.

Divide and weaken the people under your control.”

Maybe the reason for our continuing problems is not because the government is following the Simple Sabotage Field Manual. Maybe it is just too much incompetence after all.

Zero interest rates are killing economies John Mangun

OUTSIDE THE BOX

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here have been calls recently for the Bangko Sentral ng Pilipinas (BSP) to lower its base interest rate from the current 4 percent. The BSP last raised rates in September 2014 from 3.75 percent.

Most people that are going to read this information are going to react with “So what?” If you are like me, the monthly electricity is 100 times more important than what the BSP is going to do. I am concerned about what Manila Electric Co. says about on what they are going to charge in the following month.

We follow the weekly weather report, but are not very interested in what might be the typhoon forecast for the upcoming year. The short term matters, the long term not so much, and the effects of interest rates are primarily long term.

However, it is the longer term results that can have the greatest effects. While the BSP’s base interest rates will ripple throughout the economy from credit card to housingloans interest rates, the consequences are usually small in the short term. Like next year’s super typhoon, we will deal

with that when it happens.

The idea behind having lowered interest rates in the aftermath of the beginning of the global financial crisis was that low lending rates would increase borrowing, which would be used to invest in efforts to stimulate economic growth.

What looks to work in theory does not always perform well in the real world.

Since t he ban k r uptc y of t he global financial firm Lehman Brothers in September 2008, there have been more than 600 instances of central banks around the world lowering interest rates. Every nation’s central bank has cut rates. Yet since 2008, global growth has trended lower. In 2010 global growth was 5.38 percent; in 2014 it was 3.39 percent; and for 2015 the forecast is at 3.3 percent.

There is no question that low interest rates were important to pull

the global economy up from 0-percent growth in 2009. But there is also no question that a continuation of that policy and even lower rates have not accomplished the economic purpose of sustainable growth. Lower interest rates and economic stagnation have lead to even lower rates to the point that currently $20 trillion of government debt is now yielding less than 1 percent in annual interest. Another $6.3 trillion— and that amount is growing—of government debt is now paying no interest and is actually returning negative interest in that a debt buyer will get back less than the money originally loaned.

What does this mean in practical individual terms?

Imagine you are living in one of those “first world” countries like the US, where we are apparently so desperate to be. You have now reached the age to retire and by listening to the financial gurus over the last 40 years, you are a true millionaire with $1 million in cash in the bank, with which to live out your golden years and leave a legacy to your children.

At 5-percent interest, you would have an income of $50,000 a year without ever needing to touch the principal. That is not a fortune but with prudent money management, it would provide a comfortable lifestyle. However, in 2015 with near-zero interest rates, the most you can now expect is to be paid 1.25-percent interest and still be able to draw down

Illegal drugs, peace and order Manny B. Villar

THE Entrepreneur

Conclusion

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eace and order and illegal drugs are two noneconomic problems that affect the economy, actually the whole life of the Filipino people.

Without peace and order, operations of businesses and industries are disrupted. Illegal drugs destroy the future of the youth and deprive them of productive lives. Illegal drugs are also blamed for the increasing brutality of crimes.

Both peace and order and illegal drugs are the last two of the five non-economic problems that I think the next president will face, but these are just as serious and as persistent as the first three, because these have hounded every chief executive of this country.

Statistics-wise, we have some good news and bad news. The Philippine National Police claims that the number of crimes in Metro Manila dropped by 60 percent during the first six months of 2015 compared to a year ago. The bad news: the number of crimes committed nationwide increased by 46 percent during the same period. Nationwide, index crimes alone went up by 37.3 percent to 352,321 during the first six months of 2015, from 256,592 cases reported in

the same period last year. Index crimes include murder, homicide, rape, robbery and theft. A total of 7,245 people were murdered in the first six months of 2015, up from 5,004 in the same period last year. The number of homicides was also up: 6,607 this year, compared with 4,091 last year.

Perhaps, more than statistics, people get more sense of the peace and order condition around them from listening to the radio, watching the news on television and reading the newspapers. There’s not a day that passes that no crime is committed, whether it is the bright light of day or the dark of night. Criminals also do not seem to worry about being recorded on closed-circuit television when they kill or rob.

Thus, there is a perception among the people that the peace and order situation continues to deteriorate.

One of the main concerns among investors and business groups is peace and order, particularly in the

Mindanao region, according to the British government’s online “Overseas Business R isk-Phi lippines” dated July 2015. According to the report, the Philippines has high incidence of violent crimes, including those involving firearms. “Street ‘crime’ and robberies, such as bag snatching or pickpocketing, are prevalent, even in well-lit and busy city areas,” the report further said.

Illegal-drugs do not only contribute to the growing number of crimes, but also make crimes more brutal, as if these were committed by monsters.

The illegal-drug problem is a global scourge. The 2015 World Drug Report of the United Nations Office on Drugs and Crime (UNODC) estimates that a total of 246 million people used an illicit drug in 2013. The UNODC also reported an estimated 187,100 drugrelated deaths in 2013.

The illegal drug problem becomes worse when law-enforcement officials are involved. No wonder many people are becoming reluctant to seek help from the authorities. n On September 21 a policeman was among 10 people who were arrested during a raid on 12 shabu dens beside the police headquarters in Camp Crame, Quezon City. n In 2014 a total of 190 government officials and employees were arrested for violation of the Comprehensive Dangerous Drugs Act of 2002, according to the Philippine Drug Enforcement Agency (PDEA).

Drug traffickers are able to ply their criminal trade even behind bars. In

the yearly payout. That payout is only $12,500, which puts your income way below the poverty line.

If you are 10 years or more from being a senior citizen and are placing your retirement hopes in your company’s retirement and pension plan, don’t count on it being there. Pension funds need a return of 5 percent per year to be able to have the necessary payouts for future retirees. These retirement plans cannot get that necessary return in a safe and guaranteed investment and therefore are forced to take risks.

Base interest rates in Sweden are a negative .35 percent and housing prices are exploding. Condominium prices are up 20 percent this year. Denmark’s deposit rate is at minus 0.75 percent, property prices are up 40 percent to 60 percent since the middle of 2012, when the central bank first resorted to negative interest rates.

What the Philippines does not need is for the BSP adjusting rates to stimulate economic growth. What we do need is for the BSP to continue to keep rates at a level to balance borrowing and lending forces.

Your financial health depends on that.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

January the Department of Justice said it had obtained evidence proving that drug lords serving sentences inside the New Bilibid Prison are able to conduct drug trafficking.

In a column in June, I cited a report from the PDEA, which said that 8,629, or 20.51 percent of the country’s 42,065 barangays were considered as drugaffected. Based on data gathered by PDEA, the National Capital Region tops the list, with 92.10 percent of its barangays affected.

There may be other challenges that the next president will face come 2016, but I believe the five that I discussed in this series—the China problem, the proposed Bangsamoro basic law, the communist insurgency, peace and order and illegal drugs—are, in addition to the economy, to be given high priority by the incoming administration because these will affect not only the present but also the future of the nation.

These are difficult challenges, and I am tempted to say to the next president: “Good luck.” Having said that, I believe the next president will need a good team to craft and implement measures to address these challenges.

Perhaps, more than a good team, the next chief executive must be able to rally the citizenry to fully support the government in driving the nation toward a peaceful, secure and progressive future—in the next six years.

For comments, e-mail mbv.secretariat@gmail.com or visit www.mannyvillar.com.ph.

opinion@businessmirror.com.ph

Opinion

Another crucifixion?

A looming food crisis?

BusinessMirror

A comment on religious freedom by Rep. Ronny Zamora of the Lone District of San Juan, minority floor leader, House of Representatives

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have been asked by some residents of San Juan about the recent cases and issues involving the Iglesia ni Cristo (INC), since these all come to a head tomorrow at the Court of Appeals.

An observation, to begin with: lawyers on both sides have been lawyering publicly, and to my mind, inappropriately, through general media and social media, for their clients. My first question: shouldn’t all this be done in court rather than in the newspapers? Shouldn’t both sides be given their guaranteed day in court, free from having to fight and win their case first in the arena of public opinion, and only later in the courts of the land? Shouldn’t these contending lawyers gag themselves in the meantime, and argue and win their case in our courts, as they were taught in law school, if they went to respectable law schools?

Without trying to set an example for them, I will gag myself about these cases. Instead, I want to talk about the freedoms given to all of us in our Constitution, particularly and appropriately, the freedom of religion.

This government forgets that one of the highest rights—for whose protection modern democracy was invented—is freedom of religion.

The separation of church and state was instituted, not to protect the people from a church with the powers of state, but to protect churches from the powers of the state, for purpose of subverting their institutions, weakening their influence, and outright suppressing them when the moment is right. Never forget this: what the state can do to one church, it can do to all the others.

The enemy here is not religion but the state—more specifically a merely elected government of the state misusing state power to suppress freedom of religion.

True, a church has no business concerning itself with state business; but the state has even less, indeed it has absolutely no business at all interfering with a church other than to discharge the first constitutional duty of elected governments. That duty, every eminent constitutional authority will tell you, is to protect individual freedom of religion and the church in which that freedom must find its institutional expression.

No church so eminently expresses the religious impulse of Christianity as the INC has, throughout its history, as a distinctly Filipino Christian church. I say this even though I am a Catholic; I say it with a measure of envy. No other religion has shaped the lives of its devotees so thoroughly in strict accord with that Christian teaching to which all Christian churches adhere: to impart to one’s personal conduct and, through one’s church, to the whole country—a Christian face.

More than any other Christian denomination, the INC has succeeded in shaping the faith of its faithful both in the sincerity of their personal devotions and in the totality of their commitment to social action in accordance with the teachings of the church in whose disciplined ranks they freely chose to enlist.

Only the ignorant will say that the enhanced political role of the INC violates the separation of church and state. The state has nothing to do with politics. Politics is the personal and partisan contest for positions in the government of a state, positions ideally insulated from politics. Far from being the exclusive domain of the state, the state should have nothing to do with politics and political contests. Once a person is elected into an office of state, he should stop playing politics, and start doing the work of government.

Edgardo J. Angara

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yphoon Lando (international code name Koppu) was the strongest to hit the Philippines so far in 2015. It destroyed up to 400,000 metric tons (MT) of palay, prompting finance officials to say that the country may need to import more rice to avert an upward spiral in the staple’s prices.

ZAMORA

Politics is the exclusive realm of the individual citizen, of his conscience and his personal decisions; and if a person decides in perfect freedom to commit his political decisions to the guidance of a church, then politics is the concern of his church, as well. But in no case is politics any concern of the state or of its passing governments. Anybody who went to a good school knows that.

Catholicism and all the other Christian denominations, like the INC, believe that the duty of salvation extends beyond the person to the whole of society. The Christian commitment to Christian change extends well beyond one’s person to one’s country; so that the country may acquire, by Christian action, a stronger and more faithful likeness to Christian community and purpose. It is bedrock Christian belief that the way to heaven or to hell is paved with political action or inaction on earth.

What the Catholic Church was able to pull off—just once at Edsa and never again—which is to say, a communion of action in accord with Christ’s teachings—the INC does every day in the lives of its adherents and in the role of the INC in politics.

More than other Christians since the Puritans, the kapatid of the INC live Christian lives strictly by the book.

So much so, that when we speak of freedom of religion as it pertains to the INC, it extends from their weekly service to every action they take individually or undertake in communion and community.

And yet, time and again, as if determined to force the Iglesia ni Cristo to order its faithful to vote its way rather than another, this government has persecuted the INC, on the basis of mere allegations of crimes attempted or committed. Last I heard, accusation is not proof; and persistence in malicious prosecution is not sincerity but itself a legal cause of action against the government.

The persistent persecution of the INC exposes the intention of this government to destroy all other institutions that can challenge its parlous grip on truth and morality. But the very idea of a country where politicians will have the last word on either or both subjects is as repulsive to the Christian mind, as it is obnoxious to the Constitution whose first duty is to protect freedom of religion.

I am a Catholic, a practicing one if not necessarily the most faithful or observant, but I stand with my Christian brothers in the INC against this vile attempt to subjugate faith, and to housebreak a church into becoming a minion of one political party for one political end—to perpetuate its rule so as to prevent its own prosecution. I urge people of faith to stand with the INC, as the INC will stand with them when government tries to crucify again, of all things, a proudly Filipino manifestation of Christianity.

According to its latest incident report, the National Disaster Risk Reduction and Management Council estimated that the storm caused up to P9.69 billion worth of agricultural damage across the country’s rice and vegetable bowls—including the Ilocos region, Cagayan Valley, Central Luzon and the Cordilleras.

The damage estimate comes on top of what has already been lost to El Niño—the regular warming of the Pacific Ocean that has global effects on weather and, hence, on agricultural output and food prices. In May droughts damaged up to P1.65 billion worth of Philippine crops, livestock and fisheries.

In its proposed El Niño road map, the National Economic and Development Authority recommended

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industry until 2020 to comply, and then only partially. The delay will just prolong the shift away from diesel.

While it will be useful to have onroad testing, starting in 2017, EU regulators decided on Wednesday to allow new car models to exceed legal levels of NOx by 110 percent until the beginning of 2020. Even

to a point that analysts project that prices could go up 20 percent by the end of the year.

And such a trend may continue.

Given El Niño is seen lasting until 2016, the Thai Rice Exporters Association projected that Thai rice production would be down by 15 percent to 20 percent next year. The FAO, on the other hand, estimated that rice exports from India could contract by 20 percent on account of tightening supply and increased local demand.

We may, thus, be observing the beginnings of a food-price hike, particularly of rice. And at this early juncture, rice vultures are already circling and conditioning the public about imports of tens of thousands of tons, as syndicates of rice merchants—in cahoots with corrupt politicians and bureaucrats—are busy plotting.

Now is the propitious time to pull off the heist: a real rice shortage coming on the heels of an especially contentious election period, where the administration is under pressure to avert high rice prices at whatever price (pun intended) and deflect its sure electoral backlash.

The public should be vigilant, lest profiteering wreaks havoc again on the country’s market and leaves many Filipinos food insecure. The

A7

government should also direct its banks to open up emergency and taxfree loan windows with low interest to farmers stricken by disasters like Lando and El Niño.

But the long-term path to food security remains making Philippine agriculture more productive and more resilient amid the new normal of an unpredictable climate. And this entails, to use an already tired phrase, modernizing agriculture— in terms of technology, improved seeds and efficient use of inputs. Significant investments, for instance, should be directed toward agricultural research in heat-resistant, flood-resistant or shorter duration varieties of rice. Even more strategic, a government truly supportive of the farming community.

California farmers, as an example, have been able to succeed despite their state’s massive drought not just through smart applications of technology (like drip- or microirrigation, water recycling and even inland desalination) but also genuinely involved state officials.

As extreme weather becomes our “new normal” and our population continues to grow, we must act fast to find similar solutions to ensure that our people are food secure.

E-mail: angara.ed@gmail.com.

Infrastructure development takes the fast lane

won in June by MPCALA Holdings, a subsidiary of Metro Pacific Investments Corp. (MPIC).

Consistent with its resolve to fast-track infrastructure buildup until it leaves office next year, Mr. Aquino recently signed the Supplemental Toll Operations Agreement (STOA), the regulatory framework for the 94-km Subic-Clark-Tarlac Expressway (SCTEx). This paves the way for the official turnover of its operation and management (O&M) concession to MPIC’s subsidiary Manila North Tollways Corp. (MNTC) on November 5.

The country’s longest toll road was built by the Bases Conversion Development Authority (BCDA) in the past decade for P28 billion, with a ¥59-billion loan from the Japan International Cooperation Agency (Jica). As of November last year, the number of vehicles using SCTEx surpassed 10,305,000, or almost 13 percent higher than the 9,125,000 figure in 2013, with revenues reaching P1.07 billion.

SCTEx’s gross revenues reached P1.1 billion in the first nine months of this year, while total earnings for the entire year are estimated to reach P1.5 billion, or three times last year’s total revenues.

President Aquino should be commended for accelerating infrastructure development in his last year in office by significantly raising the budget for this sector and paving the way for the modernization of vital road networks by approving the STOA of the country’s longest tollway.

The Chief Executive’s moves will no doubt boost investors’ confidence in the Philippine economy since these will address the business community’s concerns about the lack of adequate infrastructure to attain sustained and inclusive growth in the years ahead.

While the BCDA already has a business operating agreement (BOA) or commercial agreement with MNTC, Mr. Aquino’s signing of the STOA formalizes the authority of the Toll Regulatory Board over SCTEx with MNTC as its official operator.

The STOA signing for SCTEx is significant for the investor community as it reflects the Aquino administration’s firm resolve to give top priority to tollways and other public-road infrastructure.

Moreover, it serves to complete the privatization of SCTEx close on the heels of BCDA’s competitive price challenge on January 30, which was won by MNTC, the lone bidder.

MNTC was declared the winner of the price challenge with its offer of an upfront cash payment of P3.5 billion to operate and maintain SCTEx for 31 years up to 2046, on top of a 50-50 sharing of gross revenues from tollway fees.

Following the formal turnover this November, MNTC will henceforth take care of all the O&M expenses, while the BCDA will continue to shoulder the debt-servicing requirements of the Jica loan.

MNTC, meanwhile, plans to spend P1.5 billion on the rehabilitation of SCTEx over the next three years. As part of its winning bid, MNTC will also pay for the P700million cost of integrating SCTEx with the 83.7-km North Luzon Expressway (Nlex), which is also operated by MNTC. MNTC has been ready since the BOA signing to carry out the heavy repair work needed to improve SCTEx, including the embankments and side slopes that had been damaged by heavy rains. It has also acquired state-of-the-art equipment to address the complaints of

motorists pertaining to the toll road’s outdated systems, and will improve the traffic management system, install closed-circuit television cameras, upgrade signages, and put up a modern traffic control center similar to the one operated

by MNTC at the Nlex entry point in Balintawak, Quezon City.

S C T E x c o n n e c t s B at a a n , Pampanga and Tarlac to Nlex, which, in turn, connects Central Luzon to Metro Manila. It has eight interchanges, 34 bridges and a four-lane divided toll road connecting the Subic Bay Freeport Zone in Zambales, Clark Special Economic Zone in Pampanga and the Central Techno Park in Tarlac.

Opened in April 2008, SCTEx has since then fallen into disrepair, and such marks of wear and tear are a result of the continued failure by MNTC and its partner, Egis Projects S. A. of France, to formally take over O&M work.

Although MNTC’s O&M contract for SCTEx was actually approved under the Arroyo administration, this was renegotiated by the BCDA under the present government, culminating in MNTC’s submission in 2013 of another offer to the government.

The SCTEx STOA will give MNTC not only the opportunity to provide Nlex and SCTEx motorists world-class seamless travel, but also allow it to implement the modernization of both toll collection and traffic management, as well as longterm pavement maintenance.

SCTEx’s integration with Nlex is already 30 percent done, and is expected to be 100 percent finished

by March 2016, or just in time for the traditional observance of the Lenten season. The P700-million integration project will ensure fast and convenient travel for motorists between SCTEx and Nlex, as it would simplify the toll-collection system of the two expressways and reduce the number of tollcollection plazas.

Carmakers argue that they impose an added hassle and expense on consumers. But it is precisely the kind of burden that consumers must consider in deciding whether to buy a diesel car rather than an electric or a hybrid.

Delaying the emissions limits compounds the market-distorting effects of the Europe’s initial

decision, in the mid-1990s, to promote d iesel eng ines w ith lower excise taxes and relatively lax environmental standards. These benefits explain why 35 percent of cars in the EU are diesel.

American carmakers may be quietly cheering Europe’s folly, as it could prompt China to drop European car emissions standards

in favor of stricter US ones.

What’s worse for Europe is that the delay on diesel rules undermines its credibility on limiting emissions. With key environmental talks coming up in Paris in just over a month, Europe has promised ambitious greenhouse-gas reductions by 2030. But can it be trusted to follow through? Bloomberg View

Ernesto M. Hilario

ABOUT TOWN

W

ith just eight months to go before it turns over the reins of power to a new president, the Aquino administration seems to have just realized the imperative of spending more in infrastructure development.

Poor public infrastructure, after all, has been one of the main reasons foreign investors have been parking their money elsewhere despite the country’s investment-grade status.

It’s good, therefore, that the outgoing administration has decided to increase spending on public infrastructure to help improve the country’s global competitiveness.

Government spending on public infrastructure rose almost 30 percent year-on-year to P25.4 billion in August, from P19.7 billion in 2014, after the Department of Public Works and Highways rolled out more projects.

For 2016, the Department of Budget and Management has allocated a total infrastructure budget of P766.25 billion, or 28.6 percent more than this year’s outlay of P595.77 billion.

The increased infrastructure budget is still minuscule as it is estimated that the country needs more public infrastructure to the tune of $125 billion, or a whopping P5.8 trillion.

A total of 14 projects worth $11.2 billion, or about P522 billion, are up for bidding under the Aquino administration’s Public-Private Partnership (PPP) Program. These, except one, are said to be likely to be approved before President Aquino leaves office in mid-2016.

So far, only 10 PPP projects have been awarded since 2010. These include the newly inaugurated 4-kilometer Muntinlupa-Cavite Expressway to the recently awarded 44.6km Cavite-Laguna Expressway,

Europe prolongs its diesel problem esponding to public outrage over the Volkswagen diesel emissions scandal, the European Union (EU) rightly pledged to toughen emissions testing and enforce limits on nitrogen oxides (NOx), a hazardous type of diesel pollutant. But those moves amount to very little, now that the EU is giving the auto

that to stabilize local prices, up to 1 million metric tons of rice should be imported in addition to the 500,000 MT already programmed for 2016’s first quarter.

Earlier this month, the United Nations’s Food and Agriculture Organization (FAO) reported that world food prices in September increased for the first time in 18 months, mainly caused by upsurges in dairy and sugar prices—themselves induced by El Niño.

As a whole, the global increase— measured as a jump in the FAO’s Food Price Index of 156.3 in September, from 155.1 in August—was only less than a percent. But droughts across Asia have already dampened production in the world’s top rice exporters (like Thailand, India and Vietnam)

Tuesday, November 3, 2015

after that, they can go over the limit by 50 percent. The adjustment period for existing car models is still longer.

The concessions might make sense if the technology to meet the limit had yet to be developed.

But selective catalytic reduction and other NOx-limiting mechanisms have been available for years.

E-mail: ernhil@yahoo.com.