Speaker GMA: Fulfilling the President's Legislative Agenda

twitter.com/ MlaStandard

facebook.com/ ManilaStandardPH

S

manilastandard.net

Missed your copy of Manila Standard? Call or text our Circulation Hotline at 0917-8848655 or email: circ@manilastandardtoday.com

Speaker GMA:

ATENEO ROUTS UP, 99-81, RETAINS UAAP CROWN Fulfilling the President's Legislative Agenda

By Peter Atencio ATENEO showed its championship class for the second straight game in the finals, this time with a more emphatic 99-81 win over University of the Philippines to capture a second straight University Athletic Association of the Philippines basketball crown before a full-house at the Araneta Coliseum Wednesday night. Dominant from start to finish, the

Blue Eagles clinched a 10th UAAP championship overall in men’s basketball. They defeated UP, 88-79, in Game 1 on Saturday to move on the cusp of the title repeat. “I want to thank the players, they’re a marvelous team, they’re a joy to work with the whole season. I feel very blessed to have the opportunity to work with them’’ said Ateneo head coach Tab Baldwin. “It is our priority to do everything with dignity and class and long we may do this.’’ Next page

Gloria Macapagal Arroyo: THE FIRST WOMAN HOUSE SPEAKER T

VOL. XXXII • NO. 294 • 3 SECTIONS 16 PAGES • P18 • THURSDAY, DECEMBER 6, 2018 • www.manilastandard.net • editorial@manilastandard.net

HERE have been few significant female figures in the Philippines’ political history, but all of them have left a lasting mark. The Speaker of the House of Representatives, Gloria Macapagal Arroyo, is one such figure.

VOL. XXXII • NO. 294 • 3 SECTIONS 24 PAGES • P18 • MONDAY, DECEMBER 10, 2018 • www.manilastandard.net • editorial@manilastandard.net

The last few years have brought The road to the Speakership, so one surprise after the other in the to speak, began when Arroyo was world of politics -- and one of the elected to represent the second more recent saw Arroyo being district of her home province Pamelected as Speaker last July. panga – made up of her hometown A total of 184 House members of Lubao as well as Floridablanca, formed the new majority and voted Guagua, Porac, Sta. Rita and Sasin favor of the Pampanga 2nd Dis- muan – in 2010 for the 15th Contrict representative. After 20 male gress. She succeeded her son, Juan Speakers, it took a former President Miguel “Mikee” Arroyo, as repreto put a woman on top of the leg- sentative. islature. Mrs. Arroyo was reelected to a In the history of the House second term in 2013 for the 16th of Representatives, men Congress and a third consecutive SOARING EAGLES. Ateneo’s Thirdy Ravena leads the Blue Eagles to a back-to-back championship victory against the University of the Philippinbes Maroonshave in Game 2 of of thethe Finalsterm of the dominated inUAAP 2016.81 season, 99-81, at the airconditioned Araneta Coliseum in Quezon City. Ey Acasio field. But with In the present 17th Congress, Arroyo’s accu- before becoming Speaker, she was mulated expe- a member for the majority in the rience and po- House Committees on Government litical clout, Enterprises and Privatization, Housshe was ing and Urban Development, Local able to Government, National Defense and secure Security, Population and Family t h e Relations, Revision of Laws, Veterposi- ans Affairs and Welfare, and Ways tion. and Means. As the first former Philippine head of state to become Speaker, Arroyo can be said to have a greater understanding of President Rodrigo Duterte’s legislative agenda, and POLITICS has always been in Gloria Macapagal Arroyo’s blood. She she has stressed as much in saying was 14 years old when her father, Diosdado the an act federal system of government. that “if Macapagal, you refuse became to perform By Maricel V. Cruz she wants to give importance to the President. “GMA” herself would become thecan 14th specified by law then you be subject Unlike the draft prepared by Duterte’s and country’s Macon ninth Ramos-Araneta good relationship between the OfPresident of the Philippines—before gaining another milestone as the to a petition for mandamus. consultative committee for Cha-Cha, By Nat Mariano, Maricel V. Cruzfiand Vito Barcelo ce of the President and the House. country’s first woman Speaker ofonthe House of Representatives. A PRO-CHARTER change lawmaker “I don’t like to make any further com- the House version removes term limits It is unusual—in fact, the first Despite herHouse political roots, Speakerment Arroyo was not Wednesday said the of Representabecause wealways might abepolititelegraphing for elected positions, restores the vice ALACAÑANG on Wednesday said the drop in thea new time in over a decade—that cian.ask ShethesetSupreme out to beCourt an economist, studying in the United forof things president in the line of succession for tives may to com- our punches. But there States are a lot November rate of inflationSpeaker wa a result of reins President Rodrigo takes the of the House years University’s Walsh of of Foreign Service pel thetwo Senate to at actGeorgetown on the proposed feder- that theSchool House Representatives can the presidency and removes the ban on in the middle of a presidential and Duterte’s “decisive actions” to cushion the impact of high in Washington, She then earneddo,” her he Bachelor al charter if the senatorsD.C. “neglect” their job. added. of Arts degree in political dynasties. a congressional term. Despite being commodity prices. Economics Assumption College, graduating magna laude in Speaking to thefrom ANC news channel, The House on cum Tuesday approved Senator Juan Edgardo Angara, howon her last term, Arroyo vowed to Leyte 1968. Rep. Vicente Veloso, chairman of on second reading a proposed federal ever, said the House should explain to put the House on a faster lawmakLater, Mrs. Arroyo earnedamendher master’s degree Economics from theRodrigo the public the concept of federalism bethe committee on constitutional charter in inline with President ing pace, mirroring her renowned The Palace reaction came after the food supply, among others, as there is a de Manila and was awarded hercampaign doctorate inpromise Economics ments,Ateneo said the Rules University of Court provide Duterte’s to set up a fore it is implemented. Next page Next page from workaholic ethic. Philippine Statistics Authority (PSA) marked decrease in food infl ation at the University of the Philippines in Diliman. Her interest and knowledge reported that the country’s year-on-year 9.4 percent in October to 8 percent in Noin economics, plus her political pedigree, made her a natural for the field infl ation rate has eased to 6 percent in vember. Prices of rice, corn, fi sh, meat, of politics. November from the previous 6.7 percent fruits, and vegetables have gone down,” However, unlike her father “Cong. Dado” who represented Pamin September and October. he added. panga’s first district in Congress, she did not enter government “The Palace accepts this as good news. This was the first time that the inflation through local politics. Then-President Corazon Aquino We attribute this to the President’s emrate slowed down this year. their own intel unit, so they could form very diffi cult for civilians to do this [as] By Natinvited Mariano her to join the Cabinet as assistant secretary pathy to public clamor and his decisive Panelo said the Palace would continue the core of this anti-SPARU unit,” Lo- they might think they have blanket auand Francisco Tuyayof Trade and Industry, of the Department where action,” said Presidential Spokesman to monitor the prices of basic goods and said, referring th the NPA Special thority to just kill anybody they suspect of she was promoted to Undersecretaryrenzana two years Salvador Panelo in a statement. commodities. THE military will form a unit to counter Partisan Unit. being NPA. I want soldiers to be our antilater. In her concurrent position as ExecuHe cited Duterte’s move to streamline According to the PSA, lower prices of New People’s Army hit squads this month, He said he supports the formation of SPARU unit members and this should be tive Director of the Garments and Textile procedures on the importation of agricul- food and non-alcoholic beverages, housmade upExport mostlyBoard, of intelligence officers the special unit to protect military person- supervised by officers,” he added. Arroyo oversaw the rapid tural products, including rice, as a way to ing, water, electricity, gas, and other fufrom the Armed of the Philippines President Rodrigo Duterte proposed growth Forces of the garment industry in nel the from attack by NPA hit squads. stabilize prices of food items. els, as well as communication, were reand its different branches, Defense Secre“I support the anti-SPARU unit that the creation of a “Duterte Death Squad” late 1980s. Next page “These measures address issues on corded in November. tary Delfin Lorenzana said Tuesday. will protect our soldiers but I said let us after reports said 136 people, most of Her first try for an elective posi“The core of this unit will from tion was successful, as inbe 1992 she be very careful in organizing these peo- them military, police and rebel returnees, the Intelligence Service of Senate, the AFP. The ple. Some quarters are saying we’ll get were assassinated by the communist rebwas voted into the rankArmy, Airing Force, Navy and Marines have civilians to do it. I think no, this will be els in the last three years. Next page 13th and earning a threeyear term. She was re-elected in 1995, topping the senatorial polls with nearly 16 million votes, and earned six more The Agriculture chief admitted that it By Nat Mariano years in the upper was his suggestion to the President to seek chamber. PRESIDENT Rodrigo Duterte wants the the resignation of the current PCA officials. As a senaboard members of the Philippine CocoThis would help Duterte reorganize tor, Arroyo nut Authority to file their courtesy res- the agency in preparation of the proposed filed over ignations in time for the expected enact- Coco Levy Act, he said. ment of the coco levy trust fund bill into “I believe it is standard procedure,” PiNext page law, Agriculture Secretary Emmanuel ñol told GMA News Online, explaining Piñol said Wednesday. Next page

AS SPEAKER,

GMA’S POLITICAL JOURNEY COMES FULL CIRCLE

‘Du30 deeds tame inflation’ House to compel Senate to act on Cha-Cha

Palace cites ‘decisive actions’ to rein in rising prices of goods

M

‘‘

Military forms strike force to stop NPA attacks

The first and foremost job I have as is Coco board told toSpeaker quit en masse, carry make way for newtolevy trustout fund the legislative agenda of President Duterte.

‘Defer oil tax hike or fuel price spiral’ Photos by Perfecto Camero

— Gloria Macapagal Arroyo

By Macon Ramos-Araneta

SENATOR Francis Escudero on Wednesday urged President Rodrigo Duterte to reconsider the implementation of the second tranche of the excise tax on fuel, or at least of corporate social responsibility ment, working with employees, By Peter Paul Duran to consider its immediate suspension when in the country. Supporting CSR their families, the local comIt also shows in the push from munity and society at large infl to ation kicks up again in 2019. THE HOUSE of Representatives CSR is how companies man- improve quality of life, in ways Senator Sonny Angara said the governis not only an amalgam of zeal- Speaker Gloria Macapagal-Arment should act swiftly in bringing down ous individuals working toward royo for the urgent rehabilitation age their business processes to that are both good for business a more productive 17th Congress. of Marawi City and for a renewed produce an overall positive im- and good for development. consumer prices and in releasing the unconditional cash transfer and fuel subsidy focus on theDuterte plight administers of the urban pact of onoffi society. It is the commit-Supreme As aCourt corporate The also a carSO working HELP house YOUisGOD. President Rodrigo the oath ce to newly appointed Chief body, Justicethe House poor, which she has championed ment of business to contribute to of Representatives, led by Speaker provided by law after Duterte approved the ing house. This shows in various Lucas Bersamin of Bangued, Abra, the 25th to assume the post since Cayetano Arellano of Orion, Bataan in 1901 during a ceremony on throughout her career. economic developbelievesofin CSR measures supporting practice second tranche of the fuel excise taxes startWednesday. Bersamin the earned his undergraduate course at the University ofsustainable the Philippines and his law course atArroyo, the University the East.and puts Next page ing January next year. Next page He placed 9th in the 1973 bar exams. Malacañang Photo

The ‘Working House’ also a caring house

Reds spoof national anthem

THE New People’s Army’s attempt to teach minors an alternative version of the Philippine National Anthem “Lupang Hinirang” is part of local communists’Speaker effortsGloria to fight Macapagal Arroyo the governmentwith andUrban demonize poor troops tasked to protect the counleaders during their try from such threats. regular gatherings. This was disclosed by Armed Forces of the Philippines public affairs office chief, Col. Noel Detoyato, when asked if the military was aware of such efforts by the rebels, especially those operating in the Davao Region. Next page

2

MONDAY, DECEMBER 10, 2018

Speaker GMA:

advertise@manilastandard.net

How A Bill Becomes A Law

1. PREPARATION OF THE BILL The Member or the Bill Drafting Division of the Reference and Research Bureau prepares and drafts the bill upon the Member’s request. 2. FIRST READING The bill is filed with the Bills and Index Service and the same is numbered and reproduced. Three days after its filing, the same is included in the Order of Business for First Reading. On First Reading, the Secretary General reads the title and number of the bill. The Speaker refers the bill to the appropriate Committee/s. 3. COMMITTEE CONSIDERATION/ACTION The Committee where the bill was referred to evaluates it to determine the necessity of conducting public hearings. If the Committee finds it necessary to conduct public hearings, it schedules the time thereof, issues public notices and invites resource persons from the public and private sectors, the academe and experts on the proposed legislation. If the Committee finds that no public hearing is not needed, it schedules the bill for Committee discussion/s. Based on the result of the public hearings or Committee discussions, the Committee may introduce amendments, consolidate bills on the same subject matter, or propose a substitute bill. It then prepares the corresponding committee report. The Committee approves the Committee Report and formally transmits the same to the Plenary Affairs Bureau.

Fulfilling the President's Legislative Agenda

The Working House under Speaker GMA By Peter Paul Duran

F

ROM the People’s House to The Working House, the 17th Congress’ shift in leadership has also brought about a change in dynamics in the bicameral body’s lower house.

That change has been evident since Speaker Gloria Macapagal-Arroyo assumed the helm, bringing with her the bravado and great zeal which has influenced the 292-strong member House of Representatives into crafting and approving numerous bills in only a short span of time. Let’s take a quick refresher on who composes this resolute lawmaking body.

House Speaker: Bastion of Leadership From its first speaker in 1907 in the person of the late great Sergio Osmeña, many political titans have served as leader of the House of Representatives. Currently headed by the 14th President and the first woman Speaker of the Republic of the Philippines,

Gloria Macapagal-Arroyo, the House Speaker is the fourth highest government official. Arroyo was elected to the Speakership on July 23, 2018 and is the first woman and 21st person to serve as Speaker. The Speaker is elected by a majority of all House members. The Speaker is the third in the line of succession for the presidency, after the Vice President and Senate President. The Speaker presides over the House sessions; decides on all questions of order, subject to appeal by any member; signs all acts, resolutions, memorials, writs, warrants and subpoenas issued by or upon order of the House; appoints, suspends, dismisses or disciplines House personnel; and exercises administrative functions.

6. TRANSMITTAL OF THE APPROVED BILL TO THE SENATE The approved bill is transmitted to the Senate for its concurrence. 7. SENATE ACTION ON APPROVED BILL OF THE HOUSE The bill undergoes the same legislative process in the Senate. 8. CONFERENCE COMMITTEE A Conference Committee is constituted and is composed of Members from each House of Congress to settle, reconcile or thresh out differences or disagreements on any provision of the bill. The conferees are not limited to reconciling the differences in the bill but may introduce new provisions germane to the subject matter or may report out an entirely new bill on the subject. The Conference Committee prepares a report to be signed by all the conferees and the Chairman. The Conference Committee Report is submitted for consideration/approval of both Houses. No amendment is allowed. 9. TRANSMITTAL OF THE BILL TO THE PRESIDENT Copies of the bill, signed by the Senate President and the Speaker of the House of Representatives and certified by both the Secretary of the Senate and the Secretary General of the House,aretransmittedtothePresident. 10. PRESIDENTIAL ACTION ON THE BILL If the bill is approved the President, the same is assigned an RA number and transmitted to the House where it originated. If the bill is vetoed, the same, together with a message citing the reason for the veto, is transmitted to the House where the bill originated. 11. ACTION ON APPROVED BILL The bill is reproduced, and copies are sent to the Official Gazette Office for publication and distribution to the implementing agencies. It is then included in the annual compilation of Acts and Resolutions. 12. ACTION ON VETOED BILL The message is included in the Order of Business. If the Congress decides to override the veto, the House and the Senate shall proceed separately to reconsider the bill or the vetoed items of the bill. If the bill or its vetoed items is passed by a vote of two-thirds of the Members of each House, such bill or items shall become a law. NOTE: A joint resolution having the force and effect of a law goes through the same process.

Currently comprised of 14 lawmakers from different parts of the country, the Deputy Speakers under SGMA’s current term is one of the most in history. They are the second highest-ranking officials of the House. In the absence of the Speaker, one of the Deputy Speakers is tasked to preside during sessions. There used to be only one Deputy Speaker since the House was first established in 1907 – the official was called Speaker Pro-Tempore. It was only in 1995 (or during the 10th Congress) when the position was renamed to Deputy Speakers. The current Deputy Speakers are Reps. Rose Marie Arenas of Pangasinan, Mercedes Alvarez of Negros Occidental, Fredenil Castro of Capiz, Raneo Abu of Batangas, Prospero Pichay, Jr. of Surigao del Sur, Mylene Garcia-Albano of Davao City, Arthur Yap of Bohol, Pia Cayetano of Taguig, Sharon Garin of AAMBISOWA party-list, Munir Arbison of Sulu, Ferdinand Hernandez of South Cotabato, Frederick Abueg of Palawan, Evelina Escudero of Sorsogon and Linabelle Ruth Villarica of Bulacan. Majority Leader In the House of Representatives, the Majority Floor Leader (also known as the Majority Leader) is the dominant representative and delegate of the majority party. The position is second-in-command within the hierarchy of the committee, following the Speaker and followed by the Minority Floor Leader. The Majority Leader is considered to be the “enforcer” in the House, and often enforces the legislative direction laid out by the Speaker. The Majority Leader is elected in a caucus of the majority bloc. His primary function, aside from being the spokesman for the majority bloc, is to direct the deliberations on the floor. Camarines Sur Rep. Rolando Andaya, Jr. is the current majority leader.

4. SECOND READING The Committee Report is registered and numbered by the Bills and Index Service. It is included in the Order of Business and referred to the Committee on Rules. The Committee on Rules schedules the bill for consideration on Second Reading. On Second Reading, the Secretary General reads the number, title and text of the bill and the following takes place: Period of Sponsorship and Debate Period of Amendments Voting which may be by: viva voce count by tellers division of the House; or nominal voting 5. THIRD READING The amendments, if any, are engrossed and printed copies of the bill are reproduced for Third Reading. The engrossed bill is included in the Calendar of Bills for Third Reading and copies of the same are distributed to all the Members three days before its Third Reading. On Third Reading, the Secretary General reads only the number and title of the bill. A roll call or nominal voting is called and a Member, if he desires, is given three minutes to explain his vote. No amendment on the bill is allowed at this stage. The bill is approved by an affirmative vote of a majority of the Members present. If the bill is disapproved, the same is transmitted to the Archives.

Deputy Speakers

Minority Leader The constructive critic, vigilant defender of minority rights, the Minority Leader is the acknowledged spokesman for the minority bloc of lawmakers. But it does not necessarily follow that he is also the leader of the opposition party because the minority bloc in the House may be composed of one or more political groups. The Minority Leader is expected to be alert and vigilant in defense of the minority’s rights. It is his function and duty to criticize constructively the policies and programs of the majority. Like the Majority Leader, the Minority Leader is elected in caucus of all Members of the House belonging to the minority. He is an ex-officio member of all standing Committees. The Minority Leader is not necessarily a hardcore oppositionist. His job is more to ensure check and balance in the Chamber. Presently, Quezon Rep. Danilo Suarez is the Minority Leader.

First woman...

The ‘Working ...

From 1

Hardworking House This is proven by the House’s working record in the first month under the new Speaker, as in just 25 session days since Arroyo took over, the chamber has tackled 778 measures, or an average of 31 a day. In only 25 session days, Arroyo has guided the House to accomplish 21 percent of the total 3,707 measures or output of the 17th Congress that opened on July 25, 2016. Personally, the Speaker has been no slouch, having principally authored 255 measures and co-authored 60 others. These proposals range from an act to strengthen occupational safety and health standards to asking the Office of the President to pursue better relations with the Russian Federation to ensure the safety of overseas Filipino workers there. Since she took over the House leadership, Arroyo attended committee hearings and plenary sessions to ensure that vital socio-economic measures were deliberated upon and approved on schedule. During the plenary budget deliberations on Oct. 1, the Speaker, along with mem-

bers of the House, stayed overnight until the session was adjourned at 6 am the next day. Then at 9 am of that day, Speaker Arroyo attended the hearing of the Committee on Ways and Means chaired by Rep. Estrellita Suansing of Nueva Ecija which tackled the fiscal regime for the Mining Industry bill. Since she took over the speakership in July 2018 until December 5, 2018 or a total of 38 session days, the House has processed 1,299 measures of which 78 were enacted into law. Four days after the opening of the Third Regular Session, the much-awaited Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao was signed into law by President Duterte as Republic Act 11054. That law was based on House Bill 6475. Also, among those signed by the President was Republic Act 11055, or the Philippine Identification System Act based on HB 6221, which establishes a single national identification system to promote the seamless delivery of government services and increase transparency while reducing

corruption in the delivery of social services. Speaker Arroyo also led the House to the passage of the Coconut Levy Fund and the Rice Tariffication Act which had already been ratified by both Houses. Meanwhile, 41 more measures are awaiting the President’s signature to become laws. Apart from these landmark measures, the House ratified 22 bicameral reports. It has approved on third reading 196 bills. Also, during Arroyo’s term, the House approved House Joint Resolution 26, which extends until Dec. 31, 2019 the period of availability of funds intended for victims of human-rights violations during the imposition of martial law by then President Ferdinand Marcos. The House has also approved on second reading 39 and adopted 31resolutions. Her term as Speaker may last all of 10 months, but these past few months have proven that Gloria Macapagal Arroyo – Pampanga representative, former Senator, former Vice President, former President – is one of the towering figures of Philippine politics, now and in history. Eloisa Mae Ortillo and Kyle Gabrielle Ureta

When Estrada was forced out of office by the Second EDSA Revolution in 2001, Arroyo was sworn into the presidency by Chief Justice Hilario Davide, Jr. on January 20, becoming the country’s second female President. She was elected to a full six-year presidential term in the 2004 elections and stepped down from office in 2010. Arroyo was then elected to the House of Representatives, making her the second Philippine president—after José P. Laurel—to pursue a lower elective office after becoming President. Indeed, Speaker Arroyo has seen it

all. As one newspaper columnist put it: “A trade-and-industry technocrat in the 1980s, she became senator then Vice President in the 1990s, and nine-and-ahalf-year President in 2001-2010. She is presently Pampanga congresswoman, till May 2019.” But even at 71 years old, Gloria Macapagal Arroyo has proven she has many more years of public service in her. Having been voted into all the top elective posts of the country, being Speaker may not be the final stop of her long and glittering political journey. Peter Paul Duran

Political history... From 1

400 bills and authored or sponsored 55 laws during her tenure, including the Anti-Sexual Harassment Law, the Indigenous People’s Rights Law, and the Export Development Act. However, Arroyo cut her Senate term short in 1998 by running for Vice President as then-Speaker Jose de Venecia’s running mate. She won as Joseph Estrada was elected President, making her the first woman Vice President of the country. That same year, Estrada appointed her as concurrent Social Welfare Secretary, but she left the position as the President faced calls for impeachment.

From 1

premium on serving the people with purpose. In fact, the House has approved a bill institutionalizing corporate social responsibility. The measure, known as the Corporate Social Responsibility Act of 2011, provides that all local government units shall extend whatever assistance is necessary for business establishments in the exercise of CSR in their areas of jurisdiction. This bill was co-authored by Speaker Arroyo. In 2016, the Speaker then introduced House Bill 698 to ratify the call to institutionalize CSR. As principal author, Mrs. Arroyo pushed for the act encouraging corporate social responsibility, providing incentives for it, and for other purposes. This updated version was to be called the “Corporate Social Responsibility Act of 2016.” The bill seeks to foster economic and environmental development and protection, among other things, by institutionalizing corporate social responsibility in corporations, whether domestic or foreign, partnership and other establishments performing business in the country. They are mandated to take into consideration the interest of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities, and environment. The House Committee on Trade and Industry is currently tackling the measure for plenary approval. Marawi revival Arroyo took the opportunity during the very first meeting of the House Committee on Disaster Management – which she had formed in one of her first acts as Speaker -- to highlight the urgency of the rehabilitation of Marawi City. “At this point in time in our congressional calendar, it’s time for us to start focusing on our oversight functions. And maybe, the No. 1 oversight function that we need to undertake in this committee is the oversight of Marawi rehabilitation,” she said. Next page

Speaker GMA:

Fulfilling the President's Legislative Agenda

MONDAY, DECEMBER 10, 2018

3

advertise@manilastandard.net

,

,

STATUS OF PRESIDENT RODRIGO DUTERTE’S LEGISLATIVE PRIORITY MEASURES AS STATED IN THE 2018 STATE OF THE NATION ADDRESS

NUMBER

STATUS IN HOUSE OF REPRESENTATIVES

STATUS IN SENATE

Bangsamoro Basic Law Endo (Security of Tenure Act)

MEASURE

RA11054 - Signed into law on July 27, 2018 HB 6908 - Approved on 3rd Reading (2018-01-29), transmitted to the Senate on 2018-01-31 and received by the Senate on 2018-01-31 (Labor)

Utilization of the Coconut Levy Act

HB 5745 - Ratified Conference Committee Report on 2018-11-28 (Agriculture); *Adopted Concurrent Resolution No. 19 (under HCR No. 22) (RECALLING FROM THE OFFICE OF THE PRESIDENT THE ENROLLED COPIES OF S.B. NO. 1233 AND H.B. NO. 5745) transmitted to the Senate and Office of the President on 201810-15 and received by the Senate and PLLO on 2018-10-15

RA11054 - Signed into law on July 27, 2018 SBN 1826 - *Certified for IMMEDIATE enactment by the President on 21 Sept 2018; Pending 2nd Reading; Period of Interpellation (Labor, Employment & Human Resource) SBN 1233 - Ratified Conference Committee Report on 2018-11-28

National Land Use Act

HB 5240 - Approved on 3rd Reading on 2017-05-02, transmitted to the Senate on 2017-05-09 and received by the Senate on 2017-05-09 (Land Use)

SBNs 25, 34, 1015, 1144 and 1522 - Pending in the Environment & Natural Resources Committee

Department of Disaster Resilience

HB 8165 - Approved on 3rd Reading on 2018-10-01, transmitted to the Senate on 2018-10-02 and received by the Senate on 2018-10-02 (Government Reorganization)

SBNs 1994, 1969, 1735, 1553, 287 and 73 - Pending in the Committee on National Defense and Security

Rice Tariffication

HB 7735 - Ratified Conference Committee Report on 2018-11-28; Approved on 3rd Reading on 2018-08-14, transmitted to the Senate on 2018-08-15 and received by the Senate on 2018-08-15 (Agriculture and Food)

SBN 1998 - Ratified Conference Committee Report on 2018-11-28 Approved on 3rd Reading on 2018-11-14 (Agriculture and Food)

Trabaho Bill / Train 2

HB 8083 - Approved on 3rd Reading on 2018-09-10, transmitted to the Senate on 2018-09-11 and received by the Senate on 2018-09-11 (Ways and Means)

SBN 1906 - Pending in the Committee on Ways and Means since 6 August 2018

Mining Taxes

HB03297 - Approved on 3rd Reading on 2018-10-08, transmitted to the Senate on 2018-10-09 and received by the Senate on 2018-10-09 HB8223 - For Deliberation by Committee on NATURAL RESOURCES HB8321 - For Deliberation by Committee on WAYS AND MEANS HB8618 - Approved on 2nd Reading on 2018-11-28 (substitute bill to HB 4839, 8286 and 8334); For 3rd Reading on 2018-12-03 HB1641 - For Committee deliberation (Dangerous Drugs) HB1641 - For Deliberation by Committee on DANGEROUS DRUGS HB4144 - Approved on 3rd Reading on 2016-12-13, transmitted to the Senate on 2016-12-14 and received by the Senate on 2016-12-14 HB8677 - Approved on 2nd Reading on 2018-11-28 (substitute bill to HB 4575 and 6648) For 3rd Reading on 2018-12-03 HB8453 - Approved on 3rd Reading on 2018-11-12, transmitted to the Senate on 2018-11-13 and received by the Senate on 2018-11-13

SBN 1883 – Pending in the Committee on Environment and Natural Resources 7-30-2018

HB8400 - Approved on 3rd Reading on 2018-11-12, transmitted to the Senate on 2018-11-13 and received by the Senate on 2018-11-13 HB8645 - Approved on 2nd Reading on 2018-11-27 (substitute bill to HB 8252 and 8323) For 3rd Reading on 2018-12-03 HB04814 - For Bicameral Conference Committee meeting on 2018-12-04; Approved on 3rd Reading on 2017-02-13, transmitted to the Senate on 201702-15 and received by the Senate on 2017-02-15 HB08554 - For Bicameral Conference Committee; Approved on 3rd Reading on 2018-11-20, transmitted to the Senate on 2018-11-21 and received by the Senate on 2018-11-21 HB00042 - For inclusion in the Calendar of Business HB04816 - For Deliberation by Committee on WAYS AND MEANS HB5784 - Under Bicam Report preparation; Approved on 3rd Reading on 201709-06, transmitted to the Senate on 2017-09-07 and received by the Senate on 2017-09-07 (Health) HCR 9 – Adoption on Jan 16, 2018, transmitted to the Senate on Jan 18, 2018 and received by the Senate on Jan 18, 2018 (CONCURRENT RESOLUTION TO CONSTITUTE THE CONGRESS OF THE PHILIPPINES AS A CONSTITUENT ASSEMBLY FOR THE PURPOSE OF PROPOSING AMENDMENTS TO, OR REVISION OF, THE 1987 CONSTITUTION) (Constitutional Amendments) RBH 15 – Approved on 2nd Reading on 2018-12-04

SBN 225 (Pending in the Committee on Ways and Means 08-02-2016)

Alcohol Taxes Tobacco Taxes

Property Valuation Capital Income Tax

Tax Amnesty

Universal Health Care Federalism (Revision of the Constitution)

NA SBN 1605 and 1599 (Pending in the Committee on Ways and Means 11-20-2017)

SBN 44 (Pending in the Committee on Ways and Means 07-26-2016)

SBN 2059 - For Bicameral Conference Committee meeting on 2018-12-04; Approved on 3rd Reading on 2018-11-19 SBN 640 - Pending in the Committee on Ways and Means 08-09-2016 SBN 1896 - Under Bicam Report preparation; Approved on 3rd Reading on 2018-10-10 (Health) HCR 9 - Pending in the Constitutional Amendments Committee (1-22-18) SRB 1, SJR 1 - Conducted Committee hearing on December 8, 2016) SRN 580 – Pending in the Committee on Constitutional Amendments 1/15/2018

National Transport Act or the Traffic and Congestion Crisis Act (Emergency Powers to Address the Transport Traffic Crisis) Mandatory Reserve Officers’ Training Corps (ROTC)

HB6425 - Approved on 2nd Reading on 2018-11-27 (Transportation); For Approval on 3rd Reading on 2018-12-03

SBN 1284 - Pending on 2nd Reading (Period of Interpellations as of September 13, 2017)

HB00922, HB01114, HB02467, HB02666, HB02780, HB03180, HB05509, HB05827, HB06773, HB07770 - For Deliberation by Committee on HIGHER AND TECHNICAL EDUCATION HB05113 - Under deliberation by the Committee on Basic Education & Culture HR00840 - For Deliberation by Committee on NATIONAL DEFENSE AND SECURITY; For take up of Committee on Basic Education and Culture on 201812-10.

NUCLEAR REGULATORY COMMISSION

HB00025, HB01691, HB02977, HB03651, HB04369, HB04785, HB04878 – For filing of Committee Report on 2018-12-03.

SBN 189, SBN 200 (Pending in the Committee on Education, Arts and Culture 08-01-2016) SBN 1131 Pending in the Committee on Education, Arts and Culture 09-13-2016) SBN 1322 Pending in the Committee on Education, Arts and Culture 02-13-2017) SBN 1417 Pending in the Committee on Education, Arts and Culture 05-032017) SBN 1352 (Pending in the Committee on Science and Technology 02-28-2017); SBN 1959 (Pending in the Committee on Science and Technology 09-03-2018)

The ‘Working ... From 2

T h e Speaker added: “Everywhere I go, I keep hearing, abroad and here, I keep hearing comments about they haven’t seen anything on the rehabilitation of Marawi. Let’s find out what its stage is now.” The additional oversight function of the legislature, she said, “will be useful not only in regulating, as has been expressed in the opening remarks of [committee chairman and Bataan 1st District Rep. Geraldine Roman], but even more so in encouraging our implementers from the executive branch so that they can remain focused on strive for maximum results in the shortest possible time.” Marawi City was reduced to rubble after government forces launched an intense fivemonth war starting May last year against the Maute and Abu Sayyaf terror groups that laid siege on the predominantly Islamic city in a bid to establish a local base for the Islamic State. While rehabilitation for the areas outside the main battle area are ongoing, it took until Oct. 30 this year for the government to officially kick off the rebuilding of Marawi’s most affected area, made up of 24 barangays across 250 hectares, due to the military’s clearing operations and the process of awarding the rehabilitation project contract. Arroyo has committed to President Rodrigo Duterte to draft a resolution that will extend the validity of the P19.6-billion National Disaster Risk Reduction Management Fund for Marawi until December 2019 in a recent meeting in Malacanang. Caring for urban poor In hindsight, it is not hard to imagine why the Speaker has rallied for programs that benefit the masses. When Mrs. Arroyo was still President, she enacted an Executive Order 105 on May 16, 2002 that directly benefitted the urban poor and the differently-abled. EO 105 paved the way for approving and directing the “provision of group home/foster home for neglected, abandoned, abused, detached and poor older persons and persons with disabilities.” Shortly after, Arroyo’s Executive Order No. 131 declared open to disposition for socialized housing purposes certain government-owned lands defined under Republic Act 7279 or the Urban Development and Housing Act of 1992 to qualified beneficiaries. It also designated the National Housing Authority as the lead agency in the disposition program. As President, she signed more than 100 Proclamations that enabled thousands of urban poor families all over the country to be awarded their own land giving them housing security. In Congress, Arroyo continued her advocacy for housing security when she filed House Bill No. 1518 in 2016 that pushed to consolidate the functions and powers of the NHA, National Home Mortgage Finance Corporation, Home Guarantee Corporation, Home Development Mutual Fund, and Housing and Land Use Regulatory Board into a Department of Housing and Urban Development that would address the country’s 5.7-million housing backlog. From 2001 until recently, a total of 118 Presidential Proclamation have been signed, declaring the identified government sites as suitable for socialized housing. This translates to about 26,367.14 hectares of land, benefitting about 195,475 beneficiaries. The House tackles a lot of other measures that directly and indirectly affect the urban poor -- and under the baton of Speaker Arroyo, the country’s lawmakers are encouraged to apply compassion and wisdom to the laws that will benefit not just the poor, but all Filipinos as well.

REPUBLIC OF THE PHILIPPINES 2019

Speaker GMA:

Fulfilling the President's Legislative Agenda

A

MONDAY, DECEMBER 10, 2018

D1

advertise@manilastandard.net

Duterte’s legislative agenda to power country’s economic gains

MENDING the 1987 Constitution is one of the keys to kickstart the Duterte administration’s shift to a federal form of government and attract more foreign direct investments.

Speaker Gloria Macapagal Arroyo’s push for amending the 1987 Charter runs parallel with President Rodrigo Duterte’s aspiration of further spurring the economy thru his ambitious “Build, Build, Build” infrastructure program. Even the influential Makati Business Club, Management Association of the Philippines and the Financial Executives Institute of the Philippines earlier said they backed Congress’s move to amend the 1987 Constitution. They particularly cited the lifting of economic restrictions in the Constitution, saying this will pave the way for a more conducive business environment. They said that relaxing economic restrictions would be vital in the Philippines’ role as one of the major players in the Association of Southeast Asian Nations, as well as in its intent to pursue better trade relations with nontraditional partners, such as Russia, under President Duterte’s self-styled independent foreign policy. President Duterte knows the Philippines remains a laggard compared to its neighbors in the Asean region in terms of attracting foreign direct investments. The Chief Executive fairly knows that lifting economic restrictions in the Constitution would pave the way for more foreign companies to locate in the country and possibly take part in the massive infrastructure program of the government. Latest Bangko Sentral data showed that net inflows of foreign direct investments in the first eight months rose 31 percent to $7.4 billion from US$5.7 billion net inflows a year ago as investors remained optimistic about the Philippine economy. But for the month of August alone, FDI net inflows fell 41.2 percent to $752 million from $1.3 billion net inflows recorded in the same period last year. In a survey released by the Business Times – Standard Chartered Leader’s Survey on 129 leaders and business owners from various industry sectors in April 2018, foreign investors expressed a preference for Indonesia (34 percent), Malaysia (22 percent), and Vietnam (22 percent) as top destinations for business expansion. Only 3 percent of the respondents conveyed interest in expanding business operations in the Philippines.

House working to push

TRABAHO before yearend

Experts said even as FDI in the Philippines has improved, the country still needs to catch up with the more favorable investment outlook for its neighbors. But Finance Secretary Carlos Dominguez III earlier said President Duterte’s style of leadership has made the country a safer place for investors, with his campaign against corruption and criminality leading to a decrease in crime volume by 21.86 percent since the start of his administration. Dominguez also said the increasing volume of FDIs supported the Duterte administration’s efforts to shift the economy from consumption to investments-led growth, which would then help create decent, well-paying jobs for the country’s young, well-trained Filipinos entering the workforce in the coming years. In 2017, foreign businessmen also brought a record amount of investments into the country. FDI inflows reached a record high of $10 billion, up 21.5 percent from the previous year. This year, the government expects net FDI to hit $9.2 billion. Early this year, the American financial and business news website Business Insider put the Philippines on the top of the list of 20 best countries to invest in this year. Indonesia came in the second place, followed by Poland, Malaysia, Singapore, Australia, Spain, Thailand, India, Oman, Czech Republic, Finland, Uruguay, Turkey, Ireland, the Netherands, the United Kingdom, Brazil, France, and Chile. The Duterte administration’s ambitious P8.4-trillion “Build, Build, Build’ program is expected to create more jobs and further spur economic growth in the years to come. The infrastructure program aims to build more roads, bridges, seaports, airports, railways and water and irrigation projects across the country to spur economic activities. It also aims to build a subway in Metro Manila in a bid to decongest the metropolis of heavy traffic that costs around P3.5 billion in economic losses daily, according to a study by Japan International Cooperation Agency.

Priority measures keep House busy of the 1987 Constitution “have already served, if not outlived, their purpose, hence, the sustained clamor over the years for amendments to or revision of the Constitution finds justification in the need to provide, among other much-needed. The House has just a few sessions days left when Congress resumes its sessions on January 14, 2019, as most lawmakers gear up for the midterm elections. Congress will adjourn on Feb. 9, 2019 to make way for the election campaign period up to the May 13, 2019 elections. It will again resume session on May 20 to wrap up its agenda towards its sine die adjournment on July 8, ushering in the new 18th Congress come July 2019. National budget

By Maricel V. Cruz RACING against time, the House of Representatives has approved several bills listed as priority measures of the Duterte administration – top billed by Charter change toward federalism and the 2019 national budget. In viva-voce voting, the House on Dec. 4 approved on second reading a resolution, penned by Speaker Gloria Macapagal-Arroyo, that amends the 1987 Constitution to effect President Rodrigo Duterte’s proposed shift to a federal form of government. Resolution of Both Houses 15 (RBH 15), or the draft federal charter, was approved in plenary session with Deputy Speaker and Batangas Rep. Raneo Abu as the presiding speaker. Speaker Arroyo has said she expects the house to pass the measure before Congress adjourns beginning December 15. She said RBH 15 went through rigorous debates and discussions.

“It was part of the democratic process, there was a debate, it was voted on,” Arroyo said. Rep. Vicente Veloso of Leyte, chairman of the House committee on constitutional amendments, told reporters the resolution will be transmitted to the Senate through the House’s Office of the Secretary-General. Veloso said he hopes the Senate will cooperate with the House in its efforts to rewrite the 1987 Constitution. Veloso said the amended RBH provides a “no term limit” provision, as he played down criticism that the proposed federal charter was railroaded through the House, saying lawmakers have been discussing the measure since 2017. RBH 15, which was already amended to return the vice president in the line of succession to the presidency, remains pending in the plenary as Congress, is scheduled to begin its Christmas break on Dec. 15. Veloso, a former Court of Appeals associate justice, had said many provisions

Meanwhile, the House passed on third and final reading the proposed P3.757 trillion national budget for 2019. The House leadership said the 2019 budget prohibits “post-enactment interventions” and that congressmen identify specific projects for their constituents through specific agencies of government concerned. “These are not pork barrel allocations declared illegal by the Supreme Court. Ordinary citizens have the right to enjoy the fruits of projects funded by their taxes, regardless of their political affiliation,” House Majority Leader and Camarines Sur Rep. Rolando Andaya, Jr. said. As far as the House leadership is concerned, they have approved a constitutionally-compliant budget measure. “As long as the funds are dedicated to a specific purpose, do not require post enactment measures, and are participated in by the Congress as a legislative body, and not by individual members, then it can be allowed,” Andaya said. “What the Supreme Court prohibits is

encroachment of Executive Power (as post-enactment measures are part of executive functions) and non-delegability of legislative powers since the determination of purpose by the individual members can be considered as a delegation of rule-making powers,” the majority leader added. Bills passed In the first 25 session days under Arroyo’s watch, the House tackled 778 measures or an average of 31 measures a day. This means that in only 25 session days, Arroyo was able to accomplish 21 percent of the total 3,707 measures or output of the 17th Congress that opened on July 25, 2016. Most of the measures tackled are on the legislative agenda of Duterte as Arroyo made true her word that she will endeavor to push the measures backed by the President. During her watch, Arroyo attended committee hearings and plenary sessions to ensure that vital socio-economic measures are deliberated upon and approved on schedule. House leaders have credited this accomplishment of the Arroyo-led House to her hard work and dedication, given her track record as former President and economist and a known workaholic. Majority Leader Andaya said Arroyo influenced the process of passing or moving the bill through the House by constantly prodding legislators to avoid delays. “She even attends committee deliberations just to make sure that the proceedings are on tract and unnecessary delays are avoided,” Andaya said. Minority Leader and Quezon Rep. Danilo Suarez, a known Arroyo ally, also shared kind words about the Speaker. “With GMA as Speaker, 24 hours in a day are not enough for the House to do the tasks she imposes on everyone including herself,” Suarez said. Former Speaker and Quezon City Rep. Feliciano Belmonte, Jr. said Arroyo will be “a tough act to follow for any Speaker in the future.”

THE SECOND part of the administration’s tax reform measure, dubbed as the Tax Reform for Attracting Better and High Quality Opportunities or TRABAHO, is another priority agenda of the House of Representatives under the leadership of Speaker Gloria Macapagal-Arroyo. House Bill 8083 was passed on third reading last Sept. 10 and renamed to TRABAHO from the Tax Reform for Acceleration and Inclusion (TRAIN) under Republic Act 10963. “It’s not called TRAIN-2 because TRAIN-2 is misleading. This is going to be a corporate incentives reform [measure]. Remember in the SONA [State of the Nation Address] of President Duterte, it’s there,” Arroyo explained. TRABAHO proposes to cut the corporate income tax from 30 percent to 25 percent and take away fiscal incentives, including tax exemption, from hundreds of businesses in export processing zones. TRAIN, which took effect last January, imposed new and higher taxes on fuel, sugar-sweetened beverages and tobacco products and reduced income taxes for millions of individual taxpayers. Deputy Speaker Raneo Abu has defended the measure, saying this “is not a tax bill.” “It is a corrective measure to address redundant incentives given to firms which fixed income earners are in a way subsidizing. We should support infant industries but it should be time bound. We are lowering the corporate income tax. That will cushion the effect of removing the incentives of those companies which for so long enjoy the incentives but no inputs to exports and labor,” Abu said. He said 57 percent of all businesses enjoying fiscal incentives do not deserve them. The Arroyo-led House has been burning the candle at both ends to pass to ensure the passage of the President’s priority legislation. The Speaker made this clear after attending a hearing of the House Committee on Ways and Means on the measure. “I said in my very short statement upon assumption, the first and foremost job I have as Speaker is to carry out the legislative agenda of President Duterte,” she said. Following the Ways and Means Committee hearing, Arroyo had a working lunch with government economic managers and some lawmakers to discuss economic issues such as inflation. The second tax reform package aims to lower the corporate income tax paid by some 95 percent of businesses while retaining and providing new fiscal incentives for deserving recipients that will contribute to national development and help generate pro-poor investments and jobs, Arroyo said. More than 99 percent of businesses are micro, small, or medium enterprises employing around 65 percent of the country’s workers. Duterte, in his third SONA, said the enactment of TRAIN 2 or TRABAHO is what stands between today and millions of jobs in the near future. “I hope to sign Package 2 before the year ends. I urge Congress to pass it in a form that satisfies our goals and serves the interests of the many, not just the wealthy few,” he said. The Arroyo-led House had already passed on third and final reading all the remaining Comprehensive Tax Reform Progam (CTRP) as requested by the President. These include the taxes on alcohol and tobacco, capital income tax, property valuation and tax amnesty. Except for the Tax Amnesty Bill which has already been ratified by both Senate enate and the House, the Lower House is awaiting the passage of these bills in the Senate. Maricel V. Cruz

D2

MONDAY, DECEMBER 10, 2018

advertise@manilastandard.net

Speaker GMA:

Fulfilling the President's Legislative Agenda

Under Arroyo-led House:

Bangsamoro Organic Law

House kicks off drive to eliminate ‘endo’

first priority bill signed into law

T

HE Bangsamoro Organic Law is one of the landmark legislative measures of the Duterte administration.

President Rodrigo Duterte, a native of Mindanao, made it one of his priority measures as he expressed in his State of the Nation Address in both 2017 and 2018, giving it significant support from both houses of Congress. In fact, of the 18 measures listed by the President as priorities, the BOL, which formally creates the Bangsamoro Autonomous Region in Muslim Mindanao, was the first measure to be signed into law – as Republic Act 11054—in the House of Representatives’ third regular session on July 27, 2018. Not long after Pampanga 2nd District Rep. Gloria MacapagalA r r o y o ’s assumption as Speaker shortly after

the SONA, she vowed it would be her first agenda as leader of the chamber to ratify the BOL, which she also coauthored. As it turned out, it was the first piece of legislation passed by the House under Speaker Arroyo. “As I intend to carry out the legislative agenda of the President, we will ratify the [BOL] today,” Arroyo said in a statement before the start of the session. Arroyo had proposed House Bill 6121 or the Basic Act for the Bangsamoro Autonomous Region, which was then consolidated into HB 6475 and eventually merged into RA 11054. The BOL was created to provide for the basic law for the Bangsamoro area and abolish the current Autonomous Region in Muslim Mindanao, repealing for the purpose Republic Act No. 9054, “An act to strengthen and expand the organic act for the autonomous region in Muslim Mindanao,” as well as Republic Act 6734, “An act providing for an organic act for the autonomous region in Muslim Mindanao.” In the President’s SONA on July 23, he said he would sign the BOL into law within 48

hours. The approved version of the law, Duterte said, would “pave the way for lasting peace in Mindanao.” Then-presidential spokesman Harry Roque said: “We cannot underplay the significance of this signing as we take comfort in this momentous step toward building the foundation of a lasting peace in Mindanao.” “At the same time, we recognize that more work still lies ahead, and we thank all those who remain patient and committed to this arduous task. We look forward to working with our countrymen in Mindanao in bringing the much-needed development to the island,” Roque added. The secretary-general of the United Nations, Antonio Guterres, complimented what he called the “landmark signing” of the Bangsamoro Organic Law as an achievement on the road to lasting peace in the southern Philippines. In a statement released by Guterres’ spokesman Stephane Dujarric in Manila, the UN official said: “The Secretary-General welcomes the sign-

ing into law of the Organic Law for Bangsamoro in the Autonomous Region in Muslim Mindanao on 26 July, a landmark achievement on the road to lasting peace in the southern Philippines.” “The Secretary-General congratulates negotiators for the Government of the Philippines and the Moro Islamic Liberation Front, the Bicameral Conference Committee, the Bangsamoro Transition Commission and civil society groups for their efforts.” “The United Nations will continue to support the Philippines in the implementation of the law, and to help build the capacity of the Bangsamoro Transition Authority as an effective conduit for peace, democratic governance, and human rights.” Peter Paul Duran

By Peter Paul Duran PRESIDENT Rodrigo Duterte has certified as urgent a bill seeking to eliminate the practice of “endo” or contractualization by employers and guarantee security of tenure of workers. The House of Representatives approved its version of the bill ― HB 6908, or the act strengthening the security of tenure of workers, amending for the purpose Presidential Decree No. 442, as amended, otherwise known as the “Labor Code of the Philippines” ― on third reading as early as January 29 this year. The Senate’s version or SBN 1826 was certified for immediate enactment by the President on September 21, 2018, after the President certifying it as “urgent.” Duterte had signed an executive order putting an end to the practice of “endo”— short for “end of contract”—in front of thousands of participants at the 116th Labor Day celebration back in May. But the President said the EO was not enough as the Senate also has to provide a long-term solution to ensure the security of tenure of workers. He added Congress should

amend the “outdated” Labor Code ― and the House under Arroyo has done just that. The Speaker, in fact, was one of the principal authors of HB 6908 along with 125 other congressmen. Senator Joel Villanueva said Duterte wrote to Senate President Vicente Sotto III on September 21 requesting the “immediate enactment” of Senate Bill No. 1826 or Security of Tenure Bill. Speaker Arroyo and Presidential Legislative Liaison Office head Adelino Sitoy were also furnished a copy of the President’s letter. Once passed into law, the measure would remove the ambiguities in the Labor Code, which is the source of circumventions, and: Prohibit labor-only contracting, and provide penalties for violation; Limit job contracting to licensed and specialized services; Classify workers into regular and probationary employees―and treat project and seasonal employees as regular employees; Provide security of tenure; Clarify standards on probationary employment; and Provide a “Transition Support Program” for employees while they are not at work or transitioning in between jobs. President Duterte had tossed to Congress the proposed ban on short-term employment. Instead of signing an EO banning contractualization, he certified as “priority” pending legislation on security of tenure, Labor Secretary Silvestre Bello III said as his “Labor Day gift” to workers. HB 6908 is an amendment to Presidential Decree No. 442 or the Labor Code of the Philippines. Bello said the security of tenure bill, if enacted into law, would be better than an EO against endo as the measure carries stricter guidelines and imposes stiffer penalties on violators. “The House of Representatives already approved the proposed measure while the Senate is just awaiting input from the executive. So the certification from the president will be a signal for the Senate to give it priority,” Bello explained.

Universal health care for Pinoys one step closer to reality House appropriations body OKs Comprehensive Nuclear Law TAKING the key piece of legislation for nuclear regulations one step closer to enactment, the bill for the Comprehensive Nuclear Law was recently approved before the House Committee on Appropriations. The bill hurdled through the appropriations committee at the House of Representatives during its meeting on August 28. Otherwise known as the Comprehensive Nuclear Regulation Act, the bill is entitled “An Act Providing for a Comprehensive Nuclear Regulatory Framework, Creating for the Purpose, the Philippine Nuclear Regulatory Commission, and Appropriating Funds Therefore,” consolidating seven similar bills filed in the House of Representatives. It pushes for the creation of a unified independent regulatory body consistent with international standards for the regulation of all practices and facilities involving sources of ionizing radiation, including nuclear and other radioactive materials, facilities and radiation generating equipment. Its current incarnation in the House was previously consolidated from several other bills into a substitute bill in November 2017, with Speaker Gloria Macapagal Arroyo as one of its sponsors. It is currently under Committee Report Preparation in the House of Representatives which is due for filing within the month.

In the Senate, a counterpart bill for the nuclear law has been filed by Senate President Vicente “Tito” Sotto III. Science and Technology Secretary Fortunato De La Peña and Philippine Nuclear Research Institute Director Dr. Carlo Arcilla were present during the committee meeting, along with other officials and staff from the Department of Science and Technology and PNRI. Currently, the Philippines has two regulatory bodies dealing with ionizing radiation: the PNRI under DOST which regulates nuclear and radioactive materials; and the Center for Device Regulation, Radiation Health and Research under the Food and Drug Administration of the Department of Health, which regulates x-rays and devices producing electrically-generated radiation. According to PNRI’s Eulinia M. Valdezco, president of the Philippine Association for Radiation Protection, three laws exist on nuclear power but do not cover nuclear plant decommissioning: Republic Act 2067 (The Science Act of 1958); RA 5207 (Atomic Energy Regulatory and Liability Act of 1968); and Presidential Decree 1586 (Philippine EIS System Law). Senate President Vicente Sotto III filed a counterpart measure in the upper chamber, Senate Bill No. 1352, on Feb. 27, 2017. It is one of two bills, the other being SBN 1959, that are pending in the Senate Committee on Science and Technology.

UNIVERSAL health care for all Filipinos is one step closer to reality, thanks to efforts of the House of Representatives under Speaker Gloria Macapagal-Arroyo. A bicameral conference committee on Nov. 27 approved the bill seeking to provide health care for all citizens of the country. The reconciled House and Senate versions of the Universal Health Care bill seeks to automatically enroll all Filipinos in the proposed National Health Insurance Program. The approval of the UHC bill will allow Filipinos to access proper health care without having to worry about high costs, lawmakers said. Membership in the program goes two ways – either direct by those who can pay health premiums, or indirect for those sponsored members such as senior citizens and indigents. The Philippine Health Insurance Corporation (PhilHealth) would handle the NHIP. As early as 2004, Arroyo, during her term as President, already pushed for universal health insurance. In a speech on Feb. 2, 2004 during the launching of Philippine Universal Health Insurance Service, she said: “The best way of helping the poor through social security will be by shoring up the finances of all the social security agencies. And how do we do that? By pursuing our investment and employment programs so that more employees can pay the premium.” The bill’s reconciled version comes after the House approved House Bill No. 5784 in September 2017 and the Senate approved Senate Bill No. 1896 last October. Congress now has to ratify the reconciled version of the bill before it can be signed into law by President Rodrigo Duterte. If once Duterte does signs it into law,

Filipinos would get immediate eligibility for and access to the full spectrum of health care ― preventive, promotive, curative, rehabilitative, and palliative care for medical, dental, mental, and emergency health services. Patients would be registered with a primary health care provider of their choice for outpatient care, medicines, and laboratory tests, as these will be included in PhilHealth’s primary care benefits package. Members contributing directly would

cil would also be created, to craft recommendations for the development of policies and programs and determine PhilHealth benefit packages. If the measure is enacted, health care services would transition in phases so they would not be disrupted, solons said, and give implementing agencies time to adjust to the UHC system. Funds for the UHC implementation would be sourced from: Department of Health annual budget

also get more benefits as premiums increase, which lawmakers said would be encouraging for those who pay higher premiums and those who are voluntarily paying. Membership rates would also gradually increase by 0.5% yearly, while income ceilings for contributions would go up by P10,000 per year. The UHC also provides for PhilHealth payments for local government unit hospitals to be set aside in a special fund to improve the health facilities in LGUs. A Health Technology Assessment Coun-

Revenues from sin taxes Philippine Amusement and Gaming Corp. (50% of the national government’s share) Philippine Charity Sweepstakes Office (40% of the fund, net of documentary stamp tax payments and mandatory contributions) PhilHealth members’ contributions; and Government subsidies to PhilHealth. About P257 billion would be needed to implement universal health care in its first year, the DOH said.

Speaker GMA:

Bill reforming real property valuation OKd THE House of Representatives has backed a measure instituting reforms in real property valuation and assessment in the country, which would also reorganize the Bureau of Local Government Finance. House Bill 8453, authored by Speaker Gloria Macapagal Arroyo, was recently approved on third reading last Nov. 12 and has been transmitted to the Senate. The bill proposes to institute reforms in real property valuation and assessment in the country and reorganize the BLGF, an office under the Department of Finance. HB 8453 was sponsored on the floor by Committee on Government Reorganization Chairman Mariano Michael Velarde, Jr. of Buhay party-list. Prior to the floor sponsorship, the House Committee on Appropriations, in a hearing presided by Vice Chairperson Ma. Carmen Zamora of Compostela Valley, endorsed the bill without amendment. In her explanatory note of the bill, Arroyo said the bill will allow the country to move toward a more rational administration and management system that fully taps the potential of the real property sector. “In turn, the capacity of the government to generate more revenues is enhanced, without necessarily imposing new tax measures or increasing existing tax rates,” the Pampanga 2nd district representative said. The bill will enable local government units to achieve a more stable fiscal wherewithal and a strengthened local real property tax base to fund service delivery requirements of the LGUs, thereby achieving good and transparent governance, and increased public performance, the Speaker said. Arroyo said a World Bank report cited that 50 percent to 75 percent of the country’s wealth is contained in the land. Ironically, land marketing is contributing only six percent to the Gross National Product (GNP). “Characterized by inconsistencies and inefficiencies in the land administration and management sector, our country has failed to capture and maximize the huge potential that the land sector offers. The real property valuation system in the country depicts a depressing state of chaotic, inefficient, and inequitable layers of bureaucracy,” said Arroyo. She said at least 23 national government agencies and more than 1,700 LGUs perform or require valuation functions and services using varied systems and methodologies for different purposes, thus, resulting in multiple, confusing, unrealistic or outdated values for the same property. “The discrepancies in real property values have had considerable cost to the government. Conflicting land values resulted in right-of-way compensation problems; lengthy court litigations arising from valuation disputes, project delays, and unrealized revenues and socioeconomic benefits,” she said. The system also caused huge disparities of taxable base for local and national taxation, and revenue leakages due to the absence of a single market-based valuation for capital gains tax and other national land-related taxes, while the LGUs use the Schedule of Market Values as basis for real property tax, Arroyo added. Valuation, also known as appraisal, is referred to in the bill as the “systematic, analytic and logical analysis of the recording of property facts, circumstances, investments and other relevant data resulting in a supportable estimate or professional opinion of the value of the property as of specific date and for a specific purpose.” The bill declares it is the policy of the State to promote the development and maintenance of a just, equitable, impartial and nationally consistent real property valuation based on internationally accepted valuation standards, concepts, principles and practices. Towards this end, the State shall: Establish and maintain standards to govern the valuation of real property in the country; Adopt market value as the single real property valuation base for the assessment of real property related taxes in the country, and for the valuation or appraisal of real property for various transactions by all government agencies; Promote the fiscal autonomy of local governments to provide basic services to their constituency by enhancing their capacity to generate local revenues from real property; Support the function of valuation and appraisal of real properties from the functions of tax policy and the administration of the taxes due thereon; and Ensure transparency in real property transactions to protect public interest and develop confidence in the valuation system. The bill further provides that the Bureau of Local Government Finance of the DOF shall lead and manage the implementation of the provisions of the Act. The BLGF shall develop, adopt and maintain valuation standards which shall be used by all appraisers and assessors in the LGUs and other concerned parties in the appraisal or valuation of lands, buildings, machinery and other real properties for taxation and other purposes.

Fulfilling the President's Legislative Agenda

MONDAY, DECEMBER 10, 2018

D3

advertise@manilastandard.net

House rationalizes fiscal regime on mining industry By Julito Rada

HE House of Representatives last month approved on third and final reading House Bill 8400 that seeks to rationalize and institute a single fiscal regime applicable to all mineral agreements.

lion instead of P4.59 billion in DOF’s original proposal. In the existing regime, earnings from royalty only stands at P1.13 billion. Under HB 400, large-scale metallic and non-metallic mining operations located within mining reservation areas

“Margin” is referred in the bill as “the ratio of income from mining operations before corporate income tax to gross output.” In the Senate, the DoF proposal on new mining fiscal regime was filed as Senate Bill (SB) 1979 by Senate President Vi-

The bill was sponsored by Committee on Ways and Means chairperson Rep. Estrellita Suansing (1st District, Nueva Ecija) who is also the principal author of the bill. House Bill 8400 substituted HB 7994 of Suansing and HB 422 of Rep. Romero Quimbo (2nd District, Marikina City). Speaker Gloria Macapagal-Arroyo led the list of House Members who coauthored the bill. From the original proposal of the Department of Finance, which imposes a 5 percent royalty on all mining firms in and out of mineral reservations, HB 8400 mandates miners outside of mineral reservations to pay to the government a margin-based royalty on income from mining operations. But DoF said that with HB 8400, the “expectation of DOF [in terms of rev-

shall be imposed a royalty tax equivalent up to 3 percent of the gross output of the minerals, exclusive of all other taxes. Mining contractors of small-scale metallic and non-metallic mining within or outside mineral reservations shall pay to the government a royalty equivalent to 1/10 of one percent of gross output. The royalty rates shall be: one percent to 10 percent margin, one percent royalty; above 10 percent to 20 percent margin, 1.5 percent royalty; above 20 percent to 30 percent margin, 2 percent royalty; above 30 percent to 40 percent margin, 2.5 percent royalty; above 40 percent to 50 percent margin, 3 percent royalty; above 50 percent to 60 percent margin, 3.5 percent royalty; above 60 percent to 70 percent margin, 4 percent royalty; and 70 percent margin, 5 percent royalty.

cente Sotto III. For large-scale miners outside mineral reservations, Suansing said a marginbased royalty is imposed, “making them liable” as well to pay royalty tax as largescale mining operators inside mineral reservations. On the other hand, for all small-scale mining operations within or outside mineral reservations, a royalty equivalent to 1/10 of 1 percent of gross output shall be imposed. The substitute bill also contains a provision proposed by the Speaker to prohibit open-pit mining. The bill also proposes the exemption of all mining contractors from the coverage of the confidentiality clauses of the National Internal Revenue Code to ensure transparency and the requirement of registration for small-scale miners.

T

enues] has been reduced.” “Based on the data for 2017, we were able to get estimates on how much we are getting on the existing regime, which is around P19.71 billion, including taxes. Under the DOF proposal, which imposes 5 percent royalty, we will get P26.8 billion and under the approved house bill, it is around P22 billion,” DOF Fiscal Policy and Planning Director IV Elsa Agustin said. Based on the new computation made by the DOF, the total incremental revenues, including reduction to Corporate Income Tax, now stands at P3.73 billion annually. In the original proposal of the agency, the government would have gained about P8.19 billion. In terms of mining royalty, the government will now only earn P2.57 bil-

SGMA pushes for creation of disaster management department House fully SPEAKER Gloria Macapagal-Arroyo has pushed for the creation of a Department on Disaster Management, citing the need for a full-time Cabinet official to deal with the logistical requirements of preparing for calamities. Speaking to media at the sidelines of the recent distribution of relief goods to typhoon victims in Marilao, Bulacan, Arroyo noted that while she is satisfied with the work of the National Disaster Risk Reduction and Management Council, the agency has limitations. She has filed House Bill 8165, which was approved on third reading last Oct. 1 and transmitted to the Senate, where six similar bills are sitting with the upper chamber’s Committee on National Defense and Security. Within the House, the Speaker has helped create the Committee on Disaster Management, currently chaired by Bataan 1st District Rep. Geraldine Roman. Appearing recently at the committee’s second meeting since its formation, Arroyo said the group has to start moving to perform its oversight functions so that the implemen-

tation of the government’s rehabilitation and reconstruction plans can be attended to, and help the executive department focus on its execution problems. “For instance in the Marawi (City) rehabilitation, my questions anyway, were mostly about the implementation, because that is now what I am asking the committee members to focus on,” said the Speaker. The House Committee on Disaster Management’s jurisdiction includes all matters directly and principally relating to disaster and calamities, whether natural or man-made, as well as policies, plans, programs and projects related to disaster risk and vulnerability reduction and management. That includes disaster preparedness and resiliency, relief and rescue, recovery, rehabilitation and reconstruction. Currently, the House Committee on Disaster Management is preparing to conduct its ocular inspection of Ground Zero in Marawi City this month to determine the progress of rehabilitation and to facilitate the construction of the first batch of houses for the displaced residents.

Arroyo earlier pointed out that the NDRRMC is headed by the defense secretary who also has other tasks. “Look at who is the head of the coordinating council? Secretary [Delfin] Lorenzana. Well, he is busy fighting insurgency, he’s busy fighting terrorism, so how can he be there full time? So now what happened is, because the typhoon is gonna hit the north, four (Cabinet) secretaries are there,” she said. Arroyo said a full-time cabinet secretary focusing on disaster resiliency will not have the limitations of the NDRRMC. “If there was a full-time secretary then you don’t need four secretaries to be there so they’re doing as best they can. I’m satisfied with what [the NDRRMC] doing within the limitations of a coordinating council but this really proves we should have a disaster department,” she said. President Rodrigo Duterte called on Congress during his third State of the Nation Address to form a body that would focus on risk reduction in times of natural hazards and disasters using a sciencebased approach.

behind call for ROTC revival

PRESIDENT Rodrigo Duterte believes the Reserve Officers’ Training Corps program should be revived and become mandatory in all schools owing to the lack of able-bodied men and women to defend and aid our country if the situation arises. The House of Representatives has been quick to heed the President’s call, filing no less than a dozen measures calling for the restoration of the ROTC program. All of them will be discussed by the House Committee on Basic Education and Culture in its hearing on Dec. 10. Speaker Gloria Macapagal Arroyo, in what some may view as a twist of fate, has rallied lawmakers behind the President’s call to revive the ROTC. As the country’s 14th President, Arroyo had signed the National Service Training Program Law that made ROTC optional among college students. The program, however, was removed from the educational system following the death of a college student who had exposed the alleged anomalies in his ROTC unit in 2001. This is why as representative of Pampanga’s 2nd District, the Speaker has proposed the creation of a Citizens Service Training Course that will expand and improve the ROTC program to enable the youth “to truly take part in nation-building.” The CSTC would repeal the NSTP under Republic Act 9163 that was enacted during Arroyo’s term as President and removed the mandatory nature of the ROTC. Retired generals support the revival of mandatory military training for college students. The Association of Generals and Flag Officers, Inc. (AGFO) said the defense preparedness of the country “has not been served well” since the ROTC program was discontinued 16 years ago. “Geopolitical developments in the Asia Pacific region have accentuated the weaknesses of the Philippine defense posture and exposed the very limited capabilities of the Armed Forces of the Philippines to defend the national sovereignty,” the AGFO said.

D4

MONDAY, DECEMBER 10, 2018

advertise@manilastandard.net

Speaker GMA:

Fulfilling the President's Legislative Agenda

House backs Finance push for stiffer ‘sin taxes’ T HE House of Representatives has approved on third and final reading proposals to increase the excise taxes on tobacco and alcohol products to raise more funds for the Universal Health Care program of the Duterte administration. House Bill 8677 garnered a voting of 187-7 with one abstention, while HB 8616, which seeks to increase alcohol excise taxes, got a voting of 189-7 with one abstention. Speaker Gloria Macapagal Arroyo co-authored HB 8618. The bill seeks to

climb seven percent each year. The measure further integrates two specific tax rates for sparkling wine into a unitary rate pegged at P650. This means that beginning 2019, sparkling wines will receive 15 percent ad valorem tax per liter plus P650 specific tax

supposed to increase four percent each year. However, under HB 8677, each pack of cigarettes shall be taxed P37.50 beginning July 1, 2019 until June 30, 2020. An amount of P2.50 shall be added to the rate thereafter until it reaches P45. This means cigarettes per pack will be taxed P40 beginning July 2020; P42.50 beginning July 2021; and P45 beginning July 2022. On July 2023 and every year onwards, the tax rate shall be raised an additional four percent. Previously, Finance Secretary Carlos Dominguez III said higher excise taxes

address the perceived inequality on the excise tax collections on alcohol products. Collections from alcohol account for 30 percent while cigarettes cover 70 percent of the government’s excise tax collections. HB 8677 is authored by Reps. Joey Sarte Salceda, Angelina Tan, Ramon Rocamora, Jocelyn Limkaichong, Bellaflor Angara-Castillo, Gabriel Bordado, Cheryl Deloso-Montalla, Estrellita Suansing, Jose Antonio Sy-Alvarado, Anthony Bravo, and Rodel Batocabe. It aims to curb smoking prevalence, especially among vulnerable sectors like the youth and the poor, as well as contribute to the UHC program. HB 8618, aside from Speaker Arroyo, is also authored by former Rep. Horacio Suansing, Deputy Speaker Sharon Garin, Reps. Estrellita Suansing, Marvin Nieto, Rodel Batocabe, and Christopher Co, seeks to raise excise tax rates on alcohol from the rates imposed by the National Internal Revenue Code (NIRC), as amended by Republic Act 10351. HB 8618 in particular seeks to address the perceived inequality on the excise tax collections on alcohol products. The bill proposes to correct this by raising the indexation of excise tax rates on alcohol products from four percent to seven percent for inflation. Moreover, it seeks to impose on distilled spirits such as brandy, whisky, and alcopops a tax rate of 22 percent ad valorem on the net retail price (NRP) per proof plus a specific tax of P30 per liter beginning 2019. The specific tax will increase by P5 every year thereafter until it reaches P45 per liter in 2022. In 2023 and onwards, the specific tax for distilled spirits shall

per liter. The specific tax will be raised by seven percent beginning 2020 and every year thereafter. In addition, HB 8618 deletes the “fortified wines” category and integrates it under still wines and carbonated wines with 14 percent alcohol and up. This category shall be taxed P80 per liter in 2019. In 2020 and every year thereafter, the tax shall increase seven percent every year beginning 2020. On the other hand, still wines and carbonated wines with 14 percent alcohol or less shall be taxed P40 per liter beginning 2019. In 2020 and every year thereafter, this shall increase by 7 percent. Cooking wines that contain a salt content of not less than 1.5 grams for every 100 milliliter shall be exempted from excise tax. Finally, the distinction between fermented liquors brewed in microbreweries and in factories is removed by HB 8618 to facilitate simpler tax administration. Regardless of the brewery, fermented liquors shall be taxed P28 per liter volume of capacity in 2019; P32 in 2020; P34 in 2021; and P36 in 2022. It will be raised by seven percent each year thereafter. Meanwhile, HB 8677 seeks to raise the unitary tax on cigarettes. Under the NIRC, as amended by RA 10351, a unitary tax rate of P32.50 for each pack of cigarettes was imposed from January 2018 to June 2018. This increased to P35 in July 2018 and was slated to remain the same until December 2019. It was set to increase further to P37.50 per pack from January 2020 to December 2021, and then to P40 from January 2022 to December 2023. From January 2024 onwards, the unitary tax rate was

and pricey tobacco products would discourage people, especially the youth, from smoking which could be bad for their health. Dominguez said increasing the current tobacco excise tax rates to levels that would effectively curb smoking, particularly among the youth, would also help supplement funds for the Universal Health Care (UHC) program, especially for the treatment of smokingrelated diseases. Citing the testimonies of resource persons heard by the House ways and means committee during its deliberations on the proposed new tobacco tax rates, Dominguez said the higher excise taxes on cigarettes under the Sin Tax Reform Law have led to a drop in the number of smokers by roughly a million people per year, with fewer teenagers getting into the habit, and a corresponding increase in revenues that are spent on treating Filipinos with smoking-related diseases. A recent news release by the House, posted on its website, quoted Dr. Antonio Dans of the National Academy of Science and Technology (NAST) as saying that preliminary calculations project about 150,000 new smokers as a result of the rates approved by the House ways and means committee. Tobacco farmers also benefit from this law, the Finance Department said, because 15 percent of the revenue proceeds from sin tax reform continue to be allocated to local government units hosting tobacco growers. From P5.6 billion in 2014, the share of host LGUs steadily increased to P10.7 billion in 2015, to P13 billion in 2016, and to P17.1 billion in 2017. Julito Rada

House passes tax amnesty bill quickly THE HOUSE of Representatives moved quickly to pass on third and final reading the tax amnesty bill, a measure high on the list of the Duterte administration’s legislative agenda and projected to contribute P114.8 billion to government coffers. On Nov. 20, lawmakers approved House Bill No. 8554 with a vote of 2137-0. Previously, a day after the measure was approved by the House Committee on Ways and Means, it was immediately sent for second reading approval. Speaker Gloria Macapagal-Arroyo guaranteed swift disposition of the measure. Nueva Ecija Rep. Estrellita Suansing, chairperson of the House Committee on Ways and Means, said the additional revenues for government is assured as soon as the measure is implemented as a law. The bill was filed in relation to the Tax Reform for Acceleration and Inclusion Law as it seeks to address the poor tax collection record of the Bureau of Internal

Revenue and other revenue agencies. In her sponsorship speech, Suansing said HB 8554 would give erring taxpayers a chance to “come forward, start with a clean slate, and be 100% tax-compliant in the future.” “For both formal and informal sectors, they will be absolved by settling all their undeclared assets and previous unpaid taxes without fear of civil, criminal, or administrative penalties,” she said. The Senate had already approved its version of the bill, thus bringing it to the bicameral conference committee, where the conflicting provisions of the two versions will be reconciled. During its second reading, House members approved the measure less than an hour after Suansing delivered her sponsorship speech of the measure urging congressional support for its swift enactment. Suansing said the legislative proposal will also address case backlogs in both administrative and court proceedings of

disputed taxes. The solon recalled that the last amnesty the country had was in 2007 under Republic Act No. 9480 where there were about 25,017 applicants which resulted in a collection that amounted to P7.2 billion translating to 0.07% of the Gross Domestic Product. “For the next 10 years, this will be the next amnesty that we will be applying in conjunction with one of the President Rodrigo Duterte’s legislative priorities,” she said. HB 8554 is divided into three parts: the first part provides for Estate Tax Amnesty; General Tax Amnesty and Tax Amnesty on Delinquencies. Under the bill, for two years, the authorized administrator or executor, or in the absence thereof, the legal heirs and recognized successors may avail of the Estate Tax Amnesty at a rate of six percent of the net estate for taxable year 2017 and prior years.

Rice tariffication bill rolls easily through House SINCE Speaker Gloria Macapagal Arroyo took the helm of the House of Representatives in July, the chamber has passed important bills that President Rodrigo Duterte has been pushing ever since he took office in July 2016. Barely a month into her term as the new Speaker, Arroyo led the House to approve on third and final reading House Bill 7735 that imposes tariffs on rice in place of import quotas. Duterte, in his State of the Nation Address, certified the bill as urgent. Economic managers earlier said rice tariffication was a vital measure to lower the price of rice and temper inflation, which peaked at a nine-year high of 6.7 percent in October. Duterte also said the measure would give additional resources for the farmers and reduce the price of rice by up to P7 per kilo. National Economic and Development Authority director-general Ernesto Pernia said the approved measure would address not only the tariffication of rice in compliance with the Philippines’ obligation to the World Trade Organization, but would also enhance food security by increasing the availability and accessibility of cheaper rice to the consuming population. “The economic team has

always been mindful that food remains to be the major contributor to inflation. Efforts to address food supply concerns, especially rice, will definitely help bring down consumer prices,” he said. Neda’s preliminary estimate showed that headline inflation rate would ease by 1 percentage point if rice prices would be reduced to the level of imported rice. Even with just a P1 per kilo reduction in the wholesale price of rice, headline inflation rate would also be reduced by 0.3 percentage point, it said. In November, the Senate, voting 14-0 approved, Senate Bill 1998 or the rice tariffication bill that seeks to amend RA 8178 or the Agricultural Tariffication Act of 1996. For months, higher food prices led by rice contributed largely to inflation that economic managers said likely peaked at 6.7 percent in October. The latest report from the Philippine Statistics Authority showed that inflation in November eased significantly to 6 percent from 6.7 percent a month ago, pulled down by slower increases in food prices, particularly rice. Julito Rada

House ratifies coco levy twin bills THE COUNTRY’S coconut farmers may soon enjoy the fruits of the multibillion-peso coco levy fund, as Congress has moved forward with several measures on its use. The House of Representatives has ratified the bicameral committee report on House Bill 5745 or “An Act Establishing the Coconut Farmers and Industry Development Trust Fund (CIDTF), Providing for its Management and Utilization.” It is one of the priority bills being pushed by President Rodrigo Duterte and endorsed by Speaker Gloria Macapagal Arroyo. On the same day, lawmakers also ratified the bicameral committee report on House Bill 8552 or “An Act Further Strengthening the Philippine Coconut Authority.” Cabinet Secretary Karlo Nograles, who was a co-author of HB 5745 as representative of Davao City’s 1st District before the President asked him to join the executive branch, hailed as “an historic piece of legislation” the measure creating the P100-billion coco levy trust fund “The decades-long fight of coconut farmers to directly benefit from their toil and hard work is nearing positive completion,” said Nograles, who authored the coco levy bill along with House committee on agriculture and food chairman Rep. Jose Panganiban Jr., Deputy Speaker Sharon Garin, Reps. Angelina Tan, and Feliciano Belmonte, among others. The PCA bill, on the other hand, is authored by Panganiban, Speaker Arroyo, Reps. Ramon Rocamora, Raul del Mar, Deputy Speaker Arthur Yap, and Rep. Edcel Lagman, among others. “Congress is now rectifying the mistakes of the past. We’re putting into place a comprehensive mechanism that manages the fund and allocates resources to further develop the coconut industry,” Nograles said. The Cabinet Secretary said under the measure, a reconstituted and strengthened Philippine Coconut Authority (PCA) shall handle the fund, which consists of PHP76 billion in Treasury and escrow accounts and an estimated P30 billion in assets. “These shall be used to improve the plight of coconut farmers and to push our coconut industry further forward. The unified Senate and House bills provide for the release of P5 billion annually to the PCA on top of the PHP10 billion provided by the General Appropriations Act,” Nograles added. Majority Leader Rolando Andaya, Jr. described the approval of the twin measures as “timely and necessary” given the continuous decline in the price of copra, a major issue facing the coconut sector for the past years. “Copra used to sell over P40 per kilograms a few years back. Now, prices have plummeted to as low as P20 per kilogram. How can coconut farmers live off that?” Andaya pointed out. “More than ever, now is the time to rush to the aid of this dying industry. The price of copra in the world market is falling to dangerously low levels. The coco levy fund is a lifeline that will not only help our coconut farmers survive; it could make the coconut industry a viable one once more,” the majority leader added. The coco levy bill mandates the creation of the Coconut Farmers and Industry and Trust Fund (CITF), which shall be for the ultimate benefit of coconut farmers and the coconut industry.

The measure grants a reconstituted Philippine Coconut Authority the powers to supervise and manage the money and the new Coconut Farmers and Industry Development Plan. The board of PCA is now composed of eight government agencies, including the Department of Agriculture, Department of Finance, Department of Budget and Management, Department of Science and Technology, Department of Trade and Industry, Landbank and the Development Bank of the Philippines. Six farmer representatives will also compose the board, including two each from Luzon, Visayas, and Mindanao. Another representative from the coconut processing industry sector will also be included, comprising the total of 15 representations in the council. The coco levy funds have been stuck in court disputes until 2012, when the Supreme Court awarded the shares bought with the coco levy funds to the government to be used for coconut farmers and the industry. According to the PCA, there are currently 3.5 million coconut farmers from 68 coconut producing provinces with an average annual income of P15,000, or about P41 a day. It was also reported that the coconut industry is suffering from a decline in production. Coconut lands cover 30% of the country’s total agricultural area. Aside from helping farmers ride out low copra price cycle, the coco levy measure also aims to improve incomes of coconut farmers, who are the among the poorest, and improve productivity of farms, though replanting and intercropping with high yield cash crop. Other salient features of the coco levy bill include: • Removal of the fixed term on the life of the fund, as both the Senate and the House agreed to allow the existence of the bill until the fund runs out. • Setting aside every year P5 billion for the next 25 years or until the fund runs out as the yearly amount to be drawn from the coco levy fund, which will be spent on the following: —30% for shared facilities, —15% for scholarship program, —15% for empowerment of coconut farmer organization and their cooperatives, —30% for farm improvement to encourage self-sufficiency and, —10% for health and medical benefits. • Provision for an automatic appropriation of P10 billion to the annual budget of the PCA from the GAA to augment the coconut farmers and development fund, increase the income, and support PCA’s developmental activities. The amount will be allocated as follows: —20% for infrastructure program (farm-tomarket roads), —20% for planting, replanting, and establishment of hybrid coconut nurseries, —10% for intercropping, —15% for shared facilities, —10% for research and development, coconut disease prevention, control, and eradication —5% for fertilization, —5% for new products and all derivatives of coconut oil, and marketing, —10% for credit through Landbank and the Development Bank of the Philippines, and —5% for training of farmers through TESDA.