House Plenary

7/25/2019 House Plenary

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Vol. 2 Tuesday, September 23, 2008 No. 21

Congressional RecordPLENARY PROCEEDINGS OF THE 14th CONGRESS, SECOND REGULAR SESSION

HOUSE OF REPRESENTATIVES

CALL TO ORDER

At 4:00 p.m., the Deputy Speaker, Rep. Eric D. Singson,

called the session to order.

THE DEPUTY SPEAKER (Rep. Singson, E.). The

session is called to order.

NATIONAL ANTHEM

THE DEPUTY SPEAKER (Rep. Singson, E.). Everybody

will please rise to sing the Philippine National Anthem.

Everybody rose to sing the Philippine National Anthem.

PRAYER

THE DEPUTY SPEAKER (Rep. Singson, E.). Everybody

will please remain standing for a silent prayer.

Everybody remained standing for the silent prayer.

THE DEPUTY SPEAKER (Rep. Singson, E.). The Dep.

Majority Leader is recognized.

SUSPENSION OF SESSION

REP. VELARDE. Mr. Speaker, I move for a few minutes

suspension of the session.


session is suspended for a few minutes.

It was 4:02 p.m.

RESUMPTION OF SESSION

At 4:42 p.m., the session was resumed.


session is resumed.

The Dep. Majority Leader is recognized.

ROLL CALL

REP. VELARDE. Mr. Speaker, I move that we call the

roll.

THE DEPUTY SPEAKER (Rep. Singson, E.). Is there

any objection? (Silence) The Chair hears none; the motion is

approved.

The Secretary General will please call the roll.

Upon direction of the Chair, the Secretary General called

the roll pursuant to the House Rules, and the resultisas

follows, per Journal No. 21:

PRESENT

Abante

Ablan

Agbayani

Aggabao

Agyao

Alcala

Alfelor

Almario

Alvarez (A.)

Alvarez (G.)

Amante

Amatong

Angara

Antonino

Antonino-Custodio

Apostol

Aquino

Arbison

Arnaiz

Arroyo (D.)

Bagatsing

BarzagaBautista

Biazon

Bichara

Binay

Bondoc

Bulut

Cabilao

Cagas

Cajayon

Cajes

Cari

Casio

Castro

Cayetano

Cerilles

Chatto

Chavez

Chiongbian

Chipeco

Chong

Chungalao

Clarete

Climaco

Codilla

Cojuangco

Coquilla

Coscolluela

Crisologo

Cruz-Gonzales

Cua (G.)

Cua (J.)

Cuenco

Dangwa

Datumanong

Dayanghirang

Daza

De Guzman

Defensor (A.)

Defensor (M.)Del Mar

Del Rosario

Diasnes

Diaz

Dilangalen

Dimaporo

Emano

Enverga

Escudero

Estrella (C.)

Estrella (R.)

Fabian

Fernandez

Ferrer

Fua

Fuentebella

Garay


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16 TUESDAY, SEPTEMBER 23, 2008

Garcia (A.)

Garcia (P.F.)

Garcia (P.P.)

Garcia (V.)

Garin

Gatchalian

Go

GolezGonzales (N.)

Gonzalez

Guingona

Gullas

Hataman

Hofer

Hontiveros-Baraquel

Ilagan

Jaafar

Jala

Jalosjos

Jalosjos-CarreonJavier

Jikiri

Joson

Kho

Labadlabad

Lacson

Lagdameo

Lagman

Lapus

Lim

Lopez (C.)

Lopez (J.)

Madrona

Magsaysay

Malapitan

Mandanas

Mangudadatu

Maraon

Marcos

Mariano

Maza

Mendoza

Miraflores

Mitra

NavaNicolas

Noel

Nograles

Ocampo

Olao

Ong

Ortega

Gunigundo

Ledesma

Locsin

Macapagal Arroyo

Mamba

Mercado

Pancho

Pablo

Padilla

Pancrudo

Piamonte

Pichay

Pingoy

Prieto-Teodoro

PuentevellaPuno

Ramiro

Remulla

Reyes (C.)

Reyes (V.)

Robes

Rodriguez

Rodriguez-Zaldarriaga

Roman

Romarate

Romualdo

RomuloSalimbangon

Salvacion

Sandoval

Santiago (J.)

Seachon-Lanete

Singson (E.)

Solis

Suarez

Susano

Sy-Alvarado

Taada

Teodoro

Teves

Tieng

Tupas

Umali (A.)

Umali (C.)

Ungab

Uy (R.S.)

Uy (R.A.)

Valdez

Valencia

Velarde

Villafuerte

VillanuevaViolago

Yap

Yu

Zamora (M.)

Zamora (R.)

Zialcita

Zubiri

APPEARED BEFORE/AFTER THE CALL

Arago

Arroyo (I.)Asilo

Biron

Bravo

Castelo-Daza

Celeste

De Venecia

DomoganDuavit

Dumpit

Durano

Dy

Ermita-Buhain

Piol

Plaza

Roxas

San Luis

Tan

Uy (E.)

Villar

ON OFFICIAL MISSION WITHIN THE COUNTRY

Abaya

Belmonte

Briones

Dueas

Ecleo

Gatlabayan

Lazatin

Limkaichong

Ponce-Enrile

Santiago (N.)

Seares-Luna

Singson (R.)

Syjuco

ON OFFICIAL MISSION ABROAD

Albano

Angping

Arenas

Balindong

Dumarpa

Gonzales (A.)

Matugas

Romualdez

Silverio

Soon-Ruiz

Talio-Mendoza

Villarosa

Vinzons-Chato

OFFICIAL ADVICE OF ABSENCE

Bonoan-David

Vargas

THE SECRETARY GENERAL. The roll call shows that

182 Members responded to the call.

THE DEPUTY SPEAKER (Rep. Singson, E.). With 182

Members present, the Chair declares the presence of a

quorum.

The Floor Leader is recognized.

REP. ROMULO. Mr. Speaker, before we proceed to the

other matters for today, may we greet the guests of the

Members of the Housestudents from St. Pauls Quezon

City; and guests from the Pro-life, Payatas.

THE DEPUTY SPEAKER (Rep. Singson, E.). Please

rise to be recognized. (Applause)

REP. ROMULO. Guests from Our Lady of Parish,

Caloocan; Sister Florecilla Inzon, OP, Dominican Sisters of

St. Catherine of Siena. (Applause)

THE DEPUTY SPEAKER (Rep. Singson, E.). Please

rise. Welcome to the House of Representatives!

REP. ROMULO. Guests from St. Agnes Parish; studentsfrom Siena College, Quezon City, headed by Sister Meriza

Ocampo. (Applause)

THE DEPUTY SPEAKER (Rep. Singson, E.). Welcome

to the House of Representatives!


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TUESDAY, SEPTEMBER 23, 2008 17

REP. ROMULO. Guests from St. John the Baptist Parish,

Diocese of Antipolo and Taytay, Rizal, headed by Msgr. Peter

Caonero. (Applause)



REP. ROMULO. Guests from the Catholic WomensLeague military diocese. (Applause)

THE DEPUTY SPEAKER (Rep. Singson, E.). We

welcome, as well the members of the Catholic Womens League.

REP. ROMULO. Guests from the Mary Mother of Good

Counsel Parish, Wilhela de Jesus, (Applause) guests of the

Honorable Mary Ann Susano; and our guests from the Metro

Manila Development Authority (MMDA).


welcome all the guests of Congresswoman Susano to theHouse of Representatives.

REP. ROMULO. Mr. Speaker, may we also welcome

the delegates from Ship for Southeast Asian Youth Program

headed by their commissionersHany Gamid from

Mindanao; Mr. Benjie Oliva from Visayas; and Councilor

Becky Labit from Puerto Princesa City, guests of the

Honorable Baham Mitra, Second District, Palawan; Carol

Jayne Lopez, Party-List YACAP and Jesus Crispin Boying

Remulla. (Applause)

May we also recognize the visitors of Congressman

Codilla Sr., Fourth District, Leytethe LGU officials of

Ormoc City, Leyte.(Applause)

THE DEPUTY SPEAKER (Rep. Singson, E.). The LGU

officials of Ormoc, Leyte, as well as the other guests, are

welcome to the House of Representatives.

REP. ROMULO. Mr. Salvador Muyuela; Ms. Rosalinda

Muyuela; Wilma Taneo, barangay kagawad of Tongonan,

Ormoc City; Alma Potoy, barangay treasurer of Tongonan,

Ormoc City; Ma. Teresita Baylon, barangay kagawad, Ormoc

City; Herminia German, barangay secretary of Tambulilid,

Ormoc City; Emmanuel Quilantang of Barangay Linaw, Ormoc

City; Alberta Campos, barangay treasurer of Tambulilid, OrmocCity; Emilyn Ycoy, accounting clerk, Ormoc City; Ma. Grace

Dagatan, District 26, Ormoc City; Melinda Genobiagon,

barangay treasurer of Ipil, Ormoc City; Ma. Divina Rivera,

barangay secretary, Ipil, Ormoc City; Conrado Delgado, punong

barangay, Ipil, Ormoc City; Narciso Gatoc, Grace Mendoza;

Helconida Omega; Ciriaco Tolibao III; Marina Placido; Marivic

Panggoy; all guests of the Honorable Codilla. (Applause)


guests of the Honorable Codilla are welcome to the House of

Representatives.

REP. ROMULO. May we also greet the guests of the

Sponsors of HB 5043. They are the advocates from the

Reproductive Health Advocacy Network (RHAN) and the

Democratic Socialist Women of the Philippines (DSWP).

(Applause)



REP. ROMULO. Linangan ng Kababaihan, Inc.

(Applause)


welcome the womens sector in the House of Representativesas well.

REP. ROMULO. May we also acknowledge guests from

the Akbayan Citizens Action Party; Pinagsamang Lakas ng

Kababaihan at Kabataan (PILAKK); Creative Collective

Center, Inc. (CCCI); Health and Development Initiatives

Institute (HDII); Philippine Legislators Committee on

Population and Development Foundation; Woman Health

Philippines; the Forum for Family Planning (The FORUM);

Apelo Womens Health Association MOTHERS; Samahan

ng Malayang Kababaihan ng Towerville; Zone One Tondo

Organization (ZOTO); PINAY KILOS; Family PlanningOrganization of the Philippines (FPOP); Philippine Federation

for Natural Family Planning (PFNFP); Reproductive Health,

Rights and Ethics Center for Studies and Training; Womens

Legal Education, Advocacy and Defense Foundation, Inc.;

Leadership Development Program for Mobilizing

Reproductive Health; Philippine NGO Council on Population,

Health and Welfare, Inc.; Aksyon Kababaihan; Women in the

Informal SectorSan Mateo, Rizal; Rosas ng Maynila;

Samahan ng Maralitang Kababaihan ng Caloocan; Aktibong

Kababaihang Manggagawa ng Dumpsite; Ladies Brigade in

Action, Bagong Silangan;Health Action Information

Network; Employers Confederation of the Philippines; Sentro

ng Alternatibong Lingap Panlegal; BASECO Women; Lead

Net. (Applause)

Mr. Speaker, we also want to welcome guests from the

Province of Rizal: the Women Workers in the Informal Sector

(WISE); Samahan ng Malayang Kabataan ng Bayang Rizal

(SMK); Broadway Neighborhood Association Incorporated;

Kapit Bisig Kababaihan; Samahan ng Malayang Kababaihan;

San Mateo Womens Council.(Applause).

Our guests from Payatas: Aktibong Kababaihang

Manggagawa ng Asper; Aktibong Kababaihang Manggagawa

ng Dumpsite; Ladies Brigade Association of Bagong Silangan.

From Caloocan, our guests from Kalinga; SMKC;

Katulad Ka; Masigla Womens Group; Samahang Malaria;Samahan ng Kababaihan sa Pederasyon; Sama-sama ng

Kababaihan Tungo sa Kaunlaran; Reporma ng Robis;

Samahan ng Palmera; Samahan ng Patris; Samahan ng Bicol

Area; Womens Lower Area C; Kaunlaran ng Kababaihan sa

Phase 2; Pamilyang Ugnayan ng Responsableng Ina; Womens

Community Development Association; Phase 7

Neighborhood Association.


welcome all the various organizations who are in the House

of Representatives.

REP. ROMULO. Mr. Speaker, we also want to welcome

Archbishop Gaby Reyes, Diocese of Antipolo. (Applause)

THE DEPUTY SPEAKER (Rep. Singson, E.). We also

welcome the Archbishop.


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REP. ROMULO. Guests from the Servants of Christ the

King Seminary, headed by Father Curcuera. (Applause)



REP. ROMULO. Our guests from the Catholic Womens

League. (Applause)


welcome the Catholic Womens League to the House of

Representatives.

REP. ROMULO. Guests from the Center for Peace and

Pro-Life; Dominican Sisters; Siena College, Quezon City;

St. Paul University, Quezon City; Subtle Attack Against

Family (SAFE); Couples for Christ Foundation of Family and

Life; and Diocese of Caloocan. (Applause)

THE DEPUTY SPEAKER (Rep. Singson, E.). Welcometo the House of Representatives!

REP. ROMULO. Apostles of Mary Catholic Youth

League of the Phils., Apostleship of Prayer, Diocese of

Novaliches; Ma ry Mother of Church, Di oce se of

Novaliches; Our Lady of Guadalupe Parish, Diocese of

Novaliches; St. Agnes Parish, Diocese of Novaliches;

Pro-life Phils.; St. John the Baptist Parish, Diocese of

Antipolo, (headed by Msgr. Peter Caonero, Vicar

General); St. Dominic Sabio Parish, Mandaluyong,

headed by Father Dante Valero; Family Life Ministry,

Diocese of Cubao.


welcome to the House of Representatives the various Catholic

organizations.

REP. ROMULO. They are guests of Congressmen Ed

Zialcita, Rene Velarde, Irwin Tieng, Congresswomen Carissa

Coscolluela of Buhay Party-List, Annie Rosa Susano and

Congressman Roy Golez. (Applause)

Mr. Speaker, may we also welcome the Apostleship of

Prayer, Archdiocese of Manila, led by Mrs. Baby Atienza

Lim, guests of the Honorable Mandanas. (Applause)


guests of the Honorable Mandanas are welcome to the House

of Representatives.

APPROVAL OF THE JOURNAL

REP. ROMULO. Mr. Speaker, I move for the approval

of Journal No. 20, Monday, dated September 22, 2008.


any objection? (Silence) The Chair hears none; the Journal is

approved.

REP. ROMULO. Mr. Speaker, I move that we proceed

to the Reference of Business.


any objection? (Silence)The Chair hears none; the motion is

approved.

The Secretary General will please read the Reference of

Business.

REFERENCE OF BUSINESS

The Secretary General read the following House Billsand Resolutions on First Reading, and Committee Reports,

and the Deputy Speaker made the corresponding references:

BILLS ON FIRST READING

House Bill No. 5156, entitled:

AN ACT MANDATING THE IMPLEMENTATION

OF A NATIONAL MULTISECTORAL

PROGRAM ON GOOD CITIZENSHIP,

CREATING A NATIONAL COUNCIL ON GOOD

CITIZENSHIP, AND PROVIDING FUNDS

THEREFORBy Representative Piamonte

TO THE COMMITTEE ON HIGHER AND

TECHNICAL EDUCATION, THE COMMITTEE

ON BASIC EDUCATION AND CULTURE, THE

COMMITTEE ON GOVERNMENT

REORGANIZATION AND THE COMMITTEE

ON APPROPRIATIONS


AN ACT PROHIBITING AND PENALIZING THE

USE OF CELLULAR PHONES AND OTHER

ELECTRONICS COMMUNICATIONS

EQUIPMENT WHILE DRIVING MOTOR

VEHICLE AND FOR OTHER PURPOSES

By Representative Abante

TO THE COMMITTEE ON TRANSPORTATION


AN ACT PROVIDING FOR THE CONVERSION OF

CANUMAY TO BIGNAY ROAD, IN THE CITY

OF VALENZUELA, METRO MANILA, AND

APPROPRIATING FUNDS THEREFOR

By Representative Gatchalian

TO THE COMMITTEE ON PUBLIC WORKS AND

HIGHWAYS AND THE COMMITTEE ONAPPROPRIATIONS


AN ACT PROVIDING FOR THE CONVERSION OF

LINGUNAN TO LAWANG BATO ROAD IN

VALENZUELA CITY, METRO MANILA, INTO

A NATIONAL ROAD AND APPROPRIATING

FUNDS THEREFOR

By Representative Gatchalian

TO THE COMMITTEE ON PUBLIC WORKS AND

HIGHWAYS AND THE COMMITTEE ON

APPROPRIATIONS


AN ACT ESTABLISHING A NATIONAL HIGH

SCHOOL IN BARANGAY MALIM,

MUNICIPALITY OF TABINA, PROVINCE OF


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ZAMBOANGA DEL SUR, TO BE KNOWN AS

MALIM NATIONAL HIGH SCHOOL AND

APPROPRIATING FUNDS THEREOF

By Representative Cerilles

TO THE COMMITTEE ON BASIC EDUCATION

AND CULTURE AND THE COMMITTEE ON

APPROPRIATIONS


AN ACT REGULATING THE CELEBRATION OF

FIESTAS, FESTIVALS AND SIMILAR

FESTIVITIES IN THE PROVINCES,

MUNICIPALITIES, CITIES, AND BARANGAYS

AND PROVIDING PENALTIES FOR

VIOLATION THEREOF

By Representative Diaz

TO THE COMMITTEE ON LOCAL GOVERNMENT


AN ACT TO UPGRADE HOSPITAL FACILITIES OFTHE ITBAYAT DISTRICT HOSPITAL IN THE

PROVINCE OF BATANES WITHOUT CHANGE

IN STATUS AND TRANSFER OF ITS DIRECT

CONTROL, SUPERVISION AND

MANAGEMENT TO THE DEPARTMENT OF

HEALTH AND APPROPRIATING FUNDS

THEREFORE

By Representative Diasnes

TO THE COMMITTEE ON HEALTH AND THE

COMMITTEE ON APPROPRIATIONS


AN ACT PROVIDING FOR THE ESTABLISHMENT

OF A DISTRICT HOSPITAL IN THE

MUNICIPALITY OF SABTANG, PROVINCE OF

BATANES, AND APPROPRIATING FUNDS

THEREFORE

By Representative Diasnes

TO THE COMMITTEE ON HEALTH AND THE

COMMITTEE ON APPROPRIATIONS

RESOLUTIONS

House Resolution No. 798, entitled:

RESOLUTION URGING THE THREEDEPARTMENTS OF GOVERNMENT TO

CREATE INDEPENDENT BODIES TO

CONDUCT LIFESTYLE CHECKS WITHIN

THEIR RESPECTIVE JURISDICTION AND

URGING THE PRESIDENT TO CREATE A

PEOPLES COMMISSION AGAINST

CORRUPTION

By Representative Abante

TO THE COMMITTEE ON GOOD GOVERNMENT


RESOLUTION DIRECTING THE COMMITTEE ONBASIC EDUCATION AND CULTURE TO

CONDUCT AN INQUIRY, IN AID OF

LEGISLATION, INTO THE IRREGULAR

CLOSURE OF THE BELARMINO

ELEMENTARY SCHOOL IN PROJECT 4

QUEZON CITY AND ITS PLANNED

CONVERSION INTO A SPORTS COMPLEX

By Representative Hontiveros-Baraquel

TO THE COMMITTEE ON RULES


RESOLUTION DIRECTING THE COMMITTEE ON

NATURAL RESOURCES TO CONDUCT ANINQUIRY, IN AID OF LEGISLATION, ON THE

FAILURE OF THE DEPARTMENT OF

ENVIRONMENT AND NATURAL RESOURCES

TO CONSERVE THE UNIQUE BIODIVERSITY

OF PALAWAN AND PREVENT THE

EXTINCTION OF IMPORTANT ENDEMIC

ANIMAL SPECIES ON THE ISLAND

By Representatives Ocampo and Casio


ADDITIONAL COAUTHORS

Rep. Antonio C. Alvarez for House Bills No. 1716 and

9155;

Rep. Philip A. Pichay for House Bill No. 4911;

Rep. Eufrocino M. Codilla Sr. for House Bills No. 4837,

4844, 4845, 4847, 4849, 4859, 4860, 4862 and 5151;

Reps. Alvin S. Sandoval and Munir M. Arbison for House

Bill No. 5043.

COMMITTEE REPORTS

Report by the Committee on Basic Education and Culture

and the Committee on Appropriations (Committee Report

No. 1293), re H.B. No. 5169, entitled:

AN ACT SEPARATING THE LAMBUNAO

NATIONAL HIGH SCHOOL JAYUBO ANNEX

IN BARANGAY JAYUBO, MUNICIPALITY OF

LAMBUNAO, PROVINCE OF ILOILO FROM

THE LAMBUNAO NATIONAL HIGH SCHOOL,

CONVERTING IT INTO AN INDEPENDENT

NATIONAL HIGH SCHOOL TO BE KNOWN AS

JAYUBO NATIONAL HIGH SCHOOL, AND


recommending its approval in substitution of House Bill

No. 791.

Sponsors: Representatives De Guzman, Lagman andDefensor (A.)





AN ACT SEPARATING THE MALAMIG

NATIONAL HIGH SCHOOL MALIGAYA

ANNEX IN BARANGAY MALIGAYA,

MUNICIPALITY OF GLORIA, PROVINCE OF

ORIENTAL MINDORO FROM THE MALAMIG

NATIONAL HIGH SCHOOL, CONVERTING ITINTO AN INDEPENDENT NATIONAL HIGH

SCHOOL TO BE KNOWN AS PRESIDENT

DIOSDADO MACAPAGAL MEMORIAL

NATIONAL HIGH SCHOOL , AND



6/22



No. 1569.

Sponsors: Representatives De Guzman, Lagman and

Umali (A.)



and the Committee on Appropriations (Committee ReportNo. 1295), re H.B. No. 5173, entitled:

AN ACT ESTABLISHING AN ANNEX OF THE

HIMPIPILA NATIONAL HIGH SCHOOL TO BE

LOCATED IN BARANGAY LIBERTAD,

MUNICIPALITY OF ABUYOG, PROVINCE OF

LEYTE TO BE KNOWN AS HIMPIPILA

NATIONAL HIGH SCHOOL ANNEX AND



No. 1973.

Sponsors: Representatives De Guzman, Lagman and Cari





AN ACT ESTABLISHING AN ANNEX OF THE

MAKINHAS NATIONAL HIGH SCHOOL TO BE

LOCATED IN BARANGAY CIABU, CITY OF

BAYBAY, PROVINCE OF LEYTE TO BE

KNOWN AS MAKINHAS NATIONAL HIGH

SCHOOL ANNEX AND APPROPRIATING

FUNDS THEREFOR


No. 1974.






AN ACT ESTABLISHING AN ANNEX OF THE SAN

ISIDRO NATIONAL HIGH SCHOOL TO BE

LOCATED IN BARANGAY POLAHONGON,

MUNICIPALITY OF MAHAPLAG, PROVINCE

OF LEYTE TO BE KNOWN AS SAN ISIDRO

NATIONAL HIGH SCHOOL ANNEX ANDAPPROPRIATING FUNDS THEREFOR


No. 1975






AN ACT SEPARATING THE PIS-ANAN NATIONAL

HIGH SCHOOL SIBALOM ANNEX IN THE

MUNICIPALITY OF SIBALOM, PROVINCE OFANTIQUE FROM THE PIS-ANAN NATIONAL

HIGH SCHOOL, CONVERTING IT INTO AN

INDEPENDENT NATIONAL HIGH SCHOOL TO

BE KNOWN AS SIBALOM NATIONAL HIGH

SCHOOL, AND APPROPRIATING FUNDS

THEREFOR


No. 2847.

Sponsors: Representatives De Guzman, Lagman and

Javier


Report by the Committee on Good Government and Public

Accountability (Committee Report No. 1299), re H.R.

No. 320, entitled:

AN ACT DIRECTING THE COMMITTEE ON GOOD

GOVERNMENT AS LEAD COMMITTEE,

TOGETHER WITH THE COMMITTEE ON

TRANSPORTATION AND THE COMMITTEE ON

WAYS AND MEANS, TO CONDUCT AN

INQUIRY, IN AID OF LEGISLATION, ON THE

ALLEGED RAMPANT SMUGGLING OF USED

AND BRAND NEW VEHICLES IN REGION VIIAS SHOWN BY LARGE PERCENTAGE OF

LAND TRANSPORTATION OFFICES

REGISTRATIONS

Sponsors: Representatives Romualdo, Locsin, Cabilao,

Vinzons-Chato, Lapus, Coscolluela and the

Honorable Members of the Committee on Good

Government and Public Accountability


REP. GONZALES (N.). Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Singson, E.). The Sr.

Dep. Majority Leader is recognized.

REP. GONZALES (N.). With the consent of the House,

I move that we take up local bills.



approved.

REP. GONZALES (N.). Mr. Speaker, in accordance with

our Rules, I present an omnibus motion for the consideration

on Second Reading of House Bills No. 239, 830, 889,1374,

1421, 1450, 2157, 2852, 2879, 4372, 4913, 4916,4921, 4922,4925, 4945, 4980, 4981, 234, 464, 1079, 1454, 2210, 2373,

2480, 2481, 3027, 3219, 4968, 5012, 5013, 5014, 5015, 5016,

5017, 5018, 5019, 5020, 5021, 5022, 5025, 5026, 5027 and

5035; that all the Explanatory Notes of the same be considered

as the sponsorship speeches on the measures; to close the period

of sponsorship and debate, there being no Member who wishes

to interpellate the Sponsor nor to speak against the measure; to

approve committee amendments if any; to close the period of

amendments, there being no individual amendments; and to

approve the same on Second Reading.*

I so move, Mr. Speaker.



approved.

* See MEASURES CONSIDERED (printed separately)


7/22


REP. GONZALES, (N.). I am sorry, Mr. Speaker, can I

make the following correction?

THE DEPUTY SPEAKER (Rep. Singson, E.). Yes, the

Sr. Dep. Majority Leader may proceed.

REP. GONZALES, (N.). I am sorry, Mr. Speaker. In lieu

of the House measures that I mentioned awhile ago, we referto the following local bills:

House Bill No. 5110 under Committee Report No. 1240;










House Bill No. 5125 under Committee Report No. 1250;House Bill No. 5126 under Committee Report No. 1251;

















and

House Bill No. 5148 under Committee Report No. 1286.

And with this correction, I reiterate for the omnibus

motion stated by this Representation awhile ago and approve

the same on Second Reading.

APPROVAL OF THE BILLS

ON SECOND READING



approved.

Those bills mentioned are approved on Second

Reading.

The Sr. Dep. Majority Leader is recognized.


REP. GONZALES, (N.). Mr. Speaker, I move for a one-

minute suspension of the session.


session is suspended for one minute.

It was 5:08 p.m.


At 5:09 p.m., session was resumed.


session is resumed.

The Sr. Dep. Majority Leader is recognized.

REP. GONZALES, (N.). May I ask for the recognition

of the distinguished Gentleman from Paraaque City, the

Honorable Golez.

REP. GOLEZ. Thank you very much, Mr. Speaker.

Mr. Speaker, I rise on a question of personal and

collective privilege.


Gentleman has 10 minutes.

QUESTION OF PRIVILEGE OF REP. GOLEZ

REP. GOLEZ. Mr. Speaker, I rise on a question of

personal and collective privilege, with regard to the emerging

financial crisis affecting the United States (US) and potentially

the entire world including the Philippines.

I rise, Mr. Speaker, because a lot of my constituents and

acquaintances in the business world are asking me, what the

House is doing about this emerging global financial crisis.

Mr. Speaker, about three weeks ago, September 3, we

started our deliberation on the General Appropriations Bill

(GAB) and this started with a briefing from the Development

Budget Coordinating Committee (DBCC), the economic team

of the President that briefed us on the macroeconomic

assumptions for this year and next year. While the

macroeconomic assumptions did not, as presented, look as

good as it was last year, it looked good enough. For example,

they projected that the gross domestic product (GDP) would

increase by maybe six or seven percent, at the least, five-

and-a-half percent, rising from P7.7 trillion to maybe about

P8.8 trillion for 2009. The inflation would be from double

digit right now, between nine to 11 to perhaps only about six

percent, maximum is eight percent. With respect to the foreign

exchange, they even projected a very low P42 to $1,

improving at the present P46 to $1. Then with respect to

London Interbank Offered Rate (LIBOR), it would be at aboutthree or four percent; and crude oil would be at about $15,

maybe $125 maximum; and exports would be increasing to

about $55 billion by next year.

Mr. Speaker, I do not pretend to be an expert on the

economy. In fact, I am a layman like many of us as far as the

economy is concerned. But, from September 3 to a few days

ago, about last week, something happened which radically

affected the state of the Philippine economy, a situation which,

in my opinion, would compel us to do something about it in

tandem with the economic team of the President and probably

in unison with the rest of the world, especially the US where

all of this is happening.What is the problem that is happening, Mr. Speaker?

What has happened is that there is now a financial crisis

affecting Wall Street in the US and this threatens to go from

Wall Street to Main Street. And then from Main Street, USA,

it might eventually affect other countries, including the


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Philippines, especially considering that our economy is very

tiny compared to the economy of the US.

Even weeks ago, we have been reading and hearing about

such terms as Fannie Mae and Freddie Mac with respect

to the real estate market in the US; we have been reading

about subprime. And a little reading of subprime, just

for the understanding of all of us here, especially the non-

economists like this Representation, I found out thatsubprime is a situation that happened in the US where a lot

of money, not just hundreds of billions of dollars of money,

but probably $1 trillion, even as much as $2 trillion or $3

trillion, were injected into the US economy in order to benefit

the so-called subprime lenders.

Who are these subprime lenders? These are lenders that

do not really meet the so-called Fannie Mae or Freddie Mac

guidelinesthe prime lending guidelines. These are generally

bank loans taken on property that cannot be sold on a primary

market including loans on certain types of investment

properties and to certain types of self-employed persons.

Subprime lending encompasses a variety of credit instrumentsincluding mortgages, car loans and credit cards but primarily

housing loans, Mr. Speaker.

These targeted borrowers who could not understand

this is the finding of the experts in the financial market in the

USwhat they were signing, or lending to people who could

never meet the terms of their loans. Many of those loans

included exorbitant fees and hidden terms and conditions,

and they frequently led to default seizure of collateral and

foreclosure. In fact, this was precisely what happened. Sixty-

one percent of all borrowers receiving subprime loans had

credit scores high enough to qualify for prime loans, but many

of them defaulted, Mr. Speaker.

Of course, last week, we read about Lehman Brothers,

an organization that was founded in 1850, more than 150

years ago. A symbol of financial solidness, financial stability

going under because of debt amounting to $613 billion, and

assets worth only $639 billion. And therefore, that was a case

of bankruptcy.

This was followed by news about the possible failure of

the American International Group, Inc. (AIG). As we all know,

AIG is affiliated with a big insurance entity here in the

Philippines. For awhile, for about 24 hours, 48 hours or for

about 72 hours, the entire world was held in suspense

wondering, is AIG going to go under? What would be the

repercussions not only in the US market but in the worldmarket, because of the millions of policy holders of AIG?

But of course, we are greeted by the news that finally, the

government announced its readiness to infuse about $85

billion of money to bail out AIG.

Of course, there is the news about Merrill Lynch being

taken over by Goldman Sachs. But what attracted the attention

of this Representation last Friday, not only in the light of all

these that threatened the entire global financial community,

Mr. Speaker, was that while I was watching the CNN News,

there was this very impressive coverage of a dramatic turn of

events. No less than the US Speaker of the House, Nancy

Pelosi, met with the Secretary of Treasury, Paulson, the SECChairman, Cox, and especially in the case of the Secretary of

Treasury identified with the administration of Republican

President Bush meeting with a Democrat, Speaker of the

House Pelosi, getting together in cooperation, in harmony, in

unison to address the emerging financial crisis in the US.

Once again, a lot of people were wondering, can this

team generate a salvage plan that can save the financial

situation in Wall Street?

Of course, very positively, this was followed by the

announcement of President Bush of a bail-out package

amounting to $700 billion, which would be used to buy up

bad mortgage paper that if not done is going to result in a

great financial hemorrhage that will affect the US economy,and eventually, the Philippine economy.

Again, there is tension. This is a package. It was met

with very positive attitude on the part of Wall Street and on

the part of the stock exchanges all over the world.

Prior to that announcement, Mr. Speaker, if we look at

the report of Bloomberg, CNN and even BBC of what was

happening in the stock markets all over the world, in Tokyo,

London, New York, Singapore, Hong Kong, it was all red. In

other words, it was all red because the stock market was going

down.

In the case of the Philippines, it was reported that the

capitalization of the Philippine stock market went down byabout 12.5 percent, which is quite a hefty decline in the values

of Philippine stocks registered in the Philippine Stock Market.

But after the announcement of the $700 billion package was

done by President Bush, then, things started to become rosy

again. From red reports, it turned green. Most of the stocks

went up by sizable percentages2 percent, 3 percent or even

more including here in the Philippines, and we were seeing

some recovery. That is the good news, Mr. Speaker. But of

course, there is still a word of caution because that is simply

the announcement of President Bush. It would still have to

be debated by US Congress. After that euphoria that met the

announcement of President Bush, now gradually, we are

listening to Members of Congress, Senators and Congressmen

favoring it, but some questioning it. Some are asking why

such very important and precious taxpayers money would

be once again used to bail out corporate greed insofar as Wall

Street was concerned.

We still do not know, Mr. Speaker, whether the US

Congress is going to finally approve this; and probably we

will have to wait for a few more days, maybe up to the end of

this week. But, meantime, things are uncertain and people

are asking, what are we doing in Congress?

The President was reported to have gone to New York

and one of the things that the President reportedly would be

doing in New York is to meet with the leaders of the Americanfinancial market to have a good assessment of the situation.

About seven commercial banks in the Philippines

reported exposures as much as $386 million in Lehman. The

amount of $386 million, Mr. Speaker, is quite a hefty amount,

although of course, they are saying that this is only about 0.4

percent of the total assets of the commercial banking system

of the Philippines. In other words, there is not much to worry

about.

The Development Bank of the Philippines (DBP),

according to the Secretary of Finance, just this morning, has

an exposure of about $90 million. While $90 million may be

small for the DBP and small for Wall Streetis worth aboutP4 billion for DBPit could have gone a long way to help

resuscitate and sustain the momentum of economic

development in the country.

The Secretary of Finance could not answer my question

when I asked him during the presentation of the budget of the


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Department of Finance, What other government financial

institutions (GFIs) have exposures in Lehman Brothers and

other distressed investment bank in the United States?. They

are still trying to find out; and according to him maybe, it

will take about three more weeks before they can have a good

assessment of whether this financial crisis that is happening

in the US would eventually spill over the Philippines.

I am very happy to note, Mr. Speaker, that this afternoon,Speaker Nograles, the leader of the House, convened a very

important crisis meeting calling on the Central Bank governor,

represented by Deputy Governor Gunigundo, the Department

of Trade and Industry (DTI) Secretary Peter Favila, and of

course, the premiere Cabinet member insofar as this is

concerned, DOF Secretary Gary Teves, including the

Securities and Exchange Commission (SEC) Chairman Barin.

They gave us a briefing. They talked of a legislative package.

They talked of measures that will help resuscitate the

economy, but in the opinion of this Representation, the more

important consideration is to find out. Is this crisis going to

be solved in the US? If not, would it spill over the Philippines?And if it would spill over the Philippines, what would be the

effect on the Philippine economy? I was reading some reports,

and they are saying that the RP growth may be under threat

from the Wall Street crisis. Instead of a five-and-a-half to 6.4

percent GDP increase, we might be seeing only a 4.7 to 5.5

percent GDP increase. We might be seeing a weakening of

the stock market.

Mr. Speaker, right now, the financial structure in the US

is undergoing a very radical change. Two major investment

banks, Goldman Sachs and Stanley Morgan, announced that

they would now want to change their personality, from an

investment bank to what they call a bank holding company.

When I was teaching financial management in UP-MBA, we

did not encounter the term bank holding company, but

whatever it is, it means a major restructuring of the world

financial community, including possibly, the Philippine

financial community. This is something that we must address,

Mr. Speaker, and I rise today, to make sure that we in congress

are fully aware of this, and the public in general, because this

is going to affect our economy.

During the briefing this afternoon, Deputy Governor

Gunigundo said that the reality is that when the US sneezes,

the Philippines could catch pneumonia. I hope not, because

they ended up on a positive note, but this will still await the

final resolution of the $700 billion package announced byPresident Bush.

Mr. Speaker, I would like to end my laymans

presentation of the world financial crisis by saying that we

must address this. I am very happy to note that Speaker

Nograles already announced that he has formed his own

economic team consisting of the Committee on Rules, the

Majority Leader, the Committees on Ways and Means,

Appropriations, Banks and Financial Intermediaries,

Economic Affairs, Trade and Industry, and the Oversight

Committee, to have a constant link-up and interaction with

the economic team of President Gloria Macapagal-Arroyo. I

am happy to note also, that Speaker Nograles has deemed itfit also, to include the Minority Leader, as well as the deputies

of the Minority Leader to form a team of unity to address this

problem.

I appeal therefore, Mr. Speaker, that we must address

this. We are lucky that we are now deliberating on the budget.

We are going through briefings of the various departments.

So in that matter, we will be able to address it without having

to summon them in special meetings, but that is not enough.

I think we must focus our attention on this crisis because this

is going to have a major potentially catastrophic effect on the

world economy. If it is going to hurt the US economy with its

multi-trillion dollar strength, it could cripple a smaller

economy, like the economies orbiting around the US. I hopeour economic fundamentals are strong enough to weather the

potential storm, but all of this will depend on how we, in the

House of Representatives, will react to this economic crisis.

There are measures that we must study, and I would like to

urge that we attend very urgently to these measures presented

by the economic team of the President.

That is all, Mr. Speaker, I would like to thank the Chair

for giving me this opportunity to speak on what, to me, is a

very important problem, and I would like to thank my dear

colleagues in the House of Representatives for listening to

me.

Thank you, Mr. Speaker. Thank you, distinguished Ladiesand Gentlemen.

REP. RODRIGUEZ. Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Singson, E.). What is

the pleasure of the Honorable Rodriguez, the Gentleman from

Cagayan de Oro?

REP. RODRIGUEZ. Mr. Speaker, I wish to interpellate

my distinguished colleague from Paraaque.

THE DEPUTY SPEAKER (Rep. Singson, E.). He may

proceed.

REP. RODRIGUEZ. First, let me congratulate the very

lucid and comprehensive presentation of the crisis facing not

only America today but the entire world, and the exposition

of my distinguished colleague has given us a very good

background on what is happening in the US and what

economists all over the world are doing to be able to prepare

if something really bad would happen to the economy of the

US.

I also congratulate the Speaker of the House, Speaker

Nograles, for convening a high level conference among the

economic managers of our country and it seems that thisafternoon we were able to have briefings to some Members

of the House.

One fundamental question I would like to ask, Mr.

Speaker, is the bailout of the American government. How

does this go into the concept of free enterprise?

As our distinguished colleague has been a professor in

the University of the Philippines (UP), I would like to know

whether actions like these, where $700 billion in taxpayers

money in the US may be used to infuse into a private enterprise

and so, therefore, the question is, would this be in consonance

to the free-enterprise system in the US?

REP. GOLEZ. Thank you, Mr. Speaker.

In fact, there is a debate going on right now. No less than

Senator McCain who is supposed to be an ally of President

Bush is objecting to this, saying that valuable taxpayers

money should not be used to cover up the indiscretions of


10/22


Wall Street because a lot of these is what they call greed

on the part of Wall Street by lending out the so-called

subprime loans. So this will be the crux of the debate.

If something like this is going to be crafted, for example,

in the Philippines, I would expect that a similar debate would

ensue. If, let us say, there will be a proposal to also constitute

a package, definitely not $700 billion but probably in a size

more commensurate with the size of the Philippine economy,again, there will be a similar debate. The debate would be,

one would propose to let it just go under because that would

be the natural forces of the market. But some people would

say, there would be repercussions. If one vital financial

institution would go under, it might pull down other financial

institutions and other economic entities. That is the debate

right now, Mr. Speaker, and I do not know how this will

proceed because that will be debated in the House and in the

Senate of the US.

REP. RODRIGUEZ. Mr. Speaker, my distinguished

colleague has been a professor of economics. I would liketo ask from him his views on whether the free-enterprise

concept, when it clashes with the public interest concept,

which will prevail? In the example, in the United States,

where $700 billion will be infused, of course, The rationale

of President Bushs policy for this is that the public interest

so requires. Therefore, he would put in inspite of the fact

that this will be an infusion into the private sector. May we

know from the distinguished colleague what he thinks about

the free-enterprise concept and the public interest concept

in law?

REP. GOLEZ. First of all, Mr. Speaker, let me correct

our colleague from Cagayan de Oro. I am not a professor of

economics. In fact, I am just a layman as far as economics is

concerned. I was a professor of finance in UP-MBA.

REP. RODRIGUEZ. All right, finance.

REP. GOLEZ. So this is a different field. But be that as

it may, there must be a very serious assessment. In fact, that

is what we have asked the economic team of the President

because that will now be the basis for determining whether

government should intervene. Because in the case of the US,

we are talking of a $700 billion package to solve a $2 trillion

problem. Probably, we will be getting in the same course if itwill come to that. But right now, if the Gentleman would ask

me, there is merit in a bailout. But as to how much, that will

be decided by the economists because $700 billion is quite a

hefty amount. One repercussion is that they have to increase

the interest rate in the US to strengthen the dollar. If the interest

rate is increased, Mr. Speaker, that will immediately affect us

here because that will send a tremor all over the world. It will

affect the interest rate of the yen. Of course, it will, have a

direct effect on the interest rate of the dollar and all the dollar-

denominated loans are going to be affected. In other words,

the debt service will increase. The dollar will go up in value.

It will mean a higher value insofar as overseas Filipinoworkers (OFW) remittances are concerned, but it will mean

higher importations or import bill as far as oil imports are

concerned. Mr. Speaker. So, there is going to be a very serious

series of repercussions and we do not know when it will end.

We do not know how this will affect everybody. That is why

I said, we must address this because this will have a very

decisive effect on our economy, on our pockets, Mr. Speaker.

REP. RODRIGUEZ. Mr. Speaker, I would like to ask

whether the economic managers were able to present a

scenario where the US Congress disapproves the $700 billion

package of bailout to the economy for the investment houses

and so forth. If that is disapproved, what happens to thePhilippine economy? Was there any briefing on that, Mr.

Speaker?

REP. GOLEZ. Mr. Speaker, there was no clear indication.

They have not defined the scenario yet. They are asking for

more time to draw the possible scenario if that happens. But,

in gist, I thought, I heard them say, God, help us, if that

happens, and when they say us, of course, they are referring

not only to the Philippines, but to the other economies that

are haplessly linked to the economy of the US.

REP. RODRIGUEZ. Mr. Speaker, going to the Philippinesituation, as stated by the distinguished colleague, about 10

banks already have exposures with Lehman Brothers. Did

the Bangko Sentral Governor assure us that despite the

exposure of banks like Metrobank, Banco De Oro, RCBC,

among others, we still have a very sound economy and good

financial situation of our banking system?

REP. GOLEZ. Yes, Mr. Speaker, and I do believe them.

If we look at the size of all these commercial banks, I think,

they are correct in saying that this is only 0.4 percent of the

total assets of the commercial banks and therefore, they could

weather this mild tremor. But very careful analysis will still

have to be made because that might not be the end of it.

Because it is possible, that some banks and some entities in

the US are tied to these Fannie Mae and Freddie Mac entities,

to AIG, to Merrill Lynch and of course, to Lehman Brothers,

which is in the worst situation. If they go under, some entities

here might have links with those other entities that are still

not being mentioned. I hope, it does not come to that. But

that is one possible scenario that could happen because this

very high tech economy now is so intertwined with each other.

We pull up one but we might pull down, maybe, three, four

others and more. That is how complex the world economy

has become, Mr. Speaker.

REP. RODRIGUEZ. Mr. Speaker, so the banking system

would still be sound in spite of the bankruptcy of the Lehman

Brothers. How about our insurance companies, the Philamlife

and Sun Life Canada? What is the present situation as far as

their status is concerned and as far as development in the US

is concerned, Mr. Speaker?

REP. GOLEZ. I understand from Mr. Joey Cuisia, who

happens to be the President of Philamlife, that Philamlife,

while an affiliate of AIG, is not really linked to AIG in the

sense that it is holding AIG papers. So any tremors affecting

the AIG will not affect the Philamlife here, because most ofthe paper of Philamlife are Philippine paper, Philippine

securities, treasury bills, probably derivatives here and blue

chip stocks of the Philippines, and that is good. I understand

that the same is true with Sun Life. While it is a Canadian-

based Insurance company, the Sun Life here in the Philippines


11/22


is also not affected. I hope they are correct. I am very sure

that Mr. Cuisia, who is a much respected member of the

business community, will not misrepresent the condition of

Philamlife.

REP. RODRIGUEZ. Thank you, Mr. Speaker.

Mr. Speaker, I come to the point of my interpellation,

which is going to focus on our pre-need sector. The USexperience shows that the government can bail out or infuse

billions of dollars. In the Philippine situation, Mr. Speaker, I

would like to ask the distinguished colleague, whether a

bailout or infusion of money would be for the public interest,

especially to our children and their families. Can the

government infuse capital, in the College Assurance Plan

(CAP), Pacific Plans, Platinum Plans, because these families

which have saved to be able to afford, through pre-need plans,

the education of their children that will be paid by these

companies, are now left empty handed, with an empty bag.

And so, if the experience in the US is that for public interest,

government money may be used to be able to help the peoplein this case, is it possible that the Philippine government now

thinks of the thousands and thousands of policyholders the

CAP, Pacific Plans, Platinum Plans, such that a bailout may

be done by it through the Congress of the Republic of the

Philippines so that we are able to make sure that the children

of policyholders will be financed in their educational needs

in the future, Mr. Speaker?

REP. GOLEZ. Mr. Speaker, I am glad that our

distinguished colleague from Cagayan de Oro asked about

that. Kasi importante iyan e. Ito, nangyari na. This happened

three, four years ago. Hundreds of thousands of holders of

these plans are left high and dry. They had high hopes. Ang

ganda ng pangarap nila para sa kanilang mga anak, pero

ngayon biglang naglaho ang mga pangarap na iyan na

makapag-aral ang mga anak nila sa kolehiyo sapagkat biglang

nawala ang mga kumpanya na iyan. Mayroong mga pribadong

sektor na gustong mag-bailout, ewan ko kung ano ang

nangyari. Probably, our distinguished colleague has a very

good point, this is something that we must study, although it

is not similar to the Fannie Mae and Freddie Mac situation

where the repercussions are probably more all encompassing

because of the millions of homeowners that borrowed money,

because of the trillions of dollars that were disbursed for this

purpose. But that is still a very good point, because educationis very important to our economy as well, not to mention the

fact that it is not good if several thousand parents or families

are distressed, and are depressed also by the fact that their

children could not go to college because of that problem.

REP. RODRIGUEZ. Mr. Speaker, would the

distinguished Gentleman from Paraaque City therefore be

minded to study the matter, and be able to submit to Congress

a bailout plan for the holders of the CAP, Pacific Plans and

Platinum Plans, considering that I always listen to the

distinguished colleague and he would consider education not

as a social concern, but an economic concern, an economicactivity. When we educate our children, it is not for the social

concerns of the country but to make them nation builders, to

make them wage earners and be able to increase economic

activity in this country. Would the honorable Gentleman

therefore support a plan to put up some billions from the

government funds to be able to assure that the children of the

policyholders will now be able to go to college and become

economic warriors thus, able to help the economy of our country?

REP. GOLEZ. I think that is something that we can

consider. Although, of course, we have to bear in mind that

we are still looking at a P40-billion projected deficit for 2009

which could become bigger, because if the dollar wouldstrengthen, that means higher debt service. If there would be

some other repercussions like higher interest rate, then there

would be some problems also.

In the case of the AIG, when US$85-billion were infused

into the AIG, I understand the condition was to replace the CEO

and to pledge the voting rights of the AIG to the conservator. In

this particular case, I do not know if the conservator is under the

aegis of the SEC of the US, but it will have to come to something

like that. If the government would bail out these education plan

entities, that may entail replacing the CEOs, replacing their

financial comptroller, and the government getting into the picture,

as far as management and control are concerned.

REP. RODRIGUEZ. Mr. Speaker, I think the

distinguished colleague has signified really the possibility that

a study will be made, because thousands of children will now

be unable to go to college because they could not anymore

pay for the tuition of the students. But if there is a bailout to

the CAP, Pacific Plans and Platinum Plans, then there is a big

possibility that thousands of students will be able to finish

college, be able to earn a living and become professionals

and contribute to nation building. As to the Fannie Mae-

Freddie Mac case, I think it may not happen in the Philippines

because there, the House of Representatives and the Senate

have already approved the Housing Loan Condonation Act

of 2008. It already became a law. In that law we have already

condoned the penalties for the borrowers of government

institutions like the Pag-ibig, SSS, GSIS and all the other

governmental lending institutions. We have already approved

the Housing Loan Condonation Act of 2008, wherein the

penalties will be condoned, the interest rate will be reduced

and there will be longer years to pay for the principal.

Mr. Speaker, I wish to therefore congratulate again the

distinguished Gentleman from Paraaque City for bringing

out an international phenomenon which will be known by

our colleagues and the Filipino people and to also tell our

people that we in Congress is sensitive, and will not onlyreact but we will be a proactive agent to be able to make sure

that sectors of our society, like the children, are protected.

We in Congress act under the principle ofparens patrie,as

the father of the sectors and the educational sector which has

now been deprived the chance to study in college because of

these three particular plans that have gone under. I think it is

about time that we bail out the CAP, Pacific Plans and

Platinum Plans so that the future of our children will be

assured and we will have nation building through our

graduates in college.

Thank you very much, Mr. Speaker.

Congratulations, distinguished colleague from ParaaqueCity!

REP. GOLEZ. Thank you very much, distinguished

colleague from Cagayan de Oro.

Thank you, Mr. Speaker.


12/22


REP. ALFELOR. Mr. Speaker.


the pleasure of the Honorable Alfelor?

REP. ALFELOR. May I be recognized to interpellate

the distinguished Gentleman from Paraaque City.

THE DEPUTY SPEAKER (Rep. Singson, E.). What

does the Gentleman say?

REP. GOLEZ. Very willingly, Mr. Speaker, to the

distinguished colleague from Camarines Sur.

REP. ALFELOR. Thank you, Mr. Speaker.


Gentleman may proceed.

REP. ALFELOR. Mr. Speaker, initially, I would agree withthe distinguished Gentleman from Paraaque City that what is

happening now in the US is indeed one of the worst financial

crises that has happened since 1920 during the depression.

Therefore, this is a matter that we cannot take for granted. We

have to act on this as the Gentleman has indicated to us.

Would the Gentleman agree with me that this is a matter

of a crisis in confidence? I mean the lack of confidence on

the banking system is one of the causes for this development

or financial crisis in the US.

REP. GOLEZ. Mr. Speaker, in the United States, it is not

really a crisis of confidence in the banking system. It is more

a crisis of confidence in, first, Wall Street investment banks

and then the very aggressive positioning of Fannie Mae and

Freddie Mac when they aggressively doled out these

mortgages in favor of subprime borrowers who, in ordinary

circumstances, would not be entitled to these loans. In the

case of the Philippines, I think what is very positive, Mr.

Speaker, is that the commercial banks were very forthright

enough. They did not hide anything. They were very

transparent and immediately, although they could invoke bank

secrecy, disclosed their exposure to Lehman Brothers instead

of being rocked by ugly rumors that is probably even more

damaging than the actual situation.

REP. ALFELOR. Would it suffice if we pass a resolution,

as part of an action of Congress, to assure the banking public

that the Philippine government is willing to bail out a

distressed bank that may fall because of the crisis that has

happened in a foreign country like the US? Because I

understand this is a worldwide occurrence. This has affected

even the banks in Europe although they say that it has not

and will not affect much of Asian countries because we have

instituted corrective measures since the 1977 financial

meltdown that also happened to Asia.

REP. GOLEZ. Mr. Speaker, this will depend on thegravity of the situation. The economic team of the President,

in this afternoons meeting with the Speaker, asked for a little

more time. They are asking for two to three weeks, although

this Representation commented that two to three weeks appear

to be too long because we could get run over by the

developments happening in the US. So I asked for less time

and they promised that they can probably work on this maybe

in a weeks time. So that will depend now on their assessment.

But having said that, I understand also that in a minor bank

failure, the Bangko Sentral can come in. They have the money,

they have a window to repurchase some of their bad

obligations to ease the financial pressure on these banks. That

will be the first line of defense, the Bangko Sentral, and I feelthat right now this is adequate already. But if in the final

analysis, the economic team would say that the potential

problem is bigger than what the Bangko Sentral can handle

and the Bangko Sentral was able to handle an P85 billion

loss last yearthen probably that would necessitate Congress

working together with the economic team. That is why

Speaker Nograles stated that it would be very important for

the Houses economic team to coordinate very closely with

the Presidents economic team.

REP. ALFELOR. If a meltdown happens here in the

Philippines, would we allow the national government throughthe Bangko Sentral to bail out distressed bank?

REP. GOLEZ. Mr. Speaker, in the first place I do not

think a meltdown is going to happen. I think we are very far

from that.

REP. ALFELOR. Mr. Speaker, how about the other crisis

that will affect some banks?

REP. GOLEZ. But there will be some crisis, the crisis

will be in the form of higher lending rates which will aggravate

our debt service. It may result in another double digit inflation.

Ang ibig sabihin niyan kapag 10 percent ang inflation, sabihin

taun-taon nababawasan ng 10 porsyento ang kinikita natin.

Baka tumaas na naman ang presyo ng langis. Right now $92,

$100. It might go up again to much more than that. Kaya

malaking epekto sa bulsa natin iyan, sa ating financial

condition, which will affect not only banks, not only Members

of Congress, not only the government but everybody in this

room, everybody around Batasan Hills, everybody including

my constituents in Paraaque City.

REP. ALFELOR. What would be wrong if we publicly

announce that Congress is willing to help the national

government in bailing out, in case there are these distressedbanks? Just to assure the public because bank run happens

when the depositors do not have confidence in the bank. So

what we do is to assure them that the banks are all right, and

that if anything happens to the bank, the national government

is willing to bail out to help the distressed bank. Would we

allow Congress to do that or make a resolution, for example,

to that effect?

REP. GOLEZ. Mr. Speaker, that assurance was already

made by the economic team this afternoon, of course, subject

to further developments coming from the US and subject to

the final resolution of this by the US Congress.But I think what the public would like to witness is for

us here in the House to address this problem. This is a major

problem. We do not have to wait for this to actually happen.

We must be anticipatory. And using the words of Secretary

Teves this afternoon, he admitted on the prodding of the


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Members of the House, including our colleague from

Sorsogon, Congressman Joey Solis, that the Department of

Finance should be more proactive in anticipating this problem.

For example, when he said that he read in the papers that the

DBP had an exposure of $90,000,000, I commented that

probably he did not have to wait for this to be reported in the

papers. A proactive Secretary of Finance would have to

immediately sit down with all the GFIs, which are under hissupervision, to check on how everyone is doing. Because

when something like this happens, considering the enormity

of Lehman Brothers, whose tentacles, I understandare, in

about 130 countries, including here in the Philippines, the

first question would be: O, kumusta kayo riyan? Apektado

ba kayo ng pagbagsak ng Lehman Brothers? Magkano ba

ang nilagay ninyo? Parang katulad natin halimbawa, pag

mayroong isang bangko na bumagsak o kaya ang tingin natin,

medyo delikado, hindi ba ordinary sa atin na tatawagan ang

mga kamag-anak natin. Ang anak natin, tatanungin natin, o,

anak kumusta ba? Kumpare, kumusta ba? May inilagay ka

ba sa bangko na iyan na bumagsak? May maitutulong ba akosa iyo? That would have been the attitude of a proactive

Secretary of Finance, instead of simply reading about it in

the papers.

REP. ALFELOR. Mr. Speaker, there are about 10

banks that have exposures in the so-called subprime

mortgages, which amounted to, as the Gentleman said,

P380 billion?

REP. GOLEZ. It is $386 million, Mr. Speaker.

REP. ALFELOR. I think that was a good move to promote

transparency. Because if they did not inform the public, they

can always dream of something bigger amount and that would

be worse.

REP. GOLEZ. That is correct, Mr. Speaker, dahil kung

hindi nila idinisclose kaagad iyan, baka ang nangyari text

brigade ang nagdi-disclose niyan.

REP. ALFELOR. Oo. Masisira talaga.

REP. GOLEZ. Iyong $386 million baka maging $500

million or more.

REP. ALFELOR. But actually, for the information of our

peers here, in 2005, the Bangko Sentral engaged in a bailout.

As a matter of fact, it released P105 billion and distributed

this to at least 10 banks to save them from going down. One

of these was the PNB, if we will remember. The Bangko

Sentral gave P21 billion to the PNB to save it, to salvage it,

together with the UCPB and nine other banks. So this matter

already happened to us and, I think, because of that

experience, we are in a position really to buttress our financial

environment and perhaps, we will be able to escape this. I do

not fear any recurrence of this thing, as it is in the US, because

we have already experienced it in 1977. And now, in 2005again. But I think it is important that we should assure the

public that the national government is ready and willing to

bail out so that we can raise the confidence of the banking

public. I think that is first and foremost. So long as the people

have confidence in the banking system, or in any other

financial institution, they will not be tempted to withdraw the

deposits they have in the bank.

REP. GOLEZ. Mr. Speaker, in this afternoons

meeting, that assurance was given by Deputy Governor

Gunigundo with Deputy Governor Suratos of the Bangko

Sentral. When they were directly asked whether there is

some sign of unusual withdrawals, the Bangko Sentralsaid that there was no such development. All is well right

now. But everybody is watching what is going to come out

in this debate on the $700 billion package proposed by

President Bush.

REP. ALFELOR. Thank you. That will be all, Mr.

Speaker.


colleague from Camarines Sur.


REP. ZIALCITA. Mr. Speaker.


the pleasure of the Honorable Zialcita?

REP. ZIALCITA. May I ask my distinguished colleague

a few questions.

THE DEPUTY SPEAKER (Rep. Singson, E.). What

does the Gentleman say?

REP. GOLEZ. Very willingly, Mr. Speaker, to my

kababayan from Paraaque City.


Gentleman may proceed.

REP. ZIALCITA. First of all, let me express my

congratulations to my distinguished colleague from our

beloved City of Paraaque City. I congratulate him for raising

the red alert, so to speak, that we, the Philippines, even though

we are thousands and thousands of oceans away from the

US, since the US is still a major trading partner of the

Philippines, as well as one of our largest investors, whether

we like it or not, we are affected by events that happened inthe greatest economy of the world. I also agree with my

distinguished colleague that the US is facing the worst

economic meltdown in over a hundred years. Never in the

history of the US has there been a massive bailout of some of

the largest financial institutions that were founded as early as

150 years ago, principally by Lehman Brothers, which has

collapsed in its entirety. And thanks to the governments

bailout of AIG, which is one of the largest companies in the

world. They have saved the AIG and have delayed the very

predictable worsening economic conditions in the US. The

AIG is an $80 billion company which is larger than the entire

budget of the Philippines, if we convert it into pesos. So Ishare the distinguished Congressmans belief that, at best,

this is temporary, and that the consequences, indeed, will be

very serious and very grave. The only thing that is keeping us

from not completely kneeling down is because there seems

to be some hope, the hope that the government of the US will


14/22


infuse some US$700 billion to forestall and delay what could

perhaps be the beginning of a massive recession in world

economy. But just like the Congressman of our beloved city,

I wish I were as optimistic as he is because we were hoping

on something that has not happened yet. I think as good

managers, as good leaders, we must anticipate the worst and

the problem is even more difficult because in the US now,

there is a presidential elections going on and the situation isvery ironic. They have at one hand the Republicans who have

always been pro-business and very little government, are now

saying that it is time for the government to intervene. On the

other hand, they have the Democrats, saying that the

government should intervene but then they want to make sure

that the US$700 billion infusion will trickle down to their

base which is basically labor and smal l traders, small

businessmen.

For a few minutes, let us just imagine what could be

the possible worst-case scenario assuming that the US

government is not able to infuse the $700 billion. As much

as I want it to happen, it does not look as quick as it shouldhappen because they are now in the middle of a political

circus there. Let us just assume for the moment that it does

not happen. What are the immediate negative consequences

that are going to happen in the US first?

At this juncture, the Deputy Speaker, Eric D. Singson

relinquished the Chair to Rep. Del R. de Guzman.

REP. GOLEZ. Mr. Speaker, distinguished colleague from

Paraaque City, just to give us an assessment on the magnitude

of this problem, let us look at Lehman Brothers Lehman went

under because its liabilities, its debts are a little bit bigger

than their assets. Their assets per the last report amounted to

about $639 billion and in pesos that is about P28 trillion. The

amount of P28 trillion is more than 10 times, in fact 20 times

the budget of the Philippine government and maybe about

four times the GDP of the Philippines. That is how big the

Lehman is. And $700 billion is going to be infused to buy the

bad mortgage accounts of Fannie Mae and Freddie Mac, and

probably other financial institutions that got into the pictures

to ease the economic pressure, and if that will not happen, I

would like to repeat what the DOF said, God help us.

Meaning, the entire world, if that will not come to pass. But

I hope it happens. That is why, it is very important for us to

focus already our attention on this. I am happy that SpeakerNograles already directed the creation of the House economic

team to be in tandem, always in cooperation with the

Presidents economic team and that is rightly so. We are

witnessing the Senate debating other topics instead of

addressing this very important problem. We have redirected

our attention to the initiative of the Speaker, and now focusing

our attention on this and we are the correct institution to do

this because we are mandated by the Constitution that all

appropriation, revenue or tariff bills should emanate in the

House of Representatives, Mr. Speaker.

REP. ZIALCITA. I share the sentiments of CongressmanGolez that we must congratulate Speaker Nograles for calling

that very important economic briefing this afternoon.

On the other hand, I was a little bit uneasy when we spoke

to our economic managers. They need some two to three

weeks time to come up with a complete and final report. We

were hoping that they would be more specific. We were hoping

that they would come up with more immediate, concrete

measures that can perhaps be taken up on the floor or

something that can easily be discussed. But, suffice it to say,

two to three weeks is perhaps enough time for them to come

up with a more comprehensive report.

Do we see any relation between the prices of oil,

Congressman Golez, with the present situation in the US, thepossible negative consequences, assuming there is no bailout?

I noticed that as soon as the financial crisis came about, and

the stock market stabilized, the prices of oil went down.

Because of the uncertainty of the stock market in particular,

where a lot of investors would speculate and would want to

make a quick profit as soon as they can, they are now shifting

into buying speculative issues such as oilwhich has brought

up the price of oil. Does the Gentleman see any relationship

between that, Mr. Speaker?

REP. GOLEZ. Mr. Speaker, these are interrelated. But,

of course, some factors also affected the price of oil andthat is the hurricane in the US Gulf, affecting the oil

facilities in Texas. I think that has been stabilized already.

People started investing in gold for a while. Gold prices

went up because they saw this as a better financial refuge

better than derivatives, better than the stock market. But,

gradually, the stock market has strengthened. But as I said,

let us not be complacent. I would like to reiterate my

appreciation for the quick response of the Speaker. When

I was congratulating the Speaker, I did not know that he

was around. I did not want to congratulate him in his

presence because it might embarrass him especially coming

from the minority. But I would like to reiterate this, the

House this afternoon took a leadership position in

addressing this very grave global problem. In other words,

we are now in sync with the rest of the world talking about

the global crisis, addressing it, talking of possible

measures, building up scenarios instead of talking about

other things, Mr. Speaker.

REP. ZIALCITA. I also share the sentiments of the

distinguished Gentleman from the City of Paraaque that,

whether we like it or not, we are going to be affected in one

way or the other, and that we should brace ourselves for its

impact, especially if the US government decides not to infuse

the $700 billion to save the financial institutions that are indifficult situations.

Do I have more time, Mr. Speaker, because I have one

more question to our distinguished colleague?

Does the Gentleman think this is a good example for us

to follow in the event that we also get into similar situations

the idea of the government coming into bailout? Is this a good

model to follow or this is something that we should be very

wary and skeptical about?

REP. GOLEZ. Mr. Speaker, if we have the deep pockets

that the US government has, probably we can do it. The

amount of $700 billion is something that is way within thecapability of the US. In fact, I was just reading on that very

recently, California approved their budget. California is only

one of the 50 States in the US but their budget amounted to

more than $100 billion. And $100 billion, Mr. Speaker, is

about P4.6 trillion which is about four times the budget of


15/22


the entire Philippine government. That is only the State of

California.

I remember during the time of Mayor Giuliani, the

budget of the City of New York was about more than $20

billion. That is only one city. At that time it was 20 billion

times 50 is one trillion already. That was in the 1980s or in

the early 1990s, Mr. Speaker. That is how big the U.S.

economy is. And that is how all encompassing it will be ifsomething bad happens to the U.S. economy.

REP. ZIALCITA. Once again, I congratulate the

distinguished Gentleman from the Second District of

Paraaque City for raising the red alert.

We must be cautious. We must be optimistic, but at the

same time, we must get ready for what could be the worst. I

would like to share the sentiments of the House

congratulating Speaker Nograles for the very quick response

to an economic briefing that perhaps, some time in the future

we could share with all the Members of the House.



colleague.


REP. ABANTE. Mr. Speaker.

THE PRESIDING OFFICER (Rep. De Guzman). The

Gentleman from the Sixth District of Manila, the Honorable

Abante, is recognized.

REP. ABANTE. Much as I want to be a part of this

deliberation, Mr. Speaker, I would know that each

Congressman here has been very busy and very tired that is

why we do not have anymore warm bodies tonight. So I

question the quorum.



session is suspended.

It was 6:16 p.m.




session is resumed.

The Dep. Majority Leader is recognized.



session is suspended.

It was 6:19 p.m.




session is resumed.

The Gentleman from the Sixth District of Manila is

recognized.

REP. ABANTE. Mr. Speaker, even if I am very tired

because I have been here since 9:30 this morning, I am willing

to withdraw my point of order on the question of quorum.



REP. VELARDE. Mr. Speaker, I move that the privilege

speech of the Honorable Golez and the interpellations thereto

be referred to the appropriate committee.

THE PRESIDING OFFICER (Rep. De Guzman). Is there


approved.

REP. VELARDE. Mr. Speaker, I move hat we take up

the Unfinished Business.

THE PRESIDING OFFICER (Rep. De Guzman). Is there


approved.

CONSIDERATION OF H.B. NO. 5043

Continuation

PERIOD OF SPONSORSHIP AND DEBATE

REP. VELARDE. Mr. Speaker, I move that we resume

the consideration of House Bill No. 5043 embodied in

Committee Report No. 1156, as reported out by the

Committees on Health, Population and Family Relations and

Appropriations.

THE SECRETARY GENERAL. House Bill No. 5043,

entitled: AN ACT PROVIDING FOR A NATIONAL

POLICY ON REPRODUCTIVE HEALTH, RESPONSIBLE

PARENTHOOD AND POPULATION DEVELOPMENT,

AND FOR OTHER PURPOSES.

THE PRESIDING OFFICER (Rep. De Guzman). TheDep. Majority Leader is recognized.

REP. VELARDE. Mr. Speaker, the parliamentary status

is that, it is now in the period of sponsorship and debate.

I move that we recognize the distinguished Sponsor, the

Honorable Edcel C. Lagman.


Honorable Lagman is hereby recognized.

REP. LAGMAN. Mr. Speaker, we are ready for the

interpellation.



REP. VELARDE. Mr. Speaker, I move that we recognize


16/22


our distinguished Deputy Speaker from the First District of

Cebu City, the Honorable Raul V. Del Mar, for his

interpellation.


Honorable Gentleman from the First District of Cebu City,

the Honorable Del Mar, is recognized for his interpellation.

REP. DEL MAR. Thank you, Mr. Speaker.

May I know if my good friend, the principal author of

the measure, the Honorable Edcel Lagman, is willing to yield

to some statements and questions on the measure.

REP. LAGMAN. Willingly, Mr. Speaker, to the Deputy

Speaker.

THE PRESIDING OFFICER (Rep. De Guzman). Please

proceed.

REP. DEL MAR. Thank you.First, the preliminary statements. Let me categorically

state that I am prolife, quality-life especially, as qualified by

the Sponsor, profamily and prochoice. Being informed is

already included in the word choice as qualified again by

the Sponsor. And yes, I am against the subject measure, House

Bill No. 5043. I got to hand it to the principal authors and

Sponsors for having neatly packaged this measure with a title

that will gain the support of, practically, everybody. For how

can anybody argue against a measure strategically entitled:

AN ACT PROVIDING FOR A NATIONAL POLICY ON

REPRODUCTIVE HEALTH, RESPONSIBLE

PARENTHOOD AND POPULATION DEVELOPMENT,

AND FOR OTHER PURPOSES? The strategy worked,

soliciting the signatures of more than 90 of our colleagues to

coauthor the measure. But if the focus of the proposed

legislation as its title suggests is on reproductive health,

responsible parenthood and population development, then,

the bill is totally unnecessary and deceptive, as these programs

are already in place, pursued under existing programs both

by private and public initiatives. Responsible parenthood is

certainly not something new. This is essentially all about

parents and children, about having a family and children, it is

our way of life. All of us grew up in a family. We learned this

at home, in school, in community gatherings, even in

government seminars and in non-government organizations(NGO) activities. There is no need to legislate how to be a

responsible parent. On population development, the programs

have been there since the 1970s funded by our government

and by international agencies and several donor countries

which are very much in place. Reproductive health programs

are ongoing. We have family planning methods, health

education, maternal and child health, and nutrition, family

planning services, breastfeeding programs, prevention of

breast cancer, treatment of infertility. It is a question of just

giving them more focus.

The principal author, Edcel Lagman, stated in his

sponsorship speech last Wednesday, and I quote: Verily, theheart and soul of the bill is freedom of enforced informed

choice, neither the State nor the church has the authority to

impose its preference or will on the citizens of the faithful.

But informed choice has long been the practice, as we all

know. Access to contraceptives is free and unrestricted.

Despite the World Health Organization (WHO) cancer

research finding that oral contraceptives cause breast, liver

and cervical cancer, none of these items have been banned

by law. None of these are even required to be label

Documents

House Plenary