Building materials April price index picks up in NCR

May 27, 2021 | 8:39 pm

THE GROWTH in retail prices of construction materials in the National Capital Region (NCR) picked up in April, the Philippine Statistics Authority (PSA) said Thursday.

The PSA reported that the NCR’s construction materials retail price index rose 1.3% year on year in April, against growth of 1.2% in March.

The growth recorded in April was the highest in four months or since the 1.4% growth rate in December.

Contributing to last month’s increase were faster growth in carpentry materials (1.8% from 1.5% in March), painting materials and related components (0.9% from 0.8%), plumbing materials (0.7% from 0.5%), and miscellaneous construction materials (1.2% from 1.1%).

Unchanged were the price growth rates for tinsmithry materials (1.8%) and electrical materials (0.5%).

Slowing down was growth in the retail price of masonry materials to 1.6% from 1.7% previously.

Retail construction materials prices reflect demand for materials for small-scale or even DIY construction projects, as opposed to wholesale prices, which point to procurement activity by large construction companies undertaking major works, though analysts believe the decisive factor is logistical in nature.

“Restrictions on mobility of goods and services has forced construction material costs higher and although we’ve noted a gradual relaxation of these curbs, we have also noted the strong performance of public-sector construction as well as a pickup in CPI (consumer price index) inflation for goods and services for routine household maintenance,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

“Thus, we can say the recent upward trajectory in construction prices is driven in large part by logistical bottlenecks compounded by modest demand from public construction as well as private sector individuals who may be conducting some home improvement during the protracted lockdowns,” he added.

The economy contracted 4.2% in the first quarter, against the 8.3% decline in the fourth quarter of 2020. A year earlier, it had contracted 0.7%. During the 2021 first quarter, public construction grew 26.2% following consecutive quarterly declines of 27.1% and 17.7% in the third and fourth quarter of 2020, respectively.

The Department of Budget and Management reported a year on year 41.1% increase in public infrastructure spending to P87.7 billion in March, against the P62.2-billion spent a year earlier. The March total was also 56.4% higher than the February level.

Headline inflation steadied at 4.5% in April from March, according to the PSA. The sub-index for furnishings, household equipment, and routine household maintenance rose 2.1% in April from 1.9% the preceding month. This component accounts for 2.9% of the CPI basket. — Lourdes O. Pilar

LKI seeking ban on duty pass-on to consumers

May 27, 2021 | 8:38 pm

A CONSUMER advocacy group is asking the government to prevent companies from passing on costs incurred from import duties on key goods to consumers.

Laban Konsyumer, Inc. (LKI) in a statement on Thursday said the organization submitted letters to Congress requesting for the prevention of the transfer of indirect taxes placed on businesses to consumers.

These taxes include safeguard and dumping duties on imported cement, ceramic tiles, vehicles, rice and meat products.

“We propose that Congress introduce amendments to the shifting process and stop the passing on the tax burden to the consumers,” LKI said.

Car companies have started collecting deposits after the government imposed provisional safeguard duties on imported cars.

“Under existing tax laws and cases, the liability for the payment of the indirect taxes falls on one person, the statutory taxpayer,” LKI President Victorio A. Dimagiba said.

“However, the burden thereof can be shifted and passed on to another person… (thus) the tax is imposed upon the goods before reaching consumers who ultimately pay for it as part of the purchase price. In this event, the consumer pays more for the goods.”

Current tax law, LKI said, defeats the purpose of duties on imported goods if the burden is shifted to consumers.

“We also need to prevent windfall profits of the statutory taxpayer in the event of a favorable appeal against the higher tariff, coupled with a refund,” Mr. Dimagiba said.

The law should also ensure that prices should fall in favor of consumers whenever there is a tariff reduction. — Jenina P. Ibañez

Agencies sign information-sharing deal to curb fuel smuggling

May 27, 2021 | 8:37 pm

THE Department of Energy (DoE), the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) signed an agreement Thursday to put more teeth in the effort to curb fuel smuggling, centered on information-sharing in oil and petroleum trading.

“It is high time to make use of available information from each agency to build a better understanding of the behavior of the Philippine oil industry and more importantly, for the BoC to understand and identify possible holes in our process and plug leakages that have bled the country for years,” BoC Commissioner Rey Leonardo B. Guerrero said during the virtual event.

He said the three agencies can make forecasts by reconciling their information on the oil and petroleum products trade.

“The BoC looks forward to building a better, more transparent partnership with the DoE and the BIR, moving towards the common vision of curbing oil smuggling and ensuring proper assessment of taxes through regular information exchange,” Mr. Guerrero said.

Energy Secretary Alfonso G. Cusi said that the deal will help the agencies work together in assessing the correct taxes and duties.

The deal “is therefore a culmination of our aspiration of materializing an inter-agency coordinated platform which I believe is the first in the history of our agencies, in approaching anti-smuggling policy and programs,” he said in his speech.

Mr. Cusi, Mr. Guerrero, and BIR Commissioner Caesar R. Dulay signed the memorandum of agreement Thursday.

Finance Secretary Carlos G. Dominguez III, who also attended the virtual event, said that the agreement will help the government implementing its nationwide fuel marking program as authorized by the Tax Reform for Acceleration and Inclusion Act.

Fuel is marked after taxes are paid on refined and imported gasoline, diesel, and kerosene, to indicate that the product is tax compliant. Absence of the dye is considered prima facie evidence of smuggling. — Angelica Y. Yang

Century Pacific sees consumers buying more food per shopping trip

May 27, 2021 | 8:35 pm

Food consumption in the Philippines has been resilient during the pandemic, with consumers buying more per market trip to maximize the goods purchased during their shopping trips, a Century Pacific Food official said.

“In terms of basket size, consumers buy a lot more here compared to pre-pandemic,” Century Pacific Food Inc. Executive Vice President and Chief Operations Officer Gregory H. Banzon said at an event organized by Security Bank. The company sells its products internationally.

“(Consumers in other countries) are stocking up and buying more for emergencies, but their consumption patterns seem to be more predictable and stable. (In the Philippines), we tend to be more indulgent.”

While consumers in many countries are cooking more at home during the lockdown, Philippine consumers prefer to create «dining experiences,» sharing meals with family members.

Century Pacific Food posted a net profit of P3.9 billion in 2020, up 24% on strong demand for its marine, meat, and milk branded products.

Mr. Banzon said the surge in demand last year has tapered off over the last few months, but the company continues to be optimistic about strong demand from the country’s large population.

“The vaccine rollout is a key and important element in making this happen,” he said. — Jenina P. Ibañez

Metro Manila lockdown may be eased in June

May 27, 2021 | 8:16 pm

By Kyle Aristophere T. Atienza, Reporter

THE GOVERNMENT would probably ease the general lockdown in Manila, the capital and nearby cities and provinces next month as coronavirus infections continue to fall, according to the presidential palace.

“There’s a likelihood that the quarantine classifications might be relaxed on the basis of formula but subject to the recommendation of Metro Manila that any further reopening should be gradual,” presidential spokesman Herminio L. Roque, Jr., told a televised news briefing on Thursday.

He said relaxing the quarantine in Metro Manila and the provinces of Laguna, Rizal, Cavite and Bulacan would depend on  the hospital use rate, two-week and daily attack rates.

Mr. Roque said the infection rate in the capital region had fallen to 10.6% from a peak of 34% between April 4 and 17, while the two-week attack rate had gone down by 47% from 5%.

He said only 43% of the country’s healthcare facilities had been used.

“However, there is also the fact that the implementers have to be heard,” Mr. Roque said, referring to the capital region’s mayors.

The mayors have agreed to gradually reopen the economy as the situation improves, Metro Manila Development Authority Chairman Benjamin de Castro Abalos, Jr. told the same briefing.

“Let’s not be rash about it,” he said about easing the lockdown.

Metro Manila, the epicenter of the coronavirus pandemic in the country, accounts for about 40% of the country’s economic output.  

Mr. Abalos said the mayors would meet with the country’s anti-pandemic task force this week to discuss their proposals.

Mr. Roque said President Rodrigo R. Duterte might announce the new quarantine classifications for next month by the end of the month.

The OCTA Research Group on Wednesday said coronavirus infections in Metro Manila had fallen by 80% since a fresh surge that started in March.

The daily infection average in Metro Manila in the past seven days stood at 1,099, lower than 5,550 during the peak in late March to April.

OCTA said the capital region had a virus reproduction rate of 0.53, lower than more than two at the peak in July and August last year. A reproduction rate of 1 means an infected person can infect one more.

The group recommended that the general lockdown be retained in June because cases were still significant.

Also on Thursday, Health Director Althea de Guzman said coronavirus infections in the Visayas and Mindanao have been rising. Infections were increasing in Western Visayas, Zamboanga Peninsula and Northern Mindanao, she told a separate news briefing. 

“This is higher than the increase we saw and relayed last week,” she said.

DAILY TALLY
The Department of Health (DoH) reported 6,483 coronavirus infections on Thursday, bringing the total number to 1.2 million.

The death toll rose by 210 to 20,379, while recoveries increased by 4,335 to 1,131,942, it said in a bulletin.

There were 48,109 active cases, 1.6% of which are critical, 92.7% were mild, 2.2% did not show symptoms, 2.1% were severe and 1.47% were moderate. 

The agency said 25 duplicates had been removed from the tally, 22 of which were reclassified as recoveries. It added that 139 recoveries had been reclassified as deaths. Six laboratories failed to submit data on Jan. 28.

The total number of Filipinos who have been fully vaccinated against COVID-19 has crossed the 1-million mark, the Department of Health (DoH) said on Thursday.

In its latest vaccine statistics, the agency said the total number of those already fully vaccinated against the virus as of May 25 has reached 1,029,261.

Meanwhile, President Rodrigo R. Duterte on Wednesday night threatened to send village captains to jail for allowing mass gatherings where people got infected with the coronavirus.

“You will be the first to be put in jail, the barangay captain, for having committed the crime of dereliction of duty under the Revised Penal Code,” he said in a televised speech in mixed English and Filipino.

Mr. Duterte issued the warning after more than 50 people got infected with the coronavirus at a pool party in Quezon City.

He ordered police to arrest the village captain first  if a so-called super spreader event happens again.

“I am ordering the police to arrest the barangay captain and bring him to the station, investigate him for dereliction of duty, having failed to enforce the law,” the President said.

Mr. Duterte said police can hit people who resist arrest.

Meanwhile, Interior and Local Government Secretary Eduardo M. Año said his agency would release a memo informing village captains of additional responsibilities in enforcing health protocols.

Mr. Año said the order would mandate them to form their own “coronavirus operation centers” that will conduct health patrols on weekends and during public holidays.

The order would also ban alcoholic beverages, cockfights, parades, processions and other public events, he said.

Children aged 12 to 15 years to get Pfizer coronavirus vaccine

May 27, 2021 | 8:15 pm

HEALTH authorities want children aged 12 to 15 years to get vaccinated against the coronavirus using the vaccine made by Pfizer, Inc., according to the local Food and Drug Administration (FDA).

The regulator would change the emergency use authorization for the Pfizer drug so it can be given to the age group, FDA Director General Rolando Enrique D. Domingo said during a televised Cabinet meeting with President Rodrigo R. Duterte on Wednesday night.

Pfizer applied for the change in the emergency use approval on May 20 after the United States FDA this month approved its request to allow the use of its vaccine for children aged 12 to 15 years.

The Pfizer vaccine was the first coronavirus vaccine to get Philippine approval for emergency use.

The country has received almost 200,000 doses under a global initiative for equal access.

The delivery of about 2.2 million more doses expected to arrive this month had been moved to June, vaccine czar Carlito G. Galvez, Jr. told the Cabinet meeting.

Presidential spokesman Herminio L. Roque, Jr. said the government would take delivery of more Pfizer vaccines by July.

Philippine authorities earlier said the country’s supply of coronavirus vaccines would stabilize by June.

Almost 4.5 million vaccines have been given out as of May 25, according to the Health department.

It said about 3.4 million Filipinos have received their first dose, while only about a million have been completely vaccinated. — K.A.T. Atienza

Senators reject House plan to lift Charter’s foreign ownership cap 

May 27, 2021 | 8:14 pm

By Bianca Angelica D. Añago

SENATORS on Thursday said the chamber was unlikely to prioritize the approval of a resolution seeking to  ease foreign ownership limits in the 1987 Constitution.

The Senate does not have time to discuss Charter change (Cha-cha) because Congress is set to adjourn on June 4, Senate President Vicente C. Sotto III told reporters in a Viber group message.

“I don’t think we have enough time as it is to take a quick look at the proposal,” he said. “We have five days to go before the sine die adjournment.”

The House of Representatives on Wednesday night approved on second reading the resolution seeking to change the three decade Constitution.

Congressmen will amend Charter by inserting  the phrase “unless otherwise provided by law” in clauses that limit foreign ownership in some sectors.

This will give lawmakers the leeway to pass laws that will lift the Charter change limits.

Senator Franklin M. Drilon told reporters on Thursday senators were not inclined to support changes to the 1987 Constitution. “It was not even in the agenda of the Legislative Executive Development Advisory Council meeting yesterday, which means it is not a priority legislation,” he said.

Mr. Drilon said three economic bills that the presidential palace had certified as urgent were sufficient “to liberalize our investment climate without amending the Constitution.”

“The Corporate Recovery and Tax Incentives for Enterprises bill, which provides incentives for foreign direct investments, is now a law,” he added.

“There’s no urgency for it and there’s no need to amend eco(nomic) provisions,” Senator Ralph G. Recto he said in a mobile message.

In a statement, Senator Mary Grace Natividad S. Poe-Llamanzares said “an economic ‘Cha-cha’ would probably deserve less attention given that we already have other foreign investment measures that are certified as urgent.”

The Senate has passed the bill amending the Retail Trade Liberalization Act on third reading, while the bills seeking to change the Public Service Act and Foreign Investments Act are pending second reading approval.

Senator Risa N. Hontiveros-Baraquel said the entry of foreign investors “should be driven by the extent to which they support our ambitions.”

“Following the Constitution, we should be clear about what we deem to be our national patrimony and how we should use it for the long term,” she said in a statement.

Meanwhile, the American Chamber of Commerce of the Philippines said the House approval was a positive signal that the Legislature favors easing the limits even as it noted that the move could take time.

“The House has chosen a slower route than a repeal of the restrictions,” John Forbes, the chamber’s senior adviser said in a mobile phone message.

“New foreign direct investments in these sectors will be delayed until Congress passes relevant laws,” he said.

Mr. Forbes said the Philippines was missing out because competing countries were getting significant foreign direct investments in areas such as education, advertising and public services.

Ruben J. Pascual, secretary general of the Philippine Chamber of Commerce and Industry (PCCI) said it favors the proposed charter change provisions, but “we do not agree with the timing as elections are just around the corner and politicians will tinker with the Constitution for their personal interests.”

PCCI in January said inserting the clause could weaken the Constitution by making it easy to amend using ordinary legislation.

The group said liberalizing economic provisions of the Constitution should be done carefully to “withstand various economic interests but especially the test of time.” — with Jenina P. Ibañez

Justice Leonen says ‘no victory to be celebrated’ in dismissal of impeachment complaint

May 27, 2021 | 8:13 pm

SUPREME Court Associate Justice Marvic Mario Victor F. Leonen did not celebrate the dismissal of the impeachment complaint against him by the House of Representatives on Thursday, saying it was a waste of time and was ill-motivated to begin with.

“There is no victory to be celebrated by anyone. If anything, it should remind some not to waste our time and resources for narrow parochial selfish gains,” Mr. Leonen said in an e-mailed statement on Thursday.

“A dismissal on the basis of the mere face of the impeachment complaint affirms the baselessness of the grounds raised. It is an act that powerfully speaks for itself,” he added.

Mr. Leonen said the country’s leaders will eventually see the motives of those who filed the complaint and “(a)t the right time, they will do the right thing.”

He also told “the prime movers of this baseless complaint and those who have supported them” that he wishes them well, “and I wish that you will also find your own peace.”

The complaint was filed in Dec. 2020 by Edwin M. Cordevilla, secretary-general of the Filipino League of Advocates for Good Government. It was endorsed by House Speaker Lord Allan Jay Q. Velasco in March.

The House of Representatives dismissed the complaint for lack of authentic and verified documents supporting his alleged violations of the Constitution.

The complaint alleged that Mr. Leonen violated the 1987 Constitution by failing to submit his Statement of Assets, Liabilities, and Net Worth (SALN) when he was with the University of the Philippines, and for his slow disposal of cases before the Supreme Court.

Deputy Speaker Rufus R. Rodriguez, during his manifestation on Thursday, said the complaint lacked the authenticated documents that are meant to determine its sufficiency in form. Most of the documents submitted were published newspaper articles.

“The complaint is beyond verifying because they are all hearsay. All of the documents are hearsay. All the attached in annexes are hearsay,” Mr. Rodriguez said.

Albay Rep. Edcel C. Lagman, for his part, said the supposed violations relating to the filing of SALNs cannot be impeachable as the allegations happened before Mr. Leonen’s appointment to the Supreme Court.

“Granting if this is true, it cannot be a ground for impeachment for the following reasons: one, the alleged failure was before Justice Leonen was appointed as Associate Justice in 2012. An impeachable incumbent official should be impeached for offenses done during his incumbency,” he said. — Bianca Angelica D. Añago and Gillian M. Cortez

Group says fishermen have lost 70% of income due to Chinese presence in Scarborough Shoal

May 27, 2021 | 8:12 pm

Fisherfolk-group-PAMALAKAYA- — PAMALAKAYAWEB.WORDPRESS.COM

THE INCOME of Filipino fishermen operating in coastal areas near the West Philippine Sea have dropped by around 70% per trip since last year due to Chinese presence in the Scarborough Shoal, a militant fishers’ group said on Thursday.

Bobby Roldan, vice chair for Luzon of the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA), said in a statement on Thursday that the average income of a small fisherman has fallen to P300 from P1,000 per fishing trip.

Mr. Roldan said these fishermen are no longer able to go near Scarborough Shoal for fear of being harassed or aggressively driven away by Chinese vessels patroling the area.

“Kaya nagsisiksikan kami sa loob ng 15-kilometer municipal waters hanggang sa pinakamalayong 60 kilometro mula sa baybayin kung saan mas kakaunti ang nahuhuling isda (This is why we are only operating within the 15-kilometer municipal waters up to 60-kilometers from the coast, where we catch fewer fishes),” he said.

Further, they have to compete with bigger commercial fishing vessels that also operate near the coast.

“We are faced with huge Chinese vessels in Scarborough Shoal and are also hindered by big commercial fishing vessels to municipal waters when we are pushed back. The government should just encourage and fund big fishing operators to venture to West Philippine Sea instead in order to utilize the marine resources of the area.”

Mr. Roldan said their reduced income now only covers their operating costs such as fuel and ice.

“Our income is only enough for us to be able to refill our gasoline and ice used in production every time we venture out. At worst, the income we earn is not enough. Due to this, the local fishermen will be buried in debt,” he said.

Fernando L. Hicap, PAMALAKAYA national chairperson, noted that the coronavirus disease 2019 (COVID-19) pandemic did not hinder China in its expansion activities in the South China Sea.

“China’s aggressive usurpation of South China Sea accompanied with large-scale fishing expeditions does not only result to destruction of marine resources, but also exhaust fish stocks in the seas, leaving less for our fishers,” Mr. Hicap said.

The Philippines, through the Department of Foreign Affairs (DFA), recently filed a diplomatic protest against China’s annual fishing ban in the South China Sea from May 1 to Aug. 16.

DFA said the fishing ban goes beyond China’s marine entitlements under the United Nations Convention on the Law of the Sea (UNCLOS) and is baseless under international law.

BusinessWorld sought the Department of Agriculture for comment on PAMALAKAYA’s statement but has not responded as of deadline time. — Revin Mikhael D. Ochave

Duterte not discounting VP bid in 2022, says ‘leaves it to God’

May 27, 2021 | 8:12 pm

PRESIDENT Rodrigo R. Duterte has not dismissed the possibility of running as vice president in next year’s polls, saying “he leaves it to God,” according to his spokesperson.

“I will quote the President — he leaves it to God,” Presidential Spokesman Herminio L. Roque, Jr. told a televised news briefing on Thursday.

Mr. Roque earlier said the 76-year old leader is unlikely to seek reelection since he already assumed the country’s top post.

“I’ve heard the President say at one point na, siyempre, naging presidente na siya, bakit siya magba- (of course he’s been president, why would he still run for) vice president. But I don’t know if there’s been any change,” he said in a public briefing in March.

Presidential chief legal counsel Salvador S. Panelo, however, recently told OneNews that the President might seek reelection if there is a public clamor.

Mr. Duterte had repeatedly refused to run for president when he was still the mayor of Davao City in the southern Philippines.

He also made the “I leave it to God” statement when he was asked in 2015 by local news outfit Rappler whether he would run as president. — Kyle Aristophere T. Atienza

CHR seeks full access to police records via Justice dep’t

May 27, 2021 | 8:12 pm

THE COMMISSION on Human Rights (CHR) is keeping its fingers crossed on getting full access to police records on cases that might have involved extra-judicial killings (EJK), including police anti-drug operations, through its work with the Justice department.

CHR Spokesperson Jacqueline Ann C. de Guia told reporters on Thursday that they are currently helping in the Department of Justice (DoJ) review by providing access to the victims “so that ultimately in the end, we can file charges through the cooperation of the victims.”

The Philippine National Police (PNP) chief has said that they are ready to open all case files to the DoJ.

As for sharing it with CHR, Ms. Guia said the “PNP still has some reservations about sharing the data to us.”

“It would have been more ideal if say, for example, we would have to be granted full access to the report, but at this point, we will welcome any steps right now, any gesture of cooperation, (because) we are optimistic that this is just but the beginning of trigger and deeper engagement (of the CHR) with the DoJ review panel,” she said.

Ms. De Guia also said that during their meeting with the DoJ on Wednesday, the two parties explored various areas of cooperation, such as how they can “strengthen the education component on human right(s), particularly on prosecution.” — Bianca Angelica D. Añago

DoJ, Supreme Court strengthen coordination vs human trafficking

May 27, 2021 | 8:09 pm

THE JUSTICE department and the Supreme Court on Wednesday signed an agreement for the implementation of the Justice Systems Coordination Mechanism (JSCM) Project, which aims to strengthen the measures against human trafficking.

The project is designed to help members of the Association of Southeast Asian Nations (ASEAN) combat trafficking in compliance with obligations under the ASEAN Convention Against Trafficking in Persons, Especially Women and Children, Justice Undersecretary Emmeline Aglipay-Villar told reporters on Thursday.

The agreement was signed by the Department of Justice-Inter-Agency Council Against Trafficking and the Supreme Court’s Office of the Court Administrator.

Ms. Villar explained that the JSCM Project includes increasing awareness among judges, court personnel, and prosecutors on multiple areas such as the importance of sensitive handling of human trafficking victims. — Bianca Angelica D. Añago