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DENR backs House legislation to prohibit open-pit mining

THE Department of Environment and Natural Resources supports a proposal by Speaker Gloria M. Arroyo to ban open-pit mining, Undersecretary Jonas R. Leones said on Tuesday.
“We believe that we support that bill. In fact, the President has already spoken that he’s not supporting open-pit,” Mr. Leones told reporters in a news conference at Seda Vertis North in Quezon City.
“We welcome this development because when they pass this bill, it will be subjected to various consultations and studies before imposing the ban on open-pit mining. We hope there will be available options for the mining sector without resorting to open-pit mining,” Mr. Leones added.
Ms. Arroyo said that her proposal backs President Rodrigo R. Duterte’s call to ban open-pit mining at his last State of the Nation Address. The proposed bill will include an imposition of excise taxes on non-compliant mining companies.
“In other words, our bill will specifically, will explicitly prohibit open-pit mining as defined and give a grace period to be determined by the DENR during which they pay the tax,” Ms. Arroyo has said.
Mr. Leones noted that Mr. Duterte could have issued an executive order but instead entrusted the matter to the House of Representatives.
“While [Mr. Duterte] is very categorical that he really is not supporting open-pit [mining], he’s giving the assignment of amending the mining law to the Congress instead of issuing an executive order,” Mr. Leones said.
“Usually, concerned agencies are required to submit their comments and rest assured that the DENR-MGB (Mines and Geosciences Bureau) will be actively collaborating with the Congress to make sure that we will be coming up with a very good amendment,” he added.
Mr. Leones also explained the need for exploration in assessing the viability of an area for mining.
“The purpose of allowing exploration is really to determine the viability of mining activities in a certain area. We need to determine the volume of mineral deposits so that we can carefully plan mining activities,” according to Mr. Leones.
Meanwhile, the Chamber of Mines of the Philippines (CoMP) said that any imposition of a tax measure could greatly affect the industry.
“It will have a major impact on the industry. Many miners may close,” Rocky G. Dimaculangan, vice-president for communications of CoMP, told reporters in an interview.
“We will continue our consultations with the government on all proposed legislation pertaining to large-scale mining,” according to Mr. Dimaculangan.
He also noted that the Philippines has significant mineral resources, which should not be neglected.
“We are rich in resources… No other country in the world with mineral wealth has chosen to turn its back on the opportunity to make life better for their country by responsibly extracting and mining their resources,” Mr. Dimaculangan said.
Mr. Dimaculangan added that even before a mining company can operate, it has to implement environmental programs in compliance with the laws of the country. — Reicelene Joy N. Ignacio

Palace certifies as urgent Senate’s anti-‘endo’ bill

MALACAÑANG has asked that Senate Bill 1826 or the Security of Tenure (SoT) Bill be certified as urgent, following President Rodrigo R. Duterte’s commitment to abolish “endo,” an employment practice that denies workers a path to permanent status.
In a palace document dated Sept. 21, Mr. Duterte asked Senate President Vicente C. Sotto III to “certify the necessity of the immediate enactment” of the SOT Bill.
Malacañang added that the bill needs to pass to “strengthen workers’ security of tenure by prohibiting the prevalent practice of contractualization and labor-only contracting which continue to immerse our workers in a quagmire of poverty and underemployment.”
Mr. Sotto said in an interview with reporters that the chamber will push for the bill’s passage before Congress adjourns on Oct. 12.
“We’ll do our best to pass it by Oct. 11,” he said.
Sen. Emmanuel Joel J. Villanueva, who chairs the Committee on Labor, Employment and Human Resources Development, added: “We certainly need a law that will not only uphold our workers’ basic labor rights and restore dignity of work, but also a law that will promote quality employment without jeopardizing business operations but rather create more stable jobs for every Filipino.”
The Senator, who is also the author and principal sponsor of the bill, added that the SoT bill will address the interests of both the labor and business sectors.
Labor and Employment Secretary Silvestre H. Bello expressed the hope that the law will pass and be implemented promptly.
At a briefing on Tuesday, Mr. Bello said he has a personal timetable of October passage for the bill allowing it to be signed into law by December.
Labor Undersecretary Joel B. Maglunsod said in a chance interview on Tuesday that the move to certify the bill is “(a step forward).”
Nagkaisa Labor Coalition (NAGKAISA) Chairperson Jose Sonny G. Matula said the process of certification brings the sector closer to the goal of ending contractualization.
“It’s closer than it has ever been but we still have some work to do,” Mr. Matula, who is also the President of the Federation of Free Workers, said in a statement on Tuesday.
He added, “After more than two years, the Duterte administration has finally made a big step towards the fulfillment of a campaign promise.”
Associated Labor Unions — Trade Union Congress of the Philippines (ALU-TUCP) National Executive Vice-President Gerard R. Seno said in a press release, “The moment the SOT bill is enacted into law, there is now a chance for contractual workers to be included in the country’s growing economic growth.”
For his part, Employers Confederation of the Philippines Acting President Sergio R. Luis-Ortiz, Jr. stressed that the passage of this bill could effectively reduce the labor force, adding that employers will be deterred from hiring workers especially for high-demand periods like Christmas.
He added that eliminating contractualization will also put off current and potential foreign investments from the country.
“Many foreign investors are turned off (by the measure),” he said in a phone interview with BusinessWorld on Tuesday.
“You cannot (remove contractualization); we’ll be the only one in the world to do that,” he added, noting that the contracting of services not directly affecting the company’s business is a common global business practice. — Gillian M. Cortez

IPOPHL to offer fast track for patent applicants

THE Intellectual Property Office of the Philippines (IPOPHL) said it will soon offer a fast-track lane for trademark applicants to comply with the Ease of Doing Business law’s mandatory timeline.
In a statement, IPOPHL said its Joint Examination Track procedure will allow a trademark to be granted “much quicker” than the typical eight-month period over the past five years.
Director-General Josephine R. Santiago said the fast-track procedure will require the formation of a group of senior examiners who “will immediately decide on a mark’s registrability on absolute grounds.”
“If it’s allowed by the JET examiners, the trademark application will be published for 30 days to accommodate any opposition. If there is no opposition, it will be deemed registered on the 31st day,” Ms. Santiago was quoted as saying.
Currently, the process for the application of a trademark begins with acquiring a filing date, which follows the submission of requirements and payment to IPOPHL.
The application then undergoes a substantive examination to determine registrability in accordance with the Intellectual Property Code of the Philippines or Republic Act 8293.
The IPOPHL has said it has engaged in consultations with the Department of Trade and Industry draw up a provision in the EoDB law’s implementing rules and regulations to accommodate the patent registration process.
Republic Act No. 11032 or the Ease of Doing Business law was signed in May and ordered three, seven and 20 days of turnaround for simple, complex, and highly-technical transactions, respectively.
The law was intended to fast-track frontline transactions such as business registrations and permit applications, though several agencies have noted that some of their transactions require longer processing times.
“We will comply with the Ease of Doing Business law, insofar as applicable without sacrificing quality outcomes. And the Intellectual Property Code of the Philippines and our obligations under international agreements and treaties are there to ensure this,” Ms. Santiago said.
“IP practitioners have always been our staunch partners. We need to strengthen these partnerships in a time when Filipinos should be using the IP system to be globally competitive in their products and services,” she added. — Janina C. Lim

Senate bill proposes development authority for Philippine Rise

THE Philippine Rise off the Pacific coast of northern Luzon could serve as a source of energy exports once the appropriate technology develops to tap its reserves, according to Senator Sherwin T. Gatchalian, who proposed legislation to create an agency regulating the area’s development.
Mr. Gatchalian, who sponsored Senate Bill 2024 which proposes to create the Philippine Rise Development Authority (PRDA), said in his sponsorship speech: “As the technology to exploit gas hydrates for commercial energy purposes develops over the next decade or two, the Philippines could eventually become an energy exporting powerhouse to rival even the most powerful oil-producing nations.”
Mr. Gatchalian said the seabed of the Philippine Rise, also known as the Benham Rise, holds a “potentially massive treasure trove of rare and precious resources,” including methane gas hydrates.
“Methane gas hydrates, composed of natural gas encased in ice and usually found deep under the ocean in the seabed, are highly touted for their potential as the so-called ‘fuel of tomorrow’,” he said.
The areas being offered under the Philippine Conventional Energy Contracting Program (PCECP) for exploration by the Department of Energy (DoE) do not include the Philippine Rise.
PCECP allows the government to develop and utilize indigenous petroleum resources under a service contract with qualified domestic and international exploration companies.
The DoE has identified 14 “pre-determined” areas under PCECP: one area in the Cagayan Basin, three in eastern Palawan, three in Sulu, two in Agusan-Davao, one in Cotabato, and four in western Luzon.
In a previous interview, DoE Undersecretary Donato D. Marcos said prospective contractors may nominate areas other than the 14 identified by the agency.
In his speech, Mr. Gatchalian said the country’s claim to the undersea area has basis after 11 years of scientific research and international legal advocacy.
He said the United Nations Commission on the Limits of the Continental Shelf approved the claim of the Philippines in 2012 and recognized its sovereign rights over 13 million hectares of the Philippine Rise region as part of the Philippine extended continental shelf.
He said with 11.4 million hectares of the rise already falling within the country’s exclusive economic zone, the recognition brought the entire 24.4 million hectares of the rise under Philippine jurisdiction.
“For context, the land area of the entire island of Luzon is just under 10.5 million hectares,” he said.
He said the bill takes a “responsible, proactive, and forward-looking approach” to developing the natural resources of the Philippine Rise by establishing the needed institutional mechanisms. The measure will facilitate “a coordinated and integrated approach to optimizing the full potential of the rise, while conserving its ecology and resources for the benefit of future generations, he added.
He said the PRDA will be a one-stop shop for all concerns involving the area.
“The 15-member Board of the PRDA will be chaired by the President of the Philippines and will include representatives from pertinent cabinet departments and technical agencies,” he said.
A provision of the bill provides that no “proposals, plans, programs, projects or activities involving the Philippine Rise Region including, but not limited to, marine science research, exploration, and exploitation, whether conducted by Filipino and foreign nationals, shall be carried out… without the clearance of the [PRDA].”
He said since the Department of Foreign Affairs, the Department of National Defense, and the National Security Council are represented on PRDA’s board, “we can be sure that the well-publicized past instances of unauthorized research in the area will not be repeated.” — Victor V. Saulon

Bukidnon vegetable supply line may be made permanent

THE Department of Agriculture (DA) is planning to make its emergency shipments of low-cost vegetables from Bukidnon to Metro Manila more permanent but needs to work out the logistics bottlenecks, Undersecretary Jose Gabriel M. La Viña said.
In an interview with the BusinessWorld on Monday, Mr. La Viña said, “We’re hoping to make it permanent… Bukidnon has 30,000 hectares available (for) highland vegetables. It can also produce strawberries. It’s only a question of bringing the produce to the market.”
The DA operated a TienDA Malasakit temporary market on Friday and Saturday at the Bureau of Plant Industry (BPI) compound in San Andres, Manila, in which farmers directly sold low-cost produce from Bukidnon, including carrots at P95 per kilo, cabbage at P70 per kilo, chili peppers or sili at P80 per kilo, refined sugar at P49 per kilo, and cardava banana or saba at P17 per kilo.
The market sold P2 million worth of vegetables, according to Mr. La Viña, who noted that the vegetables were still sold at below prevailing market prices despite the cost of transportation. Metro Manila’s traditional vegetable growing areas are in Northern and Central Luzon.
“The long-term [solution] there is really to arrange for cheaper transport… DA is planning to buy two boats,” according to Mr. La Viña.
“Do we do it ourselves or do we negotiate with shipping companies? Produce that is not immediately perishable can go by land but perishables should be airlifted,” Mr. La Viña added.
“The problem is moving around. The food is not in the right place. The demand is here, the food is here, and we have [more than] 7,100 islands. It’s a logistical problem,” according to Mr. La Viña.
A grassroots technology development non-government organization (NGO), Sibol ng Agham at Teknolohiya (SIBAT), said it welcomes the tapping of Bukidnon produce as an alternative to imports.
SIBAT Deputy Director Shen R. Maglinte said tapping alternatives to imports minimizes the drain on dollar reserves.
“Our traditional producing areas (Benguet, Ilocos region) were hit directly by typhoon Ompong (international name: Mangkhut). It’s just a matter of whether the volume provided by Bukidnon will be enough for the additional market or whether Bukidnon’s traditional markets are deprived of supply,” Mr. Maglinte said in a mobile message.
“If it’s the strategy to reduce imports, well and good… Despite calamities, our local producers can be kept afloat despite storm damages… second, we can avoid deficits at least in this case in the balance of our trade as we would not be spending our dollar reserves to buy the imports,” Mr. Maglinte added.
Agricultural damage caused by Ompong, which crossed Northern Luzon and hit parts of Central Luzon, has been estimated at P26.77 billion.
In a statement on Tuesday, the Philippine Crop Insurance Corp. (PCIC) said that it has allocated P1.65 billion in potential payouts to farmers affected by Ompong.
“We have allocated sufficient funds to help farmers recover their investment after Ompong damaged their farms. It’s important that we give timely assistance so farmers can replant quickly and bounce back from their losses more easily and that we will have a stable food supply,” PCIC President Jovy C. Bernabe said in a statement.
Incoming typhoon Paeng, however, is expected to be experienced in Northern Luzon this Friday, according to weather bureau PAGASA which may also raise tropical cyclone warning signals by Thursday.
Meanwhile, Mr. La Viña also called for proper irrigation and the organizing of farmers into cooperatives, as well as lessening the number of vegetable traders, in order for farmers to earn more profit.
“The more traders you have, the less income of farmers…Without irrigation, without organizing the farmers, without contiguous lands, we cannot mechanize. Yung drying, milling, dapat sa farmer na iyon [but] you cannot do it without a coop. If you have that, you’ll earn more money,” Mr. La Viña said.
Mr. Maglinte, however, said that not all cooperatives in the country become successful, and it should also be assured that farm mechanization should not displace farm workers.
“Not all coops in the Philippines, majority are beset by mismanagement. There are two shades of mechanization, one is cost benefit, and the downside is displacement of labor and the farm working sector. Cooperative management of facilities and equipments is still one tract to pursue and its success would depend on the reliability of management,” Mr. Maglinte said.
“In our case we would want a balance, that while you mechanize and achieve efficiency in production, farm workers (sector that has no land but is involved in production as planters, harvesters) should not be displaced and their traditional scope of work substituted with other farm-base income generating means,” he added. — Reicelene Joy N. Ignacio

Trillanes posts bail after Makati court orders arrest

SENATOR Antonio F. Trillanes IV on Tuesday afternoon posted a P200,000-bail before the Makati Regional Trial Court (RTC) Branch 150 after his arrest at the Senate.
Mr. Trillanes’s rebellion charge was effectively reinstated after President Rodrigo R. Duterte on Aug. 31 invalidated the former mutineer’s 2011 amnesty in connection with the 2003 Oakwood Mutiny, 2006 Marine Standoff, and 2007 Manila Peninsula Siege, after allegedly failing to file an application showing his admission of guilt.
“Natalo po ang demokrasya sa araw na ito (Democracy died today),” the Senator told the media yesterday shortly after news broke out that the trial court hearing his rebellion case approved the Justice department’s request of a warrant of arrest and hold-departure order against the senator.
Mr. Trillanes added: “Pinakita na namin lahat ng ebidensya kontra sa kanilang mga kadahilanan. Pero nilabas pa rin itong warant of arrest na ito.” (We showed all the evidence against their [basis to invalidate my amnesty]. But still they issued this warrant of arrest.”
“Binigyan ako ng amnesty, pitong taon na ang nakalipas. Ito ay maliwanag na pang-iipit ni Duterte sa mga kritiko niya sa politika,” he also said. (I was granted amnesty, in effect for seven years. This clearly shows Duterte’s harassment of his political critics.)
Trillanes is the second senator critical of Duterte’s drug war to be detained. Leila de Lima has been behind bars since February 2017 on charges she says were concocted to silence her.
Ms. De Lima was detained over her alleged involvement in the New Bilibid Prison illegal drugs trade when she was still justice secretary in the previous administration. Her supporters, including not a few in the international community, say she is being persecuted for being critical of Mr. Duterte’s drug war.
Ousted Chief Justice Ma. Lourdes Sereno, also a critic of Mr. Duterte, was unseated from the Supreme Court in June for failing to fully declare the required financial statements when she applied for the post.
Mr. Trillanes returned to the Senate later that day after posting bail.
In his order, Makati RTC Branch 150 Judge Elmo M. Alameda set initial presentation of prosecution evidence on Nov. 21, 2018 at 2:00 p.m.
Mr. Alameda said the Court is “morally convinced of the sufficiency and legality” of Proclamation No. 572, voiding Mr. Trillanes’s amnesty, as the Aug. 30, 2018 Certification signed by Lt. Col. Thea Joan N. Andrade confirms the claim that the Senator did not file his application form.
“As can readily be gleaned from the answers given by the counsel of Sen. Trillanes it has now become glaringly clear that Sen. Trillanes failed to substantiate his claim that he filed his application for amnesty,” the order read.
The order also read: “Since Sen. Trillanes cannot produce the copy of the official application form for amnesty which he purportedly filed with the DND Amnesty Committee containing the admission of guilt expressly made, it can be safely stated here that Sen. Trillanes failed to comply with the minimum requirement of expressly admitting his guilt for the offenses committed during the Oakwood Mutiny and the Manila Peninsula incident,” it read.
In 2011, Branch 150 dismissed Mr. Trillanes’s rebellion case in connection with his involvement in the 2007 Manila Peninsula Siege, after then President Benigno S.C. Aquino III granted amnesty for him and other mutineers.
Mr.Trillanes also has a pending case at the Makati RTC Branch 148 over his coup d’etat case for his involvement in the 2003 Oakwood Mutiny.
Magdalo Party-list Rep. Gary Alejano said in a statement: “The issuance of warrant to arrest Senator Trillanes based on Proclamation No. 572 is an assault to the whole Philippine justice system. Humantong na tayo sa punto na mismong mga korte natin ay nagiging kasangkapan na ng administrasyong Duterte upang gipitin ang mga kalaban sa pulitika (We have reached the point where our courts are used as an instrument by the Duterte administration to corner his political enemies).”
Presidential Spokesperson Harry L. Roque, Jr. for his part said: “The court has spoken. As the President has said, we will respect the decision of the judiciary.” He added: “Whatever Senator Antonio Trillanes IV has to say can be addressed to the court. Let us stop the drama by press con and allow the legal process to take its course.”
In its statement, advocacy group Human Rights Watch said in part: “The arrest today of Senator Antonio Trillanes IV is part of the persecution of critics of the Duterte administration, the latest in the relentless campaign to silence those who dared to challenge the president’s murderous ‘drug war.’”
The group also said, “Senator Trillanes has proven to be the biggest thorn in the side of President Duterte.” — reports by Elijah Joseph C Tubayan, Vann Marlo M. Villegas, Arjay L. Balinbin, and AFP

ANZ cuts 2018 PHL GDP growth forecast to 6.5%, citing inflation

ANZ Research once more scaled down its growth forecast for the Philippines, citing the volatile global environment coupled with rapid domestic inflation.
The bank cut its 2018 growth estimate to 6.5% in its fourth quarter report published yesterday. This is lower than the 6.6% forecast announced in August, which was earlier scaled down from a 6.8% estimate issued earlier.
“[A] combination of domestic and external developments is weighing on the region’s growth prospects. This slowdown is also coming at a time of solid growth in the US, a divergence that will impact capital flows into the region,” ANZ said in the report.
“Growth in the Philippines should also be impacted albeit more moderately.”
Gross domestic product (GDP) expanded by 6% in the three months to June as household spending cooled. This brought first-half growth to 6.3%, well off the pace from the government’s 7-8% 2018 target range.
Across the region, growth may lag expectations in the context of a widening trade war between the United States and China, as well as country-specific factors like surging commodity prices.
“Inflation in the Philippines reflects a combination of the impact of tax reforms, above-potential growth and higher rice prices,” the bank said.
Prices of widely-used goods rose by 6.4% in August, a nine-year high and well above the 2-4% target set by the Bangko Sentral ng Pilipinas (BSP) on the back of food supply issues as well as rising global oil prices.
Economic managers have drafted an executive order that aims to speed up the distribution of rice, vegetables, meat and fish to the public to temper rising costs, while the central bank is readying another tightening move on Thursday to rein in inflation expectations.
The BSP has raised benchmark interest rates by 100 basis points (bp) since May. A BusinessWorld poll last week showed that economists expect a 50bp rate hike this week, amid threats that the impact of typhoon Ompong (international name: Mangkhut) would further drive up prices of produce.
“In the Philippines, a sustained uptick in CPI (consumer price index) inflation underlines market concerns that the central bank is running further behind the curve and supports the argument for another 75bp rate hike this year,” ANZ said.
The bank sees Philippine inflation averaging 5.1% this year, up from the 2.9% average in 2017 and beyond the 4.8% average for the first eight months.
In response, ANZ expects additional tightening moves from the BSP between September and December to bring benchmark yields to the 4.25-5.25% range.
By 2019, price increases will ease back to within the target range and average 4%. ANZ then sees the BSP keeping rates steady until mid-2020, according to its latest forecasts. — Melissa Luz T. Lopez

Duterte’s approval, trust ratings fall in Pulse Asia’s September poll

PRESIDENT Rodrigo R. Duterte’s trust and approval ratings fell considerably in a September poll by Pulse Asia released on Tuesday.
Also on Tuesday, Vice-President Maria Leonor G. Robredo and her allies in the opposition Liberal Party (LP) presented an initial roster of senatorial candidates for next year’s midterm elections. Ms. Robredo also expressed confidence in the LP’s election chances, amid the party’s poor showing in the last three senatorial polls so far conducted by Pulse Asia.
DUTERTE’S DECLINE
“The overall approval and trust ratings of President Rodrigo R. Duterte declined between June and September 2018,” the polling group said in its latest Ulat ng Bayan survey on the country’s top officials and their institutions. Mr. Duterte’s approval rating dropped 13 points to 75% (from 88% last June) and his trust rating dropped 15 points to 72% (from 87% last June).
The survey identified several “national and international developments” around the time it was conducted Sept. 1 to 7. Topping the list of those issues is Proclamation No. 572 voiding the 2011 amnesty for opposition Senator Antonio F. Trillanes IV, and economic developments including the 6.4% inflation last August completed that list.
For her part, Ms. Robredo had a one-point dip in her approval rating of 61% in September, while her trust rating was unchanged from June at 56%.
In their initial ratings in this year’s Pulse Asia polls, Senate President Vicente C. Sotto II registered a 73% approval and 66% trust; Acting Chief Justice Antonio T. Carpio, 42% approval and 33% trust; and House Speaker Gloria Macapagal-Arroyo, 19% trust.
Sought for comment in his press briefing on Tuesday, Presidential Spokesperson Harry L. Roque, Jr. said of Mr. Duterte’s ratings: “Well, I believe that’s still a very good approval rating, certainly higher than mine. But anyway, and — certainly still the highest of all the officials surveyed by Pulse Asia.”
In a statement, Ms. Arroyo’s office said in part: “After years of attacks and political persecution, the public (trust) rating of former President and now House Speaker Gloria Macapagal Arroyo is on an upswing with the level of distrust diminishing.”
‘While Speaker Arroyo has always been dispassionate about surveys, she takes them as a snap chat of people’s sentiment. When she was president, she would not let surveys define her work.”
“As Speaker, however, she remains focused and committed to what needs to done at the House of Representatives to carry out the legislative agenda of President Duterte.”
Also sought for comment, Ms. Robredo said of her latest poll figures: “Iyong (The) margin of error, if I’m not mistaken, is ±2.5? So halos static siya (So it’s almost static).”
She added: “Iyong sa atin naman, mas tinitignan natin kung ano ba iyong mga issue surrounding (We’re looking at the issues surrounding [the survey]). Hindi naman tayo kandidato, so hindi naman… iba iyong tinitignan natin ngayon (I’m not a candidate,…so I’m looking at things differently).”
LP’S ELECTION CHANCES
Asked about the LP’s chances, on the other hand, in next year’s midterm elections, Ms. Robredo said, “Maaga pa para pag-usapan ang chances namin. Kasi in the middle of the campaign season, nag-i-iba ang ihip ng hangin.” (It’s too early to tell our chances. Because in the middle of the campaign season, the wind changes.)
“Hindi ako natatakot sa mga numerong ‘yun,” Senator Paolo Benigno A. Aquino IV said for his part, when asked in a press conference on Tuesday about the LP being practically missing in Pulse Asia’s recent senatorial polls. (I’m not afraid of those numbers.)
“Ibig lang sabihin, kailangan pa tayong magtrabaho,” he also said. (It only means we should work harder.)
The LP held its press conference partly to present its senatorial bets, human rights lawyer Jose Manuel I. Diokno, former House deputy speaker Lorenzo R. Tanada, and reelectionist Paolo Benigno A. Aquino IV.
Ms. Robredo said the LP will come up with a full roster by October, before the deadline of the filing of candidacies beginning Oct. 11.
Sought for comment about the LP’s election chances, University of Santo Tomas political-science professor Marlon M. Villarin said via text: “I think the LP, despite their loudness on matters affecting the Duterte administration, remained conservative with their senatorial slate, considering the latest surveys do not favor their ideal team and this is a clear leadership crisis for the LP.”
University of the Philippines political-science assistant professor Perlita M. Frago-Marasigan also said via text when sought for comment: “LP is banking on name-recall but these candidates have yet to create their individual mark in politics and must build a ‘niche market’ if they want to succeed.”
In his response to the Pulse Asia survey, Mr. Sotto said in part: I think the survey reflects the opinion of the people on the Senate. We’re hardworking, we’re efficient, we’re doing our work.” — Vince Angelo C. Ferreras, Arjay L. Balinbin, and Charmaine A. Tadalan

US CEO sentiment dips on trade angst

NEW YORK — Although CEOs for large US companies remain broadly confident on the economy, sentiment took another hit in the third quarter over concerns about US trade confrontations, according to a survey released Monday.
The survey, released a few hours after new US tariffs on Chinese goods took effect, showed a drop in expected hiring and investment, despite a modest increase in the outlook for sales over the next six months.
The CEO economic outlook index, which includes expectations for sales, capital spending and hiring, fell to 109.3 from 111.1 in the second quarter, according to the Business Roundtable, which represents Apple, IBM, General Motors and other US giants.
The findings come on the heels of a Federal Reserve report earlier this month noting that trade concerns had “prompted businesses to scale back or postpone capital investment.”
A special question in the new Business Roundtable survey found 63 % of CEOs said recent tariffs and uncertainty about trade would negatively affect capital investment decisions in the next six months.
Still, all three benchmarks remain high by historic levels.
“I think the negative effects are being masked by the overwhelmingly positive effects of the tax and regulatory policies,” Business Roundtable chief executive Joshua Bolten told reporters.
“Almost none of our companies see it as a positive,” Bolten said of the tariffs.
President Donald Trump’s administration on Monday imposed tariffs on another $200 billion of Chinese imports, meaning half of everything the US buys from China is now subject to additional duties. — AFP

Sotto files bill to lower minimum age of criminal responsibility

By Camille A. Aguinaldo, Reporter
SENATE President Vicente C. Sotto III has filed a bill seeking to lower the minimum age of criminal responsibility from 15 years old to above 12 years old.
Filed on Monday, Senate Bill No. 2026 amends Republic Act No. 9344 or the Juvenile Justice and Welfare Act of 2006 to prevent criminal syndicates from exploiting the law by using minors in committing crimes.
Mr. Sotto said the present minimum age, 15, was too high, based on international standards. Citing a study conducted by the Child Rights International Network (CRIN), he said the average minimum age of criminal responsibility in Asia and Africa is 11 years old while the United States and Europen is set at 13.
“Due to continuing challenge in the implementation of RA 9344, as amended, the aforesaid law must be further amended to lower the minimum age of criminal liability in order to adapt (to) changing times,” the Senate leader said in his explanatory note.
“This bill will finally give clarity to the true intention of the law. The amendment to the law will institutionalize the criminal liability of teenagers who committed serious criminal offense,” he added.
Under the proposed measure, a child below 18 years of age but above 12 at the time of the commission of the crime would be held criminally liable and subjected to the appropriate proceedings, unless proven that he or she acted without discernment.
If the child acted without discernment, he or she would be exempted from criminal liability and will be subjected to the appropriate intervention program under the law.
For serious crimes, such as parricide, murder, infanticide, kidnapping, and homicide, committed by the child between nine to 12 years old, he or she will be deemed a neglected child under Presidential Decree No. 603 or the Child and Youth Welfare Code.
The child will also be placed in a special facility within the youth care facility or the “Bahay Pag-asa” as managed by the local government units or the nongovernment organizations (NGOs) monitored by the Department of Social Welfare and Development (DSWD).
An additional funding of P20 million will be made available in the construction of “Bahay Pag-asa” rehabilitation centers in provinces or cities.
In an interview with reporters, Mr. Sotto he will ask President Rodrigo R. Duterte to certify the bill as urgent. In 2017, the President called on Congress to lower the age of criminal liability in order to curb criminality in the country.
“The soonest possible time that I will talk to him, I will tell him about it and I will ask him to certify it as an urgent bill….I am confident and optimistic that majority of our members in the Senate will support it,” Mr. Sotto said.

Nationwide round-up

COA flags Supreme Court’s P48.7M unliquidated fund transfers

By Charmaine A. Tadalan, Reporter
THE COMMISSION on Audit (CoA) has flagged the Supreme Court (SC) over P48.7 million in unliquidated fund transfers to other government agencies.
In its 2017 report, the auditing body said the amount, intended to finance the construction and renovation of courts, remained outstanding for “three to 12 years due to lack of monitoring.”
Of this amount, P35.6 million was allocated for the construction of the Court of Tax Appeals (CTA) Building III; while the remaining P13.1 million was utilized for the construction or renovation of Halls of Justices in the following municipalities: Argao, Cebu; Sasmuan, Pampanga; Ibajay and New Washington, Aklan.
The CoA found the funding for the CTA Building remained outstanding as the total budget for the project awaits the approval of the SC’s chief justice.
“The construction of the project with an estimated budget of P307 million was still subject to funding approval by the Chief Justice,” the CoA report read.
Moreover, the auditing body reported that the high court resorted to “shopping” instead of going through public bidding in purchasing P7.9 million worth of computer sets and printers.
House committee formally drops impeachment complaints vs SC justices
THE HOUSE of Representatives committee on justice formally dismissed on Tuesday the consolidated impeachment complaints against the seven Supreme Court (SC) justices who voted for the ouster of former chief justice Ma. Lourdes P.A. Sereno.
The committee, with 22 affirmative votes and zero negative, adopted the report which junks the complaints filed by three opposition lawmakers, led by Representative Edcel C. Lagman of the 1st District of Albay.
“There being zero against the motion… with about 22 votes in favor of the motion, the seven impeachment complaints against the chief justice of the Supreme Court as well as the six associate justices of the Supreme Court, the impeachment complaints are hereby dismissed and the committee report is now considered approved,” Panel chair Salvador C. Leachon said during the third deliberation of the complaints.
Mr. Leachon was acting on the motion of panel vice chair Henry S. Oaminal of the 2nd District of Misamis Occidental.
The committee had earlier dismissed the complaints after finding it insufficient in form.
CHALLENGE
Mr. Lagman, in a press briefing, said he and co-complainants Magdalo Rep. Gary C. Alejano and Ifugao Rep. Teddy B. Baguilat, Jr. will challenge the decision.
Citing rules of the House on impeachment proceedings, Mr. Lagman said, “Any resolution to dismiss an impeachment complaint should be… approved by an absolute majority of all members of the committee.”
He explained that for the decision to be valid, the committee should have gathered a total of 35 votes, considering there are a 68 panel members. — Charmaine A. Tadalan

House committee formally drops impeachment complaints vs SC justices

THE HOUSE of Representatives committee on justice formally dismissed on Tuesday the consolidated impeachment complaints against the seven Supreme Court (SC) justices who voted for the ouster of former chief justice Ma. Lourdes P.A. Sereno. The committee, with 22 affirmative votes and zero negative, adopted the report which junks the complaints filed by three opposition lawmakers, led by Representative Edcel C. Lagman of the 1st District of Albay. Mr. Lagman, in a press briefing, said he and co-complainants Magdalo Rep. Gary C. Alejano and Ifugao Rep. Teddy B. Baguilat, Jr. will challenge the decision. — Charmaine A. Tadalan

A regressive approach to the mining fiscal regime

Eight months since the first phase of the Tax Reform for Acceleration and Inclusion (TRAIN) Law was implemented, inflation hit a near-decade-high 6.4%, well beyond government forecasts and, more crucially, something that may upend years’ worth of significant economic growth.
While the administration’s ambitious infrastructure agenda is long overdue and surely worth the investment, tinkering with something as sweeping and overarching as taxation demands care and meticulous attention to its effects as we have seen with TRAIN.
The second phase of the tax package is looking to generate the same level of controversy, if not more. Barely ten months ago, TRAIN 1 doubled the excise tax on mining from 2% to 4%. A specific mining tax reform bill, filed in the House of Representatives and backed by the Department of Finance, proposes a 5% royalty for all large-scale and small-scale metal and non-metal operations regardless of whether they are located within or outside mineral reservations.
While retaining the corporate income tax for mining, the bill also requires an additional government share of the difference when the basic government share is less than 50% of the net mining revenue for the calendar year. It also proposes to limit interest expense deductions of mining contractors, for instance, if the contractor has a debt-to-equity ratio higher than 1.5 to 1 at any time during the taxable year.
The proposal’s claimed intent is to “satisfy the objectives of government for a reasonable increased share without compromising the mining sector’s need for a reasonable return on its investment.”
What is not said, of course, is that the imposition of the additional 5% royalty, on top of the various other charges on gross revenues, would make the total impositions on gross revenues the highest in the world at close to 12% all in all.
Contrary to the said intentions, the proposal runs the risk of making the sector even more uncompetitive in terms of attracting quality investments. As the mining industry demands intensive capital and sophisticated technology, it requires nothing less than quality investments. This means large, responsible companies with a lot of resources, technical know-how, and experience.
Already, the regulatory environment in the Philippines is far from agreeable. A prohibitive tax structure threatens to drive out badly needed investments to other mineralized countries that have more sensible tax structures.
A 2012 study by the International Monetary Fund (IMF)found that a 10% royalty in the mining and petroleum sector is, by international standards, “quite high.” For a market like the Philippines, attracting investments in its mining sector largely depends on how well it can manage its fiscal regime.
mining
Another important detail that the bill seemingly glosses over in favor of so-called rationalization is the critical distinction between copper and gold operations, on one hand, and nickel operations, on the other.
According to industry experts, the former requires much higher investment in mine development, such as in the construction of a copper concentrator or a gold-processing plant. The gestation period is also longer, from exploration to commercial operations, at an average of 15 years compared to 4 years for large lateritic nickel mines. The larger scale of operations for gold and copper also means it is more difficult to absorb the royalty during periods of low prices or when the operation is not profitable.
Thus, despite the lip service on supposedly looking after the mining industry’s welfare, the bill’s combined impositions on gross revenues, payable whether a company makes money or not, would no doubt discourage new quality investments in copper and gold mines, not to mention make it very difficult for existing operations to survive.
Crunching the numbers, the bill’s proposed “top-up” of up to 50% of net mining revenues makes the structure virtually equivalent to a Financial and Technical Assistance Agreement, which is deemed uncompetitive internationally by the IMF study.
But if the impositions of this bill are poised to sound the death knell for the industry, the other elements in the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO) bill, promise to be the proverbial final nail in the coffin. TRABAHO repeals incentives available to the industry under the Mining Act of 1995. This means that if the mining industry is not included in the proposed Strategic Investment Priorities Plan, the sector will be ineligible for any incentive whatsoever.
What all these amount to is a regressive — not progressive — tax structure. Compare these provisions, for instance, with the model in Chile, the top copper producer in the world. Chile has a mining tax that is applied to profits at a rate that depends on operating margins (6.65% at a margin of 50%). Peru, the second top producer of copper, implements a similar royalty system that is applicable to profits (3.64% at a margin of 50%).
What makes these models progressive is how they’re skewed toward profitability, with higher tax rates depending on operating margins. This sharply contrasts with high impositions on gross revenues that completely ignores the profitability of an operation. The message the proposed mining tax reform bill sends to both existing and potential investors are thus self-evident.
But will mining really stop if the large, responsible miners are out of the picture? Only to a certain extent. Killing the legitimate players will only create a vacuum that will open the country’s vast untapped mineral resources to illegal operations. This scenario not only squanders billions of dollars in potential revenues and hundreds of thousands of quality jobs, it also subjects hundreds of areas to irreversible environmental destruction, all of which does not make any sense for a bill that calls itself progressive.
The proponents of this regressive policy must realize that crushing an already highly regulated industry whose huge economic potential is globally recognized, but has been frustratingly stymied with decades of unstable policy, will send stay away signals to large investors of other industries. The job-creating industries that we want to build will look for less volatile business environments and there are many alternatives out there.
 
Prof. Victor Andres “Dindo” C. Manhit The author is founder and managing director of the Stratbase group and president of its policy think tank, the Albert del Rosario Institute for Strategic and International Studies (ADRi).

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