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MWSS, Manila Water to discuss customer compensation for March

THE Metropolitan Waterworks and Sewerage System (MWSS) will meet with Manila Water Co., Inc. on Monday to discuss measures to compensate the company’s 6.8 million east zone customers for the water shortage that started on March 6.
“We are asking Manila Water to forego bill collection for the time being… to help consumers,” MWSS Chief Regulator Patrick Lester N. Ty told reporters during the Water Philippines 2019 conference in Pasay City on Thursday.
Mr. Ty said his office wrote the Ayala-controlled water concessionaire asking for a meeting to discuss how to proceed with a payment plan. Payment suspensions could run until water delivery is back to 24 hours a day, seven days a week.
On Wednesday, Manila Water said: “We will fully cooperate with the MWSS Regulatory Office as they review our performance during this incident against our service obligations particularly in providing 24/7 service.”
“I am hoping they agree to waiving fees for the entire month,” Mr. Ty said, adding that his office cannot force the company to do so.
“What I can do is a rebate,” he said.
He said a rebate, which will come on top of deferred payments, could be implemented by June or July, instead of the schedule laid out in the fifth rate-rebasing discussions. The current fourth regulatory period of the water concessionaire started in 2018 and will end in 2022.
“We will talk to them about what they can do,” he said. “We are just the regulator. We cannot impose on them that kind of condition.”
Mr. Ty said a rebate is an option is in the concession agreement. He said a rebate would not depend on March consumption, but will be computed as 25% of the cost incurred by the concessionaire to bring back 24-hour water delivery.
Mr. Ty declined to enumerate the allowed costs to be incorporated in a rebate.
He said Manila Water has 15 days after a violation to explain any service failures since public health has been affected. Otherwise the period is 30 days. He noted that due process must be followed if the MWSS is not to be brought before an arbitrator.
“I can exert moral pressure but I cannot legally compel them,” he said.
At least 90% of Metro Manila’s east zone is back to at least 12 hours’ water supply at 7 pounds per square inch (psi), or the minimal pressure to reach the ground floor of residences, he said, based on the latest reports he has received.
At another water conference, former Environment Secretary Elisea G. Gozun said the Philippines is considered under water stress, and she backed the creation of a Department of Water to address shortages and flooding concerns.
“There is not much appreciation in the legislative branch and even in the country as a whole… how important is. We only see that water is important if it is insufficient,” Ms. Gozun said during the National Water Summit held in Quezon City on Thursday.
“The United Nations considers countries with water at below 1,700 cubic meters per person as under water stress. We are water stressed already,” Ms. Gozun said, noting that growing population is a factor.
According to the United Nations website, further stages of water stress are 1,000 cubic meters per person, which is considered “water scarcity,” while under 500 cubic meters is classified as “absolute scarcity.”
Former Agriculture Secretary William D. Dar said that the government should invest in rainwater harvesting, as this will significantly help the agriculture sector.
“1997, 1998, we had the worst El Niño and one of the mitigation measures would have been rainwater harvesting. Today the government has invested very little in rainwater harvesting,” Mr. Dar said at the summit.
Meanwhile, the National Economic Development Authority (NEDA) said that it will support the creation of the Department of Water, though it as noncommittal on a timeline.
“It is a legislative action. We will try to push for it but it is the collective wisdom of the executive and the legislative that would have to enact it,” NEDA Assistant Secretary Roderick M. Planta said in the summit.
Separately, Cabinet Secretary Karlo Alexei B. Nograles said Thursday that the government has drafted two proposed measures on the creation of two separate water regulatory bodies.
According to a statement from the Office of the Cabinet Secretary, two draft bills were “endorsed for approval and submission to the Legislative Executive Development Advisory Council (LEDAC).”
These bills “would create two separate bodies involving water: one focused on economic and financial regulation; and another responsible for policy formulation and resource regulation.”
“One of the proposed agencies that will be formed will act as the apex body for the water resources sector. This agency will consolidate and reconcile water-related policy, planning, and programming mandates of the different agencies involved in water resource management. It will likewise ensure the efficient allocation of water resources across sectors,” Mr. Nograles was quoted as saying.
The second body, he said, “will be an independent and quasi-judicial body for water supply and sanitation.”
He added that this office “will ensure quality performance of water concessionaires and ensure transparency and predictability in economic regulation of water service providers.”
In addressing the water crisis in Metro Manila, the Palace official said department secretaries, agency heads and representatives at the high-level inter-agency meeting on water security at the Department of National Defense (DND) in Camp Aguinaldo convened Wednesday “agreed to submit to the President a draft executive order strengthening the National Water Resources Board (NWRB) and addressing the fragmentation of the water sector.”
Mr. Nograles’s office said among the agencies represented at the meeting chaired by the Department of National defense were the National Economic and Development Authority (NEDA), Department of Agriculture (DA), Department of Energy (DoE), Department of Environment and Natural Resources (DENR), Department of Health (DoH), Department of Public Works and Highways (DPWH), Department of Science and Technology (DoST), National Disaster Risk Reduction and Management Council (NDRMMC), the Local Water Utilities Administration, Metropolitan Waterworks and Sewerage System (MWSS).
“Currently there are 30 or so agencies involved in water resource management. The agencies present at the meeting recognize that this institutional setup is problematic. For example, there are four agencies involved in resource assessment, four involved in policy, seven in water supply, four in sanitation, five in water quality management, and six in watershed management,” Mr. Nograles said.
“There is no single repository of water data, and no regularly updated water availability d ata. This is an untenable situation,” he further said.
He said among the short-term measures that will be undertaken to address the water supply shortage in Metro Manila is the activation of the deep wells designated for use during natural disasters. “There are a total of 109 of these wells in NCR, and the NWRB will work with the MWSS to identify which wells can be tapped, and to ensure that water quality in these wells is evaluated and constantly monitored.” — Victor V. Saulon, Reicelene Joy N. Ignacio and Arjay L. Balinbin

Medicine importers seeking relief after exclusion from VAT

THE Pharmaceutical and Healthcare Association of the Philippines (PHAP) said it will lobby for an amendment to the Tax Reform for Acceleration and Inclusion (TRAIN) law to provide relief for importers of medicine who cannot pass on value-added tax (VAT), after some prescription drugs were declared VAT-exempt at the start of the year to benefit consumers.
“Those who import the medicines are forced to absorb the VAT. They cannot pass this on,” PHAP Executive Director Teodoro B. Padilla said at an event hosted by the European Chamber of Commerce (ECC) on Thursday.
Mr. Padilla said the law did not exempt importers from the 12% VAT but waived the fee for retail buyers of drugs for selected cardiovascular and related diseases particularly diabetes, hypertension and high cholesterol, all of which have to be imported.
The VAT treatment of importers was outlined in Revenue Regulation 25-2018 issued by the Bureau of Internal Revenue (BIR).
“Those are maintenance medicines. It’s definitely a big chunk of the market. They’re considered VAT-exempt down the chain except when you import it,” Mr. Padilla said in an interview.
PHAP membership is around 50 and includes GlaxoSmithKline Consumer Healthcare Philippines Inc., Pfizer, Inc., Novartis Healthcare Philippines, Inc. and Mercury Drug Corp., among others.
“That makes the cost of doing business more expensive for our members. As a result of absorbing the cost they will have to make some adjustments, maybe adjusting the pricing later on which defeats the purpose of having cheaper medicine,” he added.
Health Secretary Francisco T. Duque III has estimated that the current share of domestically-manufactured medicine at about 10%.
Mr. Padilla said added: “The key for us is to sit with (lawmakers) to ensure an amendment to include importers… We are already speaking with other stakeholders about this but since it’s the election period it will be very difficult to do anything,” he added.
Asked if its members are planning to cut down on imports of the medicine covered by the exemptions, Mr. Padilla said members are committed to continue servicing the country’s needs but will be challenged in bringing in new treatments.
“The challenge is to continue operate at a certain elevel where you might not necessarily get the latest innovation because again it’s not conducive for a company when they see certain laws make it untenable to continue with certain product lines,” he added. — Janina C. Lim

SC asked to nullify Meralco power deals

THE Bayan Muna partylist asked the Supreme Court on Thursday to declare null and void certain power supply deals entered into by Manila Electric Co. (Meralco) which allegedly violate cometitive selection rules.
In a 28-page petition, Bayan Muna Rep. Carlos Isagani T. Zarate and Chair Neri J. Colmenares asked the High Court to permit their intervention in the case, filed by Alyansa Para sa Bagong Pilipinas, Inc. in 2017.
Mr. Zarate and Mr. Colmenares also asked the SC to issue a Temporary Restraining Order and/or Writ of Preliminary Injunction to “restrain the ERC (Energy Regulatory Commission) from acting on the Joint Applications filed by Meralco and Respondent Generation Companies.” The case stemmed from the Power Supply Agreements entered into by Meralco and other affiliated power generation companies, which allegedly fail to comply with the Competitive Selection Process (CSP).
The ERC, in issuing Resolution No. 1 Series of 2016, restated the effectivity of the CSP Rules from October 2015 to April 2016, which intervenors alleged had allowed Meralco to enter into seven PSAs.
“This is clear showing that the intention is to accommodate and bend over backwards, to the great detriment and prejudice of the consumers. Grave abuse is apparent on the part of the ERC,” according to the petition.
Bayan Muna also claimed that the ERC further violated its own rules by accommodating PSA applications after office hours.
It was revealed in congressional hearings that the joint applications of Meralco and affiliated companies were filed beyond the cut-off time of 5 pm on April 29, 2016.
The intervenors also argued that the SC should issue a TRO as “there is no assurance that the ERC will not act upon the assailed Joint Applications filed before it.”
“If the ERC would resolve the Joint Applications pending the resolution of this Petition, grave and irreparable injury will result to intervenors and the public in general,” they added. — Charmaine A. Tadalan

Public works freeze ahead of polls to start March 29

PUBLIC WORKS projects and some government disbursements will be frozen between March 29 and May 12 under election rules, the Commissin on Election said.
The Comelec, sitting en banc, released Thursday Resolution No. 10511 which outlines the ban on any activity relating to the construction of public works. Such activities include construction of the project; disbursement and spending of public funds; and delivery of materials.
The ban typically accompanies election periods, including the midterm election on May 13.
The Resolution, signed by Comelec Chairman Sheriff A. Abas, said violations of the resolution will be considered election offenses and “shall be punishable by imprisonment of not less than one (1) year but not more than six (6) years, as provided by law.”
Public works under Public-Private Partnership (PPP) and Build-Operate-Transfer (BOT) schemes are exempt from the ban. Non-infrastructure projects that pertain to social welfare and services are also not covered by the ban but are required to request a Petition of Exception from the Comelec Clerk.
The Comelec en banc also ordered the Department of Budget and Management (DBM) and the Commission on Audit (CoA) and its field offices to “(N)ot release or authorize the release of any appropriation, or to pass in audit payments or expenditures of public funds.” — Gillian M. Cortez

Security Bank sees 2019 GDP growth at 6-6.4%

SECURITY BANK Corp. expects the Philippine economy to grow 6-6.4% this year, flagging concerns about the 2019 national budget.
In a news conference on Thursday, Security Bank chief economist Robert Dan J. Roces said GDP will likely grow between 6% and 6.4% in 2019, although the estimate still represents a “wait and see” forecast.
“We have yet to really [see] where the Budget impasse issues are headed. But it can really go to as low as 6%. This is the forecast range we have right now assuming that the Budget gets passed around after April. Mr. Roces told reporters yesterday.
Mr. Roces added that GDP growth can fall to as low as 5-5.6% under a full-year reenacted budget, although he noted that it will not go down to 4-4.5%.
“We hope Budget gets passed because a lot of stuff depends on that — spending, workers, consumption spending.”
The inter-agency Development Budget Coordination Committee last week slashed its 2019 GDP growth forecast to 6-7% from 7-8% originally as the government operates on a reenacted budget.
Socioeconomic Planning Secretary Ernesto M. Pernia said a reenacted budget until April could drag full-year growth to 6.1-6.3%, far from the government’s original target, likely matching 2018’s 6.2% pace.
Mr. Roces also noted that the economy will slow down in the first half of the year “because there’s no movement in terms of infrastructure spending” due to the election ban, although he said that this may have been factored in by the economic managers.
Last month, the Commission on Elections said it is reviewing the request of state economic managers to exempt 145 infrastructure projects from the 45-day ban on public works ahead of the May 13 mid-term polls.
Mr. Rocves remains optimistic about economic growth overall.
“We are still bullish about economic growth because there are factors at play now that are positive for us. For example, we have (more) rice imports. Rice was one of the biggest primary drivers of inflation last year,” he said.
President Rodrigo R. Duterte signed on Feb. 14 the Rice Tariffication Law. The measure seeks to liberalize imports of the staple, while charging tariffs on the imports.
The relaxed rules for rice imports, which took effect on March 5, are expected to cut retail prices of the staple by up to P7 per kilogram and inflation by 0.7-0.8 percentage point.
Finance Secretary Carlos G. Dominguez III said the Philippines is banking on infrastructure to support continued economic growth, which he said will offset any downside from a global slump.
“Our government expects to invest about $170 billion in this program over the next five years. This is our secret weapon to offset the effects of the expected global economic slowdown,” Mr. Dominguez said in his speech during the Philippine Economic Briefing in Beijing. — Karl Angelo N. Vidal

Parody of democracy

DEBATES between candidates for public office are among the means some media and civil society organizations are using to help voters decide who deserve their support. They’re especially useful in the Philippines, where those running for this or that post are often hardly distinguishable from each other in terms of platforms and programs, if at all they have any.
Despite their potential for enlightening the voters, the Duterte regime candidates for senator have refused to debate with opposition candidates on the argument that they serve no useful purpose. What could be the real reason for their refusal is that unlike in many past campaigns, this year’s is on the issues that confront the nation. The change is due to the opposition candidates, most of whom have anchored their quest for votes on their support for human rights and peace talks; ending the extrajudicial killings of the “war on drugs” that have targeted the poor; enhancing environmental protection; defending Philippine sovereign rights against capitalist China’s military and economic aggression; crafting an anti-poverty program based on fundamental social and economic reforms; and assuring democratic participation in governance, among others.
In contrast, the candidates of the Duterte regime hardly have any program to speak of, unless one can call mindless support for everything the regime does a program. One has admitted he knows nothing about the economy, but is avidly for the restoration of the death penalty and for continuing the murderous “war on drugs” of which he was the enforcer when he was Director General of the Philippine National Police. Another has no visible qualification other than his having been the gofer of President Rodrigo Duterte. Still another is driving her campaign on the claim that she is well-qualified because of her Princeton University and University of the Philippines degrees, which presidential daughter Sara Duterte practically confirmed as fictional when she argued that honesty should not be an election issue because “everyone lies.”
Apparently on the assumption that the support of the 16 million who elected him in 2016 is transferable, while warning government officials not to campaign for any candidate or any party, Mr. Duterte has been endorsing his most favored candidates in violation of his own directive. He has been calling opposition candidates names, and falsely claiming that those running for reelection among them did nothing when they were in Congress. He’s doing these in-between urging his audiences during his public appearances to rob and kill bishops and bragging about his sexual prowess.
But Mr. Duterte’s latest ploy to influence the outcome of the May elections is to release a partial list of politicians he claims to be involved in the drug trade either as drug lords themselves or as their protectors. In one more demonstration of how either unthinking or complicit some media organizations are, despite the ethical responsibility of minimizing the harm a news report can do, several published the names of the so-called “narco politicians” in Mr. Duterte’s list — against whom, his own police say, they have yet to have sufficient evidence.
Some of those in the list have not only avowed their innocence but have also expressed alarm over their inclusion in it. Not only have earlier regime lists turned out to be replete with such inaccuracies as the inclusion of the dead; they have also led to the murder of some who were still with the living. Among the latter was the father of an alleged drug lord who was killed by the police while he was already in prison, because he had miraculously gained access to a gun, and had “fought back” when policemen tried to serve him a warrant of arrest for another crime.
Oddly enough, one regime candidate for senator said the list is “just a statement of fact,” and should prod those in it to prove their innocence. That sterling example of dynastic incompetence has apparently forgotten, or has probably never realized, that it is for the State to prove the guilt of those accused of crimes who, the Constitution declares in Article III Section 14, are presumed innocent until proven guilty in a court of law.
Media complicity and accountability aside, the release of the list was entirely Mr. Duterte’s doing. The Philippine Drug Enforcement Agency (PDEA) has after all announced that he approved the list and its release, and what’s more, that the delisting of anyone in it is entirely his prerogative.
Elections being always local, what’s obvious is that being in Mr. Duterte’s list or being removed from it can depend on whether the local politicians in it, among them three congressmen, are prepared to support or work for the election of the regime’s candidates or not.
In a country where elections are primarily decided by the command votes controlled by the warlords and dynasties in localities the police have declared as “hot spots,” the power his list endows him with can make a difference in the loss or victory of Mr. Duterte’s candidates not only for the Senate, but also for the House of Representatives down to mayors, vice mayors and councilmen and women. That list, together with all the other means, mostly government’s, at the disposal of Mr. Duterte and company, can lead to results in May that will complete the country’s descent into another unchecked and unaccountable authoritarian regime.
As obviously dangerous for everyone as that chilling prospect is, there is little to suggest that the electorate will thwart that scheme by having the courage or the wisdom to vote for opposition candidates.
The antipathy of regime candidates to debating with their opposition counterparts is echoed by voters who shamelessly say they prefer candidates who can sing and dance, make tasteless jokes about rape, and talk about the test of manhood’s being solely about sexual gratification rather than integrity and principle, or even plain decency.
Because most Filipinos are Sunday rather than 24/7 Catholics, neither are Mr. Duterte’s attacks against the Church, religion and God Himself likely to have a negative impact on his candidates. Despite his cursing Pope Francis and his concocting all sorts of stories about priests and saying they’re all homosexuals and stupid, churchgoing Filipinos nevertheless still laugh with, and applaud him during weekdays.
As every election in this benighted land has demonstrated, thanks to the media and its other equally damaged and damaging institutions, the Philippines has a fundamental problem in the uninformed mass of corruptible, mindless voters with low expectations whose idea of democracy is voting according to the say-so of their feudal overlords. The distressing message in the latest surveys is that they are likely to once more elect to the highest posts of the land the clowns, murderers, plunderers, liars and mindless charlatans whose cohorts have been driving this country to irremediable ruin.
The media could prevent it. They could step back, and reexamine how they have been buying into the regime narrative about these elections, and for once provide the public they claim to serve the information and analysis it needs to lift this country out of the abyss of disinformation it has fallen into.
But that would be nothing short of a miracle, and the most opposition candidates can do is to go double-, even triple-time in trying to prevent May 2019 from turning into another catastrophe for this country by reaching out to as many of its unknowing and uncaring people as possible within the time left.
But time is running out; May 13 is less than eight weeks away. Unless something is done to reverse the parody of democracy elections in these isles have become, that date will go down in the Philippines’ troubled history as the 2019 equivalent of September 21, 1972.
 
Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).
www.luisteodoro.com

MORE electricity supply in East Asia

Continuing the Market-Oriented Reforms for Efficiency (MORE) series in this column, we tackle the importance of more electricity production in the development of Asia-Pacific economies.
On Tuesday, March 19, I attended the joint press conference of the Department of Energy (DoE), the National Power Corporation (Napocor), National Transmission Corporation (Transco), National Grid Corporation of the Philippines (NGCP), and Manila Electric Co. (Meralco) in formally announcing the Philippines hosting of two big international energy events.
First, the Association of the Electricity Supply Industry of East Asia and Western Pacific (AESIEAP) in September 2019 in Shangrila Mactan, Cebu; second, the Conference of Electric Power Supply Industry (CEPSI) at the Philippine International Convention Center (PICC) in November 2020.
power lines pylons
During the open forum, I commented that the Philippines holding these two big energy events that are technology-neutral on energy sources is important, to contrast with the renewable energy (RE) favoritism of the Asian Development Bank’s Asia Clean Energy Forum (ACEF). The latter is an annual event glamorizing the role of wind-solar and other renewables while implicitly demonizing the role of fossil fuels in energy development in Asia. Their delegates, speakers, and sponsors fly from all over the world on fossil fuel then directly or indirectly lambast fossil fuel and talk of a “decarbonized world” via RE favoritism and cronyism.
Having a technology-neutral energy policy is important for fast economic growth and expansion of Asian economies. For instance, despite the decades-long lobby to glamorize and subsidize wind-solar and other renewables, fossil fuels provided 74% of total electricity generation in Asia-Pacific in 2017, with many countries being more than 80% fossil fuels-dependent — India, Australia, Indonesia, Malaysia, Thailand, Taiwan, etc. (see table 1).
Electricity generation in 2017
Other AESIEAP members with low electricity generation are Cambodia, Laos, Macau, Nepal, Papua New Guinea, and Sri Lanka. Hong Kong is also a member; its reported domestic electricity production is small because mainland China supplies the rest.
High power generation coincides or correlates with high economic expansion. The numbers are shown below spanning 30 years from 1987 to 2017. High correlation is shown in some countries like S. Korea, Indonesia, Malaysia, India, Taiwan, Thailand, and Bangladesh (see table 2).
Economic and electricity expansion over three decades
As shown in table 1, the Philippines still has small power generation despite its huge population of 108 million (two times that of S. Korea, four times that of Australia). We need more investments in the sector — in generation, transmission, distribution, and supply.
Energy efficiency as “substitute” for more power generation is not enough. If one will drive at night in many provinces, one will notice that national and provincial roads are dark and conducive to accidents, except in some city centers.
In many instances, government taxes, permits and bureaucracies, plus occasional price control (like the Wholesale Electricity Spot Market price cap), are among the hindrances to more energy development. Government should learn to step back on these.
 
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers
minimalgovernment@gmail.com

Beyond the bottom line

On a practical level, people need essential things to survive: clean air, potable water, food, clothing, shelter, and the means to buy the basic things.
There is a difference between living and surviving. To live well, people need purpose, love, companionship, family, material resources for a certain quality of life, meaningful work, culture, sports, spirituality, humor and pleasure.
Money can bring comfort and luxury, novelty, excitement. But it cannot buy love.
“Life is what happens when you’ve planned something else,” wrote Scott Peck in his book Meditations.
During a season of prosperity, there is exuberance with optimistic projections and high expectations. Fashion trends have flashes of opulence and flamboyance. Minimalism is overshadowed — for a while.
Consumer spending and conspicuous consumption increase. The attitude is “If you’ve got it, flaunt it.” People are buoyant.
The cycle of life is such that there are lean seasons when the charts point a downward trend.
The fragile bubble bursts in a tragic cloud for fear, gloom, and anxiety. It spells trouble for those who had gotten accustomed to the high life. Those who have overspent, or have big debts, leveraged their investments. A recession, mild or radical, causes the collective mindset and consciousness to alter radically.
Focus shifts back to the basics — survival, recovery, restoration and healing. This process takes a long time. There are hard lessons to be learned.
In the past catastrophes and financial crash of hedge funds and other complex financial instruments, people were shocked from complacency. The ripple effects of terror affected the world.
There have been reactions to the prevailing mood of uncertainty.
Some people become reclusive or paranoid. The carefree ones are in denial and carry on with their merry ways.
The pragmatic ones adjust and adapt by scaling down.
Downsizing becomes a buzzword.
Simplicity is in. Excess is out.
The defining line between what is good taste and déclassé is clear; the French describe anything superfluous as de trop — too much.
During the hard times and prolonged lean season, it is appropriate to be low key.
In lieu of the much-publicized glitzy balls, there should be exclusive elegant dinners or tea musicales. Instead of fashion extravaganzas, there should be intimate shows, civic group luncheons, art fairs, and well-curated classy bazaars.
It’s a reality check.
Less is more.
It is possible to celebrate life with subtlety, sensitivity, and delicadeza.
The current crisis gives us time to pause and reflect.
One can learn to be less self-centered and less self-absorbed. It’s a matter of being detached from the material objects that we crave or can’t seem to live without.
“When we cling, often forever to our old patterns of thinking and behaving, we fail to negotiate any crisis, to truly grow up, and to experience the joyful sense of rebirth that accompanies the successful transition to greater maturity,” Mr. Peck explained.
Anthropologist and author Angeles Arrien wrote the following guiding principles:

1. Show up.

2. Pay attention.

3. Speak your truth.

4. Don’t be attached to the outcome.

We should think about the essential values and what we can do to make life better for others.
Beyond the numbers, the bottom line, charts and profit margins.
 
Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.
mavrufino@gmail.com

Mandatory extended maternity leaves is a bad idea

“Unintended consequences” is a phrase policy makers, legislators, and those in the academe should get to know intimately. That certain measures may cause effects not fully comprehended. Hence why it’s said that the road to Hell is not only paved with good intentions; it’s lighted, gilded, and fully furnished with it.
Take Republic Act No. 11210, which provides for 105 days of full paid maternity leave, regardless of whether the birth is normal or cesarean (the previous law allowed for 60 and 78 days paid leave, respectively), for private and public sector women employees, plus the option to take an additional unpaid 30 days off.
The question is: who’s paying for all this?
For private sector women, it’s the SSS and employers (the latter also responsible for differentials between the SSS cash benefits and the employee’s regular wages). For government employees, it’s ultimately the government, which (of course) means taxes.
Hence, effectively this: private employers and taxpayers that had nothing to do with the pregnancy of the women involved are paying and caring for the pregnancies and births.
For government employees, such is within the context of a P560 billion budget deficit, with the budget ballooning to P3.7 trillion for 2019 and a national debt of P7.2 trillion. For context, the budget in 2009 was merely P1.426 trillion, the national debt then P4.4 trillion.
But if the government is that generous in allocating taxpayer money for childbearing, then why did government push for the Reproductive Health (RH) Law, the purpose of which is to limit childbearing?
And remember, the RH Law already allotted tax money for the purpose of giving free contraceptives to married and single people. So why further burden Philippine businesses and citizens with the costs of somebody else’s child?
Why shouldn’t the married couple or single woman take responsibility for the decision to be pregnant and care for their own children?
Notably, single mothers — whether private or public sector — also have the option of an additional 15 days fully paid leave. That’s 120 days. Not even the US, with a $319 billion budget deficit and $22 trillion public debt, is that generous: all the federal government mandates is 90 days unpaid leave.
Our present tax system also contradicts RA 11210. Single? Family with dependents? No difference. All first P250,000 incomes are tax exempt.
pregnancy maternity illustration
The law effectively discourages taxpayers from having children.
Add the legislative pushes for same-sex marriage and divorce.
Yet the Philippine fertility rate is falling: 2019 registering 2.87 births per woman, compared to 3.21 in 2009. The population is ageing: senior citizens in 2019 are expected to make up 8.2% of the population, compared to 6.8% in 2012. This for a country that was optimistically hoping to take advantage of the “demographic sweet spot” in relation to the ageing populations of China and other rich countries.
Then there is RA 8972 (the “Solo Parent Act”), which provides for taxpayer-funded housing, education, and health benefits for single mothers.
This is really either confused policy or misplaced charity: the government is discouraging Filipinos from having kids; but if you do become pregnant, you need not take full responsibility as many other random people will do that for you.
The government should be encouraging responsible whole families, not broken ones.
We need fathers and mothers to do their duty together and not coddle them when they run away from it.
Barack Obama famously said: “We know the statistics — that children who grow up without a father are five times more likely to live in poverty and commit crime; nine times more likely to drop out of schools and twenty times more likely to end up in prison. They are more likely to have behavioral problems, or run away from home, or become teenage parents themselves. And the foundations of our community are weaker because of it.”
Or as education expert Joy Pullman puts it: “Babies don’t generate spontaneously. They are made by a man and a woman together, and they are owed provision from that same man and woman. There is simply no other way to have a well-functioning society. All the other mothers and fathers owe provision to their own children, and prudent families should not be plundered to subsidize imprudent families.”
An argument proffered is that extended paid leaves make women happier and more productive, thus strengthening gender equality.
Ironically, such leaves harm women rather than empower them.
If indeed the leaves helped productivity, companies would have long ago voluntarily offered that in their compensation packages. Yet government has to force people to do so.
Government-mandated leaves actually encourage workplace discrimination, attitudinally relative to hiring and promotion, particularly as it removes women longer from their careers. It also further promotes a culture of women exclusively taking care of children rather than in full partnership with the fathers.
Hopefully, our people wake up and elect a Congress that places more value and importance in family, self-reliance, and personal responsibility.
 
Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.
jemygatdula@yahoo.com
www.jemygatdula.blogspot.com
facebook.com/jemy.gatdula
Twitter @jemygatdula

Peso hits two-month low

THE PESO declined against the dollar on Thursday to a fresh two-month low as market players awaited the policy decision of the local central bank.
The local currency ended Thursday’s session at P52.84 versus the greenback, down three centavos from its P52.81-per-dollar finish on Wednesday.
This was the peso’s fresh new low in nearly two months or since it closed at P52.86 per dollar on Jan. 24.
The peso traded within a wide range yesterday, opening the session stronger at P52.77 per greenback. It slipped to as low as P52.89 intraday, while its best showing of the day stood at P52.725 against the dollar.
Trading volume surged to $1.009 billion from the $870.8 million that switched hands the previous day.
“The peso closed weaker as market players positioned ahead of bets of dovish statements from today’s Monetary Board (MB) meeting,” a trader said in an e-mail on Thursday.
After the market’s close, the Bangko Sentral ng Pilipinas (BSP) announced that kept its policy rates steady at a 4.75-5.25% range as prevailing rates remain “appropriate” amid declining inflation.
The decision was in line with market expectations, as 10 out of 13 economists in a BusinessWorld poll last week said the central bank still has room to keep its borrowing costs steady.
Meanwhile, the BSP did not announce any cut in its reserve requirement ratio (RRR), with BSP Deputy Governor Diwa C. Guinigundo saying it is “important that we get the timing right.”
This was the first MB policy meeting presided by newly appointed BSP Governor Benjamin E. Diokno, who previously said in a television interview that there “could be one percentage point every quarter for the next four quarters.”
Even as the peso declined in the afternoon session, another trader said the peso strengthened in the morning session following the “dovish” remarks from the US Federal Reserve.
The US central bank said there will be no interest rate hikes this year amid an economic slowdown, a departure from its previous pronouncements as recent as September 2018 that it will raise benchmark rates thrice this year.
“The peso started stronger due to weaker dollar overnight over Fed’s decision. It quickly bounced back as it traded mostly between P52.82 and P52.87, still on speculation of a dovish BSP,” another trader said.
The second trader expects peso to strengthen to P52.55-P52.80 versus the dollar today as there might be a reversal in market speculation.
“The BSP was not that dovish since there was no mention of the RRR cut. The market was really expecting something today,” the second trader said.
Meanwhile, the first trader expects the peso to move between P52.70 and P52.90. — Karl Angelo N. Vidal

PHL stocks jump as Federal Reserve turns dovish

By Arra B. Francia, Reporter
LOCAL SHARES jumped on Thursday along with most of regional markets as investors cheered the US Federal Reserve’s decision to keep interest rates steady.
The benchmark Philippine Stock Exchange index (PSEi) edged higher by 1.22% or 96.52 points to close at 7,954.72 yesterday. The broader all-shares index likewise climbed 0.85% or 41.30 points to 4,888.79.
“Mainly, it’s the dovish move by the US Federal Reserve wherein they abandoned their increase in interest rate policy due to no movements in inflation rate,” Diversified Securities, Inc. Equities trader Aniceto K. Pangan said in a text message.
The US Federal Reserve decided to keep interest rates within the 2.25% to 2.5% range during its two-day policy meeting. It also changed its 2019 outlook to no policy movement after two increases projected back in December, pointing to the slower economic growth in the fourth quarter of 2018.
“This will favor the Philippine market as this will provide liquidity on low rates for its expansionary program such as infrastructure, government, as well as private sector spending, etc.,” Mr. Pangan said.
Asian indices also welcomed the Fed’s decision. Japan’s Nikkei 225 added 0.2% or 42.07 points to 21,608.92. The Shanghai Composite gained 0.35%, while South Korea’s Kospi index also went up 0.36%.
In contrast, Wall Street was mixed on Wednesday. The Dow Jones Industrial Average slumped 0.55% or 141.71 points to 25,745.67 while the S&P 500 index went down 0.29% or 8.34 points to 2,824.23. The Nasdaq Composite index was higher by 0.07% or 5.02 points to 7,728.97.
Regina Capital Development Corp. Managing Director Luis A. Limlingan also attributed the market’s performance to the Fed.
“With the FOMC (Federal Open Market Committee) indicating no further rate hikes in 2019, investors bought into local shares ahead of the BSP (Bangko Sentral ng Pilipinas) meeting,” Mr. Limlingan said in a mobile phone message.
The BSP decided to keep interest rates steady during its Monetary Board meeting on Thursday, although this was announced after the market’s 3:30 p.m. close.
All sectoral indices ended in positive territory, led by holding firms which soared 2.21% or 171.14 points to 7,894.76. Property followed with a 1.26% gain or 50.89 points to 4,087.91.
Services rose 0.63% or 9.97 points to 1,591.61; mining and oil gained 0.48% or 40.34 points to 8,364.20; financials firmed up 0.39% or 6.99 points to 1,782.29, while industrials added 0.08% or 9.73 points to 11,655.01.
Turnover slightly went up to P5.66 billion after some 1.42 billion issues switched hands, from Wednesday’s P5.46 billion.
Foreign investors turned buyers, posting net purchases of P147.01 million versus the previous session’s P370.72-million net sales.
Advancers swamped decliners, 124 to 76, while 43 names were unchanged.

PHL former top diplomat, ombudsman take China’s Xi to international court

By Vann Marlo M. Villegas, Reporter
FORMER FOREIGN Affairs secretary Albert F. Del Rosario and retired Ombudsman Conchita Carpio-Morales have asked the International Criminal Court (ICC) to conduct a preliminary examination against Chinese President Xi Jinping and other officials in connection with the harassment of Filipino fishermen in the contested South China Sea.
In the communication sent on March 13, days before the Philippines effectively withdrew from the ICC, Mr. Del Rosario and Ms. Morales said they are writing on behalf of the “hundreds of thousands of Filipino fishermen persecuted and injured by officials of the People’s Republic of China.”
They said Chinese officials have “committed crimes within the jurisdiction” of the ICC in the implementation of a “systematic plan to control South China Sea.”
“The situation presented is both unique and relevant in that it presents one of the most massive, near permanent and devastating deconstruction of the environment in human’s history, which has not only adversely affected and injured myriad groups of vulnerable fishermen, but present and future generations of people across nations,” they said.
“This has seriously undermined the food and energy security of the coastal States in the South China Sea, including the Philippines,” they added.
They also emphasized that despite the Philippine’s withdrawal from the ICC, the ICC retains jurisdiction over crimes committed when the country was a member of the Rome Statute from November 2011 to March 17, 2019.
“We urge you to initiate a preliminary examination on this matter, if only so the Court can apprise itself of Chinese crimes committed not only against Filipino people, but also against people of other nations, which crimes are already known to the international community,” the former government officials said.
“The court can exercise its jurisdiction over these crimes, even after the effectivity of the Philippines’ withdrawal, and we respectfully reserve our right to supplement this Communication with additional evidence that may come to light or arise in the future,” they said.
Under Mr. Del Rosario’s term as the top diplomat in 2011-2016, the Philippines filed a case against China before the Permanent Court of Arbitration, asserting its rights over the West Philippine Sea.
The international court ruled in favor of the Philippines in a July 2016 decision.
Among the evidence presented in the case against Mr. Xi and other officials were used in the case against China.
“Given that your office undertakes a rigorous process in deciding whether to launch a preliminary examination, we trust that your functions will be facilitated by the fact that much of the evidence presented by this Communication are widespread, highly publicised and have already been judicially vetted by the Tribunal in The South China Sea Arbitration,” the March 13 letter reads.
PHL-CHINA RELATIONS
Dennis C. Coronacion, chairperson of the University of Santo Tomas Department of Political Science, said this development is unlikely to strain relations between the Philippines and China, which the leaders of both countries have been fostering.
Mr. Coronacion said the ICC filing will “definitely catch the attention of the Chinese leader” but it would not have a negative impact on the relationship between China and the Philippines.
“We can take as a good example China’s response to the arbitral tribunal’s ruling on the West Philippine sea dispute. China has become known as a state that does not submit itself to the authority of international courts. It will surely ignore any unfavorable ruling issued by the ICC against Xi Jin Ping,” Mr. Coronacion told the BusinessWorld in an online message.
“China would definitely continue its military activities in the disputed territory,” he added.
To address this, including the harassment of Filipino fishermen, Mr. Coronacion said the Philippines has other options.
“One, we can use diplomacy. We can seek other countries’ support in pressuring Beijing to stop its military activities in the disputed sea. Two, we can always change our soft stance on the incursions made by the Chinese navy. We can emulate the South China Sea policies of Vietnam and Indonesia. Their experiences refute our government’s assumption that a hard stance (seeking the execution of the arbitral tribunal’s ruling) can lead to war.”