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Storm Basyang weakens back into a low pressure area

STORM BASYANG (international name: Sanba) has weakened on its way out of the Philippine area yesterday, returning into its initial low pressure area status. However, weather bureau PAGASA warned in its 5 p.m. update on Wednesday, Feb. 14, that the weather disturbance could strengthen again into a tropical depression as it continues to dump moderate to heavy rains over Palawan. Basyang was forecasted to be out of the country by Thursday afternoon. Basyang, the second typhoon to enter the Philippines this year, brought high rainfall levels that left various parts of Mindanao and the Visayas flooded. Meanwhile, the tail-end of a Cold Front will bring scattered light to moderate, with at times heavy rains over Quezon, Bicol Region and Eastern Visayas. PAGASA said “residents of these areas must continue monitoring for updates, take appropriate measures against possible flooding and landslides.”

P711M DPWH road project in Mandaue City questioned

MEMBERS OF the multi-sector Metro Cebu Bridge Management Board (MCBMB) wants to defer the implementation of the P711- million depression road project along UN Avenue and Plaridel Street in Mandaue City until an updated study and traffic management plan are put in place. “We are not against development and progress but we have to do what is the right project,” said Glenn Soco, chairman of the Regional Development Council-7 infrastructure committee. At a meeting of the MCBMB Tuesday, it was pointed out that the project, under the Department of Public Works and Highways (DPWH) and awarded to contractor B.M. Marketing, was based on an old study by the Japan International Cooperation Agency, which needs to be updated. MCBMB Co-chairman Pericles Dakay said the project has to be reviewed given the “substantial changes” in the present landscape, such as the expansion of the Mactan-Cebu International Airport and the economic growth of neighboring Lapu-Lapu City. — The Freeman

See full story on https://goo.gl/QMcmti

Senators call for accountability in Boracay mess

SENATORS MARIA Lourdes Nancy S. Binay and Joseph Victor G. Ejercito yesterday urged the administration to fast-track actions that address the sewerage problem in Boracay Island, one of the country’s most popular tourist destinations. Ms. Binay, chair of the senate committee on tourism, wants the Department of Environment and Natural Resources and Aklan local officials to create citizens’ teams to monitor the cleaning operations. For his part, Mr. Ejercito wants the erring private establishments and local officials to be held accountable for ignoring environment laws, which led to the island’s untreated wastewater and sewage problem. “I believe that those private establishments that are found guilty of not following environmental laws and that have caused the deterioration of the situation in Boracay has to be charged as well as those government officials who approved the permits,” he said in an interview with reporters. “Let us give a chance for Boracay to breathe,” he added. — Camille A. Aguinaldo

BIMP-EAGA officials plan concrete projects under Vision 2025

GOVERNMENT AND private sector representatives of the four-country BIMP-EAGA are meeting in Bandar Seri Begawan, Brunei starting yesterday, Feb. 14, for the annual strategic planning under the sub-region’s Vision 2025. In a statement, the Mindanao Development Authority (MinDA) said the 2018 BIMP-EAGA Strategic Planning Meeting aims to identify specific projects for the sub-region’s five pillars of development, which are connectivity, food basket, environment, tourism, and sociocultural and education. MinDA is the Philippine’s coordinating office for the Brunei, Indonesia, Malaysia, Philippines-East ASEAN Growth Area (BIMP-EAGA). “This year’s meeting focuses (on) concretizing steps to operationalize strategies under the BIMP-EAGA Vision 2025 as adopted by the Heads of States during the EAGA Leaders Summit in Manila last year,” said Assistant Secretary Romeo M. Montenegro, MinDA deputy executive director. Mr. Montenegro said among the identified projects are “establishment of new air and sea links, cross-border power interconnection and renewable energy development, agribusiness development, better trade facilitation arrangements, sociocultural exchanges, eco-tourism and green cities development.” The Philippine focus areas for BIMP-EAGA are Mindanao and Palawan. — Mindanao Bureau

Davao’s anti-discrimination law to be expanded to include health status

DAVAO CITY’s anti-discrimination ordinance will get revamped with the inclusion of health-related issues such as Hepatitis B. The existing City Ordinance 1417-12 prohibits and penalizes discrimination based on sex, gender, identity, sexual orientation, race, color, descent, national or ethnic origin and religious affiliation or beliefs. Councilor Mary Joselle D. Villafuerte, a doctor who chairs the council committee on health, said they have received several complaints about workers getting discriminated or even terminated because of their illnesses. “There is a need to amend the said ordinance to include discrimination on the basis of health status so that it is included in the acts penalized for discrimination. No one should discriminate anybody or stop accepting employment based on health status, there are companies making Hepa B testing mandatory. It has to stop,” she said during Tuesday’s council meeting. — Carmelito Q. Francisco and Carmencita A. Carillo

Nation at a Glance — (02/15/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Estimating electricity price hikes resulting from TRAIN

Electricity and energy means development. So an increased electricity supply at a lower, more stable, and more competitive price results in increased development.

Increased development means more businesses and job creation and less unemployment and poverty.

As a result, it is anti-development to impose new or higher taxes that will make electricity prices more expensive.

The new tax law called Tax Reform for Acceleration and Inclusiveness (TRAIN) did just that.

It imposed new taxes or raised existing taxes on oil products, coal, and electricity transmission. But TRAIN played favoritism by exempting from tax hikes natural gas and intermittent energy like wind and solar.

The Philippines inflation rate jumped to 4% in January 2018 from 3.3% in November-December 2017. Other Asian countries experienced flat or lower inflation last month. Why?

The most proximate explanation is the TRAIN law, even if various pass-through costs have yet to take effect. For instance, the hikes in coal tax, bunker fuel tax and VAT on transmission charge will be felt starting February billing. The expected inflationary pressure especially for oil price hikes contributed to this situation.

The table below is an attempt at quantifying the projected electricity price hikes because of TRAIN.

These estimates are made on certain assumptions that are based on available data. Changes in assumptions and more comprehensive, national data will change the results, upward or downward but the numbers will not be significant.

Based on these estimates, paying an extra 14 centavos/kWh this year, 21 centavos/kWh in 2019, and 27 centavos/kWh in 2020 might appear small for those consuming only 200 kWh/month. This consumption level implies that a household doesn’t have any air-con but maintains a small refrigerator and a few electric lights may have to pay an extra P28/month, P42/month and P54/month in 2018, 2019, and 2020, respectively.

But that is only for direct household electricity consumption. People who live in those small houses may work and/or purchase services in factories, schools, and universities, shops and malls, hotels and restaurants, hospitals and airports, etc. These enterprises consume tens of thousands of kWh per month and the additional electricity cost will be passed on the consumers, which might affect sales and hence, affect future salaries and benefits of workers.

TRAIN 1 made a big mistake of raising the cost of energy in the country. The only consolation is that the law did not impose the whole oil tax hike of P6/liter in 2018 because it staggered the hikes in three years. And the law did not follow the distortionary Habito coal tax proposal of P600/ton, or even the Legarda proposal of P100, P200, P300/ton coal tax from 2018-2020.

TRAIN 2 tax bill should not entertain additional energy tax hikes.

Expensive electricity is never a virtue as so many things that we do now require electricity. TRAIN 2 should in fact cut more national and energy taxes because the Duterte administration is serious in its federalism agenda by allowing the states to create their own taxes and their own new government agencies.

With these things in mind, I leave you with a reminder from former US president Ronald Reagan: “The problem is not that the people are taxed too little. The problem is that government spends too much.”

Energy & TRAIN

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

minimalgovernment@gmail.com.

The death of scruples

I have come to the conclusion that in this modern day and age, that scruple is dying. Technology may be partly to blame, in the manner that it has made relationships less personal. People seem less concerned now with values and morality and propriety — with the strong motivation for profit or gain seemingly weakening the sense of right and wrong.

And this “change” or transition appears to have become more apparent through the generations. Certain “codes” or traditions are no longer generally observed — like getting “dressed” for going out, or keeping proper decorum when in public, or, following rules even when no one is looking, or keeping one’s word no matter what.

“Scruple” is a word not so often used nowadays, the same goes for “decorum” or “etiquette.” In fact, the use of these words can quickly remind particularly the younger generation of old stories of “strict parents,” of “conservative” ways, of not-so-gentle reminders from a leather belt of the importance of “good manners,” and of curtailed pubescent and teenage freedoms.

Invariably, liberal thinking or the emphasis on individual freedom, and encouraging the practice of democracy in homes, in the last 40 years have helped produce “enlightened” generations. But, I am also inclined to think that for some reason, we have diminished our sense of honor, integrity, discipline, and fortitude in the face of pain and adversity.

We have become less scandalized by reports of corruption and thievery, of rape, and murder. We have come to expect our politicians and bureaucrats to be corrupt, and to serve themselves first before their publics. And, we are no longer surprised when we hear of collusion between politicians and criminals, and of policemen being hired as assassins or hitmen.

Where have we gone wrong?

Can we not bring back the old days, the old values, the old traditions that somehow remain relevant to present lives? What will it take for our children and our children’s children revive some of the “old ways” that have kept us on the side of what is good and right, and mindful of others?

The former South Korean president Park Chung-hee comes to mind. One can say a lot of negative things about Park, but despite all his shortcomings as a leader, he was never a crook. Several reports have noted that at the time he was assassinated by his own intelligence people in 1979, he actually owned only one piece of property, which was an old apartment that he had bought before he became president in 1961. He was president for 18 years, and yet he never enriched himself.

Closer to home, we can think of Jesse Robredo, the former Interior secretary who died in a plane crash.

Before joining the Aquino II Cabinet, he was mayor of Naga City in Camarines Sur for several terms. He lived a relatively modest life as a local official and as a Cabinet member. He never enriched himself while in office, and his constituents loved and remember him for that.

And, of course, there is our very own president Ramon Magsaysay, who also died in a plane crash, in Cebu in 1957. He was president for almost four years, and had been in Congress and in the Cabinet prior to winning the presidential race in 1953.

At the time of his death, he reportedly owned only one piece of property as well — his old house in Singalong, Manila that was built before the World War II.

There are many stories about how Magsaysay conducted himself as a public official, including how he had instructed the Malacañang kitchen staff to religiously tally all the food expenses incurred by his three children — who were all in school then — and their friends who would occasionally visit the Palace.

According to Jun Magsaysay, the president’s son, his father had considered such family expenses as “personal” and had them deducted instead from his monthly paychecks. They were never charged against regular Palace expenses. This went on, says Jun, without the family’s knowledge, and they were made aware of it only after his father’s death.

Jun noted that his father, as president, received a monthly salary of P5,000. But, his last paycheck, for March in 1957 and released after his plane crash, was for only P2,000. This was after deductions had been made to it. Jun added that even the gasoline for the second-hand Ford car he was using at the time were charged against his father’s paycheck.

And when the president’s daughter, Mila, invited friends over, or even when she celebrated her debut party at the Palace, all the expenses were deemed by her father as personal, and thus charged against his salary. Jun said his father “scrupulously” delineated personal or private from public expenses.

And then there was the story of how Magsaysay’s wife and children could not even move back into their 24-year old house in Singalong, Manila after his death.

Built in 1933 by Magsaysay while he was still a young manager at Try-Tran transport, the house was rented out at the time, and the Magsaysays did not want to displace the tenant.

So, with the family’s sole breadwinner lost to the tragic plane crash, the Magsaysays ended up borrowing someone else’s house for about a year while they put up a new home on a lot donated by the Ortigases in Mandaluyong City.

The construction of the house was financed by the proceeds of Magsaysay’s personal accident insurance, a coverage that was unknown to the family until after his death, while architectural services and some construction materials were donated by the late president’s friends. The president’s widow lived in the same house for almost 50 years, until her death in 2004.

And it was largely through scholarships as well as a modest pension from the Philippine government that Luz Magsaysay managed to see her two daughters and her son through their studies in good universities.

This was the kind of world, the kind of Philippines, and the kind of politics that our people lived through 60 years ago. I am certain many others in government at that time lived just as simply as Magsaysay and his family did, while adhering to a high moral standard.

I have found myself retelling this story to any one who would care to read or listen since Jun shared it with us. Because I believe one need not be wealthy or influential to have good taste, or to be correct, or to be courteous. Taste, decency, and sense of propriety do not come from money, not even from education. These all start from having a strong sense of right and wrong, from having a sense of modesty, from respecting one’s self and others, and from having dignity and recognizing that in others.

It also comes from having scruples, or that feeling of doubt or hesitation or reluctance or uneasiness to do something that one thinks or feels may be wrong. I believe we must resurrect scruples, and encourage the thinking that one must always deliberate the morality or propriety of a course of action before actually doing anything. “Just do it” just don’t cut it, anymore.

 

Marvin A. Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

Love lessons from social enterprises

As the Filipino rock band Rivermaya sang, “Panahon na naman ng pag-ibig (It’s the season of love again).” For couples, the coolness of the February breeze is warmed by the intimacy a lover brings. For others, friends and families celebrate treasured companionships. After all, The Beatles exclaimed, “All you need is love!”

Love is universal, in the sense that everyone — regardless of background, ethnicity, religion, or profession — has an appreciation of what love is. I realized this during my research projects studying social enterprises. (See? Research is not supposed to be boring. Who knew we could learn more about love through research?)

Social enterprises are unique types of organizations whose business ideas empower solutions to solve society’s pressing problems such as poverty, environmental sustainability, and cultural preservation. We can only imagine how hard it is to introduce innovations that reconcile profits and solve social problems. However, these very difficulties lead to lessons about love that we can apply in our own relationships.

Love is a choice.

Love is not just a passive feeling, or that #kilig sensation we feel as we imagine butterflies flying in our stomachs. Rather, it is about choosing to love despite (or better yet, because of!) imperfections. Authentic social entrepreneurs and social enterprises deliberately seek the marginalized and the neglected, work with them to come up with mutually beneficial solutions, and execute innovative ideas until a commercially viable but socially sustainable outcome is achieved.

When love is thought of as an action to be chosen rather than an emotion to be felt, it becomes more of a verb rather than a noun. If actions speak louder than words, then love best expresses itself when we act on it.

Love is a commitment and a partnership.

It is easy to like social media posts of couples celebrating monthsaries and other milestones. But what the public does not see are the challenges of maintaining a relationship that is founded on commitment and partnership. Long-time couples will attest that obstacles and temptations need to be overcome after the early “best foot forward” phase of relationships.

The same holds true for social enterprises.

After the initial rush of passion and idealism, more lucrative and financially rewarding opportunities may become more attractive. It is easy to dwell on imperfections and give up on helping partner communities. But the social enterprise, community partners, and customers are empowered by mutual faith and belief. They forgive shortcomings and push each other to be the best versions of themselves. Rather than settling for compromises, they seek win-win solutions by trying to reconcile all stakeholders’ objectives.

Thus, when love is viewed as a commitment and partnership, #hugot takes an interesting form.

It no longer dwells on frustrations and negative experiences. Rather, #hugot becomes a manifestation of an inspiration anchored on mutual commitment and partnership.

Love is about proper timing.

In a society spoiled by instant gratification, it is easy to think that love just happens. Couples want to fast-track intimate acts, live in together, and even rush into marriage without appreciating the time it takes to build a foundation of mutual trust, respect, and acceptance.

The same goes with commercial start-ups.

A founder may want to scale up as fast as possible even if the ideas and the foundation of the organization are not yet strong.

In my research, I have discovered that social enterprises that succeed in terms of longevity and of reconciling business and social objectives appreciate the importance of timing. They do not aspire to scale up right away if doing so will strain their community partners. Rather, they diligently fortify their resources and their competencies before capitalizing on opportunities.

O kay tagal din kitang mamahalin (I will love you for a long time).”

The lyrics above are from Sugarfree’s (another Filipino rock band) hit single “Burnout,” a song lamenting the difficulties of love. Both people and social enterprises will experience various challenges that will test relationships. But if they try to apply the three love lessons from social enterprises, perhaps they can better manage their relationships.

To repeat The Beatles, “Love is all you need!”

 

Patrick Adriel H. Aure is a faculty member of the Management and Organization Department of the Ramon V. Del Rosario College of Business of De La Salle University (DLSU), and is a junior research fellow of the DLSU Center for Business Research and Development. He is excited about exploring cases featuring social enterprises, sustainability, innovation, and new business models.

patrick.aure@dlsu.edu.ph

Supreme Court TRO application filed against renewable energy law

THE Supreme Court has been asked to issue a temporary restraining order (TRO) against the renewable energy law amid claims some of its provisions are unlawful, specifically those on renewable portfolio standards (RPS) and the feed-in-tariff (FiT) system.

The petitioner, Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan (Agham), said consumers should be concerned about the implementation of the law — Republic Act No. 9513, which promotes the development, utilization and commercialization of renewable energy (RE) resources.

In a statement, the group said based on its study, consumers will pay P821 billion during the 20 years that the private sector has been given to develop renewable energy.

“Renewable energy and natural energy sources such as solar energy, wind and hydro-electric are indeed good options. But why would we cook ourselves in our own fat?” it said.

“RE developers under the current set-up are assured of minimum to zero-risk in their investments due to the incentives given to them at the expense of electricity consumers,” said Angelo B. Palmones, Agham’s leader.

The group said some privately owned companies may earn in the long run but consumers will pay for the incentives. It also said asked whether it is justified to allow the companies to impose additional charges considering the added tax burden brought about by the Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law.

The FiT system offers guaranteed payments on a fixed rate per kilowatt-hour (kWh) for 20 years for emerging renewable energy sources, excluding power generation for the developers own use.

RPS is a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources. It is called for under the RE law.

Sought for comment, Sen. Sherwin T. Gatchalian, who chairs the chamber’s energy committee, said: “If the courts will render the FiT unconstitutional, that would create problems in the future of RE because the investors were counting on the incentives that we’re giving. So in view it’s the reputation of the country that is in question here because they came in because we promised them incentives,” he said.

“RPS it’s not being implemented it, so if they want to question the constitutionality of it, it’s a possible move in behalf of the petitioners,” he added. — Victor V. Saulon

New GSIS-run pension plan for AFP may be ready this year

By Melissa Luz T. Lopez,
Senior Reporter

THE GOVERNMENT hopes to draft a new system for military pensions within the year that would require Armed Forces personnel to pay monthly contributions, Budget Secretary Benjamin E. Diokno said.

Mr. Diokno said the plan is for a three-tiered system for military pensions, while transferring administration to the Government Service Insurance System (GSIS).

He noted that the problem stems from pensions being pegged to the salaries of active-duty personnel, which means pension obligations escalate with every pay rise. “We are designing a system once and for all that will address this problem,” Mr. Diokno said during a bi-weekly briefing held at the Department of Budget and Management (DBM) headquarters in Manila.

“Before end of the year, this will be done.”

President Rodrigo R. Duterte signed last month a joint congressional resolution which raised the base pay of military and uniformed personnel, to be implemented within a two-year period. The monthly base pay of candidate soldiers and candidate coast guard personnel have been set at P18,587.

Salaries for generals, now at P121,143, will rise to P149,785 by Jan. 1, 2019.

The government spent P75 billion in pension and benefit payments for the uniformed personnel and their families. “This is not sustainable as it is,” Mr. Diokno said.

Mr.  Diokno earlier said that a capital infusion amounting to P7 to P9 trillion is required to fund the proposed pension scheme.

Under the planned reform, existing pensioners will continue to enjoy full benefits which they have been receiving. Those currently in the service will be made to pay monthly contributions to the pension fund similar to the system for civilians, while new entrants will be placed under a new pension regime.

Mr. Diokno did not disclose the findings of an actuarial study pending its formal presentation to the government’s economic managers.

He said some of the funding for reforming pensions might come from renting out idle property owned by the Armed Forces of the Philippines (AFP), with the government developing the sites for commercial lease.

GSIS President and General Manager Jesus Clint O. Aranas said last month that the pension system for civil servants is willing to manage military pensions. He added that the pension fund for retired armed forces personnel will be separate from the one meant for former government workers.

Palace orders DA to focus on domestic market

THE Department of Agriculture (DA) has been ordered by President Rodrigo R. Duterte to focus on meeting domestic demand rather than developing exports.

Agriculture Undersecretary for policy and planning Segfredo R. Serrano said that despite the optimistic outlook for global trade in early 2018, alternative strategies are being considered such as bringing in more tourists to increase domestic consumption of agricultural produce.

Mr. Serrano said export markets are volatile, and fresh fruit is difficult to transport and sell to certain markets.

“Our target is a 10% increase in the volume and value of exports for the medium term. But, of course, the President has instructed us to concentrate on serving the domestic market,” he added.

“You can’t just keep on exporting when you have so many issues to solve in the domestic market. You need to improve the confidence of consumers particularly on safety and the availability of food supply.”

Agriculture Secretary Emmanuel F. Piñol said that export plans for high-value crops like cacao and coffee are hampered by poor domestic yields.

Mr. Serrano said that the country still has potential in high-value products. Coconut products, which are considered low-value, remain the country’s top agricultural export.

According to the Philippine Statistics Authority, agriculture-based exports fell 61.71% year on year in December to $150.40 million.

Mr. Serrano said that under the new policy direction, the model might be Thailand, where the highly developed tourist industry provides a boost to the domestic consumption of Philippine products.

“If you substantially increase the tourist arrivals, whatever you produce here won’t be exported,” he added.

“You can sell your goods within your borders. The farmers won’t have to worry about logistics or quarantine.” — Anna Gabriela A. Mogato