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A broader look at today’s business Thursday, August 16, 2018 Vol. 13 No. 306

CTRM nixes reduction of tariffs on food items T By Jasper Emmanuel Y. Arcalas @jearcalas & Elijah Felice E. Rosales @alyasjah

HE Cabinet-level Committee on Tariff and Related Matters (CTRM) on Wednesday decided to thumb down the recommendation of economic managers to reduce import duties on select food items to ease inflation.

In an interview with the BusinessMirror, Trade Secretary Ramon M. Lopez said the CTRM, which held a meeting on Wednesday, advised against the reduction

of tariffs on certain food products as proposed by the Duterte administration’s economists. Economic managers pitched to the President last week the op-

tion of lowering to a uniform 5 percent the tariffs on fish, corn, meat, particularly chicken, and wheat. They made the recommendation after the July inflation

“We do not see tariff [reduction] as a solution to [inflation]. There are other measures that can be done, some from the DA [Department of Agriculture], to boost the volume [and] to be able to bring in more supply to really lower [prices].“—Lopez

rate hit 5.7 percent, the highest in five years. Slashing tariffs on certain food items was seen by economic managers as a way to weather inflation, or the increase in commodity prices, which has been on the uptrend since January.

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Shared responsibilities will make UN compact on migration work Statement delivered by Susan Ople, president of the Blas F. Ople Policy Center, at The Manila Conference on the Future of Migration: Global Migration Governance, Human Rights, and Sustainable Global Compact on Migration, August 15, 2018, Conrad Hotel, Pasay City.

ast night, while reading through the text of the Global Compact on Migration, I kept thinking of the song penned by my favorite Beatle, John Lennon. Imagine no possessions I wonder if you can No need for greed or hunger A brotherhood of man Imagine all the people sharing all the world, You may say I’m a dreamer But I’m not the only one I hope some day you’ll join us And the world will be as one

Continued on A2

Continued on A7

Remittances drop 4.5% in June on weak labor demand House to resume budget

hearings after reaching ‘compromise’ with Palace

By Bianca Cuaresma @BcuaresmaBM

ONEY sent home by Filipino migrant workers declined in June, largely on the back of labor issues, particularly in the Middle East, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday. Cash remittances coursed through banks in June declined by 4.5 percent to hit $2.357 billion during the month. The volume of the dollars sent home by overseas Filipino workers (OFWs) in June was $112 million lower than the previous month’s aggregate cash remittances and $110 million short of the remittances in June 2017. The OFWs’ inflows in June brought the total cash remittances for the first half of the year to $14.179 billion, 2.7 percent larger than the $13.813 billion. The government projects remittances to grow by 4 percent on average for the entire 2018. This means that remittances must grow an average of 5.3 percent for the next half of the year to reach the government projection. The BSP said the countries that registered the biggest declines in cash remittances during the month are the United Arab Emirates (UAE), Saudi Arabia and Kuwait. “The overseas Filipino workers’ repatriation program of the government may have partly affected the remittance flows for the month,” BSP Governor Nestor A. Espenilla Jr. said in a statement on Wednesday. During the first two months of 2018, a total of 4,149 OFWs were repatriated from the UAE, Saudi Arabia and Kuwait. See “Remittances,” A8

By Jovee Marie N. dela Cruz

Overseas Filipino workers line up inside the Ninoy Aquino International Airport Terminal 1 in this Businessmirror file photo, before boarding flights to their foreign employers. The Bangko Sentral ng Pilipinas reported on Wednesday that money sent home by Filipino migrant workers declined by 4.5 percent in June, largely on the back of labor issues, particularly in the Middle East. NONIE REYES

DOF upbeat on PHL economy in H2 By Rea Cu

@ReaCuBM

HE Philippine economy will grow faster in the second half of this year, on the back of larger investment inflows and exports, higher infrastructure expenditures and improved revenue efforts, the Department of Finance (DOF) said on Wednesday. For one thing, the economic

PESO exchange rates n US 53.4510

numbers thus far for the second semester of 2018 remain “very promising” and the year’s anemic secondquarter gross domestic product (GDP) growth of 6.0 percent was a mere “exception that does not indicate a medium-term trend,” Finance Secretary Carlos G. Dominguez III said at the Kapihan sa Manila Bay news conference in Manila. “Domestic demand remains robust. Investment flows grew in the

first half of this year. Our exports of goods and services recovered to a double-digit growth of 13 percent in the second quarter, from 6.5 percent in the previous quarter,” Dominguez said. He said the inflation rate, which reached 5.7 percent in July but eased to 0.5 percent on a monthon-month basis, is expected to go down to the original forecast range See “DOF,” A2

@joveemarie

FTER reaching a “compromise” with the Palace, the leadership of the House of Representatives on Wednesday said the lower chamber will now resume its hearings on the 2019 proposed P3.757-trillion national budget. In a news conference, Majority Leader Rolando Andaya Jr. said the meeting that he and Speaker Gloria Macapagal-A rroyo had with President Duterte and Special Assistant to the President Bong Go last Tuesday has opened “clear lines of communication” following a budget deadlock. “I can suggest to the chairman [of the House Committee on Appropriations Karlo Alexei Nograles] that we now continue the budget hearings. The instruction is clear: over the break, we will resume, likewise, it’s a gesture of cooperation with the DBM [Department of Budget and Management] and the Senate,” he added. Congress is expected to take a break from August 16 to 27. Amid issues on the country’s shift to a cash-based budgeting system, the House Committee on Appropriations had temporarily suspended the deliberations of the 2019 national budget. Legislators crossed party lines

because, they said, the “cash-based budgeting is not feasible, impracticable and inimical to the interests of our constituents.” “The President opened the lines of communication on how the budget for 2019 will come out at the House of Representatives,” Andaya said. With this, the majority leader said the Palace and House of Representatives agreed that the 2019 national budget is a “hybrid” of cash-based and obligation-based budgeting system. “In a sense it’s a hybrid.... It’s not a full-fledged cash-based system,” Andaya said.

Realignment

While he declined to give further details of the agreement with the Palace over the budget, Andaya said the budget cuts in various government agencies will be restored with a possibility of realignment. For 2019, the budget of the Department of Health (DOH) was decreased by P35 billion; Department of Education (DepEd), by P77 billion; and the Department of Public Works and Highways (DPWH), by P95 billion. There were also P5-billion reductions in the budgets of the Department of Social Welfare and Development (DSWD) and the Commission on Elections (Comelec). See “Budget,” A2

n japan 0.4810 n UK 68.0271 n HK 6.8095 n CHINA 7.7661 n singapore 38.7972 n australia 38.7199 n EU 60.6455 n SAUDI arabia 14.2524

Source: BSP (15 August 2018 )

News

BusinessMirror

A4 Thursday, August 16, 2018 A2

Rehab work starts after monsoon spell, but 500 Luzon villages remain flooded

By Rene Acosta

@reneacostaBM

ome cities and municipalities in Luzon that have been swamped by floodwater over the past days are slowly recovering, with power already restored in some affected areas and workers undertaking rehabilitation efforts. The mammoth rehabilitation works in former flood-stricken areas in Northern Luzon, Calabarzon, National Capital Region (NCR) and in the Cordillera Administrative Region were being undertaken, even as more than 500 barangays are still inundated, down from the 656 barangays over the weekend.

Heed warnings

Environment Secretary Roy A. Cimatu, meanwhile, cautioned the public against geological hazards like landslides and flash floods that may endanger the lives of those living in low-lying areas and

so-called no-build zones. “Residents and communities near mountains and within lowlying areas should be proactive by taking appropriate measures to minimize, if not prevent, any adverse impact of calamities,” Cimatu said in a news statement. “The best way to prevent loss of lives and damage to properties during floods and landslides is for people to take precautionary measures,” Cimatu said. “By being prepared, we can reduce vulnerability to these natural hazards,” Cimatu said.

Initial damage estimate

The severe flooding affected at

Budget. . . continued from a1

For his part, Nograles said the 2019 budget proposed by the DBM did not just reduce the funds for agencies like the DepEd, but also lowered the targets for the provision of classroom buildings, scholarships and other crucial services. “For example, the number of youth to be assisted by the Department of Labor [and Employment] has been slashed, from 186,850 to 85,898; the number of college scholarships has been slashed, from 433,466 to 315,228; the target number of classroom buildings has been slashed, from 47,000 to 4,100; and the target number of sitios to be energized has been slashed, from 1,817 to 775,” Nograles said. While House members understood the logic behind adopting a cash-based budget, “it’s not yet time” to make the shift, he stressed. “Maybe we can do this in 2020, but not 2019. Let the agencies first catch up with their spending.” The Davao congressman noted that “underspending is not a problem” for the current administration, unlike its predecessor. “ T he budget is 95 -percent obligated; underutilization, not underspending, is the real issue,” he said.

‘Reenacted talk too premature’

Also, Nograles said it was still too early to talk about a reenacted budget. He warned, however, that adopting the DBM’s “Plan B” would have repercussions. “It is only August. When do we usually begin to talk about a reenacted budget? When it’s December. I’m still very hopeful that we can resolve this among [ourselves],” he said. Moreover, Andaya said President Duterte told lawmakers to do what is good for the public in terms of budgeting system. “I leave it to you [members of Congress] to decide. Do what you feel is right. Hindi ako makikialam diyan [I won’t meddle there],” Andaya quoted the President as saying.

get is P10 billion lower in absolute terms compared to the 2018 General Appropriations Act, which reached P3.767 trillion. The proposed 2019 national budget is cash-based, as opposed to traditional, multiyear obligations-based budgeting. The DBM has described it as the more efficient budgeting method, since it limits incurring obligations and disbursing payments for goods delivered and services rendered inspected and accepted within the fiscal year. The obligations-based budgeting is common budgetary practice in the Philippines. It allows appropriations and obligations until the next fiscal year, extending the validity of funds to two years.

Suarez vs Diokno

Supplemental budget

In a separate news conference, House Minority Leader Rep Danilo E. Suarez of Quezon slammed Diokno for his poor appreciation of cash-based budgeting system that may not work in reality. “Cash-based budgeting system is only ideal [for] developed nations, but in a developing country, I don’t think this is fair,” said Suarez. Owing to the limitations of a cash-based system, the 2019 bud-

DOF. . . continued from a1 of 4.0 percent to 4.5 percent by the end of 2019, as reported earlier by the Development Budget Coordination Committee. The inflation level for July is higher than the previous month’s level of 5.2 percent and the 2.8 percent recorded in July 2017. “The Central Bank has a very good capacity to analyze economic trends and figures, and all the decisions made by the Monetary Board are data-driven, so we look at the data and the Monetary Board together with the chairman to decide on the data. So, as the Central Bank Governor said, we will look at the data and, according to him, they will take the appropriate action...,” Dominguez added. In terms of expenditure, the government’s effort improved to 19.47 percent, the highest firstsemester expenditure effort since 2003, Dominguez noted. In the first half of the year, the

least 187,744 families or 828, 462 persons, damaged P36.3 million worth of infrastructure and agriculture products, and destroyed or damaged 409 houses, according to the National Disaster Risk Reduction and Management Council (NDRRMC) in its report released on Wednesday. The combination of repair and clearing works, and even power restorations were being undertaken in areas where the massive flooding have subsided, including in Marikina City, where the residents have experienced flooding reminiscent of Typhoon Ondoy in 2009. Officials reported that floods have receded in all previously affected areas in the NCR and even in more than 100 barangays in Northern Luzon and in the Cordillera Administrative Region. Still, more than 500 villages, especially in Regions 1 and 3, are still flooded. The NDRRMC said that clearing works were being undertaken in several key roads and bridges, which are among the 36 flooded road sections in Regions 1, 2, 3 and in Calabarzon, while power has been restored in 16 barangays, down from the 33 previously affected villages.

government’s revenue effort also improved by 1.47 percentage points to 17.12 percent, which is the highest first-semester revenue effort ever achieved since 1946. The finance chief said the tax effort of 15.23 percent in the first half of the year was the result of the implementation of the Tax Reform for Acceleration and Inclusion Law and tax administration improvements in the Bureaus of Internal Revenue and of Customs. “Our tax effort is now on a par with the best-managed economies in the region. It is a tax effort we can very well sustain, especially with the subsequent packages of the Comprehensive Tax Reform Program [CTRP] now being deliberated [by the Congress],” he said. He said the government will need to collect at least P10 billion in revenues a day to meet its revenue target of around P3.5 trillion

Moreover, Andaya also raised the possibility of a supplemental budget to fund the implementation of the Bangsamoro Organic Law (BOL), as well as the Supreme Court ruling increasing the internal revenue allotment (IRA) of local government units. “There were also suggestions that there will be a supplemental budget to be submitted because BOL was already admitted, that

annually. The DOF earlier said that it has set a revenue target of P3.2 trillion for 2019. “Our goal is to collect P10 billion a day. Our total revenue should be around P3.5 trillion, so that’s about P10 billion a day, so we need everybody’s support, and everyone has to pay their taxes...,” he added. In July DOF Undersecretary Karl Kendrick T. Chua said that all packages under the Duterte administration’s CTR P would have been submitted to Congress by the end of the July for assessment and review. He said the DOF is hoping for three measures to be approved by Congress within the year, with two measures under the CTRP, namely Package 1B and Package 2, and the other being the Rice Tariffication Act. Measures under Package 1B include increasing the motor ve-

The NDRRMC reported that 25 landslides also occurred in Ilocos Sur, Rizal, Abra, Baguio City and Benguet, while soil erosion were also reported in Kalinga, Benguet and Baguio City.

Safety tips

The Mines and Geosciences Bureau (MGB), a line bureau of the DENR, has come up with tips and safety instructions to avoid tragedies as a result of rain-induced landslides. Antonio Apostol, officer in charge at MGB’s Lands Geological Survey Division, said residents should look out for fallen trees or fences, as these are signs of landslides. “There are also other signs, such as forms of water being blurred with soil and a loud resonance signifying a landslide coming,” he said. Apostol urged residents to coordinate with concerned local government units and be updated on the latest news and landslide advisories issued by the DENR and MGB. “Should the landslide take place when residents are inside their respective homes, if you are not able to go out, stay below sturdy furniture, like tables and desks,” Apostol said.

the budget of BOL is not in the present budget. It’s not there. Also, the Supreme Court decision regarding the deficiency in the internal revenue allotment.” Earlier, Andaya said P160 billion is needed for the implementation of the proposed BOL and the Supreme Court decision increasing the tax share of local governments. He said “budget space” must be created in the 2019 budget for these mandates, “which were not factored in” when the proposed P3.757-trillion outlay was being finalized by Malacañang. A nd aya sa id t he Supreme Court’s July 4 ruling that the share of LGUs should be sourced from “all national taxes and not only national internal revenue taxes,” must be complied with, as well. The IRA represents the LGUs’ 40-percent share from national taxes collected. Prior to the Supreme Court decision, only BIR collections were reckoned with in the computation, and excluded Bureau of Customs collections. This meant that local governments were denied their share of the VAT and excise taxes paid on fuel and other imported goods. With Mark Joseph Fernandez and Joahna Lei Casilao

hicle users charge, an estate tax amnesty program, as well as a measure on general tax amnesty, amendments to the bank secrecy law and automatic exchange of information. Package 2 of the CTRP, which aims to reduce corporate incometax rates from 30 percent to 25 percent while rationalizing the country’s fiscal incentives regime, was submitted by the DOF to Congress in January this year. The measure is embodied in HB 7458 at the House of Representatives. Further stimulating the economy in the second half is the Duterte administration’s “Build, Build, Build” infrastructure program, which accounted for government spending of P352 billion in the first six months of 2018, representing an increase of 41.6 percent over the same period last year and 4.3 percent above the disbursement target.

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DOLE starts consultations on 14th-month pay proposal for private-sector workers By Samuel P. Medenilla @sam_medenilla

he Department of Labor and Employment (DOLE) assu red on Wed nesd ay that stakeholder consultations for the proposed 14th-month pay are now underway. At a news br ief ing , L abor Secretary Silvestre H. Bello III said President Duterte is now discussing the matter with government economic managers to determine the economic impact of the proposal. Bello added that the DOLE will also get the inputs of employers and labor groups on the proposal. The labor chief said they will issue their official position on the proposed legislation after the conclusion of these consultations. “We are open to the possibility of endorsing it depending on the

result of our consultation with labor and management, and also depending on the result of the consultation of the President with his economic advisers,” Bello said. Personally, Bello said he supports the proposal, since it will provide additional income to workers amid the rising cost of living. “The proposed 14-month pay for our private [sector] workers is a huge help for their families. It’s extra earnings to help them cope with the rising inflation, but we also have to consider a lot of factors,” Bello said. Under Senate Bill 2, or the “An Act Requiring Employers in the Private Sector to Pay 14th Month Pay,” all workers will get another one month worth of salary during the calendar year. The pending bill was filed Senate President Vicente C. Sotto III in July 2016.

CTRM nixes reduction of tariffs on food items continued from a1 The CTRM headed by Lopez, how-

ever, is of the opposite view. “We do not see tariff [reduction] as a solution to [inflation]. There are other measures that can be done, some from the DA [Department of Agriculture], to boost the volume [and] to be able to bring in more supply to really lower [prices],” Lopez said in a mix of English and Filipino. He listed trading measures that the DA can roll out to beef up the volume of meat and fish in the market. One of this, Lopez said, is the minimum access volume (MAV) for poultry products, which the CTRM recently found to be underutilized. The DA, according to the trade chief, has also allowed imported fish to be sold directly to consumers, unlike in the past when imports were only delivered to processors. “The third is on the traders, especially when it comes to garlic and onion. We [the Department of Trade and Industry], with the DA and the PNP [Philippine National Police], will go after the warehouses of traders to check if they are piling up or hoarding. This is to flush out the supply because, with imports of garlic, there should be an abundance of the staple given that imports are coming in, and the landed cost is very low. There must be supply,” Lopez said after chairing the CTRM meeting in Makati City.

No EO recommended

With this, the CTRM will not recommend to the President the issuance of an executive order (EO) reducing tariffs on meat and fish. Economic managers have urged President Duterte to authorize an EO slashing import duties when Congress goes on a brief recess starting on Thursday. “The solution overall is bring in more supply, not [bring down] tariffs, because the tariffs are already low. Even if we put it at 5 percent, the change [in market prices] will be minimal. Some are at 10 percent, some at 7 percent. We do not see this [tariff reduction] as a solution after the review of the tariff rates and the landed cost of these [food products],” Lopez added.

‘Noble option’

Agriculture Secretary Emmanuel F. Piñol told the BusinessMirror that the CTRM has decided to adopt his department’s recommendations for halting the increase in commodity prices. Piñol said the CTRM will come up with a memorandum to the President informing him of the “available administrative measures” that would address rising food prices instead of cutting tariffs. One measure agreed upon by CTRM members to ease inflation was the importation of round scad (galunggong) for food-security purposes. Piñol signed on Wednesday a certificate of necessity that would allow importers to bring into the Philippines a maximum of 17,000 metric

tons of round scad for wet markets in Metro Manila. He pointed out that the volume is only for Metro Manila consumers, while other regions will have to request their own certificates of necessity. The volume for the other regions, according to Piñol, would be determined by his office. As for meat products, Piñol said he is giving importers who were given MAV allocations until December 15 to use their quotas. “I talked with the MAV holders [on Wednesday] morning and asked them to bring in their MAV allocation as we found out that the MAV utilization is only about 59 percent,” he said. “With four months to go before the end of the year, I asked them this morning to bring in their meat, or else we will cut into half whatever remains of the MAV. I asked them to make some deliveries by the end of August and September,” Piñol added. He earlier warned importers who did not use up all their MAV allocation that they will be banned by the DA, and the unused portion would be given to other traders. Piñol said the CTRM has also agreed to temporarily lift the special safeguard duty imposed on imported chicken and chicken products. “It will just be temporary. I think the SSG will be lifted until the end of the year.” As for vegetable and corn products, no tariff adjustments would be recommended, as duties on these products are already low, according to the DA chief. “[I am] very happy [with the results of the CTRM],” he said. “We protected the [farm] sector, and we came up with a more noble option. You know, messing with the tariff levels actually would be a knee-jerk reaction that would have lasting adverse effects on agriculture.” The CTRM is one of the seven Cabinet-level interagency committees assisting the National Economic and Development Authority (Neda) Board in economic policy formulation. The committee’s main function is to advise the President and the Neda Board about policy direction on tariff and related matters. It is also mandated to review the impact of these measures on the economy. Apart from this, the CTRM coordinates agency positions and recommends national positions for international trade negotiations. It also recommends to the Chief Executive a continuous rationalization program for the country’s tariff structure. Earlier, Budget Secretary Benjamin E. Diokno told the BusinessMirror that the President will “most likely” adopt the recommendations of the economic managers as counterinflationary measures. The President can modify tariffs through an EO when Congress is not in session, according to Section 1608 of the Customs Modernization and Tariffs Act.

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KBP, NTC renew drive against illegal broadcast stations as 2019 polls near

O ensure a more rational and orderly coverage of the midterm elections in 2019, the Kapisanan ng mga Brodkaster ng Pilipinas (KBP) and the National Telecommunications Commission (NTC) have formed an alliance to prevent, or minimize, the expected proliferation of illegitimate broadcast stations across the country. Since there is an expected rise in spending for the 2019 election, the KBP expects these illegal stations to operate to get a share in the spending of the candidates for their political campaigns. “This is year 2018 and there’s usually a proliferation of illegal broadcast stations leading to election day in May next year,” Erwin V. Galang, head of the technical committee and trustee of the KBP, said in a news statement issued on Wedneday. “KBP is again teaming up with the NTC in ensuring that such illegal stations do not operate. We have filed several cases against illegal radio stations that we have managed to track down courtesy of our partnership with the NTC,” he added. Once the NTC sends a cease-anddesist order, Galang noted, these radio stations will stop operations. Under its mandate, the NTC initiates administrative cases with cease-and-desist and show-cause orders against illegal broadcast stations, which historically represent bulk of the administrative cases with the regulatory body. Edgardo Cabarios, deputy commissioner of the NTC, cited the gains with their previous collaboration with the KBP has resulted in the closure of fly-by-night broadcast stations, mostly in the provinces,

who had victimized unsuspecting candidates to buy airtime for their political advertisements. These illegal broadcasters usually disappear after they received payment for the political advertisements. “Historically, we can see a steep increase in the number of cases in broadcast services in relation to unlicensed broadcasts leading to the election campaign period. What we do is we immediately issue cease-and-desist and show-cause orders against these illegal operators, forcing them to shut down their stations, while others simply disappear,” Cabarios explained. Based on the 2017 report of the Commission on Audit (COA), there were 2,054 broadcast services division cases recorded by the NTC. Except for a few cases, the administrative complaints were initiated by the NTC itself motu propio for violations against erring radio stations. Auditor Ma. Jocelyn Factora, COA’s 2017 resident auditor in the NTC, confirmed that almost all pending administrative cases represented cases filed by the NTC against illegal broadcast stations, and not cases from telco consumers. “The pending telco-related cases from consumers are very minimal.” As of December 31, 2017, there are only 148 telco consumer cases pending before the NTC’s Legal Office, which are now subject of review and resolution. “With our partnership with the KBP, we are optimistic that we can curb the proliferation of unlicensed broadcast stations which interfere with the broadcast of legitimate stations,” Cabarios said. Rizal Raoul S. Reyes

IC bares 24.27% insurance industry growth from January-to-June period By Rea Cu

@ReaCuBM

he Insurance Commission (IC) reported on Wednesday a 24.27-percent growth in the insurance industry in the first half of the year, with all sectors posting double-digit growth in terms of premium income at end-June this year. Insurance Commissioner Dennis B. Funa said that the industry’s premium income reached P145.76 billion from January to June this year, compared to the P117.29 billion take during the same period in 2017. “All sectors of the insurance industry—the life-insurance sector, nonlife-insurance sector and mutual benefit associations [MBAs]—posted double-digit growth in terms of premium income at end-June this year,” Funa said. Premium income of the life-insurance sector climbed 27.92 percent to hit P116.14 billion as of end of the first six months of this year from P90.79 billion during the same period last year. “While the factors that may affect the outlook for the industry in the second half of this year are largely linked to the health of the country’s economy, our outlook is very positive, taking into account the all-time record year in 2017 and double-digit growth in first quarter of this year. With the continued upward trajectory in our statistics, we can say that we have achieved a lot, but there is more to be done,” he added. The growth for the life-insurance sector was brought about by the remarkable increase in the sales of variable life products, which posted an incline of 35.91 percent to P88.45 billion from P65.08 billion year-onyear, according to Funa. He added that the nonlife-insurance sector posted a 10.07-percent increase in net premiums written to hit P24.44 billion, from P22.20 billion last year. This was brought about by a 14.87-percent increase in premiums collected from motor car-insurance products which comprise more than half of the total net

premiums written. The MBAs reported a P5.18 billion in premium income as of end-June, an increase of 20.61 percent, from P4.29 billion year-on-year. “The MBA sector recorded this increase due to the 27.03 percent or P529.3-million increase in the net members’ contribution of two MBAs,” he said. In line with the total benefits paid, the insurance industry shelled out P50.74 billion as of end-June of this year, increasing by 15.21 percent, from P44.04-billion benefits paid during the same period last year. The insurance chief pointed out that in terms of assets, liabilities and net worth, the insurance industry posted a moderate growth. The insurance industry’s assets hit P1.54 trillion as of end of first half of the year, representing 3.64-percent growth, from P1.48 trillion during the same period last year. “In terms of asset, the nonlifeinsurance sector posted a significant 15-percent increase. Despite the decrease in the number of nonlifeinsurance sector players, the sector’s asset managed to hit P223.77 billion as of end-June, from P194.55 billion during the same period last year,” he added. In terms of liabilities and net worth, the insurance industry hit P1.22 trillion and P313.09 billion, respectively. “The life-insurance sector’s assets hit P1.23 trillion or 80 percent of the total industry’s P1.54 trillion assets, representing 1.32-percent increase, from P1.21 trillion yearon-year,” he said.

Thursday, August 16, 2018 A3

DTI’s Lopez to foreign shipping lines: Scrap unnecessary charges

By Elijah Felice E. Rosales

@alyasjah

rade Secretary Ramon M. Lopez on Wednesday urged foreign shipping lines to remove “unnecessary charges” imposed on importers and exporters, as the government goes all out against abusive freight carriers. In a news statement, Lopez said his agency will explore other avenues on how to put an end to excessive fees reportedly being exacted by shipping lines on local businessmen. These charges, he argued, undermine the competitiveness of importers and exporters. “We are calling on all interna-

tional shipping lines to put a halt to these unnecessary charges as these are unfair. Meanwhile we also call on exporters and importers to insist on ‘freight collect,’ as this is more advantageous,” Lopez said. Lopez had requested the Philippine Competition Commission (PCC) to look into this practice. The anti-

trust regulator has since taken up the complaint for review, although it is asking for more time to probe the matter. The trade chief, for his part, is not relying solely on the PCC to resolve the concern. He urged other government agencies, particularly the Bureau of Internal Revenue (BIR), to investigate the case and find if logistics firms are properly paying their taxes. “Finally, we shall also call on the BIR to investigate unpaid taxes arising from these charges,” Lopez said. In a recent meeting, the Department of Trade and Industry presented to competition officials a study on shipping costs and other charges that could be avoided. The study pointed to certain fees charged by international freight carriers that should apparently be under the firm’s operating cost. Moreover, the study recom-

mended that these costs must not be incurred by or passed on to importers and exporters, especially if they do not have any contractual arrangements with the shipping lines. These charges, as dubious as they are, reduce the competitiveness of local firms by increasing the cost of imported raw materials and intermediate goods. Lopez vowed shipping lines engaged in this fraudulent activity will be made accountable. He argued consumers suffer from the consequences of these excessive fees, as manufacturers end up passing on to them the additional import costs they incur. “We thank the PCC led by Chairman Arsenio Balisacan and the commissioners for listening to the plea of exporters and importers. We must put an end to this unfair practice of charging excessive fees, as these charges increase the cost,” Lopez added.

Duque affirms DOH’s support for P90/pack hike on cigarette excise tax By Bernadette D. Nicolas

@BNicolasBM

he Department of Healty (DOH) is supporting the proposal to increase tobacco excise tax by as much as P90 per pack. Health Secretary Francisco T. Duque III said at a Palace briefing that the hike in tobacco excise tax is needed to fund the Universal Health Care (UHC) program pegged at P305 billion. Once passed, the UHC is expected to give Filipinos better access to health care, especially to the so-called poorest of the poor. The proposal to raise tobacco excise tax to P90 per pack was filed by Sen. Joseph Victor G. Ejercito. But Duque also noted that the UHC is not just relying on the increase on tobacco excise tax to fund its requirements, since revenues collected from proposed reforms in “sin” and mining taxes will likewise provide additional funding for the UHC. The House of Representatives has approved its version of the bill last year while the Senate version is still in pending. Duque said funding for UHC requires significant investment from the government. Based on their latest estimates, the incremental cost requirements will be at P135.56 billion for the first year, ramping up to P256.31 billion on the fourth year. “The key cost driver here is health-care financing—to provide for premium subsidies and primary care…for the Filipinos who need it most,” he said. He also stressed that investing in UHC is actually a “wise” decision because it is equivalent to investing in people. “Aside from the benefit of a healthier and more productive population, UHC is a key to reducing poverty in our country, thus protecting Filipinos from the high cost of care,” he added. Duque said, with the proposal of increasing tobacco excise tax, they are estimating an incremental increase in revenue of roughly

about P37.2 billion. “The DOH is currently supporting the proposal of increasing tobacco excise tax [to] P90 pesos per pack,” he said. “This will be used to augment the budget from General Appropriations Act for funding of UHC, particularly to cover the premium payments of the noncontributory sector.” The noncontributory sector, which is one of the proposed two types of PhilHealth membership to attain a 100 percent population coverage, includes all Filipinos who are not formally employed or remitting taxes and whose premium shall be automatically subsidized by the national government. On the other hand, the contributory sector are those who pay such as public and private sector workers. Duque said if the increase in the tobacco excise tax to P90 per pack will push through, the bulk of the proceeds will go to the fund of Philippine Health Insurance Corp. to help the poor who can’t afford their contribution as member. Eighty-five percent of the proceeds will also go to the health sector. Of this 85 percent, 80 percent will go to the PhilHealth, while 20 percent will go to the Health Facilities Enhancement Program and the medical assistance to indigent patients program. “The proposed increase in tobacco taxes is a win-win for

House leader urges priority passage of tax amnesty bill By Joahna Lei Casilao

Special to the BusinessMirror

leader of the House of Representatives on Wednesday urged Congress to prioritize the passage of the tax amnesty bill over the Tax Reform for Attracting Better and High quality Opportunities, also known as the “Trabaho law.” At a news conference, Minority Leader Danilo Suarez of Quezon said the tax amnesty bill will provide “a clean state” for taxpayers leading to compliance to national tax policies, increased revenue collection and reduced corruption, which he claimed has “become a culture in the BIR [Bureau of Internal Revenue].” “The new tax amnesty bill, when enacted, will provide a clean slate for delinquent taxpayers and will encourage all taxpayers, especially low-income and middle-income earners, professionals and even overseas Filipino workers to

avail [themselves] of this program and register to the Bureau of Internal Revenue,” Suarez, one of the authors of the bill, said. Suarez claimed that “TRAIN [1] only worsens the condition of [the] economy” despite the P1.41-trillion total revenue collection in the first half of 2018, reportedly 9 percent higher than the target, according to the report by the Bureau of Treasury. “We can say that the increased collection was due to the implementation of the first package of TRAIN. However, TRAIN only worsens the condition of our economy,” he said. “My point is, when we passed TRAIN, we were all affected.… They said that the public will benefit from the TRAIN. I checked the [House Committee on] Ways and Means, and I can’t see why [you] would increase tax for basic commodities when the economy is bad. That’s not the right time to pass taxes,” he added.

the health of Filipinos,” he said, noting that the increase in tobacco excise tax is also estimated to bring down smoking prevalence from 21.6 percent to 15.7 percent.

TheBroa

Business

Thursday, August 16, 2018 | Editor: Dennis D. Estopace

PHL POULTRY RAISERS ON GROUND ZERO STILL COPING

Fowl farmers’ fears persist 1

THIS August 10, 2018, photo shows a typical poultry farm housing layers. On August 11, 2017, the government declared the village of San Carlos, San Luis, Pampanga, as the ground zero for the bird-flu outbreak. NONIE REYES

By Jasper Emmanuel Y. Arcalas

IFTY-FIVE weeks ago, poultry farm owner Librada Sese celebrated life; today she can only recall death as thousands of chickens, some she raised, were killed on orders of government.

She had a premonition on July 24, 2017, but a friend’s birthday peck on her cheeks brought her back to the bustle of activity inside her one-story house in San Carlos, San Luis, Pampanga. The distant cackles and cock-adoodle-do’s from layers inside buildings adjacent to her house were brushed aside by laughter and chatter of guests. It was festive as Sese, “Nanay Librada” to many, was celebrating 78 years of her life on this planet. Another reason to be happy that day: 2017 was turning out to be a good year for her layer farm. For the first two quarters, demand for table eggs was growing, which pushed farm-gate prices to rise to unprecedented level. It was a year Sese, a layer raiser for more than four decades, envisioned to be “the year.” “I was going to pay my debts and save more money for myself,” she told the BusinessMirror. The good fortune brought to Sese’s life by the first six months of 2017 allowed her to go with her usual birthday routine: set a feast and invite all the people from the barrio. Gifts arrived. Greetings were received. But an unusual visitor also reached her: rumors of a plague creeping into their small town, about 60 kilometers from the nation’s capital.

“Some of my visitors told me [that day that] the flocks of our neighbors have died,” she recalled. She was speechless.

Year of the Rooster

SESE steeled herself as her farmhand brought her the news she dreaded to hear. She was roused from sleep near dawn the day after turning 78 when her caretaker told her, “Ima, may namatay na po roon sa Building 1,” Sese, who has a dozen poultry houses, said. “200 na po.” [Mother, about 200 birds have died in Building 1.] She ordered the farm worker to give medicines to her layers, hoping it was just a normal illness that’s affected the farm. By noon the same day, another 500 birds were dead. When she asked how many chickens could die, her farm worker became silent. She got an answer 17 days after she turned 78. Sese’s poultry farm of 60,000 head of layers was declared on August 11, 2017, as the ground zero of the country’s first confirmed avian influenza (AI) case. The year that Nanay Librada thought would be one of the best years of her business turned out to be the worst. She lost more than P30 million with the eradication of her flock, with majority being culled

by government officials to contain the virus. Coincidentally, 2017 was the Year of the Fire Rooster—the same year that bird flu hit Central Luzon.

Harbinger of death

THE ringing of a phone jolted the attention of Roy M. Abaya from the Excel file he had been tweaking since arriving at his office at 8 a.m. of August 10, 2017. Abaya, Regional Field Office 3 chief for the Department of Agriculture (DA), was in his office in San Fernando, Pampanga, preparing his region’s budget for 2018 when he received an unusual call. It was from his boss. “The Secretary told me that we have to announce this and then prepare immediately,” Abaya, who was four months into his work as regional director, told the BusinessMirror. About 68 kilometers away, Agriculture Secretary Emmanuel F. Piñol replaced the receiver on his phone at his office in Quezon City after talking to Abaya. “Fear was overwhelming,” he told the BusinessMirror of his experience during the bird-flu outbreak last year. “It was just an overstated poultry disease,” the DA chief pointed out. “Admittedly, it actually caused deaths in other countries but the feared fatal effect of the disease was not present in the Philippine experience.” Piñol did doubt it at first, as what was expected from a former journalist. But when the laboratory results came out, Piñol knew it was a monster that the government must take down. “I was shocked,” he said. “The first thing I did was to think like a farmer. I knew right there and then we have to cull the birds so as to contain the virus.”

“NANAY” Librada Sese bares to the BusinessMirror on August 10, 2018, her experience as a layer raiser during the outbreak of bird flu at San Carlos, San Luis, Pampanga, last year. NONIE REYES

Premonition, omen

A WEEK prior to Piñol’s call, Abaya already knew that some poultry farms in Barangay San Carlos have already tested positive from AI. “It was hard for me to believe it because we have been bird flu-free for so long. There have been false alarms before, yes,” Abaya told the BusinessMirror. “But when we sent the samples to the BAI [Bureau of Animal Industry] laboratory and [they] confirmed it was AI—I was shocked. It was the most valuable thing we have been holding on for so long for our poultry products: that we are bird flu-free,” he added. Two things immediately crossed Abaya’s mind that time: “What would be the effect of this on our poultry supply and how are we going to contain this?”

“We really did not know what to do at first. Even me; I had to study the [Avian Influenza Protection Program] AIPP,” he said. “So the fear over how to respond immediately is really there. And it was aggravated [by the fact] that a lot of our stakeholders are already complaining,” added Abaya, who has been in the DA for more than three decades.

Grim reaper

SINCE assuming the helm as DA regional director for Central Luzon in March, Abaya said he never received any reports of unusual mortality among poultry flocks—not until end-July of 2017. “The poultry owners had the initiative to treat their problem. They did not want to expose [to outsiders] that their flock have health

problems because they wanted to protect their businesses,” Abaya told the BusinessMirror. “But when they [were unable] to handle the deaths and they were already alarmed about the matter, that was the [only] time they informed government officials.” An engineer by profession, Abaya admitted that time he also didn’t know the possible extent of damage a bird-flu virus could bring. “When our veterinarians told me that within a day it can kill thousands of birds, then I was really afraid,” he said. “And when we saw on the ground what’s happening it was really extreme. They [would] report to us today, and then tomorrow all their flocks would be wiped out.”

Fowl play

EVEN after the DA declared Baran-

aderLook

sMirror

www.businessmirror.com.ph | Thursday, August 16, 2018

1 year after bird flu flare-up

CHICKENS line a poultry farm in this August 10, 2018, photo. The BusinessMirror visited San Carlos, San Luis, Pampanga, which was declared by the Department of Agriculture on August 11, 2017, as the ground zero of the bird-flu outbreak. NONIE REYES

gay San Carlos ground zero for bird flu, poultry raisers hesitated to cooperate with the government. They also had difficulty accepting the fact their flock would be culled no matter what. “They only opened up when the Secretary announced there will be compensation for the chickens culled,” Abaya said. “When the Secretary also announced that there will be no movement of products within the 7-kilometer radius, then the poultry raisers reached out to us to cull their flock to not incur more losses.” In its official report to the Office International des Epizooties (OIE or World Organization for Animal Health), the DA culled a total of 208,471 birds in the San Luis outbreak. However, DA-RFO 3 estimates show that total birds culled in the area reached 500,000 head, including those surrendered outside the 1-kilometer quarantine area. Official tally submitted by the DA to the OIE showed that it culled nearly 200,000 birds in the Nueva Ecija AI-affected poultry farms. DA-RFO 3 estimates that total birds reached about 400,000 head, bringing the total number of poultry animals culled in the country to 900,000 head at least. During the DA’s budget hearing in Congress, Piñol disclosed that they gave more than P60 million worth of indemnification to poultry farmers affected by AI in Central Luzon.

Art of culling

THE DA faced a lot of challenges given that this was the first confirmed bird-flu outbreak of the country. One major challenge was choosing the most efficient procedure of culling. “We were not accustomed [to] using personal protective equipment; it was very huge and very hot inside. We thought that it was a piece of cake,” Abaya said. “But just two hours into the gear you are already exhausted.” At first, the culling teams of the government were manually dislocating the spinal cord of the birds. However, this was tedious and exhaustive. The teams shifted to carbon dioxide suffocation to fast-track the culling procedures. The animals were placed in carbon dioxide-filled black bags to ensure loss of consciousness. Abaya said they imposed two shifts for the culling of birds: 5 a.m. to 9 a.m. and 4 p.m. to 8 p.m. This meant it took four hours a day to kill the birds. “Work got easier when the military helped us and when poultry raisers were already volunteering for the culling of their flock in exchange of the indemnification,” he said. Another problem faced by the

government’s veterinarian was basic: where to bury the culled chickens. “It was rainy season that time. The water table was so low. When you bury the culled chickens, their corpses would float a few seconds after,” Abaya explained. “And that is a not allowed under our manual because water contamination could be a channel to spread the virus further.” Due to these above-mentioned challenges, it took the DA-BAI two weeks to totally depopulate the San Luis farms.

Poultry solution

THE National Research Council of the Philippines (NRCP) accused the DA of lacking an effective communication plan and risk communication specialists, resulting in miscommunication of message during the bird-flu outbreak. In its draft policy brief, the NRCP recommended the DA should communicate better during times of disaster or disease outbreaks. The NRCP is an attached agency of the Department of Science and Technology (DOST) mandated by law “to provide advice on problems and issues of national interest.” The NRCP proposed that the DA should create an “effective communication plan specific for outbreak communications” to be able to send its message clearly to the public. “Include in the communication plan the capacity building and training of focal persons in the [local government units] to properly communicate the risks at the local level to address the problem of non- and under-reporting of AI incidences,” the NRCP said in the draft policy brief, a copy of which was obtained by the BusinessMirror. The NRCP also recommended that the DA should “have a pool of risk communication specialists who shall be responsible for disseminating information on outbreaks for public consumption to minimize mishandling of information and media sensationalism.” The NRCP also recommended that the DA-BAI should include “traded game cocks and smuggled chicken from other countries” in its surveillance coverage.

Nuggets of knowledge

FOR Elias Jose Inciong, president of United Broiler Raisers Association (Ubra), the “low-keyness” of the government during the disease outbreak speaks louder than verbal pronouncements. For him, the government should just treat bird flu as a normal avian disease and eradicate it at the soonest possible time with the least public noise. “For more effective handling of the situation, we recommend that the government keep it quiet unless there is really a necessity to

announce it such as that it could harm human beings. Right now, based on our experience, the best thing to do is to keep it low,” Inciong told the BusinessMirror. “In effect you still have a way to announce it through the OIE. But it doesn’t have to be a major production. There’s no need for press conferences or press releases,” Inciong added. Piñol acknowledged the agency was beset with communication problems last year, which resulted in the unintended detrimental impact on broiler raisers. To address this, Piñol said he would be the sole authority allowed to speak in behalf of the government on bird flu-related matters. “There will be no more announcements to be made on issues involving animal health problems [from other officials] except the Secretary,” he said. “We have learned our lesson in the last bird-flu outbreak wherein everybody talked about it—the mayors, the health department, other government officials, which scared people and affected the market,” he added.

Novel strain

THE highly pathogenic avian influenza (HPAI) subtype H5N6 discovered in San Carlos is a lethal one, according to the OIE. In fact, it is described as a novel strain as it could wipe out poultry flocks in a blink of an eye. Worse, it has the tendency to be transmitted to human beings, such as the strain that affected 19 people in the People’s Republic of China. OIE Deputy Director General Matthew Stone told the BusinessMirror it is “crucial” for countries to have effective biosecurity measures to ensure that AI will not be reactivated. Biosecurity measures, according to Stone, do not only cover the poultry-producing farms, but the whole value chain, including the way poultry products reach the market. “For example, the entry and exit procedures for trucks and farm workers in poultry farms are vital to ensure no avian disease virus is brought inside and outside the premises.” Furthermore, Stone noted that the population of poultry houses is an important aspect of biosecurity as overpopulation could lead to faster contamination. “All these aspects are very, very, important for the poultry industry to think about,” Stone said in a phone interview from Paris.

All at risk

UNLIKE commercial-scale farms, small-scale farms are at risk from avian diseases due to lack of capital to invest in biosecurity measures

according to Stone. “That’s a big challenge for countries with diversified farming types in poultry. You have large multinational companies to small family-owned farms,” he said. “And more often, these small ones have limited means and costs which makes it a bit challenging for them to have a strong level of biosecurity,” he added. “As a result, often, they are exposed to ongoing circulation of AI; therefore, zoonotic threats could occur.” Stone pointed out that a strong cooperation between the government and the poultry industry is a must to ensure prevention of avian diseases, including AI. “The idea of public-private partnership is extremely important,” he said. “The government needs an effective partner in the industry. It is also very important that authorities have a very good relationship with the industry.” Stone said no country is immune to the risk of AI and that all countries must put in place a “good” level of biosecurity measures. A key biosecurity measure, according to Stone, is an early warning system that immediately detects a possible threat of avian disease in a specific area. Such system would allow government to impose additional biosecurity measures particularly during high-risk periods, according to him. “For example, in many European countries right now, they direct that all poultry must be held indoors during high-risk period of AI,” he said. “It is quite a challenging measure for industries to adopt. But it is an effective one.”

Probable cause

THE Philippine government has yet to announce the probable cause of the bird-flu outbreak in San Carlos. The DA has tapped the expertise of the Food and Agriculture Organization of the United Nations to trace back the bird-flu outbreak. The BusinessMirror sought FAO Philippines’s comments but these had not been received as of the deadline for the story. Nevertheless, officials have easily blamed migratory birds as the possible culprit for the entry of AI in the country. Various veterinarians and industry stakeholders oppose such argument. They said migratory birds have been in the country for decades now, but this is the first time there was a confirmed case of AI. Officials also considered the possibility the AI virus entered the country through smuggled Peking ducks.

Chump change

MOVING forward, Piñol disclosed to BusinessMirror more of the

changes that will be undertaken in the government’s bible on AI: the AIPP Manual of Procedures. First, the DA-BAI will now abolish the 1-kilometer quarantine area and 7-kilometer control area. The stamping out or depopulation of flocks would now be farmspecific to avoid losses for unaffected poultry farms. At the same time, the government will intensify its surveillance for possible spread of the virus to nearby farms or areas. The government will not hamper the movement of poultry and poultry products outside the AIaffected farms, according to Piñol. He said the DA will also divide the country into three quarantine regions: Luzon, Visayas, Mindanao. This is unlike the 25 National Avian Influenza-Free poultry production zones indicated under the 2016 AIPP. “With this, the OIE will not red-flag the whole country as affected by bird flu but only a certain region, for example, Luzon,” Piñol told the BusinessMirror. “It will not unduly affect other stakeholders located in the Visayas and Mindanao regions.”

Going app

AS for the issue of nonreporting by raisers of unusual mortality among flocks, Piñol said he hopes the DA’s new mobile phone application called “Farmhelp” would encourage them to do so. One way of reporting on their problems, according to Piñol, is by sending photos of their flocks through Farmhelp. The app was acquired by DA at a bid price of “a little less than P30 million,” the DA chief said. The DA will commence a nationwide information campaign on Farmhelp as well as distribution of “low-cost” smart phones starting September. “Now it is up to them if they will report or not, given the available options. And if they still do not report unusual mortality, then it may cost them more,” Piñol said. “Despite our farm-specific protocol, the virus could still affect their neighbors which would put at risk their area’s livelihood anew.” Augusto S. Baluyut Jr., Pampanga Provincial Veterinarian, said the government is also considering adopting defoaming as a procedure to cull chickens. Defoaming, a practice by the United States in culling birds, uses fire-extinguisher-like sprayers containing foam agents that would suffocate the flock.

Kits cut

EDUARDO L. LAPUZ JR. told the BusinessMirror the DA-RFO 3 has spent P2 million this year to buy sufficient laboratory test kits. “We bought a lot of test kits so that we will have readily available materials. We can avoid the depletion of stocks like what happened during the outbreak last year,” added Lapuz, DA-RFO 3 Regulatory Division Chief. Furthermore, Abaya said the DA-RFO 3 has purchased two trucks mounted with power sprayers to disinfect poultry farms. The regional office has already awarded contracts for the power sprayers and delivery is expected within the month, he added. Lapuz said they allocated a budget of P3 million per unit but were able to purchase the two trucks at a “lower” price. He did not disclose how much was the bid price. Furthermore, Abaya said they are planning to purchase two wallmounted disinfectants to be put at entry points of San Luis’s poultry farms this year. “So when trucks pass by the area they will be disinfected,” he said. “It will be put in entry points of San Luis.”

Spray corps

LAPUZ said the savings of the DA-

RFO 3 from the procurement of the test kits and power sprayers will be used to purchase the wall-mounted disinfectants. “We already found a supplier, which proposed a cost of P1.5 million per unit,” he said. “We are eyeing to buy four units, if not five, based on our savings.” Lapuz added the DA-RFO 3 has also a budgetary allocation for laboratory supplies next year of about P2 million, which is way higher compared to the measly funding they received prior to the bird-flu outbreak. Piñol said they will procure more power sprayers if the equipment is proven effective. Furthermore, the DA will establish AI focal groups nationwide to not only monitor poultry farms but assist farmers in disinfecting their respective areas. “After harvesting their flocks, the farmers could request the DA to disinfect their farms. At the same time it would allow our veterinarians to monitor the areas for possible virus,” he said. “This would also allow us to inspect if the farms are conforming to biosecurity measures. The disinfection service of the government would be free for all poultry raisers,” he added.

Fear factor

FIVE words by Abaya will continue to haunt Sese and poultry raisers: “It will always be there.” “It is just a matter [of time when] the virus will be reactivated or not,” he told the BusinessMirror. “We just really have to intensify our prevention measures particularly in terms of biosecurity.” This is a sentiment that Piñol shares. “The risk will always be there. The danger of the disease of coming back will always be there.” The Agriculture Chief, nonetheless, is confident the government is ready if a bird-flu outbreak returns. “We have seen the monster face to face. And we did not blink,” he said. “If it comes back, we will be ready. We would no longer be scared as before.” These words, however, may have yet to soothe Sese’s nerves. Thirty-two weeks ago, Sese secured a government clearance to restock. She hesitated. “The fear is always there,” she said. “We wanted to start again. But the question was, how? And where am I going to get my capital?” Sese used the P2 million she received from the government indemnification program to purchase 6,000 day-old-chicks (DOCs) in January. “Hindi ko naisip [na umalis sa poultry business] dahil wala akong ibang tatakbuhan,” Sese said. “May edad na ako at ayaw ko nang mag-isip ng iba pa [I never considered opting out of the poultry business because where will I go? I am already old and I do not want to think about of a lot of other things].” Sese just stocked 12,000 DOCs in her poultry farm, which are expected to lay eggs by year-end. She will settle at 18,000 head if the government will not provide any more support to them. In an interview with the BusinessMirror on August 10, Sese said she will not stop hoping for “the year” that mimicked the first half of 2017, before the tragedy began. “Iniisip ko na lang na darating ’yung panahon na gaganda ulit ’yung kita,” she said under an indigo sky. “Sa una talaga mahirap, at sana magpick up sa mga susunod na buwan o taon [I always imagine that time will come when income would be better. I know it’s always difficult at first but surely sales will pick up in the coming months].” Surely, it’s a hope she cannot be begrudged for holding on to.

A6 Thursday, August 16, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

The politics of rice trading

hree weeks after President Duterte asked Congress in his State of the Nation Address to prioritize the approval of the rice-tariffication measure, the House of Representatives on Tuesday passed on third and final reading House Bill (HB) 7735, or the proposed “Revised Agricultural Tariffication Act,” which would convert the quantitative restriction on rice into tariffs. The bill will now be transmitted to the Senate for its own deliberations and approval. Notable among the provisions of HB 7735 is the creation of the Rice Competitiveness Enhancement Fund, which comes from the duties collected from rice imports, to help rice farmers become more competitive. The Senate will have its chance to strengthen the safety nets for rice farmers and consumers through import tariffication. The rice tariffication bill will help reduce the price of rice by P3.40 per kilogram. If implemented in the last quarter of this year, bill sponsors said it could reduce headline inflation by about 0.20 percentage points, and an additional 0.60 percentage points in 2019. Under HB 7735, the Lower House has set the bound tariff rate for rice imports outside the minimum access volume at 180 percent. The measure indicated that the Philippines will impose a bound tariff rate of 35 percent for rice from the Association of Southeast Asian Nations, regardless of volume. Manila will also impose a 40-percent bound tariff most-favored nation rate for in-quota rice imports from countries that do not belong to the Asean. Other provisions of HB 7735, however, need further study. For example, the bill authorizes the National Food Authority to allocate import permits among certified and licensed importers. In other words, it gives the NFA the discretion to choose its preferred rice importers. We all know that discretion breeds corruption. And we also know that, for the longest time, the biggest headaches for our regulators are the rice cartels and rice smugglers. Legislators now have a chance to craft sanctions to curb rice smuggling. Unscrupulous traders will always try to evade paying duties and taxes if the government won’t press its heavy foot on their throats. The problem with the current system is the absence of coordination among government agencies as far as rice importation is concerned. For example, a rice trader— Jomerito “Jojo” Soliman, owner of Sta. Rosa Farm Products—recently cried foul over allegations made by the Bureau of Customs (BOC) that he was behind the unlawful importation of 200 containers of Thai rice, insisting that his transactions were legal. The rice trader maintained that all of his rice importations were allowed and cleared by the NFA. He said a letter issued by the NFA on July 27, 2018, upheld the rice importation of Sta. Rosa Farm subject to the payment of 50-percent tariff. Insisting that the shipment was not smuggled, he said it was a “special importation” channeled through the NFA so that it will be sold at a lower price in the market to help replenish the country’s rice stock. The BOC, however, said the 200 containers of rice arrived from Thailand at Manila International Container Port without import permits. That’s why they were seized and were later auctioned off even before the expiration of the prescribed period for appeal. Hopefully, with the rice-tariffication measure signed into law, cases like this will become a thing of the past. We need the help of rice traders to help boost the country’s supply of our staple food. But we also need to clean up the rotten setup where crooks in the government can demand bribes from rice traders. This measure can help remove the politics involved in the rice business. Since 2005

BusinessMirror A broader look at today’s business

The next cycle crisis has begun John Mangun

OUTSIDE THE BOX

arthquakes can create disasters, which have plagued civilizations from earliest times. The first recorded tremor happened in 1831 BC in China’s Shandong province.

But when it comes to destruction and consequences, nothing beats a volcano. We still study the eruption of Mount Thera in Greece, which erupted around 1610 BC. The energy was equivalent to several atomic bombs going off within a fraction of a second. The thing about a volcanic eruption is the observance of warning signs over a relatively long period. When it happens, there is not much you can do except run away, but at least you have a life-saving option. The cycle that gave us the political “chaos” beginning in 2015 was like a series of earthquakes. Not all nations saw their existing political class to be “overthrown” at the ballot box. Many did. Certainly, there were

some signs that this could happen but as a citizen in those countries, there was little that could be done after the election. Both in the Philippines and the United States, loud voices cried that they would leave if Duterte or Trump were elected. But they stayed around, which sort of canceled out their predictions of the end of life if those two men gained leadership. However, the economic chaos that will continue through its cycle end in 2020 is a different story. This is the volcano, which will create much more damage than any populist president. We can see it coming and how the progression will unfold. We can run away or we can build a “volcano-proof bunker”

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Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos Dennis D. Estopace

future. The government strongly encouraged businesses to borrow to where private debt is 170 percent of GDP, which is too high for the size of the economy. New US trade sanctions are not helping the situation but the beginning started with the coup attempt in 2016 when the people—even supporters of President Recep Tayyip Erdogan—realized he would do anything to retain power. Since then he has lost all confidence domestically and internationally to remain. Money always talks louder than the politicians. Interest rates more than doubled after Erdogan became president in 2014. Turkey’s political chaos has now become economic chaos and is a forerunner of what the next 18 months hold. If Turkey defaults on its debt —which with the dying lira is a possibility—major European banks will be significantly damaged and the economic volcanic eruptions will begin to spread more rapidly. The next cycle crisis has already started. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

A US lawmaker and the Aquino regime spread fake news to destroy the Marcoses

✝ Ambassador Antonio L. Cabangon Chua Publisher

for shelter. But we must know the warning signs. We have seen rumblings for several years particularly in Greece, Portugal and Spain. Argentina and Brazil have released some noxious economic gases from time to time. But now, molten lava is flowing down the slopes of “Mount Turkey.” It is not like Turkey is some minor player. It is a member of the G-20 group of nations and is the 18thlargest economy in the world. The Philippines is No. 39. Its current annual economic growth rate is 7.4 percent. The Turkish government debt to GDP is a low 28 percent. And yet the Turkish lira has lost 45 percent against the US dollar in 2018. Economies run and are successful or not based on one factor—public confidence. Turkish inflation is currently at 16 percent. The base interest rate is 18 percent, the government must borrow money at 22 percent and food inflation is running 21 percent. Prices go higher because sellers believe that costs will be higher tomorrow. Interest rates go up because lenders are not confident they will be repaid. Currencies suffer large depreciation because real people are increasingly worried about the

Conclusion

Cory secretly ordered the investigation of Enrile

HE cruelty that the yellows did on the Marcoses did not spare even former Senate President Juan Ponce Enrile, the man who led the military-backed Edsa uprising in 1986 that installed Corazon Cojuangco Aquino into the presidency. President Cory Aquino started picking on Enrile right after the Edsa revolt when he strongly opposed her arbitrary release of the key leaders of the communist party, their socialist allies and after meeting with MILF chieftain Nur Misuari in Sulu. Joker Arroyo, Cory’s executive secretary, asked Enrile to go with him to a room in the Premier Guest House of Malacañang after a Cabinet meeting on Misuari. Joker went straight to the point: “Cory asked me to tell you that you have nothing to worry about your ill-gotten wealth.” “I was taken aback but I kept my composure. I did not expect such a direct accusation of corruption thrown at me, and the assurance not to worry about

it. I realized when Joker made that remark that President Aquino entertained the though that I was one of those who amassed ill-gotten wealth during the Marcos regime,” Enrile said. “I told Joker, ‘Tell the President that I appreciate her concern. But tell her too that I have no ill-gotten wealth. If she has any doubt about me in that regard, tell her not to hesitate to expose me to an investigation’.” “In my early years in the government, I incorporated myself. I organized Jaka and transferred all the assets of my family to it in exchange for its shares of stock. Everything my family owned from then on was in the name of Jaka. This way, it was easy to account for every asset acquired by my family, especially as to the sources of funds used to acquire the

asset,” Enrile recalled in his copyrighted memoir in 2012. Predictably, Cory secretly organized a team, headed by then-Bureau of Internal Revenue Commissioner Bienvenido Tan, to investigate Enrile. With Tan were representatives of the Commission on Audit, the National Bureau of Investigation, the Armed Forces of the Philippines and the police. After a thorough scrutiny, they found no hidden wealth, and all that the investigating body did, perhaps just as a facesaving gesture, was to assess him and his corporate enterprises with deficiency income tax in an aggregate amount of less than P50,000. The injustice done on Enrile, however, did not stop there. In 1990 the Aquino regime imprisoned him without bail on a nonexistent crime of “rebellion complex” filed by then- Justice Secretary and now Senator Franklin M. Drilon after Enrile criticized President Corazon Aquino for some intractable issues, such as: 1) Abolishing the 1973 Constitution, under which she took her oath of office and ran the country under a dictatorship. 2) The wholesale release of the ranking members of the Communist Party of the Philippines and the Light-A-Fire terror group. 3) The massive graft and plunder in her government. 4) Scrapping the Ministry of Energy and the subsequent privatization of the energy industry that saw the dissipation of multibillion-peso assets and the subsequent increases in oil prices and

electricity rates. 5) For saying that: “The Constitution has been violated, laid aside or ignored in many decisions of the President. The laws have been set aside whenever their execution would affect those orbiting around the President. The full force of the law is exerted only when and if those involved are perceived to be political enemies or sympathetic to the opposition.” Even this writer, who was only writing Enrile’s stories in the legitimate pursuit of his profession, was also charged with the same offense of rebellion complex and later with other heinous crimes in an effort to silence him (see introduction of my book, Greed and Betrayal, published by Amazon and written by thenInquirer columnist Adrian Cristobal on how this writer was persecuted). Strangely, Enrile found himself again in a similar, but in a worst, situation, this time accused 16 times of a non-bailable and bailable offenses, using the same body of evidence, one case of plunder and 15 cases of anti-graft, this time under President Benigno S. Aquino III, Cory’s only son. After more than a year in prison at a hospital in Camp Crame and deprived of his lawmaking rights and oversight functions as an elected senator, the Supreme Court en banc finally granted his petition for bail of P1 million for plunder and P30,000 per count of anti-graft cases, or a total of P1,450,000, after the prosecution failed to explain before the justices as to when, where, why and how

See “Arillo,” A7

Opinion BusinessMirror

www.businessmirror.com.ph

On federalism: It’s the economy, stupid!

Flesh for the life of the world Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

Val A. Villanueva

Businesswise

his may be a trivial deviation from political strategist James Carville’s campaign handle (“the economy, stupid”) for former US President Bill Clinton during the latter’s successful bid to defeat then-sitting president, George H. W. Bush in 1992. But the phrase now becomes relevant to the ongoing public debate on whether we should abandon the 1987 Constitution to change our present form of government from presidential to federal. Our economic managers, Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia, seven influential business groups and several economists, have warned the government against the dire economic effects of the shift if the proposal of the Consultative Committee (Con-Com) is ratified without undergoing rigorous vetting. Defense Secretary Delfin N. Lorenzana also chimed in saying that the draft proposal “is confusing,” to say the least. From a monetary standpoint, Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla Jr. told BusinessWise that federalism is an economic gamble. He explained that the main risk, if not clearly addressed, is how to maintain fiscal sustainability by properly apportioning revenues and governmental responsibilities: “If the proper balance is not achieved and fiscal sustainability cannot be secured as a result, then monetary control will be compromised in a desperate effort to finance deficits. We risk chronic hyperinflation and debt crisis. For federalism to have any chance, the ground needs to be carefully prepared so there is proper governance in all aspects.” Unless those who are trying to convince President Duterte to ram federalism down the Filipino people’s throats succeed in the next few weeks or months, their dream of “conquering Imperial Manila” is dead in the water. Con-com is proposing to divide the country into 18 federated regions. Each state is given the power to raise its own revenues, determine its own legislation and choose its own economic-development models. Such idea springs from a flawed belief among those in the South that their region has long been unkempt. Former Sen. Aquilino Q. Pimentel Jr., the main proponent of the shift, believes that prosperity awaits these regions if and when Manila’s “stranglehold” on the national coffers is broken and distributed to the country’s “neglected” fringes. Dominguez, during a hearing conducted by the Senate committee on finance, could not give an exact estimate of the total cost of the exercise. “How can we compute?” he asked. “We don’t [even] know what the final road map is going to look like…I had a long discussion with them and, quite frankly, I was more confused than when I started.” The Con-com has already submitted to the Senate and the House of Representatives the proposed federal Charter for approval. While the price of federalism has yet to be allocated under the proposed 2019 national budget, Pernia in the same hearing gave a ballpark figure of P120 billion in direct costs. What this means simply is that we’d have to spend way beyond our means or, if you want the more idiomatic version, we’re being asked to bite more than we could chew. To be even doable at all, the government has to raise taxes to back-breaking levels. Imagine this: In order not to fall into an economic quicksand just to maintain our current deficit target of 3 percent, the federal government will have to do either or both of two things: scrimp by P560 billion its expenditure program, which could lead to the national government laying off 95 percent of government workers, or skim off the funds for Duterte’s “Build, Build, Build” program by 70 percent.

Dominguez himself said that the draft federal Charter “could lead to massive job losses in the public sector, reduce funds for the government’s ambitious infrastructure program, widen the budget deficit and downgrade the country’s credit ratings. The possible repercussions could result in dire, irreversible economic consequences” The significance of credit ratings, which measure the creditworthiness of a government could not be underestimated. As the solidity of state assets is closely hewed to the country’s performance, credit scores serve as the nation’s economic barometer. The country at present enjoys investmentgrade credit ratings from the top three debt sentinels, namely Moody’s Investors Service, Fitch Ratings and S&P Global Ratings. Let’s say for the sake of argument that the fiscal facilities described in the draft Charter were to be executed, the federal government would suffer a shortage of 6.7 percent, leading to a credit rating downgrade, and thereafter, higher interest rates. According to Dominguez, “Our investment-grade credit ratings, which make it cheaper for the country to borrow money may go to hell, while interest rates could [skyrocket] under the very confusing fiscal provisions of the draft federal Constitution.” It doesn’t help that the economy is already in tatters. Our economy has slowed down, with growth rates hovering low at 6% and inflation rates soaring to more than 5%. Business has also weighed in on the federalism debate, expressing alarm on the costs and risks associated with the proposed shift. The Cebu Business Club, Employers Confederation of the Philippines, Financial Executives Institute of the Philippines, Makati Business Club, Management Association of the Philippines, Philippine Chamber of Commerce and Industry and Philippine Exporters Confederation in a joint statement expressed their concerns over how the government would implement and fund the proposed shift. They pointed out the “alarming cost” estimated by the Philippine Institute for Development Studies at P72 billion, and the P130-billion projection of the National Economic and Development Authority. “The fiscal deficit is estimated to reach 6.7 percent of the GDP, which is way beyond the sustainable 3-percent target of our fiscal managers—a prudential limit also observed by the European Union for its member-countries,” they said. The majority of Filipinos are also lukewarm to the shift, which even provoked a hostile response from among the informed public. A recent survey by Pulse Asia found that 67 percent of Filipinos oppose the change, while only 18 percent were in favor and the other 14 percent were undecided. Another survey conducted by the Social Weather Stations revealed that only 1 out of 4 Filipinos know what a federal system of government is all about. As for Con-com’s Fr. Ranhilio Aquino and Presidential Communications Operations Office’s Mocha Uson’s spirited defense of federalism, let me just point out how insignificant their views are to the level of discourse that the issue of such magnitude demands. For comments and suggestions, e-mail me at mvala.v@gmail.com.

Thursday, August 16, 2018 A7

ot shunning controversy, Jesus remained with the issue as He told the people already murmuring over His claim to have come down from heaven that it is His flesh He is giving for the life of the world (John 5:51-58). When they broke out in quarrelsome discussions on how the man can possibly give His flesh for them to eat, He uncompromisingly reiterated that only in eating His flesh and drinking His blood can they have eternal life.

True food, true drink Jesus lucidly summarized his main points: He is the living bread came down from heaven. The living Father sent Him so that those who believe in Him may have life because of him. What Hegives is eternal life, meaning He will raise up on the last day those who accept Him, unlike the Israelites of old who ate manna in the desert but nonetheless died. And the food He gives to impart this life everlasting is His own flesh and blood. Whoever eats His flesh and drinks His blood will live forever, and will remain in Jesus as Jesus

remains in him. Taking Jesus’ statement that His flesh is true food and His blood true drink in grossly material sense, the people refused to believe Him and shuddered at the thought of cannibalism, as enemies of the early Christians did when they heard that these eat the flesh and drink the blood of their Lord Jesus. But with insistence, Jesus underscored that it is His flesh that must be eaten and His blood drunk, as real as His self-sacrifice on the cross and as real as His humanity. Not just appearing so but really so, as John the evangelist already had to

maintain against the heretical group of the Docetists during His time who denied the real incarnation of the Son of God and therefore any real Eucharist. Jesus did not yet say here how He will give Himself, His flesh and blood, to the people; how and under what signs would come up only later at the Last Supper.

The insistence of love

These claims of Jesus, enigmatic to the people then and no less so today, underline the truth that the whole thing is a mystery of faith. It is only in the context of love for Jesus that His words become acceptable and meaningful. To anyone without faith in Him, no explanation is sufficient. But to one who responds in love to the grace of the Father drawing him/ her to Jesus, no evidence will be necessary, and trust in Jesus’ words prevails over any seemingly unfathomable statements. This discourse on the bread of life we have been reflecting upon for three weeks already is a spiral-like, slow-paced discussion, enabling us not only to meditate progressively on the truth of our faith but also to savor Jesus’ insistence of love. It is remarkable how in this Johannine catechesis on the

Eucharist the repetitions present to us Jesus intensely wanting to make the people receive Him and share in His wisdom and experience of God. He sounds as if He wishes His listeners can creep into his mind and see things the way he does. He definitely desires that they also receive what he has from the Father. If only they could be His flesh and His blood, so that they could share in the life from the Father surging through His body. Alálaong bagá, Jesus knows that only His kind of life can bring light and hope to this world of darkness and death. That is why Jesus says, “I am the way, the truth and the life” (John 14:6), and claims, “I am the living bread that came down from heaven.” That is why He summons us, “Come to me” in the Eucharist, the sacrament of His body and blood, inviting with us to eat Him and drink Him, in order that He be in us and we in Him, thus participate in His life. Only so can He raise us up on the last day and share with us His eternal life and love. Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

Shared responsibilities will make UN compact on migration work Continued from A1

am not part of the negotiating team of the Philippines, but I can imagine that it was not easy. Choosing the words, wanting more than this sentence but settling on a different one—and then being able to influence the next line, a paragraph here and the entire document itself.

Thank you, Team Philippines for delivering on your promise to bring the concerns and voices of our migrant workers, civil society and also the private sector to all the GCM meetings. Personally, this matters a great deal. The hardest thing I had to do in my life was to tell the mother of an OFW on death row in Saudi Arabia that her son had just been executed for the crime of murder. Her son meant the world to her. Even now, I still remember how her entire body suddenly went stiff upon hearing the news, and then fell to the ground right in front of my eyes. No matter how and why he died, I am sure that when he left the Philippines it was for a much higher, nobler purpose. I believe any migrant who intentionally leaves home does so to improve not just his life, but also, and especially, that of his family’s. No migrant ventured forth to be the more evil “Darth Vader” version of his self or her self. When I hear the word “migration,” I imagine a vast world with hundreds of millions of invisible psychological, historical and spiritual umbilical cords crisscrossing north to south, east to west, spanning the distance between every migrant’s footprints and his or her place of birth. They straddle three worlds—where they came from, where they’ve been and where they want to be. For all eyes on Earth to be able to read, reflect on and follow an actual document that captures the world’s perception of migration, is something short of a miracle. I agree with what our distinguished panel chairman wrote for the prestigious BusinessMirror in a column entitled, “As good as it can get:” “This Compact is as good as it gets, given the evil times into which migration has come. No, more, this is not just as good as it can get in times so filled with hate, division and envy. This is as good as it will ever get, even in the good times sure to come when the pendulum swings in the opposite direction—when it will seem obvious that we had achieved and gotten the world to accept all that is

Arillo . . .

continued from A6

he committed specifically the crimes of plunder and corruption. In May 2001 during President Gloria Macapagal-Arroyo’s time, Enrile was also arrested for no specific offense by the police and the military for the unsuccessful siege of the Palace by pro-Estrada forces. He was released a day later. In 2004 he ran again for the Senate under the banner of the Koalisyon

indeed necessary and imperative to make the migrant experience that humblest of things for which to aspire: a decent one.” OFW Joanna Demafelis ended up dead in a freezer inside an abandoned apartment in Kuwait for one year before her body was discovered in Kuwait because she was bold enough to search for the decent one. All she wanted was a decent life, a decent job, a decent employer and a brighter future. My NGO, the Blas F. Ople Policy Center, recently handled a case where the Filipino domestic worker would get punched in the face every time her employers, a young Malaysian couple, fought over the smallest things. She, too, was in search for decent work, a decent life and a decent employer. It has been said that the world found its conscience while deliberating on the Global Compact on Migration. The challenge is on how the world can keep holding on to that conscience, long enough for safe, regular, and orderly migration to become the norm, not the exception. The Global Compact on Migration has to work because migration can be a pathway to radicalization if it fails. When you are oppressed in your country and abused in another, the concept of humanity becomes harder to grasp. This is why racism, rampant discrimination and other forms of intolerance, prejudice and yes, violence against migrants, must be shunned quickly, decisively and strongly—by a world that believes in common decency and the liberating power of human rights. Let me quote from the Global Compact itself: “It is crucial that the challenges and opportunities of international migration unite us, rather than divide us. This Global Compact sets out our common understanding, shared responsibilities and unity of purpose regarding migration, making it work for all.” Two words: shared responsibilities. I believe that phrase is the one that will make this compact soar. During the 1970s and 1980s, when my father, the late Blas Ople, was labor minister, he often spoke of how difficult it was to get labor ministers from laborng Nagkakaisang Pilipino and won. He actively campaigned against the imposition of the Purchased Power Adjustment (PPA) on consumers’ electric bills and continued to criticize the government for this erroneous policy. Due to his persistent stand against the PPA, the SC ordered a multibillionpeso refund in favor of the consumers. The public responded positively, guarded his votes and elected him for three nonconsecutive terms. Now at 94, with a remarkable physical stamina and a sharp memory, Enrile was the oldest senator

OPLE sending and labor-receiving countries together in one room to discuss matters related to migrant workers’ rights. Thus, the inclusion of those two simple words: “shared responsibilities” in the GCM, speak volumes about how far our world has come. When practiced bilaterally, regionally, and multilaterally, that magical phrase shared responsibilities, can and will save lives. How? Shared responsibilities in promoting fair and ethical recruitment would eliminate hidden charges that lead a domestic worker into a life of debt bondage. It would mean having one’s passport at all times, and the ability to communicate with the family to minimize the social costs that lead to broken homes and dysfunctional families. It means not tampering with the passports of minors so they can be deployed as “adult” domestic workers when they are not. Shared responsibilities in establishing comprehensive and needsbased pre-departure and post-arrival programs for migrant workers would result in their empowerment, safety and protection. Predeparture orientation seminars are often done a few days before departure, and becomes an exercise in daydreaming while post-arrival orientation programs enable migrant workers to land feet on the ground, with a firmer and clearer understanding of the social and legal norms in their country of work. Shared responsibilities in enacting and implementing legislation that penalizes hate crimes targeting migrants would lead to a kinder and more compassionate world, where one matters not because of the color of the skin or the origin of your passport, but by virtue of who you are. Shared responsibilities also mean ensuring that the hard-earned money of an honest, diligent migrant worker of the 16th Congress when he retired from politics. It is obvious that the people doing the cruel job on him are obsessed in trying to silence him by trying to put him in prison for the rest of his life, as reflected by the number of graft and plunder cases filed against him, without realizing that they cannot imprison his mind and his legacy. Besides, the issues Enrile brought forth are the same pestering problems that are still valid today. In fact, many of these issues have remained unresolved and have worsened with the passage of

is not eaten up by monopolistic fees charged by foreign banks in destination countries; nor should they become the victims of misguided measures to combat illicit financial flows that would curtail their right to choose the best and most convenient remittance corridor. As of March 2018, 158 accounts of Philippine banks and remittance companies have been closed down by 42 different foreign banks in 17 countries, jacking up the costs of remittance fees to the detriment of our OFWs. Shared responsibilities include the dignified and safe return of migrants especially children with access to social protection and services, justice and other forms of assistance. It is also our shared responsibility to inform migrants about the GCM. They deserve to know that the entire world is thinking of them; that they are not alone. This December, they are being given a gift of a unified world vision on how global migration should be. We, who know, should tell. Because one of the biggest tragedies would be to make the GCM the world’s best kept secret. On page 34 of the GCM, paragraph 53 states: “We encourage all member-states to develop, as soon as practicable, ambitious national responses for the implementation of the Global Compact, and to conduct regular and inclusive reviews of progress at the national level, such as through the voluntary elaboration and use of a national implementation plan.” Given the level of preparation and resources provided by our very own Department of Foreign Affairs in hosting this Manila Conference, I am hopeful that the same spirit of solidarity will drive it to convene at the soonest possible time, such a national implementation planning workshop. Yesterday I listened intently to our friend from Colombia who said they had to shift gears from being a labor-sending country to that of receiving migrants from Venezuela. Given the Philippine government’s massive infusion of capital in infrastructure and social services, it is not that far-fetched to think of a similar shift happening in the Philippines within our lifetimes. For example, the labor department will be holding job fairs overseas to entice our workers to come home. Like John Lennon, we can choose to imagine that the best is yet to come. All that is needed is for us to believe not just in the goodness of our neighbors but also in the courage of our own hearts. Thank you. time, particularly the country’s energy and national-security problems, as both have correlations to the country’s degenerating economic situation that impinge its survival. If there’s anything to learn from the foregoing, it is that President Duterte should be extra careful as the same cruel, ungrateful and deceitful people whose greed for absolute power remains unsatiated are at it again.

To reach the writer, e-mail cecilio.arillo@ gmail.com.

2nd Front Page BusinessMirror

A8 Thursday, August 16, 2018

www.businessmirror.com.ph

MMDA trumpets HOV traffic rule, but senators press for halt, probe E

By Butch Fernandez @butchfBM & Claudeth Mocon-Ciriaco | Correspondent

XULTANT officials of the Metropolitan Manila Development Authority (MMDA) described as “virtually smooth” the flow of traffic along Edsa, as its Expanded High Occupancy Vehicle (HOV) Traffic Scheme was put to a test on Wednesday morning and it apprehended close to 3,000 driver-only vehicles, or violators of its rule that only those with at least two people on board may use Edsa at rush hour. However, senators took up the cudgels for various sectors objecting to the rule, imposed by the Metro Manila Council, for two reasons: one, the scheme merely drives traffic volume away from Edsa to narrow side roads that cannot handle the congestion, thus causing numerous pockets of traffic jams; two, the rule was imposed without public consultations and adversely impacts a huge part of the population. Senate leaders moved to suspend enforcement of the peak hour driver-only ban in the metropolis’ main thoroughfare, citing “lack of public consultation and due process.” Senate President Pro Tempore Ralph G. Recto said the scheme will only shift the volume of vehicular traffic at Edsa to other narrow streets, and likely cause more traffic gridlocks. “We are shooing cars away from the main artery to minor roads not

wide enough to handle the surge in volume,” Recto said, adding that, in effect, there is no net reduction of vehicle volume. “They just transferred the problem at Edsa to other streets.” In Resolution 845 filed by Senate Minority Leader Franklin M. Drilon, with Senate President Vicente C. Sotto III, Majority Leader Miguel F. Zubiri and Recto as coauthors, the Senate leaders warned that implementing a ban affecting 70 percent of motor vehicles plying Edsa “without holding a prior public consultation or hearing is violative of the due process of laws enshrined and protected under the Constitution.” Resolution 845 strongly urged MMDA to immediately recall and suspend its implementation, conduct public consultations and further study of the “driver-only” ban, and then “provide for real solutions” to Metro Manila’s traffic congestions.

T he Metro Manila Council earlier issued MMDA Resolution 18-005, without a public hearing, designating all lanes of Edsa as high-occupancy vehicle (HOV) lanes where single-occupant vehicles are banned. The Senate Resolution noted that the MMDA’s driver-only ban will “effectively deprive thousands of people of the use of the country’s major thoroughfare since it would be in effect during the working and commuting hours of the week.” Citing the absence of safe and reliable alternative means of transportation, and “lack of uncongested vehicular road routes,” it noted that traffic experts and citizens alike protest, criticize and doubt the success of HOV regulations in easing traffic congestion.

No penalties—yet

“No penalty will be imposed against these violators. Still, we are calling on the motorists to observe the policy,” said MMDA General Manager Jojo Garcia during a news briefing held at MMDA headquarters on Wednesday. He said 2,953 violators have been monitored through closed-circuit television cameras under the No Contact Apprehension Policy and handheld cameras. Based on their monitoring, Garcia said travel flow along Edsa slightly improved during the Expanded HOV hours: 7 to 10 in the morning. The Expanded HOV Traffic Scheme covers all lanes of Edsa, from North Edsa in Quezon City to Magallanes in Makati City. Driver-only vehicles are also barred from traversing the said

portion from 6 until 9 p.m., Monday to Friday. Garcia reiterated that the Expanded HOV traffic scheme is aimed to encourage motorists to carpool, thereby, reducing the volume of vehicles along Edsa during rush hours. “We are not encouraging people to share a ride with a stranger but with their family, neighbors, community,” said Garcia. Critics of the plan, however, said the rule was unrealistic and unfair to those who simply cannot find other relatives to ride with them on the same route during those crucial hours. The MMDA targets to fully implement the traffic scheme on August 23. However, Garcia said it is still too early to assess the impact of the Expanded HOV Traffic Scheme on the major artery. “Hopefully, we can implement the scheme by next week but it depends on the assessment of the dry run. We still have to check if our CCTV cameras can handle monitoring at nighttime,” said Garcia, citing that dry run period will continue until August 22.

Heavy tint

Garcia admitted that it is a big challenge for the Metrobase personnel to view heavily tinted windshields through CCTV cameras: “156 heavily tinted vehicles have traversed along Edsa during the coverage period of HOV,” said Garcia. The MMDA personnel failed to see whether these heavily tinted vehicles complied with the policy or not. LTO Law Enforcement Services Director Francis Almora said they will soon come up with the regulation on car tints, after which drivers have to modify the color of their car tints to comply with the requirements. Garcia also revealed they are contemplating on purchasing thermal cameras to catch violators of the Expanded HOV Traffic Scheme.

‘Band-aid measure’

The senators recalled that transportation experts, including University of the Philippines Planning and Development Research Foundation Primitivo Cal, earlier warned that “piecemeal” or “band-aid” measure could even worsen traffic congestion as it could encourage the proliferation of unauthorized “for-hire” vehicles or colorum, as shown by the recently scrapped Indonesian model, according to the resolution. They also noted that in Indonesia, along with the US and Canada where HOV lanes were implemented, the scheme has been criticized as “ineffective and counterproductive in addressing traffic congestion.” In a separate statement, Sen. Grace Poe also sees the “hellish traffic” on EDSA will just be replicated on inner roads once the driver-only car ban on the major thoroughfare is fully implemented.   Poe took the floor on Wednesday’s session to manifest support for the resolution calling for the urgent suspension of the scheme. “ T h e y [MMDA officials] didn’t have the courtesy to call for a public hearing on this. Then all of a sudden, even without much warning or public information, they came up with this regulation,” the senator added. “This type of complaint does not just come from my committee but everybody who’s affected by this.... The MMDA didn’t make sure that the inner city and barangay roads, as well as the main thoroughfares all around Metro Manila, aside from Edsa, can handle the affected motorists.” She said the Senate will open a public hearing to review the driver-only ban.

WATER LILY BANE IS A BOON, TOO A woman arranges water lily beside Laguna de Bay in Taguig City for drying. Water lily has been considered a menace in some places, often blocking the routes of boats and disrupting commerce and travel. But in Taguig, on the western shore of the Laguna de Bay where hectares of water lily can be harvested for free, the water hyacinth has become an abundant source of income for residents. Home-based women workers weave dried water lily into various items like bags, slippers, novelty items and Christmas décor, boosting their income. NONIE REYES

Palay output seen declining by nearly 2% in 3rd quarter By Jasper Emmanuel Y. Arcalas @jearcalas

HE country’s unmilled rice output could decline by nearly 2 percent to 3.323 million metric tons, from the previous year’s 3.39 MMT, according to latest forecast of the Philippine Statistics Authority (PSA). In its quarterly “Rice and Corn Situation and Outlook” report, the PSA attributed the possible decline to the contraction in harvest area and the decision of farmers to delay planting. The PSA expects total harvest area for the July-to-September period to shrink by 2.82 percent 829,000 hectares, from 853,000 hectares recorded a year ago. In contrast, yield per hectare could increase to 4.01 MT per hectare, from 3.98 MT per hectare in 2017, according to the PSA. “The considerable decreases in production are foreseen in Cagayan Valley, Calabarzon, MIMAROPA and SOCCSKSARGEN,” the PSA said in the report published recently. “Cutbacks in output may be attributed to delayed plantings due to the late release of irrigation water and late onset of rainfall in Cagayan Valley, Calabarzon, MIMAROPA, Western Visayas, SOCCSKSARGEN and Caraga,” it added. Based on farmers’ planting intentions, the PSA noted that palay production in the fourth quarter may be higher than the previous year’s level. “This may be attributed to the perceived availability of irrigation water coupled with occurrence of rain during the planting period,”it said. The PSA did not provide a production forecast for the fourth quarter.

Price drop Agriculture Secretary Emmanuel F. Piñol said in a Facebook post that he sees the farm-gate price of palay in the third quarter to decline“drastically”due to the influx of imports. “The farm-gate price of locally produced paddy rice, which went up to an unprecedented level today, could fall drastically this harvest season because of the delay in the arrival of rice supplies from Vietnam and Thailand imported

Remittances. . . Continued from A1

The BSP also cited Philippine Overseas Employment Administration (POEA) data, showing that the number of deployed landbased workers dropped by 3.28 percent yearon-year, while that of sea-based workers fell by 14.62 percent. This is the second time the remittances contracted on a monthly basis for this year. In March, the remittances declined by 9.8 percent. Economists blamed the weaker peso for the month’s decline. Filipino migrant workers are usually seen to adjust their transfers based on the strength or weakness of the peso, with a weaker peso allowing them to send fewer dollars due to its

by both the National Food Authority (NFA) and the private sector under the Minimum Access Volume (MAV),” Piñol said on August 15. “The PSA reported a few days ago that the national average farm-gate price has fallen [from an] all time high of P22 per kilogram (kg) to P21.50 per kg. Prices are expected to fall further at peak harvest season because this will be the time when imported rice is expected to reach the market,” he added. Piñol said the decline in paddy rice prices is a “welcome relief” for consumers as this could ease the rise in the retail price of the staple. “The delay in the arrival of rice imported by both the NFA and the private sector is also the main factor behind the spike in the price of rice in the market,” he said. The agriculture chief said the delay in the arrival of rice imports was due to by the conflict between the NFA and the NFA Council. Piñol noted that rice imports usually arrive during the country’s lean season, which runs from July to September, to beef up local supplies. The country has minimal harvest during the lean months. “The issuance of the import permits both for NFA and the private sector, however, was delayed because of a disagreement between the NFA and the NFA Council, the governing body composed of several government agencies (but not including the Department of Agriculture), over the mode of importation,” he said. Furthermore, Piñol said the late arrival of the imported rice has “placed the country’s buffer supply at critical level resulting in speculation in the market which further pushed rice prices up.” “The private sector importation, however, is expected to arrive by the end of August toward early-September by which time the farmers would already start harvesting their paddy rice,” he said. Palay production in the second quarter reached 4.09 MMT, 1.44 percent lower than the 4.15 MMT recorded output a year ago due to contracted harvest area. Harvest area shrank by 1.52 percent to 932,790 hectares, from 947,190 hectares.

increased peso purchasing power. For June, while remittances in dollar terms declined, its peso value remained higher than in June last year. In particular, in June 2017—when the peso traded at 49.85 to a dollar on average based on BSP data—the $2.467-billion cash remittances translated to P122.98 billion. For this year, however, the $2.357-billion cash remittances in June translate to P125.03 billion with the 53.05 to a dollar average exchange rate for the month based on BSP data. For the first six months of the year, cash remittances coming from the United States, Saudi Arabia, Singapore, United Kingdom (UK), UAE, Japan, Qatar, Germany, Hong Kong and Canada accounted for more than 79 percent, BSP data showed.