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NFA hikes buying price, releases imported rice

THE Department of Agriculture (DA) said Thursday that the National Food Authority (NFA) will increase the buying price for palay, or unmilled rice, to P19 from P17 while also removing add-on incentive payments under the old scheme.

At the same time, the NFA will release 3.6 million bags of imported rice onto the market until early October, to increase supply in key cities and keep retail prices low.

Agriculture Secretary William D. Dar said the NFA Council approved these measures at a Sept. 10 meeting.

The NFA pays a support price to farmers as a buyer of last resort to reduce their exposure to low prices for palay offered by traders.

According to the NFA website, the agency buys palay under the old scheme for a P17 per kilogram basic payment. Incentive payments for delivery and drying can bring the final price to as high as P20.70 for farmer organizations and P20.40 for individual farmers.

“The Council of the NFA decided for the National Food Authority to flood the Metro Manila market and other cities of the country nationwide with the NFA-imported rice. The 3.6 million bags will be out until October 10,” he said.

The imported rice started to be released on the market Thursday, in an apparent attempt to break the hold of what the DA has called “price manipulators” and “hoarders” on retail prices.

“Continuous ang paglabas ng (The release is continuous for the) 3.6 million bags of imported rice from NFA at the rice of P25 [per kilo] wholesale and P27 retail,” he said.

At P27 per kilo, the 3.6 million 50-kilogram bags will raise P4.86 billion, which the NFA will apply for domestic palay procurement.

“We would like to believe that flooding the market with 3.6 million bags of rice will further have an impact in terms of lowering (retail) prices,” Mr. Dar said.

NFA Administrator Judy Carol L. Dansal said that she expects the retail price of rice to fall to P32 to P34 per kilo from the current P40.

“The reasonable price of rice in the markets should fall within P32 to P34 per kilogram, but if you look at the markets now, the lowest price is P40 per kilo,” Ms. Dansal said.

She said setting the support price at P19 per kilo removes the incentives payments, which were offered in 2018 due to the “abnormal” conditions in the rice market.

The old incentive scheme include payments of P3 per kilo as a buffer stocking incentive (BSI); P0.20 for drying, a further P0.20 for delivery, and a P0.30 cooperative development incentive fee for qualified recipients. — Vincent Mariel P. Galang

Energy efficiency seen playing bigger role in future power usage

AUSTIN, TEXAS — Energy efficiency measures or economic activities that aim to reduce the amount of energy required to provide the same amount of benefit or service will play an important role in the generation mix even as their present share remains minimal.

“One of the areas we’ve been really engaged in a number of countries in Asia, including the Philippines and Vietnam, is on air-conditioning efficiency because that is such a huge power need in demand as development continues,” Kent D. Logsdon, principal deputy assistant secretary of the US State department’s Bureau of Energy Resources.

“More and more people are looking for air-conditioners and obviously if you have air-conditioning that is not of the highest technologies then you’re gonna have a lot of loss and a lot of waste,” he added.

He said in Europe, studies show the demand for energy fluctuates for development reasons but also sometimes because energy efficiency initiatives.

“There is a certain trajectory as you look over time that there will be less consumption in developing countries and developed countries as well because we’re more efficient,” he said. “The efficiency means you require less energy and you require less, in a way, of fossil fuels or renewables or whatever the source it’s gonna go down as efficiency goes up.”

These activities that results in the production of more output from the same amount of energy will only get better over time, said Becky Klein, principal of Austin-based energy consulting firm Klein Energy, LLC.

“We don’t count that into the mix. It’s just too small,” she said.

But she said new technologies are coming into the market that are helping boost energy efficiency.

“[These technologies are] what you see already on your phone being able to control your temperature remotely and turning off your lights remotely,” she said.

Ms. Klein said artificial intelligence and machine-learning technologies are also coming into play to help utilities in predicting electricity usage.

“[They] tell you in advance when to unplug things in your home, when to turn your temperature up, and I think that’s gonna become more and more significant over time,” she said.

Based on statistics from the US Energy Information Administration, the United States uses and produces different types and sources of energy, which can be grouped into general categories such as primary and secondary, renewable and nonrenewable, and fossil fuels.

Primary energy sources include fossil fuels such as petroleum, natural gas, and coal; nuclear energy; and renewable sources of energy. Electricity is a secondary energy source that is generated from primary energy sources.

In 2018, the primary energy consumption in the US by energy source shows petroleum accounted for 36%, followed by natural gas at 31%, and coal at 13%. Nuclear energy made up 8%, or lower than the 11% usage for renewable energy.

“I think coal will continue to decrease, and nuclear will maybe go down a little,” said Russel Gold, University of Texas journalism fellow and book author.

He said the decline in the share of coal would be picked up by gas and renewables.

“We’re quickly heading towards basically a gas and renewable market in the United States,” he said. — Victor V. Saulon

Budget proceedings seen subject to challenge over quorum

A MEMBER of the House of Representatives alleged that attendance is being “manipulated” and “doctored,” leaving any budget decisions subject to challenge because of lack of quorum.

In a briefing Thursday, Buhay Party-list Rep. Jose L. Atienza Jr. said that the lack of quorum within the plenary could lead to “half-cooked and maybe defective” national budget and laws.

Mr. Atienza said by his count the House had sufficient numbers of legislators between July 22 and Sept. 10, but the roll call does not accurately reflect those who were actually present.

“Short pa rin sa binilang nila (their count is still short) so even in the roll call, they are manipulating and doctoring and that’s not good,” Mr. Atienza said.

He noted that the House could permit a 30-minute leeway for legislators to be counted.

“Meron namang provisions sa rules natin, pag wala pang quorum on the first call, pwede maghintay ng 30 minutes para sa iba na dumating” (The rules provide for a 30-minute wait if the first roll call does not have the numbers in case some other members show up), Mr. Atienza said.

He added, “Kapag walang members (If the number of members is insufficient) to form a quorum, anything that is handled and tackled by the body is questionable.”

“So the danger of passing, not only the budget, but laws which are half-cooked and may be defective in many ways is a great probability because of lack of strict adherence to the rules,” said Mr. Atienza.

Committee hearings on the 2020 budget of P4.1 trillion ended on Sept. 6. Plenary debate started yesterday.

The 2020 Budget is under particular scrutiny because of the four-month delay to the 2019 spending plan, which dampened economic growth because key infrastructure projects missed the crucial dry-season construction window. — Vince Angelo C. Ferreras

Hainan seeks tourism, agri deals with Davao City

By Maya M. Padillo
Correspondent

DAVAO CITY — The Chinese island province of Hainan is seeking cooperation between Davao City in tourism, agriculture and trade, visiting Chinese officials said.

A delegation led by Mao Wanchun, chairman of the Hainan Provincial Committee of the Chinese People’s Political Consultative Conference (CPPCC) met with Davao City officials as well as representatives of its private sector Wednesday at City Hall.

Mr. Mao said Hainan is eager to attract locators to its Global Trade Window, a type of economic zone for trading businesses located in a complex that is seeking investment from more than 50 countries.

“We welcome those who are interested in this program and invest in this building,” he said.

In agriculture, Mr. Mao said both Hainan and Davao City are tropical and can grow similar types of agricultural products. He also said Davao is welcome to showcase products at Hainan’s International Winter Agriculture Trade Fair every December.

“We welcome enterprises and delegates from Davao to showcase their agricultural products in Hainan as well as promote Davao City to Hainan,” he said.

He said he hopes to establish a sister city relationship between Davao City and Hainan’s Sanya City.

“In the future we would like to establish sisterhood relations between Sanya City in Hainan Province and Davao City. Sanya City is famous for tourism in China. It is also the most open area in China,” he said.

Mr. Mao said since tourism in Davao City is booming, it will be a priority sector for linkages between the two sides.

“President Rodrigo R. Duterte has visited China several times and was also in Hainan to attend the Boao Forum. During the last Boao forum, Mr. Duterte met President Xi Jinping. As such, I believe that both sides can sign cooperation agreements in various fields,” he said.

Davao City Chamber of Commerce and Industry, Inc. (DCCCII) President Arturo M. Milan welcomed Hainan’s approach this as a welcome development because the city is trying to expand trade relations especially now that the Davao City International Airport (DIA) is being positioned as an international gateway to Mindanao and the Brunei Indonesia Malaysia Philippines (BIMP) countries.

“That is a welcome development that they are open of expanding trade relations between Davao. Hopefully it would include the entire Mindanao,” Mr. Milan told BusinessWorld.

He said there is a need yo prospect for suitable opportunities in Hainan.

“There are a lot of products to be explored in terms of business. This is the first time that we are receiving officials from Hainan and I hope this would really translate into a bigger trade relation,” he said.

Generose D. Tecson, City Tourism Operations Office head, said tourism links with Hainan are an opportunity for Davao as such activities often lead to investment, with Davao in particular keen to attract more convention business.

Education dep’t studying creation of more ranks for public school teachers

THE Department of Education (DepEd) said it is currently in talks to improve the career path for public school teachers to ensure a steadier progression to the senior rank of Master Teacher.

Education Undersecretary Tonisito M.C. Umali told BusinessWorld the department is currently in talks with the Civil Service Commission to add more positions after the rank of Teacher 3. Public school teachers have three initial (Teacher 1, Teacher 2, and Teacher 3), leaving a large gap before possible promotion to Master Teacher.

“We are also discussing the issue that after teacher 3, there is a huge gap (and we want to make the) career progression of our teachers ay tulu-tuloy (is continuous) Even without a law, we are discussing that right now,” he said.

On Thursday, the Senate Committee on Finance discussed the expenditure program of the DepEd for 2020.

Education Secretary Leonor Briones said that the department recognizes the problem of the lack of qualified teachers for the K-12 program in public high schools. To improve teacher quality, she proposed adding teacher ranks to ensure steady promotions to encourage the most experienced educators to remain in the service.

“I have looked into their welfare and we have suggested to the CSC to expand the range of teacher positions so our teachers can be promoted,” she said during the hearing.

She said the teacher-student ratio is also a factor since public school teachers tend to handle multiple sections with large class sizes. There are 900,000 public school teachers and 27 million students in the system.

“The question of volume and size must be taken into consideration,” Ms. Briones said.

In DepEd’s proposed 2020 budget it requested P10 billion to pay for an additional 43,313 teachers but only P1.47 billion was granted by the Department of Budget and Management (DBM), sufficient for 10,000 positions.

Ms. Briones added that the DepEd is in talks with the Commission on Higher Education (CHEd) to discuss education majors in CHED-supervised schools. DepEd has also expressed its intention to accommodate more teachers for training in the National Educators Academy of the Philippines (NEAP).

“We will start with the principals and go down the line. We will have to think of how it will work,” she told reporters.

Senate Committee on Finance Chair Pilar Juliana S. Cayetano said during the hearing that the Senate will support the DepEd in enhancing NEAP’s programs. She said “I would very much fast track the support we can give for the NEAP.” — Gillian M. Cortez

Sultan Kudarat farm pilot-testing rice seed requiring reduced irrigation

By Carmelito Q. Francisco
Correspondent

DAVAO CITY — Climate-resilient rice seed is being developed in South Central Mindanao with reduced irrigation requirements for areas that receive limited water apart from rainfall.

The regional office of the Department of Agriculture has partnered with SeedWorks Philippines Inc. in establishing a 60-hectare demonstration farm for the propagation of Tatag Hybrid (TH) 82 rice, which is expected to help farmers reduce their use of inputs, particularly water.

The regional office, headed by Milagros Casis, established the demonstration farm in Lambayong, Sultan Kudarat to test the productivity of the variety, which uses Climate Smart Agriculture Technology through dry-seeding. The hope is to help farmers earn more from their rice farms.

DA’s point person for the program, Sheryl Daulo, told BusinessWorld that the department is seeking to expand the project to regular farms depending on the result of the trials.

“We are looking at how we can help farmers in the region increase their incomes, and the seed variety is among those that we are considering,” Ms. Daulo said, adding that the DA is still waiting for the National Food Authority to come up with an agreement with farmers to ensure they have a ready market.

Seedworks, a Philippine crop science company, belongs to the International Rice Research Institute’s (IRRI) Hybrid Rice Development Consortium. Many of the other companies are multinationals.

Remus S. Morandante, SeedWorks vice-president for Sales and Public Affairs, said dry-seeding is optimized for upland rice fields and those at the tail end of the irrigation supply line or those that rely heavily on rainfall.

Mr. Morandante told BusinessWorld that with dry-seeding, these farms which are only planted once a year can be planted twice a year.

“The challenge before was the absence of appropriate rice varieties that could withstand the pressure of dry culture,” he said.

Senate needs more convincing on e-cigarette firms’ bid for separate tax

THE SENATE ways and means committee may still decide to tax electronic cigarettes at par with traditional tobacco products, depending on the findings that emerge about the products’ health risks, its chairman Senator Pilar Juliana S. Cayetano said.

JUUL Labs Inc. on Wednesday argued that its products should be taxed differently from e-cigarettes, because they are a “healthier” product that helps smokers quit tobacco. Ms. Cayetano replied that these claims need to be backed by more studies.

“What I’m very vocal about is that there clearly are still health risks. It’s not correct to say that there are no health risks. If there are health risks, would it be correct to lower the tax?” Ms. Cayetano told BusinessWorld in a chance interview Thursday.

“I do agree that more research needs to be done, so if I have to veer on the side of caution, then it’s not so simple to say — reduced harm (warrants) lower taxes.”

The World Health Organization (WHO) calls the electronic cigarettes category “Electronic Nicotine Delivery Systems and Electronic Non-Nicotine Delivery Systems (ENDS/ENNDS)

JUUL Labs Asia Pacific President Kenneth Bishop said during the hearing on the proposed excise tax increase on ENDS/ENNDS, “We believe we should have a relative tax difference to cigarettes.”

The proposal forms part of the comprehensive tax reform program’s package two plus, which will increase excise tax on alcohol products, e-cigarettes and vapor products.

When asked if the committee can still meet its September target for the committee report, Ms. Cayetano said “kaya naman, depends on kung ano ‘yung recommendation ng DoF (Department of Finance) (It depends on what the DoF recommends).”

“If the recommendation of the DoF is similar to my direction and the feedback I’ve been receiving, then its possible.” Ms. Cayetano and the DoF will be meeting on Sept. 13 to discuss the recomputation of rates for the alcohol products.

Senate Bill No. 987 proposed to increase rates to P45 per pack of heated tobacco products and per milliliter of vapor products beginning in 2020. This is to increase by P5 per year until it hits P60 in 2023; and by 5% every year thereafter.

The proposal will also impose a 20% excise tax on e-cigarette devices based on the wholesale price or the value of importation. The bill incorporates proposals put forward by the Department of Finance and Department of Health.

“Tobacco is still the leading cause of disease and after years and years of tobacco control efforts it is still a problem. There are still 1 billion smokers around the world, and 16 million smokers in the Philippines. We are not a tobacco company, we are a technology company that wants to solve this problem,” Mr. Bishop said.

JUUL Labs Inc. said before further increasing taxes, the government should first implement Republic Act No. 11346, signed on July 25.

The Law increased excise tax on tobacco products to P60 per pack by 2023 from P35 currently and introduced a graduated rate on vapor products, from as low as P10 on 10 milliliter (ml) vapor products, P20 on 20 ml, and so on.

“We request that you implement RA 11346 before any additional taxes are levied. We believe we need further evidence and further debate before we act further,” Mr. Bishop said.

“We would ask that in new legislation we focus on tax only. We would ask that there is no tax on the device and we would ask that there’s no discrimination between the two types of nicotines.” — Charmaine A. Tadalan

Tax exemptions for nonprofit club fees

In 2012, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 35-2012, which clarified the taxability of clubs organized and operated exclusively for pleasure, recreation, and other nonprofit purposes.

The RMC emphasized the clear intention of legislators to omit from the Tax Code of 1997, as amended, recreational clubs from the list of income tax-exempt corporations. Consequently, the club’s income derived from whatever source, such as membership fees, assessment dues, rental income, service fees, and the like are subject to income tax. The RMC further stated that gross receipts including, but not limited to the preceding club income, are also subject to VAT.

To dispel confusion due to rulings that exempt recreational clubs from income tax and VAT, RMC 35-2012 repealed all rulings and policies that are inconsistent with its directives.

In reaction, recreational clubs challenged the validity of the RMC through an appeal to the Regional Trial Court (RTC), arguing that the policy was unjust, oppressive, and confiscatory for subjecting membership fees, assessment dues, and service fees to income tax and VAT.

In a 2016 decision, the RTC declared RMC 35-2012 valid and constitutional.

However, the Supreme Court, in a case docketed as G.R. No. 228539, recently set aside the ruling of the RTC on the basis that RMC 35-2012 erroneously interpreted the phrase “income from whatever source.”

While the RMC was correct to say that the exemption from income tax previously granted to recreational clubs had been deleted in the Tax Code of 1997, the interpretation that membership fees and assessment dues are sources of income from which tax liabilities may accrue is misplaced. The Court distinguished between the term “capital,” which means the fund, and the term “income,” which refers to the flow of services rendered by capital and further defined as profit or gain.

Applying this distinction, membership fees, assessment dues, and other fees of a similar nature only constitute contributions for the maintenance and operations of the facilities and services offered by recreational clubs to their members. They are not paid as consideration for services or goods purchased but instead, are utilized as funds for the upkeep of the club facilities and for retention of membership in the club. These payments are held in trust and are to be used to cover operating and general costs. As funds intended for the preservation and maintenance of the clubs’ general operations, nothing is to be gained upon their collection.

Funds in the form of capital are to be distinguished from fees as consideration for the clubs’ services and other income-generating facilities like bars, restaurants, and accommodations that constitute income or profit. Recreational clubs are generally free to use these fees for whatever purpose they desire, and thus, these are considered “fruits” from business transactions.

The Supreme Court emphasized that as long as the membership fees, assessment dues, and other items of similar nature are treated by recreational clubs as collections from their members solely for their membership and for the maintenance and preservation of their operations and facilities, the funds should not be classified as income from whatever source subject to income tax. They only form part of the capital from which no income tax may be collected or imposed. Moreover, imposing income tax on these membership fees and assessment dues is arbitrary and confiscatory because these are capital and not income.

As for VAT, the membership fees and assessment dues do not involve the sale of goods or services. Since there is no economic activity involved in the collection in the absence of a sale, VAT is not imposable.

Because RMC 35-2012 interpreted the phrase income from whatever source to include membership fees, assessment dues, and other items of similar nature, the BIR exceeded its authority by issuing an erroneous construction of the law. As a rule, administrative regulations should always be in accord with the provisions of the statute they seek to carry into effect. Any resulting inconsistency shall be resolved in favor of the fundamental law or the Tax Code in this case.

While the Supreme Court ruled specifically in the case of recreational clubs, condominium corporations and homeowners’ associations may be left wondering if the same logic can be applied to exempt from income tax the dues and fees they collect from their members. After all, the fees are intended for the same purpose. Well, that discussion may be a separate article entirely.

Anyhow, while it took nearly five years for the Court to resolve the validity of RMC 35-2012, recreational clubs can now put the issue to rest and focus on the business of providing better facilities and services to their members. Besides, why tax the funds needed by clubs to preserve recreational facilities for the maintenance of the members’ wellbeing? As the saying goes, bread is the first necessity of life, and recreation is a close second.

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.

 

Maria Jonas Yap is a Senior Manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 845-2728

maria.jonas.s.yap@pwc.com

September on their minds

The most accessible and most credible source of information for most Filipinos, broadcast media made much of September’s advent this year for the usual — and depressingly trivial — reasons.

Some broadcasters began playing Christmas carols as early as September 1. So did some of the country’s shopping malls, this month being the first of the four months whose names end in “ber” that in this country mark what is smugly touted as the start of the longest celebration of Christmas on the planet.

Forgotten, if at all even known to some of the younger television and radio broadcasters, were two September events, the remembrance of which has become crucial to the imperative of preventing the return of authoritarian rule in a country that even Foreign Affairs Secretary Teodoro Locsin, Jr. has described as incapable of changing for the better.

The first date of these events that need remembering is September 11, while the second is the 21st.

This Wednesday was the 102nd birth anniversary of Ferdinand Edralin Marcos. He was born in 1917 in Sarrat, Ilocos Norte, to a political family. He managed to graduate from the University of the Philippines (UP) College of Law and to pass the bar examinations with a 92% score despite being on trial for the murder of Julio Nalundasan, his father’s political opponent, being found guilty of it, and being sentenced to death. (The Supreme Court reversed that verdict in 1940.)

After the Second World War, he falsely claimed to be the most decorated fighter against the Japanese. From 1949 onwards he rapidly rose through the post-US occupation legislature, first as a three-term congressman, and later as senator and Senate President.

From the latter post, and after switching political parties — he was a member of the Liberal Party (LP), but went over to the Nacionalista Party when he realized that the LP would nominate someone else as its candidate for the Presidency — he went on to be President of the Philippines.

He was first elected in 1965, and to a second four-year term in 1969 in elections that made the term “overkill” current, because he not only spent much more than was usual during the campaign. He also forged all sorts of alliances with the provincial warlords in control of command votes in several regions, and with their help fielded thousands of goons to intimidate voters.

His second term as President was supposed to end in 1973, but Marcos preempted his leaving that post and made himself President for life by declaring martial law in the same month as his birthday: on September 21, 1972.

That date is either fast fading from the memories of many Filipinos or has become of no moment to some who do remember it. But it is being spun into the fiction that it was a golden moment in history by those who have an interest in revising what really happened. They dismiss accounts on the horrors of the martial law period as grossly exaggerated, and falsely portray that episode as Marcos’s answer to the demand for change in the 1960s. Among others, the intention is so the Marcoses and their clones can once more take up residence in Malacañang through one of their number’s ascent to the presidency via an election or any other means.

Another Marcos in the Presidency isn’t as far-fetched a possibility as the survivors of the Marcos kleptocracy hope. The factors that made the rise of Marcos, Sr. almost inevitable in the post-World War II period are still very much in evidence in this alleged democracy. Among them is the politics of money and intimidation that assures the continuing monopoly over political power of the handful of families, their agents, and their accomplices who have been driving this country to irreversible ruin for decades.

Like the current occupant of Malacañang, Ferdinand Marcos, Sr. was initially part of a province-based dynasty. His father Mariano was himself a congressman. Elected to represent the same district as his father’s, he became a national figure by assuring himself of continuing media attention, through, among others, his exaggerated war record, his marriage to the beauty queen Imelda Romualdez, and the unwavering support of the warlords of the Ilocos region.

Later, as it became clear that as an astute politician skilled in backroom maneuvering and manipulating the corruption-ridden electoral system, he could become President, he pandered to the anti-communist obsession of the United States and assured himself of American support. His anti-communism was also crucial to the Catholic Church’s “critical support” for his bloody regime.

Once President, he made sure of the allegiance of the military establishment by appointing retired generals to lucrative posts in the civilian bureaucracy and appeasing their mercenary instincts. Alarmed over the political ferment of the late 1960s, business and the middle class welcomed martial rule and became the social base of the fascist regime he erected on the ruins of the Republic. Again like Mr. Duterte, he also promised change. He would “make this nation great again” and claimed that he declared martial law “to save the Republic and reform society.”

But more central to the Marcos story are the methods of ward and feudal politics that he and his cohorts learned during the US colonial period, among whose justifications was the training of the Filipino principalia — the urban and rural gentry — in “self government.” The use of money and intimidation; promising the electorate anything during campaign periods; forging alliances of convenience; and putting self, family, and class interests above principle, among others, have not only survived as the tried and tested methods of keeping the political dynasties in power. They have also metastasized throughout the political and governance systems as the norm.

It is those methods that allowed the return of the Marcoses to the country and to power, and the same tactics that will assure their, or their cohorts’ and allies’ further rise in the highest circles of government and the damaged and damaging political system.

Remembrance and resistance are the only antidotes to the return of tyranny, whether in the person of a Marcos, an Arroyo or a Duterte. But as has been widely noted, remembrance, much less resistance, are the least of the virtues of your average Filipino, whether rich or poor, or high or low.

The reasons for this are fairly obvious. Among them are the survivalist instincts of too many Filipinos who value only self and family. But there is, as well, much of the corporate media’s focus on simply quoting what the powerful say with neither explanation nor analysis, in abdication of the journalistic responsibility of enabling the citizenry to make sense of what is happening.

The few exceptions among some practitioners and media organizations are daily proving the rule. Illustrative is the media focus on September as the supposed start of the Christmas season. Together with that accent on trivia is the failure of much of the media to remind their audiences that September is not so much worth remembering because it is the birth month of the first and far from last fascist bred by the political system. It is its being the month when, by declaring martial law, he and his gang of thieves plunged the country into decades of uncertainty, fear, and misery that still haunt it today. September was rightly on much of the broadcast media’s minds — but for all the wrong reasons.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

Let’s have a Religious Freedom Protection Act now

It seems bizarre to need to say it but bizarre seems to be the norm nowadays. Anyway, here it is: religious freedom is a fundamental constitutionally protected right.

So much so that the Supreme Court — despite the liberal progressive demand that people think otherwise — declared that “the 1935, 1973, and 1987 Constitutions were crafted in full acknowledgment of the contributions of religion to the country.”

Yet, religion is under attack, being seen as a stubborn obstacle to those seeking to advance ideological agenda that unfortunately and conceivably could destroy the culture, values, traditions, and institutions that made our society free, dynamic, and human.

Heritage Foundation’s Patrick Fagan (Why Religion Matters: The Impact of Religious Practice on Social Stability; January 1996) found that the best response to societal problems, such as “violent crime and rising illegitimacy, substance abuse, and welfare dependency” is to heed the “positive consequences that flow from the practice of religion.”

Thus, studies show that religion:

• strengthens the family and marital happiness, with spouses less likely to divorce or separate;

• helps poor persons out of poverty;

• helps the youth develop moral formation and sound moral judgment, and have better relationships with their parents;

• lessens the possibility of and hastens recovery for persons falling into problems such as suicide, drug abuse, alcoholism, out-of-wedlock births, crime, and divorce;

• has beneficial effects on physical and mental health, longevity, self-esteem, and greater family, and marital happiness; and

• makes people more optimistic and set realistic goals about their futures.

The Supreme Court, in various cases, defines “religion” as: a “profession of faith to an active power that binds and elevates man to his Creator.” Or “has reference to one’s views of his relations to His Creator and to the obligations they impose of reverence to His being and character and obedience to His Will.” Nevertheless, the Supreme Court does go on to say that, with a nod to US jurisprudence, religion may include “non-theistic beliefs.”

However, for purposes of this article and the legislation proposed below, “religion” here means not only the a) profession of faith but also b) the exercise of faith within the context of an established organization, c) with rules as to membership, d) a core set of beliefs, stories, or tradition embodied in existing literature (or holy “scripture”), and e) with defined rituals for both individual or communal practice.

The Supreme Court also fleshed out the protections under the Constitution’s Article III. 5, provided the following are complied with: existence of compelling State interest in interfering with religious rights, sincerity of the believer regarding such beliefs (here, the Supreme Court noted that “only beliefs rooted in religion are protected by the Free Exercise Clause, secular beliefs, however sincere and conscientious, do not suffice”), and the measure chosen is the least intrusive on such religions.

To expressly concretize the various protections surrounding the religious rights and freedoms in the Constitution and as illustrated by the Supreme Court jurisprudentially, the following law protecting religious freedom is proposed.

This proposed law, admittedly getting inspiration from the RFRA (Religious Freedom Restoration Acts) experiences in the US, seeks to:

1. Protect a person’s or religious institution’s religious beliefs or freedoms from being restricted or likely burdened by government (“person” herein defined to include any corporation or legal entity whose corporate values or policies expressly conform to a religion’s beliefs);

2. Protect a person’s or religious institution’s right to preach, teach, publish, or otherwise express or apply such religious beliefs in the public square, schools, or as organizational policy;

3. Protect a person or religious institution from having its property likely restricted or likely burdened by government in a manner contrary to that person’s or religious institution’s religious beliefs or freedoms;

4. Entitle persons or religious institutions to employ their religious beliefs as basis of their claim or defense in a suit brought by any individual or entity (government or private) before any administrative or judicial tribunal;

5. Provide remedies ranging from compensation to prohibitions or mandamus. However, this proposed law is not intended to provide a cause of action against any private employer or academic institution by any applicant, employee, or former employee (instead, laws specific to labor or academe will apply);

6. Declare and provide that no religious speech, expression, or publication shall be considered “hate speech” unless such violates the “clear and present danger” standard; and

7. Provide, finally, that all the protections mentioned above applies even for laws of general application, except if: a) such law is intended to further a clear and defined compelling State interest; and b) is the least restrictive means of furthering such clear and defined compelling State interest.

Considering the times, the foregoing suggested law is urgently needed to protect a true and fundamental right against the horde of faux or made-up rights that media, academics, politicians, and various ideologues seek to impose on every Filipino of good faith.

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

We don’t know nearly enough about e-cigarettes

By Max Nisen

“AT LEAST it’s better than smoking” was a common mantra when it came to vaping devices. Not anymore.

Doctors in more than 30 American states have seen hundreds of patients turn up with severe and mysterious lung illnesses this year as the popularity of vaping explodes. As many as six people have died. We’re scrambling to figure out what’s putting otherwise healthy young people on ventilators and how to respond because states and the federal government have only just started to regulate these products.

On Wednesday, Health and Human Services Secretary Alex Azar said the Food and Drug Administration (FDA) is moving to ban flavored vaping products from the market that particularly appeal to young people, with President Donald Trump himself calling vaping a “problem.” While the acknowledgment and promise of action are positive, there’s a lot more that needs to be done to ensure the latest crisis doesn’t become an even bigger public-health issue.

The FDA gained oversight over e-cigarettes in 2016, and under an initial timeline, manufacturers were set to have to apply for agency approval starting in 2018. The FDA still isn’t reviewing vaping products because the Trump administration pushed the key application deadline back. We can already see the damage from the agency’s lack of urgency. Meanwhile, marijuana products, which appear to play an outsize role in this health crisis, aren’t regulated at the federal level.

Lawmakers and advocates are responding to the rash of vaping-related illnesses by calling for greater restriction of nicotine e-cigarettes (Bloomberg Philanthropies — the charitable organization formed by Michael Bloomberg, founder and majority owner of Bloomberg News owner Bloomberg LP — announced an initiative this week with Campaign for Tobacco-Free Kids to increase awareness about the potential dangers of vaping and push for a ban on flavored e-cigarettes). The companies that make e-cigarettes would prefer to focus on cannabis and bootleg products sold outside of stores. Given the large gaps in our knowledge of vaping’s impact and the fact that people are dying, we need an aggressive “all of the above” approach.

The defining characteristic of this emerging crisis is uncertainty. A review of 53 recent cases in Wisconsin and Illinois published Friday in the New England Journal of Medicine found that 94% of the group of mostly young and healthy individuals were hospitalized, and 32% required ventilators.

FREEPIK

Most of those patients — 84% of those surveyed — reported vaping THC, the main psychoactive ingredient in marijuana. A couple of bootleg cannabis brands have popped up multiple times. However, there have been plenty of cases where patients report vaping nicotine as well, and smaller groups report using nicotine products alone. Physicians and regulators are suggesting that everything from the inhalation of metal vapors to vitamin E acetate might be to blame, but nothing can account for all of the illnesses so far.

The little we do know isn’t encouraging. E-cigarette fluids have been found to contain at least six groups of potentially toxic chemicals. We have no idea what happens when THC is added, or when these substances are heated together and inhaled daily for months or years. There was early evidence of potential heart issues before this current crisis, and the FDA is also looking into reports that vaping may cause seizures. The supposedly countervailing evidence that these products help people avoid combustible cigarettes is limited. The fact that they’ve introduced a whole new generation of young people to a highly addictive and possibly dangerous habit is indisputable.

Discovering specific tainted products that might be contributing to these illnesses should be a priority, but regulators can’t stop there. A complete response has to tackle four big issues.

First, the FDA needs to accelerate its efforts to scientifically review legally available products, with an added emphasis on safety. A ban on flavored products will help curb the teen vaping epidemic, but stricter age restrictions and a more aggressive clampdown on deceptive marketing should follow. Then there’s the black market: The devices people are buying on the street and the liquids used in them demand more attention. Finally, this crisis makes it even more clear that marijuana products shouldn’t continue to exist in confusing regulatory limbo.

It’s an imposing wish list. But the inevitable consequence of leaving things as they are is more illnesses and deaths.

 

BLOOMBERG OPINION

Prince Harry can’t make your holiday green

By Chris Bryant and Andrea Felsted

BRITAIN’S Prince Harry is urging tourists to be more eco-friendly — while at the same time flitting across Europe by private jet. It’s hardly the only contradiction in the travel industry’s drive to become more sustainable.

The world’s largest hotel chains house as many people each day as a decent-sized city, making them a big source of pollution and waste. Directly, hotels account for about 1% of global carbon-dioxide emissions — although that estimate doesn’t include the hydrocarbon-burning flights and car journeys guests make as they come and go. All-in, tourism’s contribution to man-made emissions could be as much as 8% of the total.

As with overcrowding at the world’s most popular tourist attractions, this massive environmental footprint is giving the hotel industry a bad name. Along with energy, food and water, hotels are gargantuan consumers of plastics.

Hoteliers’ efforts to kick this particular dirty habit have been capturing headlines lately: Marriott International Inc. and InterContinental Hotels Group Plc have both promised to eliminate plastic shampoo and shower gel miniatures, which should prevent several hundred million small bottles being dumped in landfill annually. (They are, however, trusting you not to steal their new, bulk-sized refillable containers.)

Drinking straws, cocktail picks, door key cards, slipper-cellophane, disposable cutlery, and water bottles are all in the cross-hairs of the hotel industry’s growing anti-plastics drive.

At the margins, these interventions should also help to cut the huge amount of plastic waste that ends up in the oceans and these policies should be relatively simple to implement — unlike the plastics challenge facing supermarkets, for example. But these eye-catching ecological measures have, rightly, prompted accusations of tokenism.

If I take three connecting flights to reach my villa in the Maldives, crank up the air conditioning on arrival and then eat filet mignon for dinner, forgoing a plastic stirrer in my margarita and my haul of free plastic miniatures isn’t going to matter a hoot, is it?

This isn’t a laughing matter: The tourism industry will be the first to suffer if we don’t change. Coral reefs are being bleached and beaches ruined by plastic detritus and foul-smelling, fertilizer-fueled seaweed blooms. Recently, parts of the Bahamas have been devastated by a hurricane whose destructive power was likely magnified by warmer oceans.

In fairness, most big hotel groups are making pretty comprehensive efforts to consume fewer resources and cut carbon pollution. Marriott’s promise to cut the amount of waste going to landfill by 45% by 2025 isn’t to be sneezed at when you consider it has 1.3 million rooms worldwide.

Resource efficiency is also plain good business sense: the signs asking you to kindly reuse your towels help to cut the hotel’s utility bill as well as its electricity consumption.

Hotels know they cannot afford to look lax on these issues. Customers — particularly corporate ones — are considering sustainability issues when purchasing trips and online booking platforms are making it easier to tell environmental saints from sinners. Competitors like home-sharing site Airbnb have been talking up the environmental benefits of staying in someone’s home instead of a large hotel, putting the industry even more on the defensive.

Many large hotel chains already provide an impressive level of disclosure about their environmental impact and some use market-based incentives to help ensure sustainability promises are kept.

When AccorHotels signed a new 1.2 billion-euro ($1.3 billion) credit facility with a consortium of banks, it linked the interest rate to its compliance with sustainability goals. Marriott offers guests extra loyalty points if they forgo having their rooms cleaned, not that its housekeepers are happy about this.

Unfortunately, though, the industry’s rapid growth risks overwhelming the benefit derived from these hard-won efficiency gains.

Hilton has achieved an impressive one-third cut in carbon emissions per square meter since 2008 and it plans to extend that to a 61% reduction by 2030. But its absolute emissions have jumped by one fifth over the past decade because the company added thousands of hotels to its portfolio — it opened one a day last year.

So what can be done? Plastic bans make for good headlines, but hotels should focus on reducing their most environmentally damaging activities.

Heating, ventilation and air conditioning account for up to 45% of hotel energy consumption, according to AccorHotels, so installing the most efficient technology and switching to carbon-free energy sources would seem a sensible priority.

That’s easier said than done. The Sheraton Stockholm Hotel boasts that its power is supplied entirely by clean hydroelectricity, but its counterparts in nearby Poland, where coal accounts for 80%of power production, have fewer options. Hence, the industry is increasingly choosing to produce its own renewable energy on-site.

Of course, the easiest way for the business to clean up is act is also the most unpalatable: open fewer hotels, especially in far-flung destinations only accessible by plane.

Getting the balance right is difficult. Hotels provide lots of jobs in poor countries. Still, from an environmental standpoint, video conferencing and staycations are better than hopping on a jet. Similarly, a tent is superior to an air-conditioned luxury hotel room, as Richard Clarke at Bernstein Research points out.

But wait for hotels to cap their growth or consumers to voluntarily forgo the comfort of a hotel bed and you’ll be waiting a long time. Higher taxes that penalize the negative consequences of travel may become unavoidable. For now, “sustainable travel” is too often a contradiction in terms.

 

BLOOMBERG OPINION