Interviewwith JesliLapus

CSFI’sholidaycheer

FORUM: TheBush Impacton RP

UP Chartertackledanew

November - December 2004Vol. 1, No. 2

Official Newsletter of theHouse of Representatives

Republic of the Philippines

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Life getsbetter inBicol

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ENSURINGSAFETY ATSEA

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2005 GAA DELIVERED. The House of Representatives approved on third and final reading the proposed 2005P907.7-billion General Appropriations Act. Speaker Jose de Venecia said he will “concentrate on the high constitutionaland political priorities of the government” focusing on education, public works, and security and defense. De Venecia(center) is shown holding a copy of the House-approved national outlay with, among others, Majority Leader ProsperoNograles (4th from left) and Minority Leader Francis Escudero (left of JDV) and (from left) Reps. Alfredo Marañon III,Narciso Bravo Jr., Dep. Speaker Raul del Mar, Reps. Joel Villanueva, Harlin Abayon, Alan Peter Cayetano, Mat Defensor,Ma. Amelita Villarosa, Iggy Arroyo, Lorenzo Tañada III, Luis Villafuerte, Arthur Defensor, Junie Cua, and Jose Solis.

ISLAMABAD – Speaker Josede Venecia, Jr. has left an

indelible mark on the Asianpolitical scene by emerging as thefather of the Asian Parliamentof the future.

De Venecia keynoted the 5th

General Assembly of the 40-nation Association of AsianParliaments for Peace (AAPP)late last month after havingsecured a unanimousendorsement for theestablishment of an Asia-wideparliament.

“We believe fervently thatthe vision we in the AAPPshare–of an Asia withoutdividing lines–is no longer justa distant dream,” de Veneciasaid in his speech.

It was a sweet victory for deVenecia who has campaigned forsuch a vision in the last few years.

“We cannot over-emphasizethe urgency of our need to realizethis dream we share–of one Asiaintegrated socially, economicallyand politically,” de Venecia said.

Heads of delegations to theAAPP assembly unanimouslyapproved the feasibility studyprepared by the Philippinedelegation providing for theconversion of the AAPP into theAsian Parliamentary Assemblywithin a transition period of fiveyears.

De Venecia emerged fromthe Assembly’s first sessionflashing the “two-thumbs-up”sign to members of thePhilippine delegation.

“This decision is of greatstrategic importance because the40 member-parliaments of theAAPP account for 60 percent ofthe world’s population,” deVenecia told a press conference.

“This is a great moment forAsian parliaments and for Asiandemocracy,” said Sen.Mushahid Sayed Hussain,secretary general of Pakistan’sruling party and one of thosewho strongly moved for itsapproval.

The feasibility study,circulated by the Philippines twoweeks ahead of the conference,is a comprehensive documentthat traced Europe’s integration,

Continued on page 2

By Nonoy Acosta andDiony Tubianosa

THE HOUSE passed fourmajor income-generating tax

bills needed to help governmentshoulder its estimated P70-billionshortfall.

Speaker Jose de Venecia saidthe House labored overtime toapprove the bill rationalizing

scattered fiscal incentives into onecomprehensive law to attract newinvestments. This was the last offour bills scheduled for passagethis year to avert a furtherdowngrade of the Philippinecredit rating by internationalagencies and maintain investor-friendly stability.

Hours of time-conscious yetintense debate marked the

deliberations on therationalization bill, as in the otherthree measures calling for newexcise taxes on cigarette andalcohol (or “sin”) products,“lateral attrition” among officersof revenue-collection agencies,and a one-time amnesty for taxevaders, all approved in speedysuccession by mid-December and

THE NATIONAL publicschool system—universities,

colleges, high schools andelementary levels—will enjoy “thehighest political priority” in theP907.7 billion national budget for2005, which was immediatelytransmitted to the Senate after the

House approves P907.7-B national budgetHouse ended debates on thegovernment’s projectedexpenditures.

Speaker Jose de Venecia saidthe “reformist and Spartan” budget“will concentrate on the highconstitutional priorities of thegovernment.”

The Speaker said that due totime constraints, he expects a re-enacted budget in January and thebicameral conference committee toadopt a reconciled version of the2005 national outlay by lateJanuary or early February.

Continued on page 2

ASIANPARLIAMENTSEEN IN 2009

RP LAWMAKERS IN ISLAMABAD. Speaker Jose de Venecia (2nd from right) led the delegation of Filipino congressmen,including Reps. Antonio Cuenco and Roque Ablan (1st and 2nd from left) who met with Pakistan Prime MinisterShaukat Aziz (right) in the country’s capital city during the recent Association of Asian Parliaments for Peace(AAPP) general assembly. Aziz, head of the National Assembly, endorsed the Philippine proposal to create an Asianparliament in the next five years.

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PRESIDENT GloriaMacapagal Arroyo

recently endorsed beforelegislators, UN developmentexecutives, and civil societyand business leaders the 12-point program of Speaker Josede Venecia geared to createnew wealth centered onreviving the mining industry,major reclamation andreforestation projects, and aHong Kong-like enclave inSubic and Clark for long-terminvestments.

De Venecia earlieroutlined his plan in a seven-page letter to the President,saying the country’s existingwealth is no longer adequateto support the country’s 84-million population.

JDV’s 12-point program

Road map tonew wealth

for RP

ISSN 1656-507XISSN 1656-507XISSN 1656-507XISSN 1656-507XISSN 1656-507XPR

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TAX REFORM BILLS OKAYEDNew income will avoid bigger crisis

2 November - December 2004

The FORUMThe FORUMThe FORUMThe FORUMThe FORUM is published by the PUBLISHINGAND DESIGN SERVICE, Public Relations andInformation Department, House of Representatives,with offices at Constitution Hills, Quezon City andTelephone Nos. 9315335 and 9315001 local 7651 or7552.

Editorial Board: Dep. Sec. Gen. Emmanuel A.Albano, Chairman; Exec. Dir. Ma. Bernadette C. dela Cuesta, Vice-Chairman

Editor: Dep. Sec. Gen. Emmanuel A. Albano

Managing Editor: Dir. Ferdinand M. Bolislis

Staff Writers: Melissa M. Reyes, Abigail M.Macabeo, Raymond G. Pasiliao, ChristianFerdinand D. Pamintuan, Michelle M. Sapnu,Jacqueline Rey-Juliano

Contributors: Diony P. Tubianosa, Ceferino M.Acosta III, Ana T. Cadacio, Salve T. Beleo, EnricoR. Rosario, Isagani C. Yambot Jr.

Research, Production & Circulation: Virginia B.Rizardo, Maricar S. Magbitang, Vanessa T.Valdez, Fedes Maria C. Cruz, Gilbert A. Manalo,Crispin E. Mendiola, Rey A. Sinco

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Photography: Christian Ferdinand D. Pamintuan,Perfecto C. Camero, Tobias F. Engay, Jeremias E.Ereño, Gene C. Peñas

Entered as second class mail matter at the BatasanPambansa Post Office. All rights reserved.

ERRATAIn the The FORUMThe FORUMThe FORUMThe FORUMThe FORUM, issue of

September-October 2004, thestory, “New date for ARMM polls”(page 5), should have included thenames of Reps. Munir M. Arbison,Robert Ace S. Barbers, Loretta AnnP. Rosales and Mujiv Hataman aspart of the House conferees in thebicameral conference committeeon the disagreeing provisions ofHB 2808 and SB 1757.

In our table of tax bills in thesame issue (page 2), theauthorship of HB 552 should havebeen credited to Rep. DaniloSuarez.

We regret the errors.

transmitted to the Senate.Timely bicameral approval of

the four new tax measures is ofthe highest urgency andsignificance to the country, deVenecia said.

Malacanang has particularlynoted the urgency of the passageof the “sin” tax bill and “lateralattrition” bills. Meanwhile, heSenate announced it is preparedto work on the tax bills in specialsessions before and after theholidays, if the need arises.

“This is the time we must getour act together so we can get onthe road to economic recovery,”he said.

De Venecia emphasized theimportance of the Senate’spassing the counterpart bills sothat any disagreements can beironed out in the bicameralconference committee beforeCongress goes on its Christmasbreak by December 17.

“It is important that we passthese revenue-enhancing measuresso that, before Christmas,President Gloria MacapagalArroyo can sign these priority taxand revenue-raising measures intolaw,” de Venecia said.

Meanwhile, the FinanceDepartment withdrew two of theeight tax measures it initially askedCongress to approve, namely theproposed telecommunications

franchise tax and the revisedexcise taxes on petroleumproducts.

The “sin” taxes, lateralattrition, tax amnesty and fiscalincentives rationalization bills arefour of eight proposals PresidentArroyo initially submitted toCongress during her State-of-the-Nation Address to cure thechronic deficit and the emergingfiscal crisis. Rep. Jesli Lapus, Waysand Means Committee chairman,noted that, with the passage of thefour tax measures, all eyes will beon the executive branch’sperformance next year (seeinterview on page 8).

The attrition measureprovides for a system of rewards

and penalties in agencies like therevenue and customs bureaus inan effort to plug the huge tax leakthat is believed to be costing thegovernment billions of pesos inrevenues annually.

This bi l l was jointlysponsored in plenary by Rep.Danilo Suarez, Committee onOversight chairman, and Rep.Francis Nepomuceno,Committee on Civil Service andProfessional Regulationchairman, and Rep. RolandoAndaya, AppropriationsCommittee chairman.

House Bil l 2933 whichgrants “a one-time tax amnesty onall unpaid national internalrevenue taxes imposed by the

national government for taxableyears 2003 and prior years, andfor other purposes,” al lowsgovernment to immediatelycollect a s izable amount ofrevenues at the leastadministrative cost.

This amnesty program,defended in plenary by Suarez,will “enlarge our tax base andserve as basis for future incometax payments and reduce non-compliance.”

“This wil l also give anattractive opportunity fordelinquent taxpayers to rejoin thefold of national taxation,” deVenecia agreed.

Suarez said the amnestyprogram wil l not extend totaxpayers classified as such underSection 10 of the proposed Act.

The House version of the sintaxes bill proposes a 20%-3%-3%graduated increase in three years.The 20 percent rate increase onthe first year of effectivity wouldmean about P7-billion, escalatingto a conservative estimate of P8-billion on the second year.

Lapus defended the sin taxbill in plenary debates whichlasted until dawn of October 27,before Congress went on a briefbreak. Similarly, Rep. Junie Cuastood up for the bill rationalizingfiscal incentives on the floor.

The Speaker noted the vitalroles of Deputy Speakers Raul delMar, Gerry Salapuddin, EmilioEspinosa and Benigno Aquino IIIwith Majority Leader ProsperoNograles and Deputy Majority

which was launched 55 years ago.The study concluded that the

“time is ripe for the Asian statesto move beyond their informaland occasional associations.”

Patterned after its Europeanmodel, the APA, according to thestudy, “should stress the social andcultural dimension of the

Asian parliamentContinued from page 1

TAXING “SIN” PRODUCTS. Members of Congress led by Speaker Jose deVenecia (center) proudly hold copies of the House Journal and the approvedversion of the House Bill No. 3174 imposing heavier taxes on alcohol andcigarette products. Right after its approval in the floor in late October, DeVenecia marked the event for posterity with Reps. Arthur D. Defensor, RafaelP. Nantes, Majority Leader Prospero C. Nograles, Dep. Speaker Raul V. DelMar, Reps. Conrado M. Estrella III, Manuel C. Ortega, Del R. De Guzman, andSatur C. Ocampo.

Tax reforms passedContinued from page 1

cooperation on transnationalproblems such as terrorism,communicable diseases,narcotics, and cross-border crime,

integration process and shouldseek to establish a foundation foruniversal human values such asrespect for human rights,parliamentary democracy and therule of law.”

De Venecia said theEuropean template of evolutionwill be applied for Asianintegration, saying, “We’re goingto do it step by step and not byone quantum leap.

“We will evolve an Asianmodel,” he further said.

De Venecia first proposed thecreation of an Asian Parliament atthe AAPP Executive Councilmeeting in Chongqing in 2002and reiterated it at the ManilaAAPP Assembly last year.

In the inaugural ceremony ofthe AAPP’s 5th General Assemblyat the Jinnah Convention Centre,de Venecia urged all delegations inhis opening speech to “seize the dayin moving toward one Asiaintegrated socially, economically,and politically.”

The APA wil l increase

the study said.It will also help facilitate

consultation on commonproblems and enable Asia to deal

STRENGTHENING RP-SAUDI ARABIAN TIES —Speaker Jose de Venecia (2ndfrom right), presented the Congressional Medal of Achievement to H.E. Dr.Salih bin Abdullah bin Humaid (2nd from left), chairman of the ConsultativeCouncil (Majlis-Al-Shura) of the Kingdom of Saudi Arabia, for his significantcontributions that led to the approval by the Association of Asian Parliamentsfor Peace (AAPP) Assembly in Islamabad of the Philippine proposal convertingthe AAPP into the Asian Parliamentary Assembly (APA) within five years andappointing an Interim Secretariat based in the Philippines. Also shown aremembers of the Saudi delegation and House leaders led by Deputy SpeakerGerry Salapuddin (3rd from right), Assistant Majority Leader Hussin Amin andformer Justice Secretary and now Maguindanao Rep. Simeon Datumanong (right).

Leaders Del de Guzman, ArthurDefensor, Harlin Abayon andHussin Amin, among others, forsteering the measures to their finalpassage.

De Venecia noted thatpatriotism fueled the passage ofthe measure because “even a goodnumber of the leaders of theopposition supported this bill,”noting that “they crossed partylines for the sake of nationalsurvival.”

“I wish to salute all themembers of the majoritycoalition, even if we do not agree.They must be commended foracting in a civilized mannerdespite our differences,” MinorityLeader Francis Escudero declaredin plenary.

De Venecia, who was visiblyelated following the grueling andsometimes emotionally fired-updebates, lauded the hardwork andcooperation given by members ofthe majority coalition composedof Lakas-CMD, NationalistPeople’s Coalition, Liberal Party,PDP-Laban, Nacionalista Party,Aksyon Demokratiko, PDSP andvarious Party List representatives.

The World Bank, AsianDevelopment Bank,International Monetary Fund,Paris Club, OPEC, theconsor tium of internationalbanks, the foreign investors in thePhilippines, including the variousforeign and local chambers ofcommerce have been waiting forthe approval of the bills, deVenecia said.

After pushing for an institutionalreform of the so-called pork barrel systemby eliminating the lump-sum system, deVenecia said next year’s budget ensurestransparency through the line-budgetingsystem augmented by the E-ProcurementAct, acclaimed as a major anti-corruptionmeasure.

“The E-Procurement Act will surelyhelp the Commission on Audit in ensuringtransparency in all governmenttransactions,” he said.

De Venecia and AppropriationsCommittee Chairman Rolando Andaya Jr.are the principal authors of the Act,supported by the majority coalition in amajor move to make transactions ingovernment transparent.

Earlier, de Venecia joined Andaya indeclaring that all projects of the nationalgovernment including congressionalallocations will be “subjected to anationwide posting on the website beforebidding, during implementation, and aftercompletion of the project.”

Appropriations for infrastructureprojects, de Venecia pointed out, shall be

used to fund the Arroyoadministration’s 10-pointlegacy program and for theconstruction, repair andrehabilitation of roads andbridges, flood control, watersupply systems, schoolbuildings, hospitals andhealth facilities, publicmarkets and multi-purposebuildings.

The P907.7 billion totalgovernment budget for 2005is five percent higher than lastyear’s appropriation.

National budgetContinued from page 1

TOP 5 DEPTOP 5 DEPTOP 5 DEPTOP 5 DEPTOP 5 DEPARTMENTSARTMENTSARTMENTSARTMENTSARTMENTS

equally with other continentalblocs on trade and economic–cultural cooperation.

*Approx. figures

ISSN 1656-507X

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3November - December 2004

“We need to imagine thefuture, and create a strategy whosemultiple wealth-producingcapacities must outpace currentrequirements and build a majorreserve or buffer of resources in thefuture,” de Venecia said.

He outlined his 12-pointprogram, as follows:

1. Launch a major programto revive the mining industry.

The country’s mineral wealth isestimated to have an approximatevalue of $800 billion to One TrillionDollars, as against the currentPhilippine external debt of $57- billion.A policy decision including a favorabledecision from the Supreme Court – torebuild this industry – would open itsenormous economic potential, employhundreds of thousands of people, andcreate the beginnings of a tigereconomy for the country. I believeChina, Australia, Canada and the U.S.would be major players in a revivedPhilippine mining industry.

2. Mobilize international andlocal investors to develop the

enormous underground wealth of goldat Mt. Diwalwal in Davao sincePhilippine Central Bank reservesinclude both foreign exchange andgold reserves. International miningcompanies can develop the area andemploy the tens of thousand of minerscurrently operating there, who mightbe given the additional incentive ofprofit-sharing arrangements.

3. Explore and develop moreoil and gas wells like the

Malampaya oil and natural gas fieldin offshore Palawan. As one of thepioneers in the offshore oil programin Palawan, I believe the oil and naturalgas reserves in the country could bedeveloped, supported by a business-friendly decision of the Supreme Courton hydrocarbons exploration, not justmining. Shell, which invested $4 to$5 bil l ion when it took over theMalampaya field from OccidentalPetroleum, will have fully recovered itscost by next year. That means thePhilippine government share of about$500 million a year or $10 billion over20 years could begin to go up by nextyear. This is like recovering theMarcos wealth at $600 million a yearor better.

The above three proposals onwealth creation are inter-related but Ipurposely segregated them becauseof their separate and distinct capabilityto create new wealth for the nation.

4. Re-launch a majorreclamation program in

Manila Bay, Cebu, Mindanao, and inNorthern Luzon, avoiding theunfortunate pitfalls of the PublicEstates Authority-Amari reclamationproject. A major stimulus in theeconomic miracles of Hong Kong andSingapore were the massivereclamation projects that eachpursued. Hong Kong and Singaporeauctioned reclaimed land to make upfor the deficits and propel economicexpansion. Their major industrialcomplexes, housing projects,commercial centers, airports andseaports were products ofreclamation. Our government couldraise hundreds of billions of pesosthrough the auction of reclaimed land.

5. A major reforestationprogram to reclaim our bald

mountains in Luzon, the Visayas andMindanao – and provide revenues tothe government and incomes to ourtree farmers. An investment of $100

million for reforestation, for instance,would translate to $4 billion worth ofwood sales ten years later. There areother major benefits as well:reforestation would solve drinkingwater and irrigation water needs,destructive and costly floodingproblems, begin to restore previousecological balance and startsubsidizing our tree farmers insteadof the tree farmers of the wood-exporting countries. The Philippinesused to be a major to timber exporter.Additional wealth would be created byintercrop fruit-producing trees andhigh-value vegetables on the floor ofthe forest plantations.

6. A massive program topromote tourism. Our tourist

arrivals of two million a year pale incomparison with those of Thailandand Malaysia, which are in the 10-million mark. This is sad, if not tragicto a country that has much to offer tothe world, and to our own localtourists. We could help achieve aturnaround in the next two years by adetermined and creative program toreinvigorate the tourism industry.Korea, Japan, China and the ASEANnations are emerging as the newmajor tourists in South East Asia, inaddit ion to the Europeans andAmericans.

7. Create a nationalinfrastructure corporation – a

takeoff from Trade Secretary CesarPurisima’s program – so that we couldbuild airports, seaports, railways,dams, irrigation systems, andexpressways so critical to economicgrowth. The government bonds salewould provide the seed money and thebalance provided by our attractiverevitalized Build-Operate-Transferagreements. The first generation ofBOT projects brought to thePhilippines more than $26-billion innew infrastructure, at no cost to thePhilippine Government.

8. We should jumpstart thehousing construction sector

and spur economic growth, takingadvantage of its multiplier effect.Housing has a high multiplier effect onthe economy of 16.6 times, meaningthat every P10 billion worth of housingunits will contribute a total of P166billion of economic activity for thecountry. It has been observed thatpoverty incidence seems to subsideduring episodes of high constructionactivities.

9. The Philippines faces amassive task of adjustment

and catch-up to derive the most frominformation technology (IT). We needto strongly develop and enlarge theIT sector in order to take advantageof the skill level, availability andcomparative costs of our technicalskilled manpower. Developments inIT offer vast opportunities to build thecountry’s competitive strength inselected IT niches, notably back-office operations, in accounting,software development and technicalsupport.

McKinsey and Companyrecently identified 11 white-collarservices – with an estimated demandworth $180 billion by 2010 – that themature economies can profitablyoutsource – and which the Philippinesis well positioned to supply. Throughthe information highway, Filipinos canhelp reduce the overhead cost ofsome of the great service industrymultinationals without their goingoverseas. We must continue toexplore the possibility of generatingwealth from high-end technology, andparticipate in the new emphasis onbiotechnology.

10. Urban squatt ing pre- sents a dauntingchallenge to enable the poor to enterthe formal economy and unleash avast store of untapped capital. TheLatin American Hernando De Soto,invi ted by President Glor iaMacapagal Arroyo as Adviser to theGovernment, advocates reformingproperty rights for squatters as partof the path to economic growth fordeveloping countries. When peopleare able to acquire properties likeland and houses, and theirownership over these assets arerecognized and guaranteed, they areable to engage in product iveactivities, using these properties asinvestments or as col lateral toaccess financing.

Some Latin American stateshave made remarkable progress inimplementing this program. We cando the same to help hundreds ofthousands of squatters in MetroManila and in the rural slums ofLuzon, Visayas and Mindanao, whoare living on lands they have no legalr ight to occupy. The nat ionalgovernment and the localgovernment units should provide thenecessary entrepreneurial trainingand credit support to enable thesegroups to contribute to the economy.

The agrarian reform agriculturalland as col lateral , pending inlegislation, can benefit 3.7 millionfarmers, who will be able to avail ofproduct ion credi ts and becomeagricultural entrepreneurs.

The urban squatters, a goodnumber of whom live in sub-humanconditions, will have a change to ownland and house, which will now beel igible as col lateral for micro-finance-backed businesses.

11. Securit ize portions of Clark and Subic in tandem

with a move to provide the coveredterritories a special charter of goodgovernance, creation proposed byNEDA Secretary Romulo Neri.

This is like creating a new HongKong or Singapore right within ourbackyard. If we can assure that aninitial area of 10,000 hectares can besecurit ized for commercial andindustrial uses, at around P5,000 persquare meter. We can generate P500bil l ion in new wealth for thegovernment, approximating our 75-year leases.

12. Organize a large-scale program of non-

traditional high-value crops in farmsand fisheries to create a new classand new generation of farmers andfishermen. The high-value farmcrops, vegetables, and fruits have amuch, much higher yield than thestaple crops of rice and corn. Aprogram of aqua-culture in the coastalareas and in the sea, with thousandsof fish cages in the seas of Luzon,Visayas, and Mindanao, growing andculturing sea bass, grouper,pompano, milk fish, cobia, freshwaterand saline tilapia, etc. have assuredmarkets in the frozen and “live” fishmarkets of China, Hong Kong, Japan,Taiwan, Singapore, the U.S. andEurope.

JDV’s 12-point program

Road map to new wealth for RPContinued from page 1

NEW DEPUTY SPEAKER Speaker Josede Venecia swears in Rep. BenignoSimeon “Noynoy” C. Aquino III (2nd

Dist., Tarlac) as Deputy Speaker.Aquino’s mother, former PresidentCorazon Aquino, witnesses theoathtaking rites. Rep. Aquino is thefourth Deputy Speaker, joining Reps.Emilio R. Espinosa, Jr. (Luzon), RaulV. Del Mar (Visayas), and Gerry A.Salapuddin (Mindanao).

LEONILA V.CHAVEZ isthe newestMember ofthe Housewith her

oathtaking as the newrepresentative of the party-listfarmer’s group, BUTIL,following the demise of Rep.Benjamin Cruz, 70, in October.

Rep. Chavez, who hails fromCabanatuan City, Nueva Ecija, isan officer of many farmers and

cooperative organizations,including the National FarmersSupreme Council(SANDUGUAN) led by the lateRep. Cruz, where she is Director-Treasurer.

She has been involved inpromoting farmers’ concerns andbuilding cooperatives since the1950s, gathering 45 years ofexperience in her field. Thecongresswoman has attendednumerous seminars andconferences here and abroad.

Chavez assumes BUTIL seat

House tackles anewchanges to UP charter

CONGRESS responded to theneed to amend the almostcentury-old University of thePhilippines (UP) charter to helpreinforce the country’s premierinstitution of higher learning.

Several bills seeking toamend the UP charter to helpimprove its administrative,academic and financial profileare now lodged in theCommittee on HigherandTechnical Education, chairedby Rep. Cynthia Villar (Las PiñasCity).

These are House Bill 597authored by Rep. FrancisEscudero (1st District, Sorsogon);HB 880 by Rep. Roque Ablan Jr.(1st District, Ilocos Norte); HB993 by Rep. Juan Miguel Zubiri(3rd District, Bukidnon); HB1587 by Rep. Eduardo Zialcita(1st District, Paranaque City);HB 2110 by Rep. Eduardo Veloso(3rd District, Leyte); HB 2327 byBayan Muna Reps. TeodoroCasino, Liza Maza, SaturOcampo and Joel Virador andAnakpawis Reps. Crispin Beltranand Rafael Mariano; HB 2752 byRep. Villar; and HB 3169 by Rep.Harlin Cast. Abayon (1st District,

Northern Samar).The authors are one

in saying that the ancientUP charter, which was

enacted way back in 1908,must be amended to reflectthe university’s progressfrom the colonial era to thepresent times.

The UP Charter is thebasic law that created the

University of the Philippinesand defined its functions and itssystem of governance. Almost acentury after its enactment, theCharter would naturally nolonger reflect the realities of thetimes.

When the Charter wasenacted in 1908, there was onlyone State University and one UPcampus with 48 students. Today,UP has to compete for fundingwith over 110 other Stateuniversities and colleges. UPitself became a system of sevenconstituent universities. It is thecountry’s biggest universitysystem with almost 56,000students, 4,500 faculty members,and several thousand non-academic personnel.

UP’s expansion has createdboth challenges andopportunities. It needs morefunding from the governmentand fresh possibilities to helpaugment its annual budget.Recent laws, such as the SalaryStandardization Law and certaintax laws, have also weakened theschool’s ability to retain the bestteachers and to conduct world-class research.

The House bills are basicallysimilar in content except HB2327, which proposes an elected

Continued on page 6

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This question matters because of America’s historic influence in Philippine affairs and the much-touted “special ties” betweenthe two nations, currently cemented by the Arroyo administration’s vocal support for Bush’s continued war against terrorism. TheBush-Arroyo alliance has potential and actual rewards and costs. In his brief Manila visit in October 2003, President Bushaffirmed greater assistance in providing training and equipment to the Philippine police and military forces, resulting in whatthe US embassy called “the single biggest military aid package in Asia.” Secessionist rebel groups in Mindanao andcommunist anti-government plotters in Europe are now hot on the terrorist watchlist. Meanwhile, vigilance remains highagainst a terrorist backlash similar to the Madrid train blast and other attacks on public safety. Threats on Filipino lives

abroad, dramatized by the kidnappings in Iraq and Afghanistan, are like daggers lurking in the dark.The fact is that RP-US relations have never been easy territory. While the Filipino pulse is excited by American cultural

products – Disneyland, McDonald’s, Coke and Steven Spielberg included – it continues to be ambiguous toward the Americaninfluence on national affairs, seesawing across the spectrum from disgust at historical inequities to gratitude for trade and

business, the foundations of Western-style public education and government, and dollars remitted by hordes of Filipino immigrantswho now call the US home.

Some Members of the House speak out on the effects of Bush’s new mandate on the Philippines.

Deputy SpeakerGerry A. SALAPUDDIN

The fresh mandate given toGeorge Bush as President of

the United States is a goldenopportunity for him to prove hisleadership and sincerity to USallies and friends and theinternational community.

He should use thisopportunity to heal wounds anddifferences with his friends andallies. He should strengthen tieswith his allies especially thosewho supported him despite theconsequences on the domesticand external fronts.

I believe that President Bushshould realize that this freshmandate is not only from thepeople but from God. I urge himto use this second mandate toimprove world unity and peace.

I hope that he will continueto be supportive of thepromotion of the peace processin Mindanao including financialand technical support. Thissupport should be sustainedeven if the peace agreement

Rep. Loretta Ann P. ROSALES

There is obviously an attempton the part of the re-elected

President Bush to try andimprove relations with its allies inthe context of strengthening itscurrent international campaignagainst terrorism. This isparticularly significant given therecent differences on Iraq policybetween both countries reflectedin the withdrawal of Filipinotroops from Iraq followed by theremoval of the Philippines asmember of the Coalition of theWilling that continue to havemilitary troops in Iraq.

While we recognize thedifficulties of the pastadministration under Mr. Bush,the opportunity to strengthen ourrelations with the United States

THINKING ABOUT THE BUSH IMPACT

Rep. Antonio V. CUENCO

The re-election of Bush asPresident of the United

States of America has notchanged whatsoever the policyof the United States in so far asthe Philippines is concerned. We

under his same leadership mustbe anchored on a platform ofmutual respect for each other’snational interests on the bilaterallevel and stronger cooperationwithin the broader framework ofinternational justice and humanrights as members of the UnitedNations.

Concretely, this relationshipmust address the followingspecific concerns:

• The international anti-terrorism campaign mustbe anchored on the basicprinciples of human rightsand international law andnot on Americanunilateralism whichincludes its continuedmilitary occupation of Iraq.In this regard, diplomacyand political negotiationsare principal avenues forconflict resolution ratherthan the use of armedforce and militaryaggression. Morecooperation must be madewith European and Asiancountries under UNauspices to underscorethese avenues ininternational relations.With respect to Iraq, thewithdrawal of Philippinetroops from Iraq and ournon-membership in theCoalition of the Willing arepositive steps that shouldcontinue to guide us in ourparticular relations with thepeople of Iraq.

• Our relationship with there-elected PresidentGeorge W. Bush must bestrengthened along thelines of seeking moreprotection for our morethan three million Filipinomigrants in the UnitedStates—permanentresidents, overseasworkers andundocumented Filipinoworkers. This means thatmore effort must be givenso that our Embassiesand Consulates can

Rep. Francis G. ESCUDERO

I don’t think President GeorgeW. Bush’s victory will

drastically change whateverpolicies that the United Stateshas towards the Philippinesespecially given the fact thatthey are very stronginstitutions.

The election of this or thatPresident would not reallychange whatever existingpolicies the US has towards thePhilippines. But I think it wouldbe too much for us to say that itwould improve from what wehave seen these past fouryears under Bush especiallybecause this is the same guyat the helm. Having said that,even if it were John Kerry whowon I don’t think there wouldbe marked differences in so faras how the United States hasbeen related to the Philippinesthese past four years.Interview by Jackie Rey-Juliano

with the MILF, made as acondition to the $30 milliongrant, is not yet attained for thisis an outstanding peaceagreement with the MILF thatmust be sustained. Due toscarcity of funds, any financialsupport or foreign funding iswelcome.

The US and the Philippinesare strong allies. Thisrelationship had withstood thetest of time. Any differences incertain foreign policies is justnormal. An example is when thePhilippine government has totake care of its overseas workersand ensure their safety andhealth. Another is when a localconcern demands immediateattention. Our local and nationalinterest is paramount.

Some of our Muslimbrothers view with apprehensionthe re-election of President Bushespecially his anti-terrorismstance. According to him, hewould pursue this policy with orwithout his allies behind him ifneed be. This kind of policystatement certainly caused jittersand gave the wrong signal tothe Muslim world. Interview byAbigail Macabeo

don’t expect better treatmentfrom Bush than the ones wealready got. The policy of the UStowards the Philippines hasalways been constantirrespective of whether thepresident is a Democrat or aRepublican.

I don’t think the US policywould change.The RP-USalliance remains firmirrespective of who is Presidentof the US because of ourspecial relations with them,borne out of our pastassociation with them. DuringWWII our allies, the Americans,helped us out with ourdemocracy. So we maintainspecial relations with the US.We expect more support fromthe US in so far as our war withterrorism is concerned. We alsohave our own war. We alsohave terrorists operating in thecountry. The US is giving ussome support in order to defeatterrorists lurking in our shores.

Our Philippine foreignpolicy is always founded on theFilipino first policy. Whatever isgood for our country is our bestforeign policy. We will conformwith the law of nations but wewill always give primary interestto the interest of the Filipinos.Our sovereignty is supreme andthe best interest of the Filipinos,whether here or abroad workingoverseas, is always moresuperior than any otherconsideration.

Our national security is in

provide better services toprotect them againstpossible measures ofrestricting civil liberties inthe pursuit of theAmerican anti-terrorismcampaign. We must seekthrough bilateral andinternational relations theprotection of migrantsagainst possible violationsof human rights resultingfrom militarist-based anti-terrorism campaign led bythe United States.

• In forming its strategy ofcontainment against itsperceived enemies, ourcountry should beindependent. It isincumbent that thePhilippines revisit its BIA(Bilateral ImmunityAgreement) recentlysigned with the UnitedStates that guaranteesPhilippine refusal tosubject American militaryviolators of human rightsto international jurisdictionunder the InternationalCriminal Court. Bywithdrawing from thatarbitrary agreement, thePhilippines finds itself ina much moreindependent position todeliberate over the RomeStatute for ratificationconfirmation in theSenate, given that thePhilippines was one ofthe first leading countriesof Asia to sign the RomeStatute into law.Interview by Melissa Reyes

How will the Philippines fare under a renewed United States mandate for PHow will the Philippines fare under a renewed United States mandate for PHow will the Philippines fare under a renewed United States mandate for PHow will the Philippines fare under a renewed United States mandate for PHow will the Philippines fare under a renewed United States mandate for President George Bush?resident George Bush?resident George Bush?resident George Bush?resident George Bush?

“President Bushshould have anobjective review ofU.S. foreign policyparticularly on thePalestinian issue andon Muslim nations.”

“The primaryconsideration of U.S.policy is whatever isgood for America.They don’t have anyspecial interest in thePhilippinesespecially since therecall of the bases.So it doesn’t reallymatter.”

good hands. We do not feelthreatened by any foreigninvaders. National securityshould be focused on our localproblems. We have to guardagainst rebels out to destroy ourcountry. Our concern now shouldbe focused on the NPA and AbuSayyaf out to dismember thePhilippines or create chaos, outto grab power from thePhilippines. That is theimmediate threat we are facing.We have friendly relations withour neighbors, with the ASEANregion, China, Japan, Korea. Wehave no enemies outside. Ourenemies are from within.Interview by Abigail Macabeo

“The Philippinesmust seek to adopt amore independentstance against thetradition of analmost blindcompliance to USprescriptions.”

Rep. Jacinto V. PARAS

Basically, mapapahamak tayosa mga dealings ng Amerika,

like in the first place, in their fightagainst terrorism. GMA hasmade a statement that we arestill allies with the United Statesand that we are a strong ally, sothat means that any act of theUS against terrorism, againstany foreign country, kasamatayo dun and that’s bad for us.

For example we joined theCoalition of the Willing where we

sent troops and that was thecause of the kidnapping ofAngelo dela Cruz. Now, we’reagain involved as the Chair ofthe APEC Task Force onTerrorism. These haveimplications, because thegovernment of a country that isfacing a lot of problems shouldbe less involved in internationalaffairs and should be moreconcerned with solving theproblems of the country. ThePresident should concentratedmore on the economy andfinding solutions to theburgeoning debt and deficit. Yethere we are, we are againinvolved in international politics.

Secondly, we are eveninvolving ourselves now withAung San Suu Kyi of Myanmar –asking the government ofMyanmar to be easy on Suu Kyi.Why should we be involved? Soin relation to Bush, then beingseen with Bush, hobnobbing witheach other, that means that thePresident would, of course, bejoining the US in all its activitiesbecause of that relationship. Butwe are not supposed to beinvolved because hindi tayokatulad ng Amerika. They aresecure, their people are securein their own country. Unliketayo, we are an exporter oflabor, we are always vulnerablein other countries because weare poor. May mga Pilipino nanasa ibang bansa, especiallyplaces where a lot of work isfound, like the Middle East.Alam mo naman angrelationship ng mga MiddleEastern countries. They aresolid and there are a lot ofterrorists there for that’s theplayground of Bin Laden andthe Al Sarkawi group. So,chances are, tayo angmapipinsala, hindi naman siBush because he is capable ofdefending himself.

Tayo, are we capable? Weare not. Hanggang pakiusaplang tayo. So that’s theimplication of Bush’s victory—nagpapatuta tayo sa Kano.Interview by Jackie Rey-Juliano

“The election ofthis or thatPresident wouldnot really changewhatever existingpolicies the US hastowards thePhilippines . . .”

Rep. Teodoro A. CASIÑO

I believe that there will be nosignificant change between

the two. Since Bush and Gloriaare both given a second term,all policies and agreementssigned between our countrieswill continue.

According to media reportsour relationship with the US isgetting better. Significant to thisis that our country is tasked tohead the APEC group on anti-terrorism. With Bush there, ourcountry will be more involved inthe continuing US-led war onterrorism. This will entail moremilitary assistance and training,which I believe will do no goodfor our country.

Filipinos will still continue tomigrate to the US to earn aliving. However, after the 9/11attacks they will no longerreceive the same freedom andcivil liberties.

“Unfortunately, thePhilippines will stillbe an adjunct of theUS. Our foreignpolicies will basicallybe following the oldpattern—meaningwe will followwhatever the USdictates.”

I am worried that with Bushand Gloria there, our aspirationfor a truly independent foreignpolicy becomes unclear. Moreand more Filipino policiesbecome tied with foreignpolicies. Their reelection doesnot promise any significantchange — in a sense it is notgood. Interview by ChristianPamintuan

“The Philippines,being a country thatis facing a lot ofproblems, should beless involved ininternational affairsand should be moreconcerned withsolving the problemsof the country.”

Malacañang photo

5November - December 20044 November - December 2004

6 November - December 2004

Chronicles of theChronicles of theChronicles of theChronicles of theChronicles of theChairChairChairChairChair’s wisdom’s wisdom’s wisdom’s wisdom’s wisdom

A GUIDE to parliamentaryprocedures and precedents in theHouse will soon be off the press.A product of the LegislativeCounselling Service (LCS) of theReference and Research Bureau(RRB), Rulings of the Chair,Second Edition, is a compilationof the wisdom of the Chair fromthe 8th to12th Congresses.

Lawyer MonicaMontemayor, LCS Director, saidRulings is intended as a handyreference guide for the PresidingOfficer of the House, theCommittee on Rules, Members,and researchers on the rulings

Christmas Gift-givingChristmas Gift-givingChristmas Gift-givingChristmas Gift-givingChristmas Gift-givingCSFICSFICSFICSFICSFIupdateupdateupdateupdateupdate

NEW LOBBY MURALS. Visiting schoolboy, Carl Vixen Magbitang,8, inspects the 236 faces of the elected Members of the Housein the 13th Congress. The twin wall murals at the Main Lobby,first mounted during the 11th Congress, greatly aid infamiliarizing visitors with the legislators. The display adoptedan uncomplicated and austere layout using crisp, cool colors asbackdrop for the images. High-resolution, fade-resistant printingtechnology was utilized for the project.

Members of the CSFI donated sacks of rice and musical organsto the Correctional Institute for Women in Mandaluyong City,December 7.

At the Delpan Sports Complex in Manila gathered some 500 street children andsenior citizens, December 8.

Rhodora Nograles celebrated her birthday with streetchildrenat the Nayon ng Kabataan, Mandaluyong City, December 7.

IN PRINTIN PRINTIN PRINTIN PRINTIN PRINT

made in previousCongresses, whichform precedence inlegislative process.

Secretary GeneralRoberto Nazareno,who conceptualizedthe book early on,remarked that thisedition updates a 1963book, Rules of the Houseof Representatives,commented andannotated by Dr.Inocencio B. Pareja,under the 1935Constitution. M. Sapnu

Latest Housedirectory

THE PUBLICRELATIONS andInformationDepartment (PRID) isset to release the Houseof RepresentativesDirectory, 2004 Edition,which carries the names,addresses, telephonenumbers and othercontact information onall House Members,Secretariat offices and

other agencies in the complex.In his foreword to the

Directory, Speaker Jose deVenecia enjoined the public totake an interest in policy-makingprocess in the House bycommunicating their concerns tolegislators. This general referencetool was produced by thePublishing and Design Service incooperation with the PublicAffairs Service, both under thePRID. M. Sapnu

Sacks of rice and musical instruments for the Haven for Womenand Children of Marillac Hills as part of their annual ChristmasGift-Giving in Alabang, Muntinlupa City, December 8.

OFFICERS of the Congressional Spouses FoundationInc. (CSFI), headed by President and Chairperson GinaP. de Venecia, conducted their annual tradition ofspreading Christmas cheer in various communities andinstitutions in the metropolis.

UP System Assembly as thehighest governing body to replacethe Board of Regents (BOR). Therest of the bills favor theretention of the BOR.

Former UP President Dr.Francisco Nemenzo said theuniversity welcomes the filing ofthe measures as they embodyUP’s major concerns as a uniqueeducational institution and givesthe school flexibility in the use ofits resources. Nemenzo alsoappealed to the lawmakers togrant the institution of taxexemptions to help reduceexpenditures.

Nemenzo proposed todemocratize the BOR byreducing the influence of theexecutive branch on the selectionof the members of the board. Headded that appointees to theBOR should have the knowledgeand expertise to perform theirduties as members of thegoverning board.

In the previous 12thCongress, the House approved abill revising the UP Charter tobuild its status and autonomy asthe nation’s premier knowledgeinstitution with an expressedbent towards public service. Thebill, however, languished in theSenate.

UP charterContinued from page 3

Gene Peñas

Musical instruments and other goodies for children at the SanctuaryCenter, Mandaluyong City, December 7.

7November - December 2004

KNOWKNOWKNOWKNOWKNOWTHETHETHETHETHELLLLLAAAAAWWWWW

By Abigail Macabeo

RECOGNIZINGthe vital role ofd o m e s t i cshipping industryin the country’strade and

economic development, Congresspassed RA 9295, or the DomesticShipping Development Act of 2004,in May of this year. It applies onlyto domestic shipping whichincludes the transport ofpassengers or cargo, by ships dulyregistered and licensed underPhilippine law to engage in tradeand commerce within Philippinewaters.

With its passage, maritimeaccidents and corollary problemsof old and ageing vessels as well ascargo and passenger safetystandards will be addressed and inthe process ensure a safer operationof vessels.

To ensure healthy competitionand encourage investments, thenew law provides a bundle ofincentives to ship owners andoperators as well as those engagedin shipbuilding and ship repair.

IncentivesRA 9295 outlines a set of

incentives in order to ensure thecontinued viability of domesticshipping and encourage

investments. Qualified domesticoperators shall enjoy exemptionfrom valued added tax on theimportation and local purchase ofpassenger and cargo vessels of 150tons and higher. The exemptionalso extends on the importation oflife-saving and rescue equipment,communication and navigationalsafety equipment, steel plates andother metal plates includingmarine-grade aluminum platesused for transport operations. Anet operating loss carry over in anytaxable year immediately precedingcurrent taxable year, which havenot been previously offset as adeduction from gross income shallbe carried over the next threeconsecutive years immediatelyfollowing the year of such loss.Accelerated depreciation for fixedassets is also allowed.

A similar set of incentives alsoapplies to those in the shipbuildingand ship repair industry. They areexempt from value-added tax onthe importation of capitalequipment, machinery, spare parts,life-saving and navigationalequipment.

Deregulating the IndustryTo encourage investments in

the industry and attract newinvestors, the law authorizesdomestic ship operators toestablish their own domestic

shipping rates. They can fix theirown passenger or cargo rates, orboth. However, the MARINA(Maritime Industry Authority)shall draw the rules and regulationsin monopolized routes todetermine the fairness of passengerand cargo rates needed to sustainthe service.

Authority to OperateRA 9295 limits the issuance

of franchise or certificate for thecarriage of cargo or passenger indomestic trade to domestic shipowners or operators. Only foreignvessels with special permit shall beallowed to transport passengers orcargo within Philippine territorialwaters. Such permit shall be issuedby MARINA when there is nodomestic vessel available or suitableto provide the needed shipping

service and when dictated bypublic interest.

Safety MeasuresThe Domestic Shipping

Development Act vests MARINAwith the power to inspect vesselsand all equipment on board vesselsto ensure compliance with safetystandards. It likewise has the powerto register vessels, issue certificatesof public convenience authorizingthe operation of vessels in domesticshipping, establish and prescriberoutes, and set safety standards forvessels in accordance withconventions and regulations.

Compulsory InsuranceCoverage. R.A. 9295requires every ship operator toprovide adequate insurancecoverage for each passenger andcargo to meet its financial liability

in case of breach of contract ofcarriage. The total amount shall beequivalent to the total number ofpassenger accommodations or tothe total cargo capacity offered bythe vessel. In case the operatorshould operate more than onevessel, the amount of insurancecoverage shall be equivalent to thetotal number of passengeraccommodations, or total cargocapacity, or both, of the largestoperating vessel which the operatormay have.

The MARINA has also thepower to require every shipoperator other compulsoryinsurance coverage necessary toadequately cover claims fordamages.

Classification andRetirement of Vessels. A l lvessels shall be classified by ag o v e r n m e n t - r e c o g n i z e dclassification society on the date ofacquisition and prior to itsoperation in the domestic trade. Itincludes newly built or previouslyowned vessels acquired on or afterthe effectivity of this law.

Vessels which have reachedthe maximum age set byMARINA’s mandatory vesselretirement program and which donot carry a class certificate shall notbe allowed to operate. They shallalso be automatically de-listed fromthe Philippine Registry.

Safety and vigor for the shipping industry

By Melissa M. Reyes

R E P .A R N U L F O“Noli” P.Fuentebe l la(3rd District,C a m a r i n e s

Sur) once likened his constituentsto Jack and Jill. They would go upthe hill to fetch water. Jack wouldfall down and Jill would cometumbling after.

Fuentebella used the nurseryrhyme to emphasize his district’swater supply problems. Theywashed in wells, pipelines were old,the system was antiquated. Peoplelined up for water.

Only three poblacion had water,reaching only one to two barangaysoutside the bayan. Water pressurewas low, supply was minimal andavailable only six to 12 hours a day.

Today, the entire district enjoysone of the most modern watersystems. Supply reaches far flungmunicipalities. Its new pipelines usethe latest technology andequipment, like water chlorinationand filtration, water treatment andtraining facility—all computerized.

Potable water runs 24 hours aday, reaching up to 3-storeyhouseholds. A $15-million (P780million) interest-free loan from theDanish aid agency completed theproject this year.Poor and overlooked

But things were not always thisway. District 3—also known as thePartido area—faced three big

challenges when Fuentebellabecame representative in 1992.First, the Bicol River BasinDevelopment Program—like Bicol’ssmall NEDA—didn’t includeDistrict 3. Second and third,District 3 is not part of the Pan-Philippine (Maharlika) Highwayand the railway system, unlike the1st, 2nd and 4th districts.

Ironically, nearbyCatanduanes is classified aspriority province due to its povertyyet District 3 is bigger inpopulation and area, and just asdepressed, but it didn’t seem tocount because it is not a provincebut a lagislative district.

District 3 has the biggest landarea of the four Camarines Surdistricts—it is 39% of the province—and yet is not on that list either,hence, District 3 would always be

left out in government prioritydevelopment projects.Partido vision becomes reality

Former NEDA Director-General Solita Monsod said thereal test of development lies in thepeople’s quality of life, seen inhealth, energy, education andwater services. These were basicchallenges that “threatened to pushDistrict 3 back into oblivion,unless we did something,”Fuentebella said.

So the congressman and hisfellow visionaries never lost hope.They came up with the solution tomake government’s engines workfor their province: a governmentauthority to integrate, coordinateand accelerate the development ofPartido’s lagging areas.

Through Fuentebella’s Houseinitiatives, the Partido

Development Administration wascreated through Republic Act 7820in 1994. President Arroyo, then asenator, sponsored the measure inthe Senate.

PDA’s mission is to carry outintegrated planning, programimplementation and developPartido’s 10 municipalities: Sagnay,Tigaon, Goa, San Jose, Lagonoy,Tinambac, Siruma, Presentacion,Garchitorena and Caramoan.

Its powers include conductingresource inventory, passing over allLGUs, publicly and privately-proposed projects, recommendingpolicies, promoting investments,and encouraging creation ofeconomic zones and/or industrialestates. Its corporate personalityallows it to contract foreign and/or local loans, receive grants andsource out funds for programs,among other financial programs.

Fuentebella contributed P8-million from his CountrywideDevelopment Fund (CDF) to fundthe PDA building’s construction,which also houses DPWH’s 3rd

district engineering office.Durable roads end isolation

In 1997, PDA completedanother feat—the 70-km CaramoanPeninsula “All-Purpose Weather”Road. Former President Ramos,Speaker Jose de Venecia andFuentebella contributed P54.5million.

Later named the Gov. Felix A.Fuentebella Highway, it linked thecoastal barangays of Presentacion,Garchitorena and Caramoan to

the mainland, and opened up andforever transformed the once-isolated areas to the world.Fuentebella’s legislative initiativesfurther lengthened the nationalroad to 300 kms. In 1998, the “All-Weather” Siruma-Tinambac Roadtraversed the isolated town ofSiruma.

Fuentebella tells this curiousstory. Nueva Caceres ArchbishopLeonardo Legaspi would makepastoral visits, like during fiestas,to the coastal barangays. He wouldstay two nights and three days asthere were few boat trips from thetowns. With the new roads, theArchbishop excitedly relates, hecan now visit the coastal towns inthe morning and return homeafternoon of the same day.

It used to take three to fivehours to reach Naga. Today, travelis three hours less and a land routeis now an option.Aggressive electrification

Goaded by the specter of hisprovince without energy, plusNational Power Corp.’s financialproblem, Fuentebella was movedto write the historic EPIRA, nowlaw, when he was House energycommittee chairman.

PDA’s technical peopleplanned Partido’s power projects,creating three power sources: grid,solar and stand-by generator sets.MIRANT, DOE, NEA andNapocor funding energized 98% ofthe district, from only 40% in1992.

How government promotes quality of life in Camarines Sur

Continued on page 8

ENERGIZED. Rep. Fuentebella (inset and right) leads barangay and municipalofficials during switch-on ceremonies for the “O-ILAW” project, a private-public sector venture that brought electric power to 98% of his district.

DistrictDistrictDistrictDistrictDistrictFOCUSFOCUSFOCUSFOCUSFOCUS

PRID

Photo

8 November - December 2004

Interview with Rep. Jesli Lapus

‘We have done our work’

PENALTY FOR PRIVATEOR UNAUTHORIZED USEOF OFFICIAL MAIL P500

TO POSTMAN: PLS. DELIVER TO ADDRESSEE OR CURRENT OCCUPANTPUBLISHING AND DESIGN SERVICE, PUBLIC RELATIONS AND INFORMATION DEPARTMENT, HOUSE OF REPRESENTATIVES

BATASANG PAMBANSA COMPLEX, CONSTITUTION HILLS, QUEZON CITYTEL. NOS. 9315335 and 9315001 LOCAL 7651 OR 7552

HON. JOSE C. DE VENECIA JR.OFFICE OF THE SPEAKERHOUSE OF REPRESENTATIVESCONSTITUTION HILLS, QUEZON CITY

Medical and educationaloutreach

His father, former Gov. Felix,provided free medical and dentalservices, but these stopped whenhis term ended in 1986. With PDAand the Isarog MedicalFoundation, Noli brought back

free missions. Local and expatriateFilipino doctors from California,with Filipino-American dentistsfrom the University of Minnesota,hold regular free missions. Thisyear, doctors and nurses from LasVegas, Nevada performedsurgeries.

Through the Fuentebella-authored RA 9029, the PartidoState University was established

with nine campuses surrounded bynational high schools andelementary schools. This schemebrings education within reach toPartido homes.

Noli also established aPhilippine National Science HighSchool in the 3rd district, the onlybranch in Bicol. Graduates areaccepted as scholars in leadinguniversities in Metro Manila.

Fuentebella . . .Continued from page 7

First Bicolano SpeakerWith his impressive

accomplishments, Noli earned therespect of his colleagues andconstituents. He became Speakerof the 11th Congress—the firstBicolano to claim the fourthhighest position in the land. Butthe energy he has devoted tomaking Partido work forCamarines Norte is just as

monumental. Partido, in Spanish,means separate, yet today that mayno longer be appropriate. Noli’svision and action made Partidoaccessible to the rest of thePhilippines and the world—a jobthat his son Wimpy ably continuedas a Member of the 12th Congress.Now, the elder Fuentebella is backin Congress with the same zealaflame.

REP. JESLIA. LAPUS(NPC, 3rd

District,Tarlac), is

chairman of the House Waysand Means Committee. Hispanel worked extra hard duringthe last five months to secureapproval of four urgentmeasures—the “sin” taxes, lateralattrition bill, tax amnesty, andrationalization of fiscalincentives—to help ease the hugebudget deficit. “We have brokenall sorts of records in theHouse,” he likes to say. He is nostranger to this demand. He wasa CPA at age 19, an auditor incharge of corporate clients at 20,and a master’s degree holder at23. At 29, he received the AIMTriple award, and was featuredas a management whiz kid in theASEAN by the HK-basedfinancial magazine, AsianFinance. The FORUMThe FORUMThe FORUMThe FORUMThe FORUMinterviewed Lapus on the fourbills and other matters.

Our seven questions and hisresponses:

Question: Congress haspledged to pass at least fourrevenue measures this year tohelp ease the budget deficitand avert a major fiscal crisis.What is the impact of thesefour measures?

Answer: If we look at thefour, it is a good mix becausethey address what really ails us—our capacity or incapacity togenerate revenues. The “sintaxes” have a recurringcomponent; another bill seeksto improve tax administrationand efficiency; a third onesignals the start of an era ofgoing after tax evaders byoffering a legislated taxamnesty; and a fourth addressesforeign and domesticinvestments, recognizinginvestments as the real engineto growth. This is an excellentpackage. More importantly, theHouse of Representatives led bySpeaker Jose de Venecia has

shown that it can respond toexigencies. The House and theWays and Means Committeehave broken records of sorts in

work ethic andcohesiveness. Undernormal circumstances,the bills would havetaken months or yearsto pass. It took us lessthan five months to getthe job done. This alsoshows the confidenceof the taxpayer sectorin appreciating thecircumstances ourcountry is in, and inshowing respect forand cooperation withthe leaders ofCongress.

Q: With thesefour bills, is the fiscalcrisis over?

A: Not really. We are stillon the watch list of theinternational rating agencies.Their bottom line is, it’s beenfive months since theinstallation of the government,and we have not enacted anynew tax law. These agencies arelooking at the output. If we arehandicapped by our system,then that’s a problem.

Q: Will there be a creditdowngrade for the Philippines?

A: It’s like being in school—we will be given a stern warning.Fitch, for instance, retained ourrating but downgraded ouroutlook from stable to negative.

The international financialmarkets are already pricing oursovereign bonds lower thanthose of Brazil, which is rated B.Our credit rating is importantbecause it could mean twothings—savings or additionalcosts depending on how we arerated. Comparatively speaking,Thailand’s rating is 3-4 notchesbetter than the Philippines’.This means Thailand is paying3.6 percent less interest than thePhilippines. One percent ininterest payment translates toabout P20 billion.

Q: What is the outlook fornext year?

A: A recovery for thePhilippines is possible—what isessential is to get things done,and quickly. What is essential isexecutive work. South Korea wasdowngraded six notches in thelate 1990s but was quick torecover. As Congress completesits work, the onus will fall onthe executive for theimplementation of the tax laws.Its commitment to streamlinethe Bureau of Internal Revenueand the Bureau of Customs willbe judged unmistakably after2005. The pressure will be onthe executive.

Q: What does Congresshave to do?

A: We worked extremelyhard during the last five monthsto get the four measuresapproved—but now it has comedown to a photo finish. Why it

should be like this does not speakwell of our legislative efficiency(in a two-chamber setup). Thereis even a prospect of extendingthe session just to have the twohouses of Congress waiting toratify the bicameral reports. Itsmacks of a lack of planning—butwe are helpless.

Q: But the House has doneits job.

A: The pressure on theHouse of Representatives hasbeen terrible. We are the firststep of a four-step legislativeprocess. Therefore, we in theHouse find ourselves in the mostunenviable position of having todeliver the output to the secondstep in record time. The Senate,which is the second step, must domore. In the next four weeks, theHouse of Representatives isprepared to act on a bill liftingVAT exemptions and increasingVAT rates from 10 to 12 percent,including the repeal of speciallaws with incentive provisions.

Q: Is Charter reformnecessary?

A: If this exercise onspeeding up legislation is anexample, if Congress were aunicameral body we would havedelivered the four tax laws inNovember. Maybe Fitch wouldnot have downgraded us.Moody’s is expected to turn inits verdict in January. But themarket has already factored in atleast a one-notch downgrade forthe Philippines.

77777QUESTIONSQUESTIONSQUESTIONSQUESTIONSQUESTIONS