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State counsel Paras passes away

CHIEF STATE Counsel (CSC) Ricardo V. Paras III passed away on Sunday, Jan. 21, the Department of Justice (DoJ) confirmed. In a statement, the DoJ said it mourns “the sudden demise of CSC Ricardo ‘Dickie’ Paras III this morning,” adding, “We ask the pious members of the DoJ family to pray for the eternal repose of his soul.” The cause of Mr. Paras’s death was not specified. Some of the cases Mr. Paras handled were the $81-million Bangladesh Bank heist in 2016 and the controversial joint venture agreement between the Bureau of Corrections and the Tagum Agricultural Development Corp., which was questioned in 2017. — Minde Nyl R. dela Cruz

Settled TRAIN

Social media have been chirping on the railroading of TRAIN, examples are the tweets of Center for Media Freedom and Responsibility (CMFR) and investigative journalist, Ms. Raissa Robles. CMFR tweeted, “Without a quorum: TRAIN railroaded into Law,” while Ms. Robles said: “Govt is doing public consultations AFTER, not BEFORE, new tax laws were passed. This is not supposed to be how democracy works.”

A lot can be said about this administration and the legislative process; but with regard to the Tax Reform for Acceleration and Inclusion (TRAIN) law or Republic Act No. 10963, let me state, and I was a direct participant in advocating TRAIN, that it was not railroaded.

Congress invested time and resources, deliberating more than 62 occasions running several hours each — that’s at least one public consultation every two weeks for the past 16 months since the Department of Finance (DoF) presented its proposal in September 2016. Almost all hearings and meetings were public — 20 sessions were held including four plenary sessions at the House, 36 sessions at the Senate, 12 of which were plenary sessions. Only the six bicameral committee hearings and about seven technical working group meetings were closed door.

The first package of TRAIN originally had five key components: the adjustment of personal income tax, rationalizaton of VAT exemptions, adjustment of excise taxes on fuel and automobile, and the earmarking for targeted cash transfers.

By the time TRAIN left the House of Representatives in May 2017, the components grew from five to 11 with the inclusion of the flat rate on estate and donor’s tax, the introduction of the excise tax on sugar sweetened beverages, and three tax administration measures — the relaxation of the bank secrecy law and exchange of information, interconnectivity, and electronic receipts, and fuel marking.

The Senate expanded TRAIN even further when it released its version with 10 more provisions: the increase in coal tax, with the removal of the exemption on local coal, doubling of mining and most of documentary stamp taxes, increase on the tax on foreign currency deposits unit (FCDU), capital gains tax for non-traded stocks, stock transaction tax for traded stocks, adjustment of creditable withholding tax rate, the introduction of an excise tax on cosmetic procedures, additional VAT exemptions on prescription drugs, condominium, and association dues, among others, and VAT zero-rating of all sales and transactions in special economic zones, free port zones, and tourism economic zones, and some more tax administration measures. The bicameral conference committee meetings in December 2017 added one final touch — the inclusion of tobacco tax, which both chambers ratified in separate sessions on Dec. 13, 2017.

More than a year after the original DoF proposal was presented, after passing through the legislative process, the President signed into law, a measure that grew from the original five components to more than 20.

The consultations that took place in the course of 16 months shaped the TRAIN we have today.

Various stakeholders like civil society, health professionals, labor unions, environmentalists, the elderly, women and children’s rights’ advocates, business, academe, former finance, health, and energy officials, among others participated in the hearings and consultations.

Outside the halls of Congress more than 100 consultations were likewise organized by DoF, the Philippine Chamber of Commerce and Industry, and civil society organizations such as Child Rights Coalition Asia, Alternative Budget Initiative, and Action for Economic Reforms. Consultations took place across the country, for example in Cebu, Davao, Palawan, and Naga City, the last one hosted by Vice-President Leni Robredo.

They won some demands, they lost others. Legislation is a product of compromise, and TRAIN is no exception.

President Duterte himself was not focused on TRAIN until the last minute when he exercised his veto.

There was no doubt that TRAIN would pass into law given the timely release of certificates of urgency during critical junctures, the strong reminder of the importance of tax reform during the first State of the Nation Address, among others. The question had always been in what form.

Clearly, what Congress submitted to the President was far from the Executive’s original intention. The versions that the House and the Senate passed were not the original version that the DoF wanted. The House version was closer to the DoF version. But some bad provisions still remained, and the estimate for revenue that it could generate was short of the DoF target. The Senate version, on the other hand, was mangled. The presidential veto on five items cured to some extent the worst parts of the Senate version.

Surely, the expansion of TRAIN and the compromises — some tolerable and others that have to be rejected — and the length of time and frequency of consultations belie a railroaded TRAIN.

Lastly, the question on the House quorum, by itself does not determine whether TRAIN was railroaded. Taking into consideration the narration of events above, we can say that TRAIN was a long and most difficult journey. It is now a matter for the courts to decide. But the House Rules read, “the member who questions the quorum shall not leave the session hall until the question is resolved otherwise the question will be deemed abandoned.”

What shaped TRAIN, the good and the bad, was the dynamics that involved different stakeholders, including civil society.

To hear detractors say that the TRAIN was railroaded is thus unsettling for many stakeholders and the professional men and women from government, especially DoF, many of them young and idealistic, who defended and fought for TRAIN’s good provisions.

 

May-i Fabros worked closely with civil society, DoF, and other stakeholders to strengthen people’s participation in reforms such as TRAIN and the Sin Tax Law.

Houston Rockets topple Golden State Warriors while OKC Thunder embarrass Cleveland Cavaliers

LOS ANGELES — The Houston Rockets ended the Golden State Warriors’ 14-game road winning streak Saturday, thwarting the NBA champions’ comeback bid in an impressive 116-108 victory.

Chris Paul scored 33 points and James Harden cemented his return from injury with 22 for the Rockets, who also saw Clint Capela, Luc Mbah a Moute and PJ Tucker score in double figures.

The Rockets outrebounded Golden state 46-33 and led by as many as 17 points in the second quarter en route to the win in a marquee match up of the two highest-scoring teams in the league.

“We had to get this win,” said Harden, who was supposed to be limited to less than 30 minutes of action in his second game back from a hamstring injury but played more than 34.

His step-back three-pointer with 1:10 left to play in the fourth helped sound the death knell, stretching the Rockets’ lead back to six points.

The Rockets, second in the Western Conference, improved to 17-0 this season when Harden, Paul and Capela are all active.

Although they battled back to lead by as many as four in a fourth quarter that saw six lead changes, the Warriors were ultimately undone by 19 turnovers.

Forward Kevin Durant led the Warriors with 26 points and Draymond Green added 21 points with seven rebounds and six assists.

Stephen Curry connected on just six of 20 shots from the field en route to 19 points and Klay Thompson scored just eight points, but Warriors coach Steve Kerr said it was the turnovers and defensive lapses that cost the game.

“Shots go in or shots don’t, but you can control turnovers,” Kerr said. “And out of the 19 turnovers, it didn’t feel like many of them were forced by the defense. It seemed like we were in a rush and too frantic.”

In Cleveland, LeBron James’s bid to become the seventh player in NBA history to reach 30,000 career points was thwarted and the Cavs found themselves looking at a milestone of a far different kind in a humbling 148-124 loss to the Oklahoma City Thunder.

James scored 18 points, falling seven shy of the 30,000 plateau, before departing the game midway through the fourth quarter.

He’ll have another chance to become the youngest player ever to reach 30,000 points when the Cavaliers face the Spurs in San Antonio on Tuesday.

In the meantime, he and the Cavs must try to sort themselves out after the Thunder’s 148 points tied the club record for the most scored against Cleveland in a non-overtime game.

“I don’t think I have ever in my basketball life given up 148 points. Not even in a video game,” James said. “I am not here to look for pity. No one is going to feel sorry for us. We just got to get better.”

Paul George scored 36 points for the Thunder. Carmelo Anthony added 20 and Russell Westbrook produced 23 points, 20 assists and nine rebounds. Kiwi big man Steven Adams added 25 points on 12-of-13 shooting from the field.

The Cavaliers have now lost five of their last six games and nine of 12.

The Miami Heat pulled within half a game of Cleveland for third place in the Eastern Conference, erasing a 10-point fourth-quarter deficit to edge the Charlotte Hornets, 106-105.

The 76ers moved into sixth place in the East with a 116-94 victory over the Milwaukee Bucks in Philadelphia. — AFP

Pence meets Sisi on Mideast tour amid Arab anger over Jerusalem

CAIRO — US Vice-President Mike Pence held talks with Egyptian President Abdel Fattah al-Sisi Saturday at the start of a delayed Middle East tour overshadowed by Arab anger over Washington’s recognition of Jerusalem as Israel’s capital.

Controversy over President Donald J. Trump’s decision to move the American embassy in Israel to Jerusalem had led to the cancellation of a number of planned meetings ahead of the trip originally scheduled for December.

The Palestinian leadership, already furious over the Jerusalem decision, has denounced the US administration and had already refused to meet Mr. Pence in December.

A coalition of Arab parties in the Israeli parliament said Saturday it would boycott a speech by Mr. Pence on Monday, calling him “dangerous and messianic.”

Mr. Pence held talks with former army chief Sisi in Cairo that were expected to focus on US aid and security, including a jihadist insurgency in the Sinai Peninsula.

Sisi’s office said the talks also covered Jerusalem, with the president stressing Egypt’s support for a two-state peace settlement and “the right of the Palestinian people to establish an independent state with east Jerusalem as capital”.

Mr. Pence, for his part, said relations between Cairo and Washington had “never been stronger” thanks to the leadership of Mr. Trump and Sisi.

Expressing sympathy for deadly jihadist attacks that have targeted both Muslim and Christian places of worship, he said: “We stand shoulder-to-shoulder with you in Egypt in the fight against terrorism.”

The vice-president later traveled on to Amman ahead of a one-on-one meeting with King Abdullah II on Sunday before heading to Israel for the final leg of the tour.

Mr. Pence went ahead with the trip — which had been pushed back in December as a crunch tax vote loomed on Capitol Hill — despite the federal government shutdown looming over Washington.

KEY SECURITY PARTNERS
The leaders of both Egypt and Jordan, the only Arab states that have peace treaties with Israel, would be key players if US mediators ever manage to get a revived Israeli-Palestinian peace process off the ground, as Mr. Trump says he wants.

They are also key intelligence-sharing and security partners in America’s various covert and overt battles against Islamist extremism in the region, and Egypt is a major recipient of aid to help it buy advanced US military hardware.

Sisi, one of Mr. Trump’s closest allies in the region, had urged the US president before his Jerusalem declaration “not to complicate the situation in the region by taking measures that jeopardise the chances of peace in the Middle East.”

Egypt’s top Muslim cleric and the head of its Coptic Church had both canceled meetings with Mr. Pence in December in protest at the Jerusalem decision.

After Jordan — the custodian of Muslim holy sites in Jerusalem — Mr. Pence will head to Israel for talks with Prime Minister Benjamin Netanyahu on Monday.

He will also deliver a speech to parliament and meet President Reuven Rivlin during the two-day visit.

Mr. Pence can expect a warm welcome after Mr. Trump’s decision on Jerusalem, which Israelis and Palestinians alike interpreted as Washington taking Israel’s side in the dispute over the city.

Israel occupied the West Bank in 1967 and later annexed east Jerusalem in a move never recognized by the international community.

Israel claims all of Jerusalem as its united capital, while the Palestinians see the eastern sector as the capital of their future state.

The international community considers east Jerusalem illegally occupied by Israel and currently all countries have their embassies in the commercial capital Tel Aviv.

‘MATTER OF YEARS’
The State Department has begun to plan the sensitive move of the American embassy to Jerusalem, a process that US diplomats say may take years to complete.

This week reports surfaced that Washington may temporarily designate the US consulate general in Jerusalem as the embassy while the search for a secure and practical site for a long-term mission continues.

A senior State Department official, speaking on condition of anonymity, told reporters that Secretary of State Rex W. Tillerson has yet to make a decision on either a permanent or interim location for the mission.

“That is a process that takes, anywhere in the world, time. Time for appropriate design, time for execution. It is a matter of years and not weeks or months,” he said.

Mr. Pence — himself a devout Christian — will visit the Western Wall, one of the holiest sites of Judaism in Jerusalem’s Old City, and pay his respects at the Yad Vashem Holocaust memorial. — AFP

Eagle Cement bullish on cement industry

EAGLE CEMENT Corp. is keeping a bullish outlook for the local cement industry in 2018, as the company says it will further increase cement capacity this year.

The Ramon S. Ang-led cement firm is nearing the completion of its third cement line in Bulacan, which is slated to bring its annual capacity to 7.1 million metric tons (MT) from the current level of 5.1 million MT.

“Our outlook for the local cement sector remains bullish in 2018, as evident in our expansion strategy. We are currently increasing capacity to serve the growing local demand coming from the strong private consumption and government’s national infrastructure push,” the company said in an e-mail.

The Bulacan facility is expected to increase the company’s sales by 35% in 2018, or a total of 130 million bags, bringing Eagle’s market share to around 25%.

For this year, Eagle Cement targets to book a net income of at least P6.5 billion.

Aside from the Bulacan plant, Eagle Cement has also started construction on its fourth cement facility in Cebu, allowing the company to service the needs of the Visayas and Mindanao market.

“We will be completing the third integrated production line in Bulacan by 2018. We have started construction on our fourth integrated production line in Cebu, including its support facilities,” Eagle Cement said.

The Cebu plant will add another 2 million MT to Eagle Cement’s capacity, for an overall capacity of 9.1 million MT once it is completed.

Asked what challenges it sees would affect operations in 2018, the listed firm cited competition, and operational, financial, and economic risks, among others.

“We have business strategies and operating systems in place to help manage them and at the same time, we continuously innovate to mitigate them,” the company said.

Eagle Cement further noted that it prepared for any effects the Tax Reform for Acceleration and Inclusion program, which would increase taxes on fuel and oil, and sugar-sweetened beverages, among others, thereby prompting a rise in the cost of some commodities.

“There will be some impact to the company, but the cost structure we have in place gives us the ability to manage its effects,” the company said.

Eagle Cement generated a 7% increase in earnings for the first nine months of 2017 to P3.3 billion, following an 11% uptick in revenues to P11.2 billion. The company is targeting a full year income of P4.3 billion to P4.5 billion in 2017, on the back of a P15-billion revenue. — Arra B. Francia

The Asia Liberty Forum and the search for rule of law and economic freedom

“There is no evidence that fuel and electricity subsidies benefited the poor. There is no evidence that trade protection benefited the poor. Elimination of subsidies if compensated by reduction of cost doing business (corruption) will help the poor.”

— Muhamad Chatib Basri,
presentation about Indonesia energy and food subsidies,
EFN Asia conference September 2004, Hong Kong

Those conclusions were made by Dr. Chatib “Dede” Basri in his presentation, “Can subsidy and protection do any good for the poor?” at the Economic Freedom Network (EFN) Asia conference in 2004. At that time, he was a faculty member of the University of Indonesia and individual member of EFN. He used an econometric model and the Grosman and Helpman (G-H) model (trade protection is the result of bargaining between government and various lobby groups). The inevitable conclusion of his paper was that market reforms and the reduction, if not removal of dependence by the poor on the state will actually help them and taxpayers over the long term.

Dr. Basri later became Minister of Finance from May 2013 to October 2014 when the administration of Indonesian President Susilo Bambang Yudhoyono ended. Dr. Basri will be among the keynote speakers in the Asia Liberty Forum (ALF) this coming Feb. 10-11 at Mandarin Hotel Jakarta, Indonesia. The event is sponsored by the Atlas Foundation and co-hosted by the Center for Indonesian Policy Studies (CIPS).

Aside from Dr. Basri, other important speakers in this year’s conference will be the following:

1. Saidah Sakwan, chairwoman, CIPS; also a commissioner of the Indonesian Business Competition Commission (KPPU).

2. Brad Lips, CEO of Atlas Network, Washington DC, USA.

3. KH Yahya Cholil Staquf, general secretary of Nahdlatul Ulama (NU) Supreme Council, world’s largest Muslim organization with 50+ million members.

4. Siegfried Herzog, Regional director for Southeast and East Asia, Friedrich Naumann Foundation for Freedom (FNF), Thailand.

5. Suraj Vaidya, chairman of SAARC Chamber of Commerce and also chairman of Samriddhi Foundation, Nepal.

6. Rainer Heufers, executive director of CIPS.

7. Razeen Sally, Prof. at Lee Kuan Yew School of Public Policy, National University of Singapore.

8. Ronald Meinardus, Regional director, FNF South Asia, India.

9. Parth Shah, president of the Centre for Civil Society, India.

10. Lorenzo Montanari, exec. director of Property Rights Alliance (PRA), Washington DC, USA.

11. Barun Mitra, founder and Director of Liberty Institute, India.

12. Junjie Ma of Unirule Institute, Beijing, China.

There are many other interesting speakers to talk on many topics — policy reforms to broaden support for classical liberal principles, education policy, Ease of Doing Business Index, Protection of private property rights, Intellectual Property Rights (IPR), micro-enterprises, entrepreneurship in e-commerce, state-owned enterprises (SOEs).

Are Asian economies getting more market-oriented or state-distorted? Is there greater rule of law now or greater rule of men? Are public institutions more protective or more confiscatory of private property rights?

There are many studies and annual reports that track and monitor various indicators and parameters to help answer these and related questions. Among the important annual reports are Fraser Institute’s Economic Freedom of the World (EFW) reports, Heritage Foundation’s Economic Freedom Index (EFI), PRA’s International Property Rights Index (IPRI), World Bank’s Doing Business, and World Economic Forum’s (WEF) Global Competitiveness Index (GCI).

The GCI is composed of 12 pillars and the first pillar are Institutions. These are composed of 21 sub-pillars like property rights, IPR protection, diversion of public funds, public trust in politicians, irregular payments and bribes, judicial independence, favoritism in decisions of government officials, burden of government regulation, efficiency of legal framework in settling disputes and challenging regulations, transparency of government policy making, and reliability of police services.

I checked the latest WEF 2017-2018 report for East Asian economies and compared with the report two years ago for pillar #1, Institutions (see table).

The Asia Liberty Forum and the search for rule of law and economic freedom

So for Institutions, the numbers above show three important results: One, out of the 144 countries and economies covered, many East Asian nations land in the first half (i.e., 1st to 72nd), 11 of the 15 economies mentioned above. Singapore and Hong Kong are in the top 10.

Two, the biggest gainers in global ranking are India (+21!), South Korea, China, and Laos. And three, the biggest loser in ranking is the Philippines, dropping 17 places or notches.

In the WEF Executive Opinion Survey 2017, the most problematic factors for doing business in the Philippines were: (1) inefficient government bureaucracy, (2) inadequate supply of infrastructure, (3) corruption, (4) tax regulations, and (5) tax rates.

For Asian countries outside the first half like Thailand, Vietnam, Philippines and Cambodia, there is an immediate need to improve the rule of law and further debureaucratize, deregulate and depoliticize the economy.

 

Bienvenido S. Oplas, Jr. is President of Minimal Government Thinkers, a member-institute of Economic Freedom Network (EFN) Asia.

minimalgovernment@gmail.com.

David and Goliath in MPBL

Gary David and Marlou Aquino are two of the best players ever played in the PBA, but basketball fans had a difficult time recollecting how their respective careers in the pro league ended.

A scoring champion multiple times, David found himself bouncing in and out of teams in the PBA following his great run for the 2012 MVP Derby, which he lost to Mark Caguioa.

The image of David showing his figuratively burning hands in torching then top seeded B-Meg Llamados of the old Purefoods franchise being handled by Tim Cone in his first conference, was the most vivid picture of how great the 6-foot-2 gunner from Lyceum was.

He steered the eighth seeded Powerade Tigers of the Coca-Cola franchise all the way to the finals before losing to Talk ’N Text in the 2012 Philippine Cup before the franchise was sold to GlobalPort the following season.

After his brief stint with GlobalPort, the man known as El Granada was traded to the Meralco Bolts where he spent three seasons. He was suspended by Bolts management due to insubordination and he was released by the squad.

The former Philippine Cup Best Player of the Conference was picked up by the San Miguel Beermen, who hardly used him before the veteran swingman ended up with Mahindra, now known as Kia, until his contract expired.

Aquino, the 6-foot-9 center, had a more illustrious career.

Following numerous stints in the national team and a colorful career in the PBL, Aquino joined Ginebra San Miguel, the most popular team in the PBA, and quickly made a huge impact in the league.

The Gentle Goliath emerged as the Rookie of the Year of the 1996 season, and became a Mythical First Team for two consecutive seasons. He was instrumental in the franchise’s last championship under Robert Jaworski in 1997.

In year 2000, Aquino was traded to Sta. Lucia, his long-time amateur squad, and quickly he became an integral part of the Realtors’ campaign, helping the squad to winning its first ever championship in the 2001 Governors’ Cup.

He was again instrumental in 2007 in the Realtors’ last drive for the championship until the franchise was acquired by the Meralco Bolts.

In 2010, Aquino was acquired by Barako Bull, but his stint was short lived as the team filed for a leave of absence due to financial pinch and that was the last time PBA fans had a glimpse of The Sky Scrapper in action.

But basketball fans will see David and Aquino back in action as they will play in a fledgling Maharlika Pilipinas Basketball League, a league founded by Senator Manny Pacquiao. MPBL will also have Commissioner Kenneth Duremdes calling the shots.

David will reinforce the Bataan Defenders while Aquino will take his wares to the Bulacan Kuyas coached by Ogie Gumatay.

Starting Jan. 25, the two veteran players will get a new lease in life in continuing to pursue the game that they loved and a new chapter will be added to their colorful story.

Basketball fans deserved to see David exploding every game and watch Aquino clamping down on defense and bringing toughness to his new squad.

Thanks to MPBL, their careers will be revived.

 

Rey Joble has been a sportswriter covering the PBA games for more than a decade. He is a member of the PBA Press Corps and Philippine Sportswriters Association.

reyjoble09@gmail.com

DENR boosts frontline enforcement with new lawyer hires

THE Department of Environment and Natural Resources (DENR) said it hired 147 new lawyers to boost its frontline enforcement functions.

DENR-Environment Management Bureau Assistant Secretary and concurrent director Juan Miguel T. Cuna said the lawyers will be deployed in Community Environment and Natural Resources Offices (CENROs) to aid the regional offices in prosecuting violators.

“In my experience in the past, if there are people that we’d prosecute or reprimand for violations of policies and certain laws, the cases aren’t continue due to technicalities,” he added.

“It’s important that we have lawyers on the front lines so that legally, the cases we file will prosper.”

Mr. Cuna noted that the Environment and Natural Resources Secretary Roy A. Cimatu ordered the reinforcement of frontline offices like the CENROs, as enforcement is the department’s biggest need.

“I don’t think we can reach the number [of lawyers] that we want but the hiring of 147 lawyers for the front line is a really big step in the right direction in being able to assist the field personnel in pursuing violations,” he added.

“[The CENRO is] the front line office in terms of proximity to the people. The lawyers can help the personnel on the proper procedure so cases can actually be filed.” — Anna Gabriela A. Mogato

MVP: P3B a ‘good price’ for CURE frequency

By Patrizia Paola C. Marcelo,
Reporter

PLDT, Inc. Chairman, President and Chief Executive Officer Manuel V. Pangilinan said P3 billion is a “good price” for possible compensation by a future player for the frequency surrendered by the telco as part of the government approval of its merger with Digitel Telecommunications Philippines, Inc. (Digitel).

“I don’t know how much it would cost. It’s not really up to us, it’s with the NTC [National Telecommunications Commission]. It’s a good price, but it’s not up to us,’ Mr. Pangilinan told reporters on the sidelines of a Voyager Innovations, Inc. event on Jan. 18. 

NTC Deputy Commissioner Edgar Cabarios has said the third telecommunications player will have to compensate PLDT about P3 billion if they are to get the 3G (third generation) frequency returned by PLDT, then owned by its unit Connectivity Unlimited Resources Enterprises (CURE), to the government as part of the approval of the merger with then-Gokongwei-owned Digitel.

NTC in 2011 ordered the divestment of 10 MHz of the 2100 MHz band, used for 3G, a condition for the approval of the deal with Digitel.

NTC Commissioner Gamaliel A. Cordoba at that time said the government would bid out the surrendered frequency, with PLDT given monetary compensation. PLDT would not be allowed to participate in the bidding, which has not been conducted until now.

The Department of Information and Communications Technology (DICT) is preparing the guidelines for the specifics of the frequencies to be given to the telco which will win in the selection process.

The DICT is set to reveal on Jan. 24 its specific guidelines for the selection of a third telco player.

DICT Officer-in-Charge Eliseo M. Rio, Jr. said the compensation is still needed, and the third player, if interested in acquiring the 3G frequency, will have to assume the responsibility of compensation.

“Acquiring the frequency from CURE must be assumed by those who would get the frequency,” Mr. Rio said in a phone interview.

Mr. Rio said on Friday, Jan. 19 that the remaining frequencies, which are estimated by the Philippine Competition Commission at only around 12% of the entire frequencies, are “enough” for the third player to compete with PLDT and Globe Telecom, Inc.

 The DICT however, is looking at a “more equitable” allocation of frequencies in the long term, and this would possibly include reallocation or re-farming of frequencies.

However, Mr. Rio admitted this would take a long process and cannot immediately be carried out.

PLDT and Globe have earlier said they are wary of the said plan of the government.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.

US shutdown update: McConnell threatens early Monday morning vote

WASHINGTON — The House and Senate are in session Saturday as lawmakers try to resolve a spending impasse that partially shut down the federal government at 12:01 a.m.

Here are the latest developments, updated throughout the day:

EARLY MONDAY VOTE (7:08 P.M.)
Senate Majority Leader Mitch McConnell said on the Senate floor that the chamber will vote at 1 a.m. Monday on his plan to reopen the government and fund it for three weeks — with no action on immigration — unless Democrats agree to hold the vote earlier.

“We’ll be right back at this tomorrow and as long as it takes” to pass a spending bill, Mr. McConnell said.

Senate Minority Leader Chuck Schumer said on CNN that the White House hasn’t called him and “they say they are not negotiating — that’s foolish.”

“I’ve asked them to bring the big four” congressional leaders to the White House, “but we haven’t heard from them,” Mr. Schumer said. He said he wants a bipartisan deal that sets budget caps for defense and non-defense spending, protects young undocumented immigrants from deportation, and provides disaster funds.

HOUSE GOP HINTS AT POSSIBLE WEEKEND DEAL (6:14 P.M.)
A senior House Republican said vote counters are being told a deal could be reached Sunday to reopen and fund the government for three weeks, while a bipartisan group of senators met to discuss offering their own plan to leadership.

It’s not clear the talks will amount to anything as Republicans and Democrats sniped and traded potshots on the first day of a government shutdown. House members jeered loudly at each other during afternoon floor debate as other lawmakers worked behind the scenes.

The senior House Republican, who spoke on condition of anonymity, said a deal would be based on a commitment by Mr. McConnell to accommodate, at some later time, Democrats’ demand for a vote on a bill to protect young immigrants from deportation. Republican Senator Lindsey Graham proposed such a plan earlier Saturday.

The bipartisan group of 19 senators, led by Republican Susan Collins and Democrat Joe Manchin, met with the goal of agreeing on a plan to present to leadership on Sunday.

The senators would be playing a very “useful and welcome role” if they can present ideas that move the talks forward, Ms. Collins told reporters afterward. “It’s a difficult path for the leaders to tread,” she said.

Neither Ms. Collins nor Mr. Manchin, who joined most Republicans in backing the House-passed stopgap spending bill Friday, would say what members in the room were looking at. Mr. Manchin said an immigration proposal by Mr. Graham and Democrat Dick Durbin was a possible “rallying point,” adding that lawmakers are looking at a variety of issues and legislative vehicles.

“We’re trying to see if we can talk to the leadership on both sides and tell them what we think is a pathway forward,” Mr. Manchin said. Immigration “has to be part of the package,” he said.

The White House insists that it won’t negotiate on immigration until Congress passes a spending bill to reopen the government.

Several senators, including Mr. Graham, went to Mr. Schumer’s office after their private meeting. Asked whether they have a bipartisan proposal to avert the shutdown, Mr. Graham said, “We’re hoping that will be the case.”

Still, some House Republicans said they hadn’t heard of any progress.

“I think we’re still waiting on the Senate to act, but nothing has changed significantly,” said Mark Meadows, chairman of the conservative House Freedom Caucus.

Also on Saturday, Mr. Trump’s presidential campaign released a strongly worded video ad that said regarding the president’s efforts to stem illegal immigration, “Democrats who stand in our way will be complicit in every murder committed by illegal immigrants.”

WHITE HOUSE SNIPES AT SCHUMER (2:57 P.M.)
White House Budget Director Mick Mulvaney said Senate Minority Leader Chuck Schumer needs to “up his game” in negotiations. His comment intensified the sniping between each side in shutdown talks by contending that Mr. Schumer publicly mischaracterized his conversation with President Donald J. Trump on Friday.

Mr. Schumer said on the Senate floor that he offered to give Mr. Trump the US-Mexico border wall that the president campaigned on and Democrats have thus far resisted. Mr. Mulvaney, at a White House briefing, said Mr. Schumer didn’t offer the full $20 billion Mr. Trump is seeking, but only the $1.6 billion the president sought for one year’s funding.

“You have to ask at some point is it even profitable to continue negotiating with someone like that,” Mr. Mulvaney said. He accused Democrats of having “a 2-year-old temper tantrum” in insisting on immigration legislation as part of a spending bill.

Mr. Schumer spokesman Matt House responded on Twitter, “Director Mulvaney was not in the lunch, and is not telling the truth.”

Mr. Schumer said earlier that Mr. Trump has repeatedly changed what he’s willing to agree to. “Negotiating with President Trump is like negotiating with Jell-O,” said the New York Democrat.

Mr. Mulvaney also said Mr. Trump won’t go to Florida Saturday for an inauguration-anniversary party at his Mar-a-Lago club, while his plans to go to Davos, Switzerland, for the World Economic Forum this week are on a “day-to-day” basis.

Second-ranking Senate Democrat Dick Durbin said Democrats are insisting on attaching immigration legislation to the must-pass spending measure because of what happened in 2013, when the Senate passed a broad, bipartisan overhaul of immigration law and the House refused to take it up.

LAWMAKERS POINT FINGERS; NO PLAN IN SIGHT (1:02 P.M.)
Republican and Democratic leaders dug in their heels publicly over who’s to blame for the shutdown and how to pass a spending bill to reopen the government, with no solution yet in sight.

Behind the scenes, some lawmakers continued to discuss a short-term stopgap bill to give more time for talks on immigration legislation sought by Democrats.

President Donald J. Trump has spoken with Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan, White House spokeswoman Sarah Huckabee Sanders said. “The president will not negotiate on immigration reform until Democrats stop playing games and reopen the government,” she said in a statement.

“Senate Democrats shut down this government and Senate Democrats need to open it back up,” Mr. Ryan said in a House floor speech.

Mr. McConnell said Senate Minority Leader Chuck Schumer “thinks the entire federal government should be shut down until he gets his way on illegal immigration.”

Mr. Schumer contended that he offered Mr. Trump support for a wall at the Mexican border — a significant change for the Democrats — but said, “Negotiating with President Trump is like negotiating with Jell-O.”

“The president can’t make a deal and congressional Republicans won’t,” Mr. Schumer said. “As a result, a paralysis has descended on Capitol Hill.”

House Democratic Leader Nancy Pelosi told reporters that Democrats are willing to do a shorter term stopgap if a deal is reached on an outline for protecting young immigrants brought to the US as children and border security, and if the two parties can agree on continued parity between defense and non-defense discretionary spending.

Mr. Trump is staying home from a planned weekend trip to his Mar-a-Lago resort in Florida for a lavish party celebrating a year since his inauguration. He angrily blasted Democrats on Twitter for the shutdown.

“Democrats are holding our Military hostage over their desire to have unchecked illegal immigration. Can’t let that happen!” he tweeted.

WHAT HAPPENED FRIDAY:
The US government began a partial shutdown at 12:01 a.m. Saturday after Senate Democrats and some Republicans voted to block a stopgap spending measure that would have extended funding through Feb. 16. The vote was 50-49, with 60 votes needed to advance the measure. Four Republicans — Lindsey Graham, Mike Lee, Jeff Flake and Rand Paul — voted against the stopgap. The failed vote came after a meeting earlier in the day between Messrs. Trump and Schumer. The two parties blamed each other for the standoff, with Mr. Trump and Republicans labeling it the “Schumer Shutdown.” They noted the House passed the spending measure and the president was prepared to sign it. Even so, it was the first time in decades the government shut down when the same party controlled the White House and both chambers of Congress. The Republican-written stopgap included a six-year extension of funding for the Children’s Health Insurance Program and a delay in implementation of three taxes imposed by the Obama-era Affordable Care Act. Mr. Schumer blasted Mr. Trump’s inability to set a clear path and the failure of Republican congressional leaders to deliver on immigration. — Bloomberg

In sign of times, Swiss luxury watchmaker Audemars embraces second-hand business

GENEVA — Swiss luxury watchmaker Audemars Piguet said it would launch a second-hand business this year, becoming the first big brand to announce plans to tap into a fast-growing market for pre-owned premium watches.

The company told Reuters it had carried out a test run in one store in Geneva and would launch the business more widely at its outlets in Switzerland this year. If this proved successful, it said it would roll out the operation in the United States and Japan.

“Second-hand is the next big thing in the watch industry,” Chief Executive Francois-Henry Bennahmias told Reuters in an interview at the SIHH watch fair in Geneva last week.

Luxury watchmakers have hitherto eschewed the second-hand trade, fearing diluting the exclusivity of their brands and cannibalizing their sales. They have instead ceded the ground to third-party dealers.

But some are now looking to change tack, driven by an industry-wide sales slowdown combined with a second-hand market that is expanding rapidly, fueled by online platforms like Chrono24 and The RealReal.

“At the moment, in watches, we leave it to what I call the ‘dark side’ to deal with demand for pre-owned pieces,” added Bennahmias, whose company is known for its octagonal Royal Oak timepieces that sell for 40,000 Swiss francs ($41,680) on average.

“Anybody but the brands (is selling second hand) — it’s an aberration commercially speaking,” he said, without giving any details about how they would price pre-owned watches.

Several smaller brands, including H.Moser & Cie and MB&F, have signaled interest in the second-hand trade.

“It is important to control the sale of second-hand watches to protect the owners and the value of watches already in the market by keeping the grey market in check,” H.Moser & Cie boss Edouard Meylan told Reuters.

MB&F, which plans to launch second-hand sales via its Web site this year, told Reuters it expected to typically give a 20% to 30% discount on second-hand watches. A spokesman said customers buying from established watch brands could feel confident they were getting genuine products in good working order and with a valid warranty.

Bigger brands Rolex, Patek Philippe, Swatch Group, Richemont and Breitling all declined to comment when asked whether they planned to enter the second-hand market, while LVMH’s watch division was not immediately available.

‘WATCHES BY THE BUCKET’
Audemars Piguet said it would launch its second-hand business in several, but not all, of its 26 Swiss outlets, but declined to specify how many stores or give a more precise date.

It will initially allow customers to trade in old Audemars Piguet watches as part-exchange for new ones, and then sell on the second-hand watches. It has not yet decided whether to buy second-hand watches for cash, added the firm, saying its sales had come close to the 1 billion Swiss franc mark last year.

Experts say the second-hand luxury watches business, mostly done via online platforms or specialized retailers, is growing rapidly as a new generation of customers that values variety more than permanent ownership enters the luxury world.

In an example of the discounts offered online, a diamond-studded Audemars Piguet Royal Oak “with moderate scratches” sells for $9,450 on The RealReal, about a third of the “estimated retail price.”

Kepler Cheuvreux analyst Jon Cox said he estimated the size of the second-hand market at around $5 billion a year in revenue, including watches sold at auction, and that it had outperformed the market for new pieces in the last couple of years.

That is still dwarfed by a new luxury watch sector worth €37 billion ($45.3 billion), according to consultancy Bain & Cie. However Swiss watch exports fell 3.3% in 2015 and 9.9% in 2016 before posting a modest 2.8% rise in the first 11 months of 2017.

The United States, where sales of new watches have been falling for years, is the number one market for pre-owned watches, followed by Britain and Japan, said US retailer Danny Govberg, who sells new watches for Rolex and other brands, but also an increasing number of second-hand timepieces.

His company said its second-hand sales had grown by 37% to 40% year on year over the past five years. In an example of prices, it said it listed a second-hand Audemars Piguet Royal Oak for $24,950 compared with a $32,000 retail price.

Together with a partner in Hong Kong and a Singapore-based investor, Govberg recently launched global e-commerce platform WatchBox for buying and selling pre-owned luxury watches.

“People sell us watches by the bucket,” he said.

He said many people sold watches to buy a new one so the pre-owned market was actually driving new sales, like in the car market. “The brands are still trying to figure it out, they don’t have the solution yet,” he said.

Audemars Piguet’s Bennahmias said watchmakers had to amend business models to deal with changing consumer habits.

“We’re witnessing a social and cultural change that forces us to think about what the business will look like in five or 10 years,” he added. “Time flies, we need to watch out.” — Reuters

Mayon Volcano continues to spew lava, pyroclastic

MAYON VOLCANO remained highly active over the weekend, continuing to have “quiet lava effusion from the new summit lava dome and lava collapse,” according the Philippine Institute of Volcanology and Seismology’s (Phivolcs) report as of Jan. 21. Phivolcs said “14 rockfall events and 10 pyroclastic density currents or PDCs were recorded by Mayon’s seismic monitoring network” from Saturday to Sunday early morning. The agency also said that at present, “the Miisi lava flow has advanced to three (3) kilometers from the summit crater well within the Permanent Danger Zone (PDZ). Weak ash clouds were lofted from the rockfall events as well as from the persistent disintegration of lava on the advancing front of the Miisi lava flow before drifting to the southwest.” Alert Level 3 remains in effect, which means that Mt. Mayon is still in “a relatively high level of unrest and hazardous eruption is still possible within weeks or even days.”

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