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Brownout-free power seen requiring diversified sources, latest coal tech

THE Philippines should diversify and modernize its sources of electricity to achieve the kind of uninterrupted power supply Taiwan has attained, according to officials of power generation companies from the Philippines and Taiwan.

“Here we don’t usually experience brownouts, blackouts or whatever because if ever we encounter some unusual natural disaster like earthquakes we don’t restrict usage of electricity,” Ru-Chin Chou, deputy plant general manager of Taiwan Power Co.’s Lin Kou thermal power plant, told reporters when asked about how his industry deals with power interruptions.

He was briefing reporters from the Philippines in New Taipei City this week. He said unscheduled shutdowns are a rarity in Taiwan.

He added power interruptions are an occasion for “all politicians (to) step down.”

Taiwan Power, like all of the country’s power generators, is state-owned. It has 11 power plants in Taiwan, including three in remote islands.

The power plants in Lin Kou in northern Taiwan and Talin in the south use an ultra-supercritical boiler, the most advanced technology that significantly reduces carbon emissions.

Some of the other plants using high-emitting boilers are either up for upgrade or to be expanded using combined-cycle technology or one that is not limited to just coal as fuel.

“I just hope that the Philippines will follow the example of Taiwan in terms of modernizing power generation,” Litz M. Santana, Meralco PowerGen Corp. (MGen) vice-president for external affairs, said.

MGen has plans to build the country’s first ultra-supercritical plant in Atimonan, Quezon although it has yet to close a power supply agreement with a distribution utility.

“We need energy security by providing stable, reliable power supply, and how do we do it? By having a balanced mix of power supply coming from coal… you have to combat questions of carbon emission, you have to improve the technology like ultra-supercritical, which is already being used in most countries in Asia,” Ms. Santana said.

MGen also has aspirations to complete a solar farm, a wind power facility and is looking into a gas project.

“If you only rely on one technology or one fuel like gas, how will you have secure energy,” she said. — Victor V. Saulon

CTA upholds South Luzon Tollway stamp tax ruling

THE Court of Tax Appeals (CTA) affirmed the cancellation of P50.5-million tax assessment against South Luzon Tollway Corp. over a Documentary Stamp Tax (DST) deficiency, among others.

In a 12-page decision dated Oct. 28, the court, sitting en banc dismissed for lack of merit the appeal of Bureau of Internal Revenue (BIR) over the July 2018 decision and January 2019 resolution of the court in division, which cancelled the assessment and ordered the refund of P49.8 million in erroneously paid DST.

The en banc court upheld the division’s decision nullifying the assessment of South Luzon’s deficiencies for stating an indefinite amount and not having a due date for payment, noting that the court cannot ignore jurisprudence from the Supreme Court. The CTA in the earlier decision said BIR was obliged to refund the P49.8 million as it was undisputed by the parties.

BIR is contending that the issue of the lack of due date in the assessment notice was not raised by the company and failure to include the due date is not fatal for the collection of tax liabilities.

The company paid the P49.8 million billed to it in September 2015. The BIR issued a Formal Letter of Demand worth P50.6 million the next month.

The court also said the bureau’s right to due process was not violated.

“Unfortunately, petitioner fails to specify which tenet of due process did the First Division violate in rendering its decision,” the court said.

“In reviewing the case’s history, the Court En Banc is unconvinced that petitioner was given an unfair trial. It appears that all the necessities of due process were met,” it added.

The court said the company’s petition for review was filed on time and the bureau was given an opportunity to present its evidence and witnesses and the case was decided after a full-blown trial.

The decision was written by Associate Justice Jean Marie A. Bacorro-Villena. — Vann Marlo M. Villegas

ARTA: Path of unease to ease doing business

To enhance efficiency, the government has strengthened and broadened the Anti-Red Tape Act of 2007 by passing Republic Act (RA) 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. The law took effect on June 17, 2018, intending to create programs that simplify requirements and streamline procedures in government transactions.

More than a year after its effectivity, the Anti-Red Tape Authority (ARTA), the agency mandated to oversee the implementation of the Act, along with the Civil Service Commission (CSC), the Department of Trade and Industry (DTI), and in coordination with other branches of government, promulgated the Implementing Rules and Regulations (IRR). The IRR was issued through Joint Memorandum Circular No. 2019-001, and became effective on Aug. 4.

What are the notable changes in the Act that the IRR seeks to implement?

The coverage of the law has been expanded to apply to all government offices and agencies in the Executive Department, including local government units (LGUs), government-owned or controlled corporations (GOCCs), and other government instrumentalities, whether located in the Philippines or abroad, including quasi-judicial bodies that provide services covering business and non-business related transactions.

To establish accountability and recognize good performance, a Citizen’s Charter is to be set up by all covered government agencies. It is to include the checklist of requirements, persons responsible for each step, the required fees, procedures to obtain the service, maximum time to complete the process, as well as the procedure for filing and handling complaints. All updates to the Citizen’s Charter must be posted not later than March 31st of each year to ensure compliance with its directives.

Each agency is required to classify all transactions and services pursuant to a set of criteria and to assign appropriate processing times based on the classification of the applications or requests. The maximum processing time imposed by the law are as follows: three working days for simple transactions, seven working days for complex transactions, and 20 working days for highly technical applications or those that pose a danger to public health, public safety, public morals, or public policy. In the case of inadvertence to include and classify a specific transaction or service, the excluded activity is to be interpreted as a simple transaction that must be processed within three working days. Thus, government agencies must thoroughly review the activities within their offices to avoid breach of responsibilities.

The maximum time prescribed may be extended only once for the same number of days, but the agency is required to notify the applicant in writing as to the reason for the extension and final date of release.

Failure without cause to render the government service within the prescribed processing time may give rise to administrative and criminal liabilities.

Fixing the maximum time to act on applications should greatly increase efficiency. However, for it to work, it is important to also consider the preliminary assessment or the evaluation stage in the required timeline to process the transaction. It is during the evaluation stage that additional or revised documents are requested by the processing officer. The mandated processing time, while ideal, can be misleading if it does not contemplate the extensive delays that may be experienced during the evaluation stage. Thus, the Citizen’s Charter should likewise set a maximum period for pre-processing the applications.

AUTOMATIC APPROVAL AND ITS CHALLENGES
A noteworthy part of the Act and the IRR is the rule on automatic approval or automatic extension of a license, clearance, permit, certification, or authorization. Under the IRR, the existence of all the following conditions warrants the automatic approval of an original application:

1. If a government office or agency fails to approve or disapprove an original application for a license, permit, certification, or authorization within the prescribed processing time;

2. If all required documents have been submitted; and

3. If all required fees and charges have been paid.

The acknowledgment receipt, together with the official receipt for payment of the fees, is deemed to constitute proof of approval, having the same force and effect of a license, clearance, permit, certification, or authorization.

This third requirement on payment of fees may have the effect of nullifying the benefits of the provision on automatic approval. More often than not, payment of the required fees or charges is made at the final step of the process. What remains after the payment is the mere ministerial work of issuing the certificate, license, or permit. However, as mentioned earlier, delays normally occur during the pre-assessment or evaluation stage. Hence, RA 11032, while promising, can become an empty assertion if the government agencies are unable to reengineer their transaction processes in order to act on applications more efficiently as the law intended.

Under the IRR, to avail of the automatic approval, it is incumbent upon the applicant to file a complaint with the ARTA. Once the ARTA has verified that the applicant has submitted all necessary documents and paid the required fees, it will issue a declaration of completeness and order the concerned office or agency to issue the approval, extension, or renewal of the license or permit deemed automatically approved under the Act. However, the IRR failed to mention how long the process to investigate and issue the declaration of completion should be concluded. One can only surmise if the timeline imposed on other agencies will equally apply to ARTA as chief regulator.

As with all other types of legislation, success depends chiefly on the political will to implement the law with persistence. A poor review and reengineering of operating procedures shortchanges the public. While RA 11032 seeks to ease doing business and to make delivery of government services efficient, it seems that only clerical transactions, such as issuance of permits and public documents, will benefit from the Act. All other deadlines in government services will have to contend with the proverbial Filipino time delay, and sadly, the public will have to manage their expectations and ease way from other alternatives, for now.

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.

 

Cyril B. Pestilos is a Manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

cyril.b.pestilos@pwc.com

Quid pro quo is standard practice in Philippine politics

Quid pro quo is a Latin phrase that literally means something for something. It is used very often in reference to an exchange of favors.

The phrase has been used frequently in the ongoing US House of Representatives’ impeachment inquiry into President Donald Trump’s effort to pressure Ukraine President Volodymyr Zelensky to investigate former Vice-President Joe Biden in exchange for military aid. The reason Mr. Trump’s political opponents are looking into the possibility of impeaching him is because getting a foreign government involved in US domestic politics is a federal crime in the US.

Quid pro quo deals are normal in politics anywhere. In the Philippines, politics is often a game of quid pro quo. During the 2016 presidential elections, Mr. Duterte said there were grounds for former President Gloria Macapagal Arroyo’s acquittal. He also repeatedly said he owed much to Mrs. Arroyo as she had made substantial contributions to his campaign funds.

Shortly after Mr. Duterte was elected president, the Supreme Court acquitted the former president of the charge of plunder. In an appreciation dinner held in her honor in July by her former colleagues in the House of Representatives, she attributed her acquittal to President Duterte. Addressing the President, Mrs. Arroyo said, “I thank you that when you became President, you provided the atmosphere in which the Court had the freedom to acquit me of the trumped-up charges by my successor and your predecessor.” That statement of gratitude strongly suggests a case of quid pro quo.

People associate Mrs. Arroyo with quid pro quo politics. Soon after Mrs. Arroyo assumed the presidency, the Ombudsman filed charges of plunder against Joseph Estrada, her immediate predecessor. A special division of the Sandiganbayan was created to try him. Sandiganbayan Justice Teresita de Castro was appointed chair of the special division. The special court found Mr. Estrada guilty of plunder and sentenced him to life imprisonment. After the trial, President Arroyo elevated Justice De Castro to the Supreme Court. That prompted Jinggoy Estrada, son of the former president, to claim that Justice De Castro’s promotion was a reward for her convicting his father. Many citizens saw it as a quid pro quo deal between President Arroyo and Sandiganbayan Justice De Castro.

In 2002 President Arroyo appointed her Chief-of-Staff Renato Corona to the Supreme Court and in 2010 named him Chief Justice. The latter appointment was in contravention of a provision in the Constitution barring the President from making appointments during her last two months in office. During his entire stint in the Supreme Court, Corona was perceived to have been partial and subservient to Mrs. Arroyo in cases involving her administration. The apparent partiality was one of the articles of impeachment submitted by the House of Representatives to the Senate. To many political pundits, it was another case of quid pro quo.

One other of Mrs. Arroyo’s appointees to the Supreme Court was Court of Appeals Justice Lucas Bersamin. In 2015, Justice Bersamin, to justify the grant of bail to Senator Juan Ponce Enrile, who was charged with a non-bailable offense of plunder, declared that “Bail for the provisional liberty of the accused, regardless of the crime charged, should be allowed independently of the merits of the charge, provided his continued incarceration is clearly shown to be injurious to his health or to endanger his life.”

I saw the ruling as Justice Bersamin’s way of providing justification for the grant of bail to Mrs. Arroyo who was also under arrest at the time for plunder but was detained in a hospital supposedly because of a life-threatening spinal disease. However, Mr. Duterte’s election rendered Justice Bersamin’s doctrine on bail extraneous as Mrs. Arroyo walked free sans legal rigmarole, thanks to the aforesaid atmosphere that Mr. Duterte provided.

Retired Supreme Court Chief Justice Artemio V. Panganiban once wrote in his Philippine Daily Inquirer column: “The sociological school of legal philosophy holds that to predict how a case would be decided (by the Supreme Court), one must consider the personality of the magistrate and the various stimuli attendant to a case per this formula: personality times stimuli equals decision (P x S = D). The personality of a magistrate includes intrinsic qualities like upbringing, education, relationships, etc. Stimuli refer to how he/she responds to externals like public opinion, peer pressure, religious leaders, medical condition, appointing authority, appointment sponsor, close friends, etc.”

That observation strongly suggests that justices of the Supreme Court sometimes decide not only on the basis of an objective interpretation of the law and the established facts but on personal considerations as well.

Could another Supreme Court decision be the quid and the selection of someone as the next Speaker of the House of Representatives be the quo? I have always wondered why the lightweight Lord Allan Velasco was a strong contender for the speakership in the 18th Congress. The speakership is a position of power and the person occupying it must be equal to the position. He or she must himself or herself be powerful lest he or she becomes expendable.

The speaker must be a person of gravitas. Before he aspires for the speakership, he should already be a person of achievements, have attained national recognition for his accomplishments, be a political giant and leader of a major political party, and have the staunch support of the president.

Many past speakers — from the Commonwealth years, through the post-World War II era, to the post-martial law period — were such men. Messrs. Sergio Osmena, Sr., Manuel A. Roxas, Jose Yulo, Eugenio Perez, Jose Laurel, Jr., and Ramon Mitra were political titans and leaders or stalwarts of their party before they were elected speaker. Messrs. Jose de Venecia and Manuel Villar were business tycoons befriended by the powers that be before they entered politics. They bankrolled the election campaigns of many congressmen before they sought the speakership.

Congressman Velasco is neither a political bigwig nor a business mogul. He was first elected representative of the lone district of Marinduque in 2010. He ran for re-election in 2013 but was defeated by Regina Ongsiako Reyes, daughter of the governor of the province, Carmencita Reyes. However, he was proclaimed the representative of Marinduque on Feb. 1, 2016 after the House Electoral Tribunal removed Regina Reyes from her seat in the House of Representatives for being an American citizen.

The fact is, the people of Marinduque preferred the scion of the political dynasty in the province of Marinduque over the son of retired Supreme Court justice Presbitero Velasco. If it were not for a technicality, Lord Allan Velasco would not even be in Congress. When PDP-Laban announced that it was nominating Lord Allan Velasco for the speakership, broadcast political commentators asked, “Who is he?”

Civil society groups’ call last week for the government to free Senator Leila de Lima from detention brought to mind the Supreme Court decision dismissing the senator’s petition to nullify her arrest on drug charges. Justice Presbitero Velasco penned the decision. Justice Antonio Carpio found Justice Velasco’s arguments inconsistent with those he (Velasco) used in many other cases. I discerned from Justice Carpio’s dissenting opinion that Justice Velasco performed legal contortions to keep De Lima, a vocal critic of President Duterte’s war on drugs, in jail.

That must have pleased the President who had said he wants Senator De Lima to “rot in jail.” Had the position of chief justice become vacant before Justice Velasco’s retirement, he would have been a strong candidate for the position. I wonder if son Lord Allan’s selection as Speaker-in-waiting was a consolation prize for retired Justice Presbitero Velasco — a case of quid pro quo.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

From City Hall to Malacañang

If memory serves me, only two city mayors so far have become presidents of the republic: Joseph “Erap” Estrada and Rodrigo “Digong” Duterte. But Erap, from mayor of San Juan, first became a senator, and then the vice-president (1992-1998). Digong, on the other hand, was mayor of Davao City when he resigned to run — successfully — for the presidency.

So, it was only Digong who went straight to Malacañang from City Hall. The question now is whether another city mayor will succeed to the presidency after President Digong. There has been lots of talk these days about the mayors of Manila and Davao both gunning for the top post in 2022. Add to the lot Vice-President Leni Robredo, and we have a three-cornered fight. At the very least.

Given this scenario, one cannot help but look back to the late, great Arsenio Hofilena Lacson of Talisay, Negros Occidental. Lacson was the 17th mayor of the City of Manila, although the first one to be duly elected. Previously, Manila mayors were appointed to office. Lacson defeated Manuel Dela Fuente in the first city mayoral election in 1951. He was reelected in 1955, and again in 1959.

It was said that Manila was deep in debt and was practically bankrupt when Lacson assumed office in January 1952. But, by the end of his second term in 1959, the city reportedly had a big budget surplus, and city workers were said to be getting higher wages than most. Lacson was only 49 years old when he died in office, from a stroke, in April 1962. He was succeeded by his Vice-Mayor, Antonio Villegas.

People old enough to have personally witnessed Lacson’s antics always have fond memories of him, and plenty of stories to share. They say he was popular, media-savvy, and was a showman. He would always be the last to speak in political rallies so that people would stay until the end. And, that he would always make a grand entrance.

Lacson was an amateur boxer, and had also played for the Philippine national football team in 1934. He became a lawyer in 1937 and joined the law office of Vicente Francisco (who later became senator). After that, Lacson worked for the Department of Justice as an assistant attorney. And just before the war, he was also a sportswriter. He joined the resistance during the war and had received citations for his service.

That Lacson knew how to use media to his benefit is a no-brainer. After all, he was a newspaperman before the war. And he went back to journalism after the war. He also had a radio program that was said to be popular enough at the time to win him a congressional seat in 1949 to represent the 2nd district of Manila. From there, he went on to become Manila mayor.

Lacson, obviously, was a great communicator. He knew and understood what appealed particularly to the common man. In today’s election standards, he would have been considered one with a high “awareness” rating, and one who knew how to translate that high awareness to actual votes in an election. That he won the mayoral elections three times is no easy feat.

The present mayor’s “playbook” doesn’t seem to deviate much from the Lacson “formula”: action + media = heightened public perception of effective leadership. As mayor from 1952 to 1962, Lacson reportedly prioritized peace and order, and good government: he fired city workers for incompetence, and city policemen for corruption; he led raids on brothels and illegal vendors; he removed squatters; and he reportedly patrolled the streets personally at night.

More important, he maintained his radio presence even while mayor and until his death. His radio program was the pulpit that he used to share his views on national issues, and to lambast and criticize national officials. Presidents Roxas, Quirino, and Garcia all received criticism from Lacson through his radio program. Only Magsaysay, whom he supported, was spared.

It is anybody’s guess whether Lacson could have made it to Malacañang in 1965. He was touted to be the presidential contender for the Nacionalista Party (NP) in 1965 had he not died in 1962. The NP nomination eventually went to Ferdinand Marcos, who defeated Macapagal in the latter’s reelection bid.

But Lacson had two opportunities to attempt to gain national office prior to this. The first was in 1957, against Carlos P. Garcia. He toured the country in April 1957 to test the waters, so to speak, to see if he could be a strong contender against Garcia for the Nacionalista nomination. However, despite his popularity nationwide, he realized he was unlikely to get his party’s nomination. So, without party machinery and no financial support, Lacson backed out.

The second opportunity was in 1961. But Garcia, his nemesis, was running for reelection. So, Lacson opted instead to support then Vice-President Diosdado Macapagal of the Liberal Party and be the latter’s national campaign manager. But soon after Macapagal was elected, Lacson returned to the Nacionalista Party and became the president’s critic. The 1965 election would have been his third chance for national office, but fate would not allow it.

There are lessons to be learned from Lacson’s political success, as well as from President Duterte’s experience in the 2016 election. For sure, the hits and the misses are not lost on Mayor Isko Moreno and Mayor Sara Duterte. It remains uncertain whether both city chiefs will actually gun for Malacañang in 2022. But some indicators already point to this possibility.

The country has toyed with the possibility of sending someone from City Hall direct to Malacañang since the time of Arsenio Lacson. And to date, there has been only one successful attempt: President Duterte in 2016. Are we going to witness another successful attempt in 2022?

 

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

matort@yahoo.com

Vape control and brand control

“The only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. His own good, either physical or moral, is not a sufficient warrant.”

John Stuart Mill,
On Liberty (1859),
Ch. 1 Introduction

We are now living healthier, wealthier, and longer. This despite people’s rising consumption of sugary food and drinks, fatty food and snacks, alcohol, tobacco, and vaping products. And there seems to be a problem with the narrative that more alcohol and tobacco and its substitutes like e-cigarettes, flavored vapor products, result in more sickness and by extension, more deaths. China and Indonesia have higher smoking prevalence (SP) than the Philippines yet they have higher life expectancy than us. The United Kingdom, United States, and Japan have higher SP than Thailand yet they have longer life expectancy than the latter (see Table).

Recently President Rodrigo Duterte gave a verbal order to ban or prohibit vaping in public places nationwide and to arrest the violators. This is on top of existing law on smoking ban in public places, allowed only in some designated places.

There is little or zero debate that smoking is bad for our health — it is generally accepted. The debate has shifted to whether to have more restrictions and prohibitions against smoking, or to allow “harm reduction” via e-cigarettes and vaping products.

I do not smoke, never smoked even a single stick in my 50+ years. But I drink. I have enjoyed drinking with friends for the past four decades. I prefer the “low octane” beer with just 5% alcohol content and avoid the medium to “high octane” drinks with 20% or higher alcohol content. In a sense, beer consumption is my “harm reduction” instead of consuming hard liquor, and I can still enjoy those alcohol molecules that go through our blood stream up to the brain, which tend to relax people and evoke lots of laughter, even singing and dancing.

From what I read, most of the vapers who were hospitalized in the US recently were using tetrahydrocannabinol (THC) oil cut with Vitamin E acetate thickening agent, not standard vape juice. Vapers may not admit it because THC is the active ingredient in cannabis and is illegal in many countries. Vitamin E acetate is also not safe to inhale and has been linked to lipoid pneumonia, which can be fatal. So the culprit here may not be those ordinary water-based, some nicotine-containing, juices but the black market THC cartridges.

Instead of looking at vaping as encouraging more harm, it should be considered as reducing harm, as a “smoking cessation aid.”

Looking at prohibitions, we have lots of those laws in the Philippines — bans on prostitution, bans on certain types of gambling, bans on harmful drugs, bans on unregistered guns, bans on smuggling, bans on corruption and plunder. And we have all of these around us.

More bans and prohibitions only encourage more corruption. More regulations and taxation further encourage more smuggling, the result of which is that more smoking, drugs, and drinking happen because the smuggled products are cheaper.

This happened in Australia. After they legislated plain packaging for tobacco products in December 2012 — no more colorful packaging, no logo, only huge graphic warnings of dilapidated tongues and lungs — illegal and smuggled tobacco has increased from 11.5% of total supply in 2012, to 13.5% in 2013, 14.7% in 2014, up to 15% in 2017 (source: KPMG, March 2018. Illicit Tobacco in Australia, 2017 Full Year Report).

Finally, vape control, brand control via plain packaging, (minimum) wage control, (ceiling) fare control, (maximum) drug price control, gun control, drugs control, etc. — they are more about state command and control and less about regulation.

With these ever-rising bans and controls by the state, soon we will have sugar control, salt control, chocolates control. Not good.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

It’s time to pay travel time

I have been travelling long distances since I was in grade school. I got accustomed to the time spent travelling as well in the effort and mindset to prepare for the travel. Waking up earlier, preparing earlier or even the day before, not being able to eat breakfast, looking groggy, and enduring cold baths. This was the trend then and continues up to now, especially for those who live in the provinces and work or study in Manila.

I am sad to report that now travel time is much longer and more difficult. It used to be that I could get into a public utility vehicle, find a seat, and comfortably travel to Manila. Today, standing inside buses for hours just to get to work is a daily occurrence. This is the daily battle I must face, and I am obliged to win. There is really no surrendering or giving up because there is no leniency when it comes to punctuality in work. Most organizations are strict in checking attendance and punctuality. Also, it is not the organization’s fault that we have horrendous traffic. A solution could be to rent a place near work, but it isn’t an option for everyone, mainly because not all can afford to do so.

The recent news regarding being able to work from home and shortening the work week is a welcome option for long-distance commuters like me. It really sounds like a solution to our commuting issues, but it is not available to all. Only a few organizations (mostly large and already sustainable ones) will try to integrate these initiatives. However, many employees work for Small- and Medium- Sized Enterprises (SMEs), and these SMEs will most probably opt out of these initiatives. So, what about relief for SME employees?

It got me thinking that if companies will not opt for work-from-home and shorter-work-week schemes, why not consider paying employees for their travel time going to work instead? Employees’ travel time is unproductive time for the organization and unprofitable for employees. If travel time was just about 30 minutes to an hour, that would be tolerable, but if it would take two to three hours one way, then that is a significant productivity loss for the employee. And to make the scenario worse, the total travel time would be doubled because we also have to consider the trip home. So, at least six hours a day can be considered lost productivity time due to travelling alone.

I am not saying that all the travel time would be paid for because that would surely generate huge costs for the organizations. The organizations could even look at it as the employee being on official business because they are travelling to perform their job. The benefit of incurring such a cost should be considered. Being paid to travel can boost employee morale so in turn they would be motivated to go to work due to the generated extra income in their pocket. It could help alleviate stress and burnout and in turn make employees more productive.

But organizations should not be forced to do so. I believe that people are the fuel that keeps the organization running and it is just right to take care of your people. I tried searching for local organizations that have this benefit but it seems that nobody has yet ventured into this. I think in the long run an organization that would integrate this scheme would gain more motivated and loyal employees. Is it not time to consider this? This is not a consideration only for us from the provinces but also for city dwellers. It really will be beneficial to both the organization and its employees.

Though this may be a long shot, at least I’ve presented my case. Is it not time that travel be paid?

 

Angelo Zeus Serrona is an MBA student at De La Salle University’s Ramon V. del Rosario College of Business. This essay was written as part of the requirement in his Strategic Human Resource Management class.

angelo_serrona@dlsu.edu.ph

How dogs and people ended up ruling the world

By Cass R. Sunstein

WHERE DO dogs come from? What is their relationship to wolves?

Where do Homo sapiens come from? What is our relationship to other human species such as Neanderthals, Denisovans, and Homo erectus?

Why do dogs flourish as wolves struggle to survive? Why are we the only remaining humans?

New research suggests that these diverse questions have a single answer.

In brief: Dogs are far less likely than wolves to respond to challenges with violence (or by running away). Or, in more technical terms, they show low levels of “reactive aggression” in social interactions.

As compared to extinct human species, Homo sapiens show precisely the same thing. As a result, we — you and I — are uniquely capable of trust and cooperation. That’s the basis of our evolutionary triumph.

Some of the key research has been done by anthropologist Brian Hare of Duke University, who gives this process a name: Survival of the Friendliest.

Let’s start with Man’s Best Friend. The defining work began in the 1950s, with research inaugurated by Soviet geneticist Dmitri Belyaev, the most visionary scientist you’ve never heard of. Under Soviet rule, Belyaev’s job was to raise silver foxes, prized for their pelts. But he was actually interested in the origins of dogs.

Belyaev had a startling hypothesis, which was that all of the characteristics of dogs evolved from one feature: docility.

At some point in ancient history, Belyaev speculated, relatively docile wolves mated with one another. Their offspring became more docile still, and the offspring of those offspring were even more so.

Over the course of many generations, dogs emerged. Belyaev boldly hypothesized that all of the physical features of dogs, distinguishing them from wolves — floppy ears, multiple colors, two menstrual cycles annually (female wolves have only one) — were a byproduct of docility.

To test that hypothesis, Belyaev worked with collaborators to separate out the less fearful and least aggressive silver foxes and to have them breed with one another. His goal? To turn foxes into dogs.

After a few generations, Belyaev started to see results. His young foxes became calmer. Some even wagged their tails as human beings approached. Others flopped on their backs, asking for belly rubs. They would fetch balls.

As the experiment continued, the foxes’ physical appearance started to change. They developed floppy ears. Their fur showed white patches.

The most dramatic changes involved their personalities. To be sure, they were not dogs. But they were pretty close. People could take them on walks. They would sit on command. (“Good fox!”) They were eager to cuddle. The Russian Fox Domestication Experiment, as it is sometimes called, continues to this very day.

Influenced by Belyaev’s experiments, Hare has discovered that just like human beings, and unlike wolves and all other wild species, dogs can read social cues. If, for example, a human being points to the left, a dog will look in that direction, picking up the signal: “Look there!”

After traveling to Russia, Hare was amazed to find that Belyaev’s domesticated foxes — unlike ordinary foxes — share that characteristic with dogs.

But the most ambitious work on these issues has been done by Harvard anthropologist Richard Wrangham, who has elaborated a proposition at which Belyaev just hinted, which is that Homo sapiens is the domesticated member of the human species. Wrangham argues that a decline in reactive aggression is the defining feature of Home sapiens.

Wrangham offers evidence that the human species that died out were, essentially, wilder versions of, well, us. “Their archaic looks were of a species that differed from Homo sapiens rather as a chimpanzee does from a bonobo, or a wolf from a dog,” he wrote in his 2019 book, The Goodness Paradox.

Compared to Home sapiens, previous human species had broader and heavier skulls and thicker skeletons. As Homo sapiens emerged, the size of the face and the brow ridge diminished. Male faces became more feminine as sex differences were reduced. These are the anatomical characteristics of domestication.

Wrangham argues that because of a comparative decrease in reactive aggression, Homo sapiens had a variety of significant advantages, including an ability to learn from and to cooperate with one another. As Wrangham puts it, “Docility should be considered as foundational of humankind, not just because it is unusual, but because it seems likely to be a vital precondition for advanced cooperation and social learning.”

You might find Wrangham’s thesis a bit jarring. After all, modern human beings are capable of nuclear and conventional war, genocide and immense cruelty. Wrangham also emphasizes that we are uniquely capable of “proactive aggression,” that is, aggression that involves a lot of advance planning.

What we share with our Best Friend is a major reduction in immediate, reflexive, violent responses to real or apparent threats and frustrations. And of course, people, like dogs, are diverse on this count. Some people are more like wolves; others are more like Labrador retrievers.

Belyaev, Hare, and Wrangham are making claims about evolution, not about politics, and certainly not about contemporary political life. But they tell us something about what keeps societies together and what makes them fall apart — and also, I think about what separates out the best of us.

Evolutionary anthropologists use the word “docility,” but a stronger term, suitable for both dogs and people, is grace. It is the opposite of savagery. It signals an ability to think charitably of others, which is crucial to an absence of reactive aggression. And in social interactions, grace generally breeds more of itself.

It’s something to be grateful for. Happy Thanksgiving.

 

BLOOMBERG OPINION

Shares up on window dressing, trade deal hopes

By Denise A. Valdez, Reporter

THE PHILIPPINE Stock Exchange index (PSEi) rebounded on Wednesday as investors begin an anticipated Christmas rally, driven by optimism on positive developments in the Sino-US trade talks.

The local bourse’s main index surged 129.09 points or 1.68% to close at 7,836.89 on Wednesday. The broader all shares index likewise jumped 58.64 points or 1.26% to 4,685.

“Post MSCI rebalancing, shares we heavily bought up by the market as investors brace for window dressing and the beginning on the Christmas rally,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message yesterday.

The PSEi recorded two straight days of decline in this week’s trading before it went back to green territory on Wednesday. Aside from the anticipation of a Christmas upturn, Mr. Limlingan said local shares climbed due to optimism on the US-China trade negotiations. Foreign news outlets reported late Tuesday that the trade deal is close to its conclusion, citing US President Donald Trump as saying Washington is in its “final throes” with regard the “phase one” trade agreement.

Wall Street was upbeat on the developments, closing Tuesday’s trading with a 0.20%, 0.22% and 0.18% growth on the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite, respectively.

This performance of Wall Street led to the increase of the PSEi, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message, adding that investors took cues from US stocks’ “record-high performance overnight.”

“At the same time, with the MSCI rebalancing having taken full effect already, investors took the chance to hunt for bargains in the local market,” he added.

Almost all sectoral indices at the local bourse rose on Wednesday. Financials increased 47.78 points or 2.59% to 1,891.17; property gained 102.56 points or 2.59% to 4,049.16; industrials jumped 183.27 points or 1.88% to 9,884; holding firms added 62.74 points or 0.81% to 7,750.97; and mining and oil gained 14.85 points or 0.17% to 8,452.11.

The sole sectoral index that declined was services, which fell 7.11 points or 0.45% to end at 1,540.93.

Value turnover on Wednesday dropped to P7.68 billion from P21.16 billion on Tuesday, with 1.82 billion issues changing hands.

Stocks that increased outnumbered those that declined, 102 against 77, while 54 ended unchanged.

Offshore investors remained bearish, although net foreign selling was trimmed to P1.05 billion from P4.80 billion on Tuesday.

“Resistance should the recovery continue for the last two days of the week would be at the critical 8,000 level once again. This could be reachable if foreign selling finally abates,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.

Peso climbs on US-China deal progress

peso dollar
THE PESO climbed amid reported progress in the US-China trade deal.

THE PESO strengthened on Wednesday as US President Donald J. Trump said Washington’s “phase one” trade deal with China is inching closer to completion.

The local unit finished trading at P50.80 against the greenback on Wednesday, appreciating by 10 centavos from the P50.90 per dollar close on Tuesday, according to data from the Bankers Association of the Philippines.

The peso opened at P50.84 versus the dollar. Its weakest point for the day was at P50.92, while its best showing against the dollar was at P50.80.

Dollars traded thinned to $858.25 million from the $1.296 billion seen on Tuesday.

The local unit’s performance was boosted by developments in the trade negotiations between the world’s two biggest economies, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“The peso exchange rate closed stronger versus the US dollar after the US and China signalled that they already reached consensus on some parts of the phase one deal. The talks for which is near completion, according to US President [Donald J.] Trump,” Mr. Ricafort said in a text message.

Meanwhile, a trader said Wednesday’s trading was relatively quiet in the absence of major headlines.

“The trading was sideways and medyo tahimik (quite silent) because not much has happened, no data movers. ’Yung (The) US-China trade deal pa rin ’yung nagde-determine kung saan siya pupunta (It’s still the US-China trade deal’s progress that is determining how trading will go),” the trader said in a phone call.

Reuters reported that Mr. Trump said the US and China are inching closer to a consensus for a first phase of their trade pact after key negotiators from both sides had a telephone discussion and agreed to continue discussion on issues that have yet to be finalized.

“We’re in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever. It’s going very well but at the same time we want to see it go well in Hong Kong,” Mr. Trump told reporters at the White House, according to the report.

Meanwhile, China said it has called on US Ambassador Terry Brandstad to protest the passage of the Hong Kong Human Rights and Democracy Act in the US Congress, saying that the legislation is an interference to Chinese internal matter.

For today, both Mr. Ricafort and the trader expect the peso to move within P50.60-P50.90 against the dollar. — LWTN with Reuters

Court says Abad liable for 2012 budget program

THE Court of Appeals has affirmed the liability of former Budget Secretary Florencio B. Abad for simple misconduct over a financial program that sought to hasten government projects without congressional approval.

In a four-page resolution dated Nov. 25, a court division denied the motion for reconsideration of ex-President Benigno Simeon “Noynoy” C. Aquino’s budget chief, upholding its February ruling.

“This court finds no compelling reason to amend or our decision as the issues raised have already been resolved and covered extensively in the assailed resolution,” the court said.

The court had upheld the decision of the Office of the Ombudsman, which found Mr. Abad liable for simple misconduct.

The Ombudsman said Mr. Abad, through the issuance of a circular in 2012, unduly modified and expanded the meaning of ‘savings’ under the General Appropriations Act, which is a power only exercised by Congress.

The circular allowed the consolidation of savings and unused balances as well as the withdrawal and pooling of available balances of agencies with low levels of debt.

In the resolution, the appellate court said the Constitution and budget law are clear and these should not be subject to interpretation. It also cited a Supreme Court decision in 2015 that nullified some practices under the disbursement acceleration program (DAP).

“Thus, Abad may not successfully evade liability by invoking good faith,” the court said. “While Abad’s desire to fast-track public spending and push economic growth is laudable and the implementation of the DAP, in fact, undeniably yielded positive results that enhanced the economic welfare of the country, his defenses cannot override the clear mandate of the law.”

“It is of no consequence, then, that no malice or corrupt motive impelled Abad into adopting the flawed procedures,” the court said. “As a responsible public officer, Abad ought to have been well aware that he has no authority to overrule the requirements of established rules and the fundamental law of the land.”

The Ombudsman fined Mr. Abad the amount equivalent to his salary for three months. — Vann Marlo M. Villegas

Labor groups seek penalty for employers of exhausted workers

LABOR groups have asked the Labor department to punish employers of exhausted construction workers involved in finishing last-minute sites for the Southeast Asian Games.

“Pushing construction workers to work beyond the standard eight-hour work period poses serious threats to their health and safety,” Gerard R. Seno, vice president of the Associated Labor Unions-Trade Union Congress of the Philippines, said in a statement yesterday. The practice, he added, violates workers’ rights.

Labor group Defend Jobs Philippines in a separate statement said some workers were seen not wearing safety gear. It said the Labor department should “investigate the mode of operation of the Philippine SEA Games 2019 hosting team and the state of their workers in terms of the occupational safety and health standards.”

“The government’s lack of readiness and incompetence in its SEA Games 2019 preparations must not cross over and manifest on the protection and promotion of our workers’ rights and welfare,” Defend Jobs President Christian Lloyd Magsoy said.

The outcry of the labor groups comes after DoLE on Tuesday said it might file administrative charges against employers and contractors who violate labor standards and wage guidelines.

ALU-TUCP said it is concerned about the recent accidents at the Rizal Memorial Stadium involving two workers who fell off a scaffolding.

One worker injured his leg while another had a fractured skull. The labor group said the workers have been working for almost a day to complete the construction. Twenty-five more workers at the site had been exhausted, it added.

“This is a clear case of a coercive policy environment for workers to work even beyond their limit, causing over-fatigue and exhaustion,” the labor groups said.

“Work over-fatigue is the leading cause of workplace mishaps deaths, injury and handicap anywhere in the world,” Mr. Seno said. — GMC