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Drastic and urgent measures against pollution

A report in The Philippine Star yesterday said the German Federal Government would invest €1 billion (equivalent to $1.2 billion) in environment projects in cities and towns across the country in 2018. These projects will look into environment-friendly traffic solutions that would help lower air pollution.

It is unsurprising that Germany is taking action. A report by European media platform EURACTIV noted that in Stuttgart, for instance, its annual nitrogen dioxide level was often “more than double the acceptable threshold value.” It also said that German cities with “pollution levels just below Stuttgart’s were Munich, Reutlingen, Düren, Limburg and Freiburg.”

The Star report added that federal funds would be invested into electric buses, electric charging stations, and a more environmentally friendly traffic infrastructure. At the same time, German Environment Minister Barbara Hendricks reportedly called on the German automobile industry to also “support the government’s action plan.”

Seventeen years ago, I was in Hanover for the Expo 2000 World Fair, on a trip hosted by the German Embassy in Manila. That trip included visits to Munich, Stuttgart, and Frankfurt, among others. That early, almost two decades ago, I was already amazed by the efforts of the federal and state governments to curb pollution.

That trip included a close look at environment-friendly homes, built with passive cooling and maximum lighting in mind, and the use of solar panels as well as light and recyclable materials. We also looked into recycling plants making use of glass, plastic, and paper wastes. And then there was a visit to a train station running on solar power. This was almost 20 years ago.

To date, online publication Clean Technica reported that on April 30, Germany “established a new national record for renewable energy use.” It noted that “part of that day (during the long May 1 weekend), 85% of all the electricity consumed in Germany was being produced from renewables such as wind, solar, biomass, and hydroelectric power.”

“Most of Germany’s coal-fired power stations were not even operating on Sunday, April 30th, with renewable sources accounting for 85% of electricity across the country,” Clean Technica quoted Patrick Graichen of Berlin-based policy institute Agora Energiewende Initiative. “Nuclear power sources, which are planned to be completely phased out by 2022, were also severely reduced.”

Graichen was also quoted as saying that days like last April 30 would become “completely normal” by 2030, as the German federal government’s Energiewende, or energy revolution, “begins to really reap the benefits of the investments made in renewable energy resources since 2010.”

Seven years ago, Germany started Energiewende (German for energy transition), a plan to transition to low-carbon, environmentally sound, reliable, and affordable energy supply. In this line, Germany plans to rely heavily on renewable energy (particularly wind, photovoltaics, and hydroelectricity), energy efficiency, and energy demand management.

In addition, most if not all existing coal-fired generation will be retired. Germany’s fleet of nuclear reactors will also be phased out by 2022. Legislative support passed in late 2010 also set targets for greenhouse gas (GHG) reductions of 80%–95% by 2050 (relative to 1990), and a renewable energy target of 60% by that year.

As of 2013, Germany reportedly spends €1.5 billion per year on energy research in line with the energy transition plan. And in 2018, it reportedly plans to spend another €1 billion for traffic-related programs to help lower air pollution. So, other than planning ahead, Germany has also been spending to make the energy transition a reality.

It is in this line that I think it is laudable for the Philippine Senate to have now doubled the excise tax rate for nonmetallic minerals and quarry resources, considering that the last adjustment in tax rates was in 1994. The excise tax on coal was also raised from the present P10 per metric ton (/MT) to P100/MT in the first year of implementation, P200/MT in the second year, and P300/MT starting the third year.

But, a higher tax on coal — among others — is just a first step. This should be complemented with additional regulations prescribing the use of the cleanest coal technologies.

In fact, this direction should cover not only coal but all other types of technologies for power generation and industrial production.

In addition, we should spend more time, effort, and resources to learn further from the German experience. I reiterate my call for more studies on shifting completely to renewable energy, at an appropriate and feasible time, on the condition that any additional government subsidies or financing should be only short-term.

I also reiterate my call for the government, through Congress, to legislate a phase-out of the use of plastic bottles, and the imposition of a high tax on plastic bottles until they are completely phased out. Revenues from such taxes can be earmarked for pro-environment programs and for research on suitable and environment-friendly alternatives to plastics.

About a decade ago, a colleague remarked to me that I spent more money on car maintenance every year than on annual medical tests. Realizing my folly, since then I have endeavored to undergo medical examination yearly. After all, I feel that without my health, all else will be pointless. One must be fit enough to work, be productive, or to enjoy life.

The same argument applies to the environment.

We should, at this point, consider drastic and urgent measures to address degradation. What will be the point in our long-term efforts to build a strong and productive economy, and wealthy households, if pollution will soon kill the world and the population, anyway?

 

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

matort@yahoo.com

Globe inks P7-B loan deal with Landbank

GLOBE Telecom Inc. on Wednesday said it signed a P7-billion term loan facility with Land Bank of the Philippines (Landbank).

In a statement, the Ayala-led telecommunications company said proceeds from the seven-year loan will be used for its capital expenditures (capex).

This year, Globe allocated $850 million for capital expenditures, mostly for data-related projects. As of end-September, the company said it has already spent P36.8 billion or around $731 million in capex. The bulk or around 84% has been used for projects to improve data network capacity and coverage.

Globe reported its nine-month attributable profit jumped 11% year on year to P12.99 billion, following a 6% increase in revenues to an all-time high of P95.14 billion.

The company attributed the higher revenues to its growing data segment, driven by its mobile and home broadband businesses, as well as its partnerships with global companies for innovative digital services.

Shares in Globe rose 2.69% or P48 to close at P1,830 each on Wednesday.

Amazon unit plays catch-up with cloud AI where it lagged

AMAZON.COM, Inc.’s cloud unit dominates the market for computing power delivered over the Internet. But there’s one area where it has lagged: artificial intelligence (AI) tools that let customers parse data, understand speech and recognize images without buying their own expensive machinery.

Amazon Web Services (AWS) has quickly added AI enhancements, hired experts in the field and signed up customers like software maker Intuit, Inc. and insurer Liberty Mutual Group, Inc.

Amazon is playing catch-up because this market is likely to fuel growth in cloud computing – and right now Microsoft Corp. and Google are using it to pry customers from AWS. Sales of software for creating AI applications are forecast to rise about 40% through 2021 to more than $8 billion, according to research firm International Data Corp. (IDC). Growth for those products in the cloud will be even higher, said IDC analyst David Schubmehl, as companies turn to Internet-based services to assemble and run increasingly complex programs that use the latest AI advances.

But for a company that boasts one of the most successful consumer AI gadgets — Amazon’s Echo devices — AI cloud services have been slow to arrive. Google and Microsoft have beaten AWS in rolling out early products and have natural advantages that stem from their large research labs stocked with AI experts and years of experience in the field. It’s an unusual position for AWS, which has a 5-to-1 lead in overall cloud market share over no. 2 Microsoft, according to Gartner Inc.

Amazon counters that it has plenty of edge, particularly in machine learning, where algorithms automatically parse and adapt to data.

“When the world was still trying to learn how to build Web sites in 1995, we were using machine learning to run recommendation engines,” said Swami Sivasubramanian, vice-president for AI at AWS, referring to Amazon’s early foray into predicting which books customers want.

Since then, Amazon has used AI for its warehouse robots and its cashier-less supermarket concept called Amazon Go. There are thousands of people at the company working on machine learning for internal uses, Sivasubramanian said.

But in AI cloud services for other companies, the story has been different. Last year, AWS upped its game in this area, hiring machine-learning luminary Alex Smola and charging him with expanding staff and making these products more widely available and easy to use for AWS customers.

In recent months, the company hired Pietro Perona, a pioneer in the field of computer vision, as well as Stefano Soatto, who was one of Mr. Perona’s students back in the 1990s and is now a well-known computer vision expert himself. Pilar Manchon, who built an AI language company that Intel Corp. acquired, joined last year, as did Hassan Sawaf, the former head of AI at EBay, Inc.

A year ago, Amazon released several new AI services. Lex understands speech and text; Polly mimics speech so apps can read out loud; and Rekognition tells you what’s in a picture.

Before those offerings appeared, Liberty Mutual was looking at rival products from companies like Microsoft to build a chatbot that lets employees ask questions about, say, benefits or what’s on the menu in the cafeteria, said Gillian McCann, who oversaw the project. Then AWS announced Lex, and Liberty Mutual switched to that, a move that let the company stay with its existing cloud provider.

“Given that they’ve only been doing this for 11 months, they’re doing pretty darn well,” said IDC’s Schubmehl. “AI is now a key component of Amazon’s arsenal.”Google unveiled its cloud-based machine-learning platform Tensorflow in 2015. The open-source coding libraries and tools for neural networks — a powerful kind of artificial intelligence loosely based on the wiring of the human brain — have proven popular with programmers and become a key selling point for Google’s cloud services. Earlier this month Amazon announced it’s joining forces with Microsoft and Facebook to try to create a rival open-source AI programming platform called Open Neural Network Exchange (ONNX) — that will allow artificial intelligence systems built on software used by any of the three companies to be compatible with the others. The move is intended to allow the three to potentially steal users away from Google’s Tensorflow.

Amazon will launch more products this week at its Re:Invent cloud conference. A keynote on Wednesday is expected to show off new AI capabilities and a revamped data warehousing service, code-named Ironman, that ingests and prepares data so machine-learning algorithms can be applied to information, according to technology news Web site The Information.

“I’m super-happy with the amount of progress that we’ve made,” AWS’ Mr. Smola said in an interview. “Am I happy with where we are relative to where we should be? No. But you never are.”

Besides selling new AI tools, AWS gets revenue when customers rent lots of processing power or storage to run the AI programs they construct. Amazon’s position there, and the wide array of hardware the company offers customers for these tasks, is underappreciated, said Matt McIlwain, managing director at Seattle-based venture capital firm Madrona Venture Group. AI “is an area where they’ve been out-marketed,” he said.

Financial and accounting software firm Intuit will rely on AWS to host its AI applications and will use the new tools for functions including answering customers’ questions about taxes and automatically detecting fraud, Intuit Chief Technology Officer Tayloe Stansbury said.

Language learning app Duolingo uses Polly to speak to users in the foreign language they’re trying to master. The city of Virginia Beach uses AWS to run its StormSense app that predicts coastal flooding, and the Washington County Sheriff’s Office uses Rekognition to identify persons of interest.

The technology has a way to go, Ms. Manchon said. “If you are expecting it to be almost like a human being, you might not get what you want,” she said. But she predicts dramatic improvement over the next few years.

That AWS was able to attract Mr. Smola in the first place signifies a major change in the way it operates. Four years earlier, he turned down a job with Amazon because the company wouldn’t let him publish his research. Now he publishes frequently and AWS contributes to open-source AI projects.

One thing that hasn’t changed is Amazon’s focus on the customer rather than the kind of academic research Microsoft and Google do. Anyone working on a new AI project at Amazon must first write a Frequently-Asked-Questions memo and a press release for the final product. That means nothing gets built that isn’t directly intended to meet a customer need. The approach is appealing to some of the scientists Amazon has recruited, like Soatto and Smola, because it’s different from what they’re used to in academia. — Bloomberg

Japan, China dominate list of world’s top restaurants

JAPAN and China have more of the world’s best restaurants than anywhere else, according to the La Liste ranking, which will be published next week.

Although the French-based list will declare Guy Savoy’s flagship Paris riverside restaurant the best in the world for the second year running — and French cooking dominates the top 100 — the big trend is the climb of Chinese haute cuisine.

“The rise and rise of China is the big story,” said Jorg Zipprick, who crunched the numbers for the “guide of guides,” which was set up as a “more scientific and reliable” rival three years ago to the British-based 50 Best Restaurants.

Japan still tops the country table with 138 restaurants in the top 1,000 of the French classification — which aggregates reviews from guides, newspapers and Web sites including TripAdvisor — but China is closing the gap fast with 123.

“Up to now China has been one of the most difficult countries to get data from,” Zipprick told AFP, but a boom in local gastronomic guides has changed all that.

“Asia has a lot more restaurants than Europe and it is only logical that La Liste will reflect that,” he added.

MAO’S FAVORITE DISH
Tokyo institution Kyubey, whose sushi is renowned for being both “extraordinary and reasonably priced,” took third spot after Le Bernardin, a New York fish restaurant run by Emmy award-winning US television chef Eric Ripert.

Two other restaurants in the Japanese capital made the top 20, the minuscule Kyo Aji and French chef Joel Robuchon’s plush dining room in a reconstructed French chateau.

They were followed by the highest-placed Chinese restaurant, the Huai Yang Fu at Andingmen in Beijing — whose speciality is a roast pork dish adored by Chairman Mao.

While there is no dramatic change at the summit of the list, there were three newcomers to the top 10, including The French Laundry, a former saloon in California’s Napa Valley which “Kitchen Confidential” author Anthony Bourdain has called “the best restaurant in the world, period.”

It shared an almost perfect mark of 99 out of 100 with La Vague d’Or in the French Riviera resort of Saint Tropez and Martin Berasategui’s restaurant in the village of Lasarte in Spain’s Basque country.

PLANKTON SORBET
Another of the big climbers was Aponiente at the other end of Spain, where diners cleanse their palates with a plankton sorbet.

The Andalusian fish specialist in El Puerto de Santa Maria jumped 200 places on the back of getting a third Michelin star.

For the first time a Canadian restaurant, Alo in Toronto, has entered the top 100, while the Turkish female chef Aylin Yazicioglu makes the grade for her highly rated Istanbul restaurant, Nicole.

New York’s Eleven Madison Park, which was first in the 50 Best Restaurants ranking in 2017, was placed fourth on La Liste.

But the two lists differ widely beyond that — although they roughly agree that El Celler de Can Roca in Girona, Spain; Osteria Francescana in Modena, Italy, as well Alain Ducasse and Le Bernardin represent more or less the summit of the culinary arts.

La Liste’s aggregator of the 1,000 top-rated restaurants in the world is modeled on the world tennis rankings and the Shanghai Ranking for universities.

While Japan, China, France and the United States top the league for having the highest number of best restaurants, Switzerland with 38 for a population of eight million, has the highest per capital rating.

Zipprick said its database — which is available as a smartphone app — now includes 16,000 eateries across the world which it classifies from haute cuisine to lower-priced “Food Gems.”

Superstar chef Gordon Ramsay’s flagship London restaurant remained the highest-rated British table, pipping L’Enclume, which operates in a former blacksmith’s forge in Cumbria, northwest England.

This year’s winners will be formally announced at a banquet in Paris on Monday, with 40 of the world’s leading chefs also invited to meet French President Emmanuel Macron at his Elysee Palace residence. — AFP

Pope Francis calls for peace in Myanmar

YANGON — Pope Francis called on the people of Myanmar on Wednesday to embrace peace and reconciliation as their country emerges from nearly five decades of military rule still riven by ethnic conflicts and communal strife.

The pope made his appeal at an open-air mass in Yangon on the third day of a visit fraught with diplomatic risk over a military crackdown that has triggered the flight of about 625,000 Muslim Rohingya from the predominantly Buddhist country.

In a speech on Tuesday, he did not use the highly charged term ‘Rohingya,’ following the advice of Vatican insiders who feared it could set off a diplomatic incident and turn Myanmar’s military and government against minority Christians.

However, his call for justice, human rights and respect for all were widely seen as applicable to the Rohingya, who are not recognized as citizens or as members of a distinct ethnic group.

The mass exodus from Rakhine state to the southern tip of Bangladesh began at the end of August when the military launched a counter-offensive in response to Rohingya militant attacks on an army base and police security posts.

Scores of Rohingya villages were burnt to the ground, and refugees told of killings and rapes. The United States said last week that the military’s campaign included “horrendous atrocities” aimed at “ethnic cleansing.”

Myanmar’s military has denied all accusations of murder, rape and forced displacement.

Only about 700,000 of Myanmar’s 51 million people are Roman Catholic.

Thousands of them traveled from far and wide to Yangon to see the pope, and many attended Wednesday’s mass on the grounds of what had been racecourse during British colonial times.

Among the tens of thousands there were priests, nuns, diplomats, leaders of Aung San Suu Kyi’s ruling National League for Democracy, as well as members of ethnic groups in traditional garb who sang songs and waved Myanmar and Vatican flags as they waited for the pope.

“We may never get such a chance again. The pope lives in Rome and we can’t afford to go there,” said Bo Khin, 45, a teacher who traveled on a truck to Yangon with a group of 15 relatives from the city of Mandalay.

“We feel very happy, joyful that he visited us in Myanmar,” he added.

Bells chimed as Francis arrived.

Standing in the back of a white truck, he smiled, waved at the crowd and looked relaxed as he headed to a pagoda-style canopy to celebrate mass.

In his homily, he called on the country’s people to “anoint every hurt and every painful memory” and promote “the reconciliation and peace that God wants to reign in every human heart and in every community.”

“I know that many in Myanmar bear the wounds of violence, wounds both visible and invisible,” he said, urging them to shun temptation to seek healing from anger and revenge.

Prayers were then read by members of the congregation in the Shan, Chin, Karen, Kachin and Kayan languages.

The prayer in Karen read: “For the leaders of Myanmar, that they may always foster peace and reconciliation through dialogue and understanding, thus promoting an end to conflict in the states of Kachin, Rakhine, and Shan, we pray to the Lord.”

When she came to power in 2016, Nobel peace laureate and longtime champion of democracy Ms. Suu Kyi said her number one priority was ending multiple ethnic conflicts that have kept Myanmar in a state of near-perpetual civil war since independence in 1948.

That goal remains elusive and, although Ms. Suu Kyi remains popular at home, she has faced a barrage of international criticism in recent weeks for expressing doubts about the reports of rights abuses against the Rohingya and failing to condemn the military.

Although Ms. Suu Kyi formed Myanmar’s first civilian government in half a century, her defenders say she is hamstrung by a constitution written by the military that left the army in control of security and much of the apparatus of the state.

Vatican sources say some in the Holy See believe the pope’s trip to Myanmar was decided too hastily after full diplomatic ties were established in May during a visit by Ms. Suu Kyi.

Pope Francis leaves on Thursday for Bangladesh, where he will meet a group of Rohingya refugees in the capital, Dhaka. — Reuters

DoTr in talks for Sumitomo to maintain MRT-3

THE GOVERNMENT is considering Metro Rail Transit (MRT)-3 builder and former maintenance provider Sumitomo Corp. for the maintenance and rehabilitation of the MRT-3 system.

In a statement, the Department of Transportation (DoTr) said  discussions with the Japanese government are ongoing to rehire Sumitomo as the maintenance provider of the MRT, to replace Busan Universal Rail, Inc. (BURI), whose maintenance contract was terminated by the DoTr earlier this month.

The new maintenance and rehabilitation contract will have a term of three years, and will include the rehabilitation and restoration of the system to its “original performance standards.”

“High-level discussions with the Government of Japan are ongoing to pave the way for DoTr’s direct engagement of Sumitomo Corp. and its technical partner Mitsubishi Heavy Industries, under a Government to Government (G2G) Official Development Assistance (ODA) platform,” the DoTr said.

The DoTr said that the joint venture of Sumitomo and Mitsubishi Heavy is being considered due to their previous experience with the MRT.  “The joint venture of Sumitomo Corp. and Mitsubishi Heavy Industries is being closely considered due to their background and experience with the MRT-3 — they designed and built the system from 1998 to 2000, and maintained the system from 2000 to 2012.”

The then Department of Transportation and Communications in 2012 did not renew the maintenance contract of Sumitomo.

The DoTr added that it is evaluating the unsolicited proposal of Light Rail Manila Corp. (LRMC), a P20-billion investment to rehabilitate the train system, as well as the handling of operations for a period of 30 to 32 years. The agency last month granted original proponent status to LRMC, and the proposal will “soon be endorsed” to the National Economic and Development Authority for its evaluation. 

LRMC currently manages the Light Rail Transit (LRT)-1. The consortium is composed of Metro Pacific Investment Corp.’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.

Transportation Secretary Arthur P. Tugade earlier this month said that the MRT-3 will have a new maintenance provider next year.

The DoTr said that the MRT transition team has enough manpower, after directly hiring more than 450 former BURI employees, and paid their salaries “in full and on time,” after what it says are months of “delayed and partial salaries.” — Patrizia Paola C. Marcelo

Karapatan, CPP condemn killing of 2 human rights fact-finding mission members in Negros Oriental

Bayawan map

THE COMMUNIST Party of the Philippines (CPP) added its voice to condemning the killing of two members of a human rights fact-finding mission in Bayawan, Negros Oriental. “The CPP condemns the most recent killing of two human rights defenders on a fact-finding mission in Negros Oriental… as well as illegal mass arrests and continued harassment of activists and groups in the past week. These incidents, and numerous incidents before them, clearly illustrate Duterte’s dirty war against the people in the guise of an “all-out war” against the revolutionary movement. He will be made responsible for these crimes,” the CPP said in its official twitter account @prwc_info. Human rights alliance Karapatan reported that on Nov. 28, Elisa Badayos of Karapatan Central Visayas and Elioterio Moises, a barangay tanod and member of local peasant organization Mantapi Ebwan Farmers Association, died after being fired at by still unidentified men. Another 23-year-old Kabataan party-list member remains in critical condition, the group said. “The attack on human rights defenders are becoming more rampant, more brutal, more fearless… Fact-finding missions are a mechanism for human rights organizations to confirm reports of abuses, and this incident has only proven how fascism works to outrightly kill those who dare to question,” said Karapatan Secretary General Cristina Palabay in a statement.

Guilt-free holiday treats

PRIOR to working with California Raisins, pastry chef Michael Aspiras avoided eating raisins. “Before, I didn’t actually like eating raisins. It grew on me because it’s a treat whenever you eat it,” Mr. Aspiras told BusinessWorld. It was not until his partnership with California Raisins, accompanied by his and the company’s further research on raisins’ nutritional benefits that he realized that it was a good alternative for sugar in recipes.

California Raisins is a naturally sweet product of sun-dried raisins from San Joaquin Valley, California. It is fat- and cholesterol-free and low in sodium. California Raisins collaborated with Mr. Aspiras to create holiday recipes to add to a healthful feast for Noche Buena and Christmas parties.

In his demonstration at the New World Hotel, Makati City on Nov. 20, Mr. Aspiras prepared California Raisin Bombolini, a bread recipe with California Raisins rum chantilly and crispy topping. The pureed and chunks of California Raisin gives the pastry an ample flavor of sweetness.

California Raisins 2
Pastry chef Michael Aspiras

The second recipe called California Raisin Modern Christmas Cake with crispy California Raisin and chocolate dip coating gives a fruity flavor perfect for a holiday dessert.

At first Mr. Aspiras said that it was challenging to accept and prepare the recipes with raisins instead of sugar. “I actually manipulated the recipes and used very little sugar and replaced it with raisins […] Before, I’d make these two recipes with sugar. But now, I realized that when I replaced it with raisins, it lends itself well because it’s chewy, it didn’t lose the crispness. It did not alter the texture and it actually improved,” Mr. Aspiras said.

“It’s very important to be innovative, but you have to balance it with what people like.” He also added that eating raisins is guilt-free compared to indulging on sweets that we would regret consuming afterwards. When asked about his advice to non-raisin eaters, he said, “Just give it a try.” — Michelle Anne P. Soliman

Ramping up coconut sugar output means less tuba for everyone

Benjamin R. Lao, owner and manager of Lao Integrated Farms, Inc. — CACARILLO

IN THE FAR-FLUNG barangay of Eman in Bansalan, Davao del Sur, as in many remote parts of Mindanao, drinking tuba (fermented coconut sap) is a way of life.

But one farmer’s determination to add value to coconut has transformed the village.

“Drinking tuba used to be a favorite activity here but the number of villagers passing the time drinking tuba has decreased because the supply of tuba here is tightening,” Benjamin R. Lao, owner and manager of Lao Integrated Farms, Inc., told BusinessWorld in an interview.

Mr. Lao’s coconut story started in 1988 after he inherited a five-hectare plot some 10 kilometers away from Bansalan’s town center.

Many coconut trees are in the adjacent lots, which the residents used to tap for copra and tuba.

“But you have to wait four months to make copra again and if you just drink tuba to get drunk, it’s a waste of time,” he said.

Mr. Lao saw the potential in the new product and took on the challenge of encouraging the villagers to make more out of their resource.

Today, Lao Integrated Farms is one of the country’s biggest exporters of coconut syrup to the United States, and has added Australia, France, Canada and Japan to its market.

Instead of tuba, the coconut sap is now processed into syrup, which is then turned into coconut sugar, which has a low glycemic index and is recommended for people with diabetes.

Mr. Lao’s farm, with the initial five hectares now expanded to 85 hectares, produces 2,600 liters of coconut syrup and 1,000 kilos of coconut sugar on a daily basis.

His initial manpower pool of five employees and seven coconut tree climbers, locally called manangiti, has grown to 110 employees and 300 climbers.

These manangiti, he said, used to be the tuba-makers who now earn an average of P20,000 per month from their former income of P1,500 from making tuba.

“No amount of mechanization can replace the skills of the manangiti,” Mr. Lao said.

Lao Farms also touts its organic methods.

Mr. Lao said a negative experience with chemical sprays on the farm encouraged him to shift to organic agriculture.

The farm is recognized as a demonstration site where farmers can learn natural farming techniques such as the use of vermicast, a fertilizer produced by an earthworm known as the African Nightcrawler.

The coconut trees are also intercropped with commercially viable plants, which are also processed into Lao Farms’other products, under the tradename Donabelle, such as ginger tea, turmeric tea, lemongrass tea and moringa tea, all pre-sweetened with coconut sugar.

“We intercrop and we teach farmers for free because our advocacy is to encourage organic farming,” he said, noting that the farm receives up to 1,000 guests monthly.

Lao Farms has three organic certifications: ECOCERT, an inspection and certification body in France; NISARD Certification Services (NICERT); and Organic Certification Center of the Philippines (OCCP). The processing plant, meanwhile, is certified by the Hazard Analysis Critical Control Point TUVSUD based in Germany.

The company has embarked on a 30-month P11-million expansion project that started in March, with help from the Peace and Equity Foundation for financing and the Department of Science and Technology for equipment.

The expansion covers villages outside Bansalan, but remains largely in Davao del Sur and a still-undetermined land area in Tampakan, South Cotabato.

Mr. Lao’s success is a model amid the many challenges faced by the coconut industry, according to Xycris M. Fuerzas, Technical Services and Extension Specialist of the Davao Region Coconut Industry Cluster, Inc. (DRCICI).

“There are many opportunities for those in the coconut industry, but the supply is getting weaker” due to the maturation of many coconut plantations, he said.

According to the Philippine Statistics Authority, the number of hectares planted to coconut fell to 360,000 hectares at the end of 2016 from 370,000 hectares five years ago

Mr. Fuerzas attributes this to old coconut trees dying and not being replaced, plus zoning changes from agricultural to residential.

“When you replace the dead coconut trees it will take five to seven years to bear fruit, so farmers look for other crops that will bear fruit faster,” he said.

Mr. Fuerzas said one solution to keeping the coconut industry thriving is intercropping, as practiced in Lao Farms and promoted by DRCICI. — Carmencita A. Carillo

US Senate Republicans shove tax bill ahead as Democrats fume

WASHINGTON — US Senate Republicans rammed forward President Donald Trump’s tax-cut bill on Tuesday in an abrupt, partisan committee vote that set up a full vote by the Senate as soon as Thursday, although some details of the measure remained unsettled.

As disabled protesters shouted: “Kill the bill, don’t kill us,” in a Capitol Hill hearing room, the Senate Budget Committee, with no discussion, quickly approved the legislation on a 12-11 party-line vote that left Democrats fuming.

Republican committee members quickly left the room after the vote as Democrats complained about a lack of discussion on a bill that would overhaul the US tax code and add an estimated $1.4 trillion to the $20 trillion national debt over 10 years.

After the vote, Trump told reporters: “I think we’re going to get it passed,” adding that it would have some adjustments.

Republicans are hurrying to move their complex tax legislation forward, hoping to avoid the protracted infighting that doomed their effort to repeal Obamacare four months ago.

Since Trump took office in January, he and fellow Republicans in command of both chambers of Congress have approved no major legislation, a fact they want to change before facing voters in the 2018 congressional elections.

If the Senate approves its tax measure later this week, it would need to be reconciled with a version already approved by the House of Representatives before anything could be sent to the White House for Trump to sign into law.

Republican leaders conceded that they had yet to round up the votes needed for passage in the Senate, where they hold a narrow 52-48 majority. “It’s a challenging exercise,” Senate Republican leader Mitch McConnell said at a news conference.

Democrats have called the Republican tax plan a giveaway to corporations and the rich.

The Senate bill would slash the corporate tax rate to 20% from 35% after a one-year delay. It would impose a onetime, cut-rate tax on corporations’ foreign profits, while exempting future foreign profits from US taxation.

Tax rates for many individuals and families would also be cut temporarily before rising back to their previous levels in 2025. Key tax breaks would also be curbed or eliminated, making the bill a mixed bag for some middle-class families. Some taxes paid by wealthy Americans would be repealed.

Wall Street moved higher on the news that the bill would move to a full Senate vote, with the benchmark S&P 500 index closing up a little over 1 percent.

THE CORKER CONCESSION
As written, the bill would widen the US budget deficit by an estimated $1.4 trillion over 10 years. Republicans maintain that gap would be narrowed by additional economic growth.

Senator Bob Corker, one of few remaining Republican fiscal hawks in Congress, said he worked out a deal satisfying his concerns that the tax cuts add too much to the national debt.

He said the bill would be modified to automatically raise tax revenues if growth targets were not reached. “We got a commitment that puts us in a pretty good place,” he said.

Although details were not immediately available, Corker said he expected more information to come out on Thursday as part of the bill.

The concession immediately drew a detractor as Republican Senator John Kennedy told reporters he “would rather drink weed killer than vote for the thing,” adding: “I donít like voting for automatic tax increases.”

The Corker concession was one of several lingering uncertainties in the bill that Senate aides said would be nailed down as the measure neared a floor vote.

Republican Senator Susan Collins, who remains undecided on how she will vote on the bill, said “productive discussions” continued and that she would offer an amendment preserving the $10,000 deduction for property tax payments. The deduction is in the House bill, but not the Senate version.

Republican Senator Ron Johnson voted for the bill in the Budget Committee, even though he had said it did not cut taxes deeply enough for some non-corporate businesses.

The final version could address his concerns. Aides said tax writers were working to change the tax rate for non-corporate businesses, preserve an individual deduction for property tax payments, and incorporate Corker’s tax revenue idea.

Democratic Senator Jeff Merkley told MSNBC that the Corker concession was “an absolute gimmick” that could be undermined later. “It’s just a justification to let those who have argued that they don’t believe in increasing the deficit actually vote for a bill which does exactly that,” Merkley said.

As the tax fight played out, a new battle opened on another front as Democratic congressional leaders Chuck Schumer and Nancy Pelosi skipped a White House meeting with Trump to discuss spending, immigration and other issues after Trump criticized them on Twitter.

Lawmakers must renew government funding before it expires on Dec. 8 or risk a shutdown. Democrats hope to use their leverage on the budget issue to renew protections for young immigrants who entered the country illegally as children. — Reuters

On tobacco tax and plain packaging scheme

Protection of private property rights — including physical and intellectual — is an important cornerstone of a free society. People can exclusively use, keep, sell, donate or give away their property if they want to.

There is a measurement of property rights protection worldwide being done annually by the Property Rights Alliance (PRA), a Washington DC-based think tank. It produces the annual International Property Rights Index report and partners with independent, nongovernment, and market-oriented think tanks and institutes from many countries. IPRI covers three major areas: (1) Legal and Political Environment, (2) Physical Property Rights (PPR), and (3) Intellectual Property Rights (IPR) that include protection of patents, trademarks and brands, copyrights and trade secrets.

In the IPR of several ASEAN countries, the gap is not very wide between say, Singapore and the Philippines or Indonesia (see table).

On tobacco tax and plain packaging scheme

Currently, there are IPR issues that are intertwined with taxation issues of some “sin products” like tobacco and alcohol.

In the Philippines, the sin tax law of 2012 or RA 10351 is turning five years old next month. The law has dual purposes of (a) reducing smoking and drinking incidence in the country by raising tobacco and alcohol taxes, and (b) raising more government revenues.

So far, both have been achieved but there are moves and legislative bills to further raise tobacco tax to twice or thrice their current rates.

In December 2012, Australia introduced a variant of this law aimed to further discourage smoking. Its plain packaging law required tobacco companies to remove the brand, trademark, and logos of its tobacco products and replace them with plain packs with graphic warnings.

Since some smokers may be unable to distinguish good brands from new and/or inferior brands, they are supposedly discouraged from stop smoking.

While the goal is good — to protect public health — the means and the policy leaves much to be desired.

Since it is assumed that consumers can no longer distinguish good brands from inferior ones, brand competition is precluded.

As a result, companies will now be forced to compete on the basis of prices alone, allowing players with poor but cheap products to gain advantage and attract more customers.

Which may then defeat the purpose of anti-tobacco initiatives because this may yet increase the incident of smoking.

Five years after introducing its plain packaging scheme, has Australia been able to meet its goal?

The Australian government collects data on national smoking incidence every three years as part of its National Drug Strategy Household Survey (NDSHS).

Based on 2016 data — its most recent — there has been no statistically significant decline in the overall daily smoking rate between 2013 (12.8%) and 2016 (12.2%).

So the plain packaging scheme is a failure in Australia.

Moreover, the plain packaging law has unwittingly succeeded in raising the consumption of illegal tobacco, estimated at 13.9% of total consumption in 2016. This results in an estimated excise tax loss of A$1.6 billion for the government last year.

Furthermore, Australia is also facing a dispute resolution panel at the WTO for implementing the law that disrespects IPR laws on trademark and branding.

France and the UK have also introduced the plain packaging scheme in recent years. One unintended result in France is the rise in illicit tobacco coming from some terrorist groups and criminal syndicates while the French government suffered an excise tax loss of approximately €2 billion in 2016. This illicit trade was linked to jihadists traveling to Syria and Iraq and terrorist attacks in France. Counterfeit cigarettes are also among the most investigated IP-crime in the UK and are linked directly to criminal organizations.

In Asia, there are plans to introduce plain packaging legislation in Singapore, Malaysia, Taiwan, Sri Lanka, and Nepal.

This may a dangerous precedent.

Soon, other “sin products” will be targeted — alcohol, sugary drinks and beverages, fatty foods, even toys.

I am a non-smoker and have never been a fan of smoking. I am just a fan of individual liberty and people having the freedom what to do with their own body and life, also a fan of the rule of law and people’s right to private property.

The plain packaging scheme is dangerous because (a) it disrespects private property rights and IPR laws, (b) encourages the production of illicit items from illicit and possibly criminal players who can easily play with price competition, (c) it encourages more consumption because very cheap products with no brands are more easily available, and (d) it reduces government potential excise tax revenues, which might result in creating new taxes elsewhere.

 

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

minimalgovernment@gmail.com.

Coal tax to raise power costs, drive off investors — DoE

A PROPOSED LAW that will tax the use of coal will be a setback for the country, which is already at a disadvantage because of its high cost of electricity, the Department of Energy (DoE) said.

“It is a problem for DoE because DoE is looking for ways to bring down our tariffs so that we can be competitive in attracting the manufacturers to our country. So that would make our job doubly difficult,” DoE Secretary Alfonso G. Cusi told reporters on the sidelines of a Senate hearing on Tuesday.

He said any form of tax that will be passed on to consumers would result in raising electricity cost.

“We already have the highest [power rates] in our region, and they will rise further,” he said.

Mr. Cusi’s comments on the proposal, which was approved by the Senate, follows Senator Sherwin T. Gatchalian’s earlier remarks on the bill, which will be heard soon by both Houses of Congress.

Mr. Gatchalian said the country sources 50% of its energy supply from coal-fired power plants. At such, the impact of a P100 increase in excise tax on coal will result in a P4.78 increase in the bill of an average household consuming 200 kilowatt-hours (kWh) a month, he said.

For a P200 increase, the increase in power rates will be P9.57, and at P300 the corresponding rise is P14.35. At P600, the increase is almost P29 per kWh.

Mr. Gatchalian said 27 electric cooperatives source their supply of electricity from 100% coal. This is quarter of the total electric cooperatives in the country, he said.

“They serve around 2.7 million households… that is 10% of the total households of the entire country,” he said.

In effect, the 2.7 million families being supplied by 100% of coal, will feel a P10 increase at P100 per metric ton excise tax and will feel P20 increase at P200 and P28 increase at P300, he said.

“Unfortunately in our regime right now, coal is a direct pass on cost to the consumers so any increase in the cost of coal, will come straight from the pockets of consumers,” he said partly in Filipino.

Mr. Cusi also told reporters that the DoE’s commercial arm Philippine National Oil Co. (PNOC) has received unsolicited proposals from three foreign entities that are keen to enter into a partnership to develop an integrated liquefied natural gas (LNG) facility.

“What I was informed (is) there is Kepco, there is Lloyds and CNOOC,” Mr. Cusi told reporters on Tuesday.

PNOC President and Chief Executive Officer Reuben S. Lista did not immediately respond to a request for details on the three entities. — Victor V. Saulon

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