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Poultry imports from Netherlands, S. Korea, France banned on avian flu

THE PHILIPPINES has temporarily banned poultry imports from several countries after reported outbreaks of the H5N8 highly pathogenic avian influenza (bird flu).

In three separate memorandum orders, Agriculture Secretary William D. Dar suspended imports of domestic and wild birds and their products including meat, day-old chicks, eggs, and semen from the Netherlands, South Korea, and the French regions of Corsica, Ile-de-France, Aquitaine, Pays de la Loire, and Midi-Pyrenees.

The ban also stops the processing, evaluation, and issuance of sanitary and phytosanitary import clearances for commodities from these areas.

“There is a need to prevent the entry of the highly pathogenic avian influenza virus to protect the health of the local poultry population,” Mr. Dar said.

Mr. Dar implemented the ban on parts of France after its government sent a report to the World Organisation for Animal Health (OIE) that confirmed H5N8 outbreaks.

Meanwhile, the ban on the Netherlands was issued after its Ministry of Agriculture, Nature, and Food Quality confirmed to the OIE the detection of H5N8 in Utrecht, Friesland, and Zuid-Holland.

Mr. Dar said the South Korean Ministry of Agriculture, Food, and Rural Affairs also reported to the OIE the confirmation of additional H5N8 outbreaks in the provinces of Jeolla, Gyeongsang, Gyeonggi, and Chungcheong.

According to the Bureau of Animal Industry (BAI), the Philippines imported 402.70 million kilograms of chicken in 2020. 

The Netherlands accounted for 30.9% or 124.27 million kilograms of the total, while France was the source of 2.2% or 8.89 million kilograms of chicken and duck products. The BAI data did not contain poultry import totals for South Korea.

Jesus C. Cham, president of the Meat Importers and Traders Association, said in a mobile phone message that the recent bans are unfortunate.

“We are already experiencing a shortage of supply so it does not help. We can deduce (supply) from the price of chicken — if the price is high, then it indicates a shortage,” Mr. Cham said.

Based on the DA’s price monitoring report on Wednesday, the price of whole chicken was at P150-P180 per kilogram.

The DA’s suggested retail price per kilogram of whole chicken is at P140.

In a virtual briefing Tuesday, Agriculture Assistant Secretary William C. Medrano said the supply of broiler chickens is sufficient.

“We have enough supply. The country is more than self-sufficient when it comes to broiler supply. We have a surplus on a quarterly basis, equivalent to 11 days to 14 days per quarter,” Mr. Medrano said.

“The demand for chicken increased since the price of pork has gone up. Consumers opted to buy chicken, which then resulted in higher broiler prices,” he added. — Revin Mikhael D. Ochave

The non-automatic application of PILAA

Bustling defines this time of the year. On cue, taxpayers prepare for the renewal of their business permits. With barely six days left, taxpayers buckle down to meet the Jan. 20 deadline, hoping for an extension from the local government units (LGUs) having jurisdiction over their respective businesses.

The renewal of the business permit is not without challenges.

For the business permit to be renewed, the taxpayer must pay the local business tax (LBT) based on the gross sales or receipts of the preceding calendar year. The LBT shall be payable for every separate or distinct establishment or place where business subject to tax is conducted. Often, taxpayers have to struggle with bureaucratic procedures at best, and downright unreasonable presumptions at worst, such as some LGUs’ refusal to accept a decrease in gross sales or receipts compared to last year’s declaration, automatic application of additional increase of a certain percentage in gross sales or receipts, and the application of the presumptive income level assessment approach (PILAA). Unfortunately, taxpayers would often be forced to acquiesce to the LGUs assessment to beat the deadline and ensure the issuance of their business permit.

WHAT IS PILAA?
PILAA is a tax collection tool which enables LGUs to set a certain income level standard for various business entities based on industry factors. It is commonly utilized nationwide among LGUs as a tool for the efficient and effective collection of taxes.

PILAA is usually applied at the height of the renewal of business permits when transaction traffic is heavy, and LGUs have limited time to verify the gross sales or receipts declared by the taxpayers applying for business permits.

However, use of the PILAA should not be automatic. While the application of PILAA caters to the convenience of LGUs, the approach raises due process issues, both substantive and procedural, in the collection of LBT.

Black’s Law Dictionary (8th ed.) defines presumption as “a legal inference or assumption that a fact exists, based on the known or proven existence of some other fact or group of facts.” Based on this definition, it is inferred that presumptive income in PILAA is a presumed or assumed income level based on known or proven facts.

APPLICATION OF PILAA
Through Memorandum Circular (MC) No. 001.2020 dated Jan. 2, 2020, the Bureau of Local Government Finance (BLGF) reminded treasurers that the PILAA is used in computing LBT only if these two requisites are present: (1) the use of PILAA should be embodied in a local tax ordinance which has undergone public hearings and publications, and (2) the taxpayer is unable to provide proof of income.

The first requisite aims to ensure that the taxpayers are informed of the factors used in determining the presumptive income, and they agree to such level of presumptive income applicable to their industry. Further, for the PILAA to be validly applied, the second condition requires that the taxpayer failed to submit financial data of its income for the preceding calendar year.

In proving the income for the preceding calendar year, MC No. 001.2020 provides that a taxpayer may submit a sworn declaration of gross sales or receipts instead of the audited financial statements and the income tax returns since these documents may not yet be available early on in the year.

In the 2017 opinions of the BLGF and decisions of the Court of Tax Appeals (in C.T.A. EB Case No. 501 dated Dec. 10, 2010 and C.T.A. AC Case No. 200 dated Oct. 22, 2018), the rule is that the use of PILAA is not automatic. Treasurers have no right to apply the PILAA if the taxpayer has provided proof of its income by submitting the sworn declaration of gross sales or receipts. Further, the BLGF stressed that treasurers should not unjustifiably use the PILAA at their convenience. The practice results in undue harassment of taxpayers who are compelled to secure the needed business permit to operate their businesses.

Though CTA decisions and BLGF opinions do not form part of the law of the land, these decisions and opinions have probative value as being valid interpretations of the local tax laws and issuances and may be used as basis by taxpayers to refute any LBT assessment using PILAA without proper basis.

In practice, while there are treasurers that give weight to these decisions and opinions, it is unfortunate that there are a number of them who still insist on using PILAA without legal basis and allege under-declaration of income on the part of the taxpayer to justify the use of the PILAA. But without using PILAA, treasurers are not left without recourse against under-declaration. MC No. 001.2020 provides that if there is suspected under-declaration of gross sales or receipts by the taxpayer, these should be tagged by the LGU, and the business may be subjected to an examination by the treasurer. However, the audit should not result in the deferment of the issuance of the business permit and should be done after the business renewal period. In other words, the taxpayer should not stand to suffer by the non-issuance of its business permit.

I hope treasurers assess LBTs in accordance with the requirements of the law and for LGUs to smoothly issue business permits if indeed the taxpayers have complied with all the requirements. This would give businesses small victories during these challenging times.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Rachel D. Sison is a senior manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

rachel.d.sison@pwc.com

PBA rookie draft for March steadily taking form

By Michael Angelo S. Murillo, Senior Reporter

THIS year’s Philippine Basketball Association (PBA) rookie draft slated for March took further form recently after the league announced the order of drafting.

Set to pick first for the third straight season are Terrafirma Dyip, who finished last in the lone tournament in the coronavirus pandemic-hit PBA season in 2020.

Picking second are the Northport Batang Pier, who also have the 11th pick, to be followed by the NLEX Road Warriors, who have the third and fourth picks.

NLEX’s third pick was from the Blackwater Elite, which the former acquired in a previous trade between the two squads.

Selecting fifth are the Rain or Shine (ROS) Elasto Painters.

The Magnolia Hotshots Pambansang Manok are at sixth, followed by the Alaska Aces (seventh), San Miguel Beermen (eighth), Meralco Bolts (ninth), Phoenix Super LPG Fuel Masters (10th) and Philippine Cup champions Barangay Ginebra San Miguel Kings (12th).

Sans first-round picks are the TNT Tropang Giga and Blackwater.

For the second round, Northport will be selecting first, followed by Blackwater for the next two picks.

Then Phoenix selects, with the order going ROS-Magnolia-Alaska-NLEX-Alaska-ROS-ROS-Barangay Ginebra after.

The PBA has yet to decide if it will have a special draft for Gilas Pilipinas  just like last time.

“We’ll meet with the board of governors after all the applications are in to decide on how the drafting will go. The SBP (Samahang Basketbol ng Pilipinas) hasn’t decided yet whether or not they need one (Gilas draft) because they don’t know who will declare for the draft,” said PBA Commissioner Willie Marcial.

Deadline for the submission of applications for the rookie draft is Jan. 27, with the draft happening on March 14.

In the last rookie draft, a special selection was made for Gilas in line with the SBP mission of putting a pool of players who will be available for the national team for future competitions, including the 2023 International Basketball Federation (FIBA) World Cup, where the Philippines is one of the hosts.

Selected in the draft were Isaac Go (Terrafirma), Rey Suerte (Blackwater), Matt Nieto (NLEX), Allyn Bulanadi (Alaska) and Mike Nieto (ROS).

Having another shot at the top pick, Terrafirma is hoping of landing another solid player who could finally help them achieve consistency in winning.

In the two previous PBA drafts, the team selected CJ Perez (2018) and Roosevelt Adams (2019).

Mr. Perez has turned out to be one of the top players in the league, piling up all-around numbers of 24.4 points, 6.8 rebounds, 4.3 assists and two steals a game in the Philippine Cup last year. Mr. Adams, meanwhile, had his struggles in his rookie season but still managed to post respectable numbers of 10.3 points and 8.1 rebounds.

Meanwhile, the number of applicants for the draft is steadily growing as the deadline approaches.

As per the official PBA website, 33 aspirants have already filed applications.

Among those who have applied are collegiate standouts, players from pro-am leagues and Filipino-foreigners like Alvin Pasaol, Santi Santillan, Troy Rike, RK Ilagan, Frank Johnson, Tyrus Hill.

“I am looking forward to playing in the PBA. I’m not putting too much pressure on myself. My mindset is if they can play in the PBA, why can’t I,” said Mr. Santillan in Filipino in submitting his application.

Mr. Santillan played collegiate ball in Cebu and at De La Salle University in the University Athletic Association of the Philippines. He is also one of the top 3×3 players in the country and has represented the Philippines in many FIBA 3×3-sanctioned events.  

“It will be an honor to play in the PBA. And I vow to do everything I can to represent not only myself but also the community I came from,” said San Sebastian product Ilagan, who grew up in Tondo, Manila.

The status of keenly eyed Fil-foreign applicants Jason Brickman, Brandon Ganuelas-Rosser and Jeremiah Gray, meanwhile, is still to be determined as reports have it that legal documents needed for them to join the draft will not come in time for the application deadline.

Philippine baseball’s push resumes this year, officials say

PHILIPPINE baseball is looking to make up for lost time this year after it got sidelined by the coronavirus last year, officials said.

Speaking at the online Philippine Sportswriters Association Forum on Tuesday, officials of the Philippine Amateur Baseball Association (PABA) said this year is poised to be a busy one for the country’s baseball squads, with international competitions originally set for 2020 lined up in the coming months.

“Now, they (international federation) are slating everything this year. But it will still depend on the progress of the vaccine [for the coronavirus],” said PABA vice-president Boy Tingzon.

Among the competitions they are gearing up for, the officials said, is the Women’s Baseball World Cup slated to take place from March 1 to 9 in Tijuana, Mexico.

PABA said the Under-23 competition carries much significance as it presents an opportunity for the Philippines to barge into the top 10 in the world rankings.

“This is a world event and this is the best time for us to move up in the standings in the world. We can even break into the top 10,” said Mr. Tingzon.

The Philippines is currently ranked 15th in the division.

To prepare for the tournament, Mr. Tingzon said they at PABA have already asked for approval from the Philippine Sports Commission to allow them to return to face-to-face training in a “bubble” setting. Venue is the INSPIRE Sports Academy in Calamba, Laguna.

The federation added that the players have expressed readiness to go into bubble training, seeing how it will go a long way in further shoring up their game as they move to compete against the best teams in the world.

In Mexico, the Philippines is to face powerhouse teams like Japan, Chinese Taipei, Canada, Mexico, United States, France, Australia, Dominican Republic and the Netherlands.

Other competitions the country is looking at competing in this year are the men’s Asian Baseball Championship in October and the men’s youth 12-under, 15-under and 18-under tournaments.

PABA, however, lamented the non-inclusion of the sport in this year’s edition of the Southeast Asian (SEA) Games in Vietnam in November but it remains undeterred in its mission of continuing to push baseball to the fore and highlight its potential as a sporting discipline that Filipinos can excel in.

“Unfortunately, there is no baseball in this year’s SEA Games. But even without the SEA Games, we’re going to be quite busy,” said PABA secretary-general Pepe Muñoz, who joined Mr. Tingzon in the forum.

In the last edition of the SEA Games in 2019 held here, the Philippine national men’s baseball team won the gold in the competition, beating Thailand, 15-2, in the championship game. It was the third baseball gold for the country in the SEA Games, which was first played in 2005.

PABA is currently headed by former Philippine Basketball Association player Joaquin “Chito” C. Loyzaga, who was elected Philippine Olympic Committee auditor in last year’s elections. — Michael Angelo S. Murillo

NBA tightens health protocols as COVID-19 affects season

NBA players should stay at their residences when they are at home and in their hotels when on the road for at least the next two weeks, the league said on Tuesday in a list of new health protocols designed to limit COVID-19’s impact on the season.

The league, which postponed one game on Sunday and three games this week due to the virus, is trying to avoid a league-wide suspension of play like the one that derailed it in March before it returned in a “bubble” environment in Orlando in July.

The NBA said the new protocols, which take effect immediately, were issued “in response to the surge of coronavirus disease 2019 (COVID-19) cases across the country and an uptick among NBA teams requiring potential player quarantines.”

Players and team staff can leave their homes to attend team-related activities, exercise outside, perform essential activities or as a result of extraordinary circumstances, the protocols said.

While at hotels, players and team staff are prohibited from leaving expect for team activities or emergencies. They are also barred from interacting with non-team guests.

Players and coaches must wear face masks at all times on the bench and in the locker room, according to the protocols, which were endorsed by the players’ union.

“Upon exiting the game, and prior to returning to the bench, players can sit in ‘cool down chairs,’ arranged at least 12 feet from the bench with each chair six feet apart, where facemasks are not required,” according to the protocols.

Players must also limit their pre- and post-game interactions to elbow and fist bumps and maintain six feet of distance as much as possible.

Elsewhere the rules limited the length of team meetings, mandated that massages and physical therapy at a hotel occur in a ballroom or other large open space, and prohibited players from arriving at the arena more than three hours before tip-off.

The league on Sunday said it had no plans to put its season on hold, as teams struggle to make available a league-mandated eight-man roster for games due to injuries and COVID-19 contact tracing. — Reuters

Los Angeles Lakers ground Houston Rockets again 117-100

LEBRON James scored 22 of his game-high 26 points in the first half and the Los Angeles Lakers posted their second runaway victory over the Houston Rockets in as many games, rolling to a 117-100 victory on Tuesday at Toyota Center in Houston.

The Lakers, who led by as many as 27 points in their 120-102 win on Sunday, matched that advantage on a Kentavious Caldwell-Pope 3-pointer at the 3:35 mark of the second quarter. The Lakers led wire to wire while remaining perfect on the road, combining stingy defense with blistering perimeter shooting in the first quarter to build a 35-14 lead entering the second.

James made four of nine 3-pointers and added eight rebounds and five assists. Five other Lakers joined James in double figures, with Anthony Davis posting 19 points, 10 rebounds and five blocked shots in just 29 minutes. The starting backcourt of Dennis Schroeder and Caldwell-Pope combined for 28 points on 11-for-18 shooting with six rebounds and four steals.

Christian Wood paired 18 points with eight rebounds while James Harden added 16 points, seven rebounds, and six assists for Houston. The Rockets continued their poor shooting from deep, finishing 12 of 40 on 3s while shooting just 39.2% overall. Harden missed five of six treys and shot five of 16 overall.

The Lakers turned a 12-0 run into a 28-10 advantage in the first quarter, getting 3s from Caldwell-Pope and James while recording three blocks and forcing two turnovers during the rally. The Lakers entered the second quarter with a plus-8 advantage on the glass and eight fast-break points while limiting the Rockets to 6-for-21 shooting.

SIXERS 137 – HEAT 134 OT
Joel Embiid scored 35 of his 45 points in the second half and overtime (OT) to lift the host Philadelphia 76ers past the Miami Heat 137-134 on Tuesday.

NETS 122 – NUGGETS 116
Kevin Durant totaled 34 points, 13 assists and nine rebounds as Brooklyn overcame an 18-point deficit to post a victory over Denver in New York.

JAZZ 117 – CAVALIERS 87
Donovan Mitchell scored 27 points and Jordan Clarkson added 21 to lift visiting Utah to a victory over Cleveland.

SPURS 112 – THUNDER 102
Lonnie Walker IV scored 24 points to lead San Antonio to a victory at Oklahoma City. San Antonio forced 13 Thunder turnovers, converting them into 26 points on the other end, while Oklahoma City managed just two points off four Spurs turnovers. Keldon Johnson had 18 points for the Spurs and Patty Mills contributed 17. — Reuters

Pogba sends United clear at the top with win at Burnley

BURNLEY, England — Manchester United moved three points clear at the top of the Premier League after a Paul Pogba goal gave them a hard-fought 1-0 win over Burnley at a freezing Turf Moor on Tuesday.

The victory, in the re-arranged fixture, put United on 36 points from 17 games with rivals Liverpool on 33 points ahead of the clash between the two sides at Anfield on Sunday.

The breakthrough came in the 71st minute when Marcus Rashford floated in a ball from the right, which Pogba met with a volley that deflected off the outstretched leg of Burnley defender Matt Lowton and beat the wrong-footed Nick Pope.

It is the first time United have been top of the league after 17 games since December 2012 and the victory was their seventh in eight games away from Old Trafford.

While United did not create as much as they would have expected against a team in 16th place, it was a determined and aggressive display from Ole Gunnar Solskjær’s side.

“We had to dig in and earn it, and we did,” said the United manager.

“We feel very confident going into games. Away from home, we have really done well. We have to believe in ourselves and we do. We’ve done a great job, it’s good times. It’s a test against the champions (on Sunday) who have been fantastic, that’s a great test for us,” he said.

United skipper Harry Maguire had an effort ruled out in the first half after referee Kevin Friend ruled he had pushed Erik Pieters as he rose to head in a Luke Shaw cross at the back post.

Burnley applied some late pressure and felt they should have had a penalty when the ball appeared to hit Maguire’s arm. James Tarkowski had a great chance to grab a point for the Clarets, but failed to make good contact from a goalscoring position.

United should have wrapped up the win in the final minutes but Anthony Martial, through on goal, was denied by the legs of Pope.

Burnley were gritty and aggressive, but Jüergen Klopp’s Liverpool side at Anfield will offer a very different prospect. — Reuters

Worried about Earth’s future? The outlook is worse than what scientists can grasp

Anyone with even a passing interest in the global environment knows all is not well. But just how bad is the situation? Our new paper shows the outlook for life on Earth is more dire than is generally understood.

The research published today reviews more than 150 studies to produce a stark summary of the state of the natural world. We outline the likely future trends in biodiversity decline, mass extinction, climate disruption, and planetary toxification. We clarify the gravity of the human predicament and provide a timely snapshot of the crises that must be addressed now.

The problems, all tied to human consumption and population growth, will almost certainly worsen over coming decades. The damage will be felt for centuries and threatens the survival of all species, including our own.

Our paper was authored by 17 leading scientists, including those from Flinders University, Stanford University, and the University of California, Los Angeles. Our message might not be popular, and indeed is frightening. But scientists must be candid and accurate if humanity is to understand the enormity of the challenges we face.

GETTING TO GRIPS WITH THE PROBLEM
First, we reviewed the extent to which experts grasp the scale of the threats to the biosphere and its lifeforms, including humanity. Alarmingly, the research shows future environmental conditions will be far more dangerous than experts currently believe.

This is largely because academics tend to specialize in one discipline, which means they’re in many cases unfamiliar with the complex system in which planetary-scale problems — and their potential solutions — exist.

What’s more, positive change can be impeded by governments rejecting or ignoring scientific advice, and ignorance of human behavior by both technical experts and policymakers.

More broadly, the human optimism bias — thinking bad things are more likely to befall others than yourself — means many people underestimate the environmental crisis.

NUMBERS DON’T LIE
Our research also reviewed the current state of the global environment. While the problems are too numerous to cover in full here, they include:

• A halving of vegetation biomass since the agricultural revolution around 11,000 years ago. Overall, humans have altered almost two-thirds of Earth’s land surface.

• About 1,300 documented species extinctions over the past 500 years, with many more unrecorded. More broadly, population sizes of animal species have declined by more than two-thirds over the last 50 years, suggesting more extinctions are imminent.

• About one million plant and animal species globally threatened with extinction. The combined mass of wild mammals today is less than one-quarter the mass before humans started colonizing the planet. Insects are also disappearing rapidly in many regions

• 85% of the global wetland area lost in 300 years, and more than 65% of the oceans compromised to some extent by humans

• A halving of live coral cover on reefs in less than 200 years and a decrease in seagrass extent by 10% per decade over the last century. About 40% of kelp forests have declined in abundance, and the number of large predatory fishes is fewer than 30% of that a century ago.

A BAD SITUATION ONLY GETTING WORSE
The human population has reached 7.8 billion — double what it was in 1970 — and is set to reach about 10 billion by 2050. More people equals more food insecurity, soil degradation, plastic pollution, and biodiversity loss.

High population densities make pandemics more likely. They also drive overcrowding, unemployment, housing shortages, and deteriorating infrastructure, and can spark conflicts leading to insurrections, terrorism, and war.

Essentially, humans have created an ecological Ponzi scheme. Consumption, as a percentage of Earth’s capacity to regenerate itself, has grown from 73% in 1960 to more than 170% today.

High-consuming countries like Australia, Canada, and the US use multiple units of fossil-fuel energy to produce one energy unit of food. Energy consumption will therefore increase in the near future, especially as the global middle class grows.

Then there’s climate change. Humanity has already exceeded global warming of 1°C this century, and will almost assuredly exceed 1.5°C between 2030 and 2052. Even if all nations party to the Paris Agreement ratify their commitments, warming would still reach between 2.6°C and 3.1°C by 2100.

THE DANGER OF POLITICAL IMPOTENCE
Our paper found global policymaking falls far short of addressing these existential threats. Securing Earth’s future requires prudent, long-term decisions. However this is impeded by short-term interests, and an economic system that concentrates wealth among a few individuals.

Right-wing populist leaders with anti-environment agendas are on the rise, and in many countries, environmental protest groups have been labeled “terrorists.” Environmentalism has become weaponized as a political ideology, rather than properly viewed as a universal mode of self-preservation.

Financed disinformation campaigns against climate action and forest protection, for example, protect short-term profits and claim meaningful environmental action is too costly — while ignoring the broader cost of not acting. By and large, it appears unlikely business investments will shift at sufficient scale to avoid environmental catastrophe.

CHANGING COURSE
Fundamental change is required to avoid this ghastly future. Specifically, we and many others suggest:

• abolishing the goal of perpetual economic growth

• revealing the true cost of products and activities by forcing those who damage the environment to pay for its restoration, such as through carbon pricing

• rapidly eliminating fossil fuels

• regulating markets by curtailing monopolization and limiting undue corporate influence on policy

• reigning in corporate lobbying of political representatives

• educating and empowering women across the globe, including giving them control over family planning.

DON’T LOOK AWAY
Many organizations and individuals are devoted to achieving these aims. However their messages have not sufficiently penetrated the policy, economic, political, and academic realms to make much difference.

Failing to acknowledge the magnitude and gravity of problems facing humanity is not just naïve, it’s dangerous. And science has a big role to play here.

Scientists must not sugarcoat the overwhelming challenges ahead. Instead, they should tell it like it is. Anything else is at best misleading, and at worst potentially lethal for the human enterprise.

 

Corey J. A. Bradshaw is a Matthew Flinders Professor of Global Ecology and Models Theme Leader for the ARC Center of Excellence for Australian Biodiversity and Heritage, Flinders University. Daniel T. Blumstein is a Professor in the Department of Ecology and Evolutionary Biology and the Institute of the Environment and Sustainability, University of California, Los Angeles, Paul Ehrlich is President of the Center for Conservation Biology, and a Bing Professor of Population Studies, Stanford University.

No to ‘Cha-cha’ before the fiesta

Congress should reconsider its plan to deliberate within the year any proposed changes to the 1987 Constitution, and then to later convene as a constituent assembly to amend the charter. The House leadership’s plan is to ratify any proposed charter changes in a plebiscite that can be held also during the May 2022 national and local elections.

Constitutional review can be done, but only after the May 2022 elections, which are just 15 months away. Any changes to the charter can wait until a new Congress is in place. We have already waited 34 years to make these changes, what is another 18 months? The 1935 Constitution was not amended until 1973, or about 38 years after.

Timing will always be suspect if constitutional review is done on or before a presidential election year. When the 1971 Constitutional Convention reviewed the 1935 Constitution, convention delegates were elected in November 1970. The convention was convened in June 1971. The presidential election was originally set for November 1972, about 18 months away, but it was never held as Martial Law was declared just two months before.

One can appreciate Congress’ sense of urgency. The intention, according to the House leadership, is to amend the “restrictive economic provisions” of the 1987 Constitution to help the economy recover from the coronavirus disease 2019 (COVID-19) pandemic. The charter will be amended to allow Congress to pass bills that can “free up the economy to foreign investors.”

The plan appeals even to government economic managers, with Finance Secretary Carlos G. Dominguez III saying he is for “opening up the economy in all areas possible, with the exception of land ownership [because] the issue of land ownership is so emotional.” He also says liberalization “challenges local [producers], and they respond positively if there is good support.”

As for Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua, he wants Congress to instead prioritize already pending bills, such as proposed amendments to the Public Service Act (PSA), Retail Trade Liberalization Act (RTL), and Foreign Investment Act (FIA). “These are urgently needed to help attract more investments and create jobs,” he was quoted in a report.

This was seconded by Budget Assistant Secretary Rolando U. Toledo, who said “these bills will help promote a more sustainable and resilient external sector, whilst increasing the inflow of foreign investments and generating more jobs for the Filipino people.” The three bills were already approved by the House, but counterpart measures are pending at the Senate.

I support Secretary Chua’s call for prioritizing suitable alternatives to constitutional amendments. Approving these three economic bills can go a long way in reassuring investors and the market that the Philippines is ready to do business despite the pandemic. The challenge is convincing senators to prioritize these three items in their legislative calendar for 2021.

A new Congress in June 2022 can initiate a review of the economy’s performance and decide whether or not to still pursue amendments to the economic provisions of the 1987 Constitution. By then, a mass vaccination plan for COVID-19 may also already be in place. It will also be more evident whether the three “laws” were actually beneficial or if they need further support.

Also, by mid-2022, there will be greater clarity as to where the Philippine economy is going and what businesses need support to either survive or to grow. We may also see greater stability in the world economy. We may also have a better idea which industries and technologies are attracting more capital and greater interest from investors.

My reluctance to support constitutional changes now stem from the lack of clarity whether as a constituent assembly, the House and the Senate will vote separately or together as one, on any proposed changes to the Constitution. My position is that given a bicameral legislature, then the two chambers should vote separately. I am uncertain, however, if this is how legislators see it.

Also, I am inclined to agree with the Makati Business Club (MBC) that charter change now may be “highly divisive” and “will only raise fears that other constitutional changes, some of which may be highly controversial, may be introduced and passed.” Instead, the MBC said, a new Congress in 2022 can be asked to “commit to initiate steps for the adoption of such [economic] provisions within the first 12 months of their term.”

Economic and political conditions are so fluid now that nobody really knows what’s going to happen in 2021 and 2022. Of course, this is not reason enough to just sit on our hands in the meantime. But constitutional changes are major undertakings that are not to be taken lightly. More patience and further study may be the more prudent thing to do for now.

We cannot afford any further instability. Things have been bad, and they can still get worse given the rising trend in COVID-19 cases. Thousands have died, and thousands more get infected every day. We are still far from securing vaccines for the majority. And the virus has been mutating, which can still render present vaccines useless by the time they become available to us.

Businesses and consumers have learned to adapt to the situation. A lot of changes have happened, and more changes will happen still. In this context, perhaps changes to the Public Service Act, the Retail Trade Liberalization Act, and the Foreign Investment Act may be enough for 2021 or until mid-2022. Constitutional amendments can come after the May 2022 Fiesta.

 

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

matort@yahoo.com

Money in a liquid state

WATER and its liquid properties provide some paradigms for business and the economy. “Liquidity” for instance refers to the flow of money in the economy and on a personal level describes how much cash one has on hand, also called a cash flow. (Does this signify that cash just passes through and goes somewhere else?) A high level of liquid assets above operating expenses can describe an individual as swimming in cash.

Where one swims can also determine the perception of success in a career. Ponds are used for these aquatic exertions. Are you a small fish in a big pond? Or a big fish in a small one?

A pond is much smaller than a lake or an ocean. Fishes in the ocean provide a somewhat biblical slant (you will be fishers of men) though they can refer to job applicants too. Or even romantic prospects — there are so many fish in the sea. This one is a consoling thought for those who let one or two get away.

The combination of fishes and the pools of water they swim in can indicate career prospects. Thus, someone treading water in a large and profitable company with huge benefits, but occupying a low-tier position like senior manager in a structure where Vice-Presidents are a dime a dozen, is said to be a small fish in a big pond.

If this swimmer decides to move to a start-up fintech company in a low-rent office building, enticed by shares (sweat equity) and a glorified title like Chief Technology Officer (CTO), he is said to have turned into a big fish in a small pond. The big payoff is expected when the company lists with an IPO. This presumes that the IPO price kicks up on the first day of listing.

Why does anyone changing jobs feel compelled to describe himself as a small creature with fins swimming in a body of water? Why not simply admit that one has been forced to leave even if the big pond was indeed comfortable for fishes big and small? The pond as metaphor is intended to avoid embarrassing exchanges. Moves are somehow required to be perceived as voluntary, even planned.

Other watery metaphors are applied to economics and business.

The “trickle-down” effect refers to income distribution in macroeconomics. The theory holds that lower taxes at the top will trickle benefits to those lower down the income scale. This premise is contested by those who feel not even a splash coming from the top. The tax cut can even get out of the system into a safe haven.

A “pissing contest” which requires expelling liquid through a very small aperture, refers to the rat race. The supposition is that vitality (often associated with youth) allows the pisser to launch his liquid waste a longer distance. Here, the incontinent veteran suffers in comparison. The latter’s drippy effort on the amber stuff can make this urinary contest too one-sided. Size is not the issue here, only the speed and distance of delivery.

“Walking on water” is also a phrase used in business. It describes the divine attributes of those newly poached from stints abroad at stratospheric compensation levels and introduced as miracle workers — please welcome Divine Grace as our new CFO. She is known to walk on water, except in a storm. The new hire is expected to occasionally turn water into wine and raise assets from the dead.

“Passing water” is the reaction of cowed subordinates. The expulsion of liquid here is an involuntary reaction to water walkers. They also figure significantly in pissing contests. (See above)

Being “under water,” unless one’s business involves aquatic entertainment for socially distanced bar habitués drinking mojito and gazing through thick glass walls, denotes an unfortunate condition. It is ironically an illiquid state.

As for “sunk cost,” this refers to failed investments which should no longer affect future financial decisions. It is considered a bad strategy to tote up past losses when making new decisions, like acquiring a new company. This time let’s look closely at the valuation.

As for old acquaintances catching up with you, and how you’re doing in terms of the waterworks, it’s best to be vague. (I’m just keeping my head above water.) Such ambiguity allows conversation to move on to other problems, which can be dismissed as water under the bridge.

And in moments of economic difficulties, sometimes an offer of comfort can be irresistibly liquid. Need a drink?

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Scientists raise doubts about AstraZeneca vaccine efficacy

SYDNEY — Australian scientists have raised questions over the efficacy of the AstraZeneca coronavirus disease 2019 (COVID-19) vaccine in establishing herd immunity, calling for a pause on its widespread rollout as the country recorded one new coronavirus case on Wednesday.

The opposition to the vaccine casts a cloud over Australia’s immunization plans with 53 million doses of the AstraZeneca jab already on hand.

“The question is really whether it is able to provide herd immunity. We are playing a long game here. We don’t know how long that will take,” said Professor Stephen Turner, the president of the Australian and New Zealand Society for Immunology (ASI).

Mr. Turner added that the government must pivot towards getting more of the Moderna and Pfizer vaccines.

Experts, including Mr. Turner, cited data showing the AstraZeneca jab had 62% efficacy compared with over 90% for the Pfizer-BioNtech vaccine.

In a statement, the ASI said Mr. Turner was speaking as an expert in immunology and that the body did not advocate a pause to the rollout as widely reported by local media.

Earlier, Turner told the Sydney Morning Herald the AstraZeneca vaccine is not one “I would be deploying widely because of that lower efficacy.”

Australia has 10 million doses of the Pfizer vaccine, though neither AstraZeneca nor Pfizer have approval from the country’s drug regulator, the Therapeutic Goods Administration (TGA).

AstraZeneca did not immediately respond to an email request for comment.

EFFECTIVE, SAFE, HIGH QUALITY
Australia’s chief medical officer, Paul Kelly, attempted to thwart the concerns around its efficacy, saying the AstraZeneca jab was “effective,” “safe” and of “high quality”.

“The great advantage of the AstraZeneca vaccine is it’s being made here in Australia,” Mr. Kelly said. “It will be available as soon as the TGA gives its tick, which we expect that it will in February.”

Mr. Kelly said Australia will have more data by February as well as “real-world information” coming from London, which has already rolled out the vaccine.

Australia has been more successful than many other countries in managing the pandemic, with total infections in the country of 25 million people at about 28,600, with 909 deaths.

Its success is largely attributable to closed borders and widespread compliance with social-distancing rules, along with aggressive testing and tracing programmes.

Given the low case numbers and community transmission rates, some experts say Australia could afford waiting for a more effective vaccine.

“The government needs to be flexible in its rollout decisions once we have a better understanding of the efficacy of the other vaccines,” said Adrian Esterman, chair of Biostatistics and Epidemiology at the University of South Australia.

Australia recorded one new local coronavirus case in its most populous state of New South Wales on Wednesday.

In Queensland, hundreds of hotel quarantine guests were forced to restart their isolation after a handful of cases in the facility were linked to the highly contagious UK virus strain. — Reuters

Indonesia starts vaccination drive as COVID-19 deaths hit record

JAKARTA — Indonesia launched one of the world’s biggest COVID-19 vaccination campaigns on Wednesday with President Joko Widodo getting the first shot of a Chinese vaccine as his country fights one of the worst coronavirus outbreaks in Asia.

The drive aims to inoculate 181.5 million people, with the first to be vaccinated receiving the CoronaVac vaccine from China’s Sinovac Biotech, which Indonesia authorized for emergency use on Monday.

Dressed in a white shirt and wearing a mask, the president, who is known as Jokowi, got his shot at the presidential palace.

“Vaccination is important to break the chain of COVID-19 (coronavirus disease 2019) transmission and give protection to us and safety to every Indonesian and help accelerate economic recovery,” Mr. Jokowi said after getting his injection.

Some other officials being vaccinated showed off their shot marks to waiting journalists and flexed their arms.

Minister of Health Budi Gunadi Sadikin has said nearly 1.5 million medical workers would be inoculated by February, followed by public servants and the general population within 15 months.

Unlike many countries, Indonesia intends to inoculate its working population first, rather than the elderly, partly because it does not have enough data from clinical trials on CoronaVac’s efficacy on older people.

Indonesia on Tuesday reported a daily record 302 coronavirus deaths, taking fatalities to 24,645. Its infections are at their peak, averaging more than 9,000 a day, with 846,765 total cases.

Indonesia’s stocks have risen in the last few days, helped by the launch of vaccinations, with the main index opening up around 0.7% on Wednesday.

“Vaccinations contributed a fairly positive market sentiment,” said Hans Kwee, director at investment manager Anugerah Mega Investama.

‘NOT ONE BULLET’
Southeast Asia’s largest economy suffered its first recession in more than two decades last year due to pandemic, with the government estimating a contraction of as much as 2.2%.

The government has said two-thirds of the 270 million population must be vaccinated to achieve herd immunity, with the cost of the programme expected to be more than 74 trillion rupiah ($5.26 billion).

Olivia Herlinda, a researcher at the Center for Indonesia’s Strategic Development Initiatives, said authorities had not taken into account the vaccine efficacy and virus reproduction rate to justify its herd immunity focus.

Epidemiologist Masdalina Pane said that vaccines had to be accompanied by increased testing and tracing.

“There’s not one bullet,” she said.

Mr. Budi said Indonesia’s testing and tracing needed improving, adding there was an imbalance in testing resources across the archipelago.

Indonesia has said its trials showed CoronaVac has an efficacy rate of 65.3%, but Brazilian researchers said on Tuesday the vaccine was only 50.4% effective.

Indonesia’s food and drugs authority BPOM did not immediately respond to a request for comment.

Bambang Heriyanto, corporate secretary of Bio Farma, the Indonesian company involved in the trials, said the Brazilian data was still above the 50% benchmark set by the World Health Organization (WHO).

Turkish researchers said in December CoronaVac showed a 91.25% efficacy based on interim analysis.

Indonesia expects to get another 122.5 million doses of CoronaVac by January 2022, with about 30 million doses due by the end of the first quarter this year.

It has also secured nearly 330 million doses of other vaccines, including from AstraZeneca and Pfizer and its partner BioNTech.  Reuters