Roxas to gov't: Ensure right pricing of goods

Liberal President Senator Mar Roxas said the government must ensure the stability of the prices of goods, after a recent drop in world prices of commodities such as rice, tin and wheat.

“Patuloy ang pagtaas ng presyo ng pagkain at iba pang bilihin dito, sa kabila ng pagbaba ng presyo ng bigas, trigo, tin can at iba pa sa pandaigdigang merkado. Bakit? Dapat ipaliwanag sa tao ang lahat ng ito, at maging transparent pagdating sa mga costing,” said Roxas, the Chairman of the Trade and Commerce.

“There is no reason why rice, sardines, bread, instant noodles and other items would go up in prices, because the cost of inputs for these have gone down. The DTI must ensure that our people are not taken advantage of and that prices remain reasonable and explainable to the public,” he added.

He noted that although the price of regular rice remains higher than the P22/kilogram price last year, it is now P35/kg, P1/kg less than last month.

“World supply of rice has gone up and prices have gone down. We should see a continued decrease in the cost of local rice,” he said.

“I continue to urge the government to carry out a fertilizer support program and a rehabilitation of our irrigation systems, to ensure long-term supply for our country,” he stressed.

He said the DTI must see for itself whether the continued cost of hard flour at P980 from P910 in April could be justified and whether flour millers still had to recover past costs as they claim.

“Mahalagang-mahalagang siguruhin na ang presyo ng arina ay manatiling mababa, dahilan sa ito ay nakakaapekto sa presyo ng pan de sal, instant noodles at iba pang pagkain,” he said.

For sardines, Roxas said the drop in prices of tin in the world market would allow prices of sardines, which use tin-can packaging, to remain stable.

Roxas once more called for the removal of the value-added tax (VAT) on petroleum products. He said the administration must stop influencing the House of Representatives to stonewall the proposed tax legislation.

“Oil products are a crucial factor in the pricing of food, as it is used for both the manufacturing and transportation of this. The best thing the government can do is not to add to the burden of our people through continued imposition of the VAT,” he said.

Thursday, August 28, 2008 | posted in e-vat, mar roxas, oil, pgma, philippines, president, rice crisis | 0 comments [ More ]

Roxas to PGMA: Focus on productivity vs. dole-outs in SONA

Senator Mar Roxas urged the President to focus more on how to achieve greater productivity for the poor especially in the countryside, rather than merely list dole-out programs, when she delivers her State of the Nation Address on Monday, where she is expected to launch the National Social Welfare Program.

This, as he recently filed two bills that will provide the government with short-term and long-term plans and tools to achieve immediate rice sufficiency and long-term food security and to jumpstart an agriculture renaissance in the country.

"More than a litany of dole-outs, the President should focus on increasing the productivity and incomes of the poor, especially our farmers and others in the agriculture sector who are now harvesting less and earning less due to the high cost of farm inputs like fertilizer," he said.

"We recognize that dole-outs are needed to alleviate the pain of those who are already at the end of the road. But this should not be the be-all and end-all of how we will approach the ongoing food and oil price crisis," he added.

The Liberal Party President had earlier said that the most important concern now is how to address the increasing incidence of hunger due to the high price and insufficient supply of rice. He stressed that of the total budget of the poorest 30% of the population, 60% is allocated for food (40% of which on rice), thereby making them the most vulnerable to price and supply shocks.

"More Filipinos now are saying that they have felt hunger. This is bound to get worse if not addressed. We in Congress must urgently enact tools to fight hunger, but we can only do so if this is considered as the top priority by the administration," the Chairman of the Senate Committee on Trade and Commerce added.

Senate Bill No. 2469, or the proposed Immediate Rice Security Act, seeks to achieve immediate rice security through a Fertilizer Support Program (FSP) for all farmers and the restructuring of the National Food Authority (NFA). The proposed FSP is a "buy-two-take-three" mechanism, where each purchase of two bags of in-kind urea (46% nitrogen) allows a farmer to avail of three additional bags from a Fertilizer and Pesticide Authority-designated distribution center.

The bill also provides for a phase-out of the NFA's rice importation program to make way for private sector participation, and to change the NFA's role as importer into a buffer stock management agency. In the interim, the NFA must provide a shorter registration process and reduced fees to encourage farmers' organizations and other groups in the private sector to participate in importation.

SB No. 2468, the proposed Agricultural Renaissance and Food Sufficiency Act, on the other hand, is aimed at ensuring long-term self-sufficiency. The bill is anchored on an accelerated ten-year Agricultural Investment Program for increased research and development (R&D), better irrigation systems and other reforms.

Under the bill, the government is mandated to maximize R&D support to farmers—or R&D extension services—by making this more location-specific and resource-sensitive, while promoting new technologies for commercial purposes. Such R&D shall involve farmers and their organizations, along with other players in the production and post-production process.

The Department of Agriculture and the National Irrigation Administration will also be tasked to conduct an evaluation of the country's irrigation systems, to determine which ones need rehabilitation. The bill also mandates that for new irrigation systems that will be build, priority must be given to small-scale irrigation systems. Roxas said that according to studies, small water impounding systems are more affordable and more efficient than large-scale systems.

The bill also affirms and strengthens the Department of Agriculture's mandate to provide technical assistance to farmers and the rest of the private sector in the use of post-harvest facilities and availing of extension services, among other things.

It provides for the NFA's change in mandate, so that it is primarily tasked to maintain and manage rice reserve requirements within ten years of implementation of the Agricultural Investment Plan, from its present role as importer.

To implement all of these, the bill proposes an additional appropriation of P1.1-billion per year for 10 years, on top of the DA's regular annual appropriation.

Saturday, July 26, 2008 | posted in da, food crisis, mar roxas, nfa, pgma, philippines, president, rice crisis, sona | 0 comments [ More ]

Roxas urges DA to assess impact of Typhoon Frank's damage on RP rice supply

Senator Mar Roxas called on the Department of Agriculture to assess the impact of typhoon damage – amounting to half a billion pesos and causing the loss of crops in 300,000 hectares in Western Visayas and 12 other provinces –on the country's dwindling rice supply.

"It's not enough to know the damage in peso terms but on how this will manifest itself in terms of rice and food prices and supply. Let's be more open and transparent about this and other problems, to come up with an integrated plan for rehabilitation and mobilization of resources in the wake of typhoon 'Frank'," he said.

Roxas has been aiding in and coordinating with different agencies on relief and rehabilitation efforts in Capiz and Iloilo since Friday.

The Chairman of the Senate trade and commerce committee, said the external shock of a global rice crisis combined with the internal shock of a major typhoon disaster requires a long and hard look at existing strategies and the need for long-term programs to avert a more acute rice and food shortage.

"Typhoon 'Frank' shows how vulnerable our food supply and its affordability are to internal shocks caused by weather disturbances and natural calamities. All the more we need to invest in our farmers and make sure that they get the support needed to recover from this latest setback," he added.

Roxas also called on the Department of Trade and Industry to activate the National Price Coordinating Council as an initial step to preventing unjustified price increases of goods and services by unscrupulous traders.

The price of ordinary commercial rice has gone up from P32/kg a month ago to P36-P39/kg at present. Roxas has repeated that the worldwide shortage in the commodity is forcing the country to focus on raising domestic production and attain self-sufficiency, to meet local demand.

Hard flour (Wellington), used for making pan de sal, is now at P980 per 25-kg bag, a more than 50% increase from P640 a year ago. Meanwhile, soft flour, used for making noodles, is at P840 per 25-kg bag, from about P500 a year ago.

He also noted that the price of petroleum products has increased for successive weeks now. Unleaded gasoline now costs P57.96 per liter and diesel now costs P50.94/L, after an increase last weekend of P1.50/L. Liquefied petroleum gas has increased by P1/L to P32.22/L or P653.70 per 11-kg tank, further burdening consumers struggling with high prices of food.

Wednesday, June 25, 2008 | posted in da, dti, food crisis, mar roxas, oil, rice crisis, visayas | 2 comments [ More ]

Roxas: “Finally, Government’s feet on the ground”

Senator Mar Roxas said it is high time to suspend the value-added tax (VAT) on oil products, now that the government has already “accepted the reality” that it would not meet its “theoretical” target to balance the budget.

“Finally, nakaapak na sila sa lupa (their feet are now on the ground)! Because their theory that the budget can be balanced this year, nawala na iyan matagal na eh (has been abandoned for some time already),” an exasperated Roxas said during the Kapihan sa Senado held on Thursday.

“When oil was at $90 per barrel at the beginning of the year, nawala na iyan eh (the assumption’s invalid already). The economic growth for 2008 would necessarily be affected,” he explained. He said oil prices now are four times more expensive than when the expanded VAT was still being deliberated.

He also pointed out that the President has supposedly allotted P40 billion for the Agriculture “FIELDS” program, aside from continuing with rice subsidies through NFA, the budgets for which are not in the original budget.

The Chairman of the Senate Committee on Trade and Commerce pointed out that when the proposal to impose a 12% VAT on oil was still being deliberated, Dubai crude was still around $34 per barrel. Now, the price of Dubai crude has reached $120 per barrel. This means if the government earlier expected to collect around $4 of VAT per barrel of crude, it now collects around $14 per barrel, or excess revenue of around $10 per barrel.

“Ang laki-laki na ng nakokolekta ng gobyerno, higit doon sa original na inaasahan nila mula rito. Bakit pa nila ipinagdadamot ito (Government’s collecting so much more than what it originally expected. So why are they refusing to return it to consumers)?” he said.

The Liberal Party President stressed that if the government really wants to help consumers and protect the “real economy” at this time of crisis, it must immediately support moves to suspend or remove VAT on oil.

“Maaari na ayaw nila ito sa simula. Noong nasa $90 per barrel ang langis, tinanggihan nila ito. Ngayon na nasa $130 per barrel na ang langis, mukhang nagkakaroon ito ng buhay sa Kamara. Kahit ano pa man ang gusto ng Malacañang, itong demokrasya dito, batay ito sa kagustuhan ng ating mga kababayan. Nilagay natin sila diyan, dapat hindi nila ipagdamot itong pera kasi hindi nila pera ito. Pera ng sambayanan ito,” he said.

Saturday, May 31, 2008 | posted in da, e-vat, food crisis, mar roxas, nfa, oil, pgma, philippines, president, rice crisis, united arab emirates | 2 comments [ More ]

Roxas: Slower growth, high prices call for ZERO VAT on oil

Senator Mar Roxas said the government should now support moves for zero value-added tax (VAT) on oil, now that the government has admitted it would not anymore meet its balanced budget target this year due to slower growth.

"When oil was at $90 per barrel at the beginning of the year, that target of a balanced budget this year has become impossible. The economic growth for 2008 would necessarily be affected," he said.

"But more than the fiscal targets, the government should look more closely at how our consumers are facing a perfect storm of food and oil price hikes," he said.

He said oil prices now are four times more expensive than when the expanded VAT was still being deliberated. This is one of the reasons cited as to why growth, especially consumer spending, slowed down in the first quarter.

The Chairman of the Senate Committee on Trade and Commerce pointed out that when the proposal to impose a 12% VAT on oil was still being deliberated, Dubai crude was still around $34 per barrel. Now, the price of Dubai crude has reached $120 per barrel. This means if the government earlier expected to collect around $4 of VAT per barrel of crude, it now collects around $14 per barrel, or excess revenue of around $10 per barrel.

"Ang laki-laki na ng makokolekta ng gobyerno mula sa VAT sa langis, higit doon sa inaasahan nila noon mula rito. Bakit pa nila ipinagdadamot ito (Government's expected to collect so much more than what it originally expected. So why are they refusing to return it to our consumers)?" he said.

"Even at the best of times, even when the administration was crowing about 7.3% growth, the revenue agencies were not attaining their targets. So to begin with, strong economy or weak economy, the revenue agencies were not attaining their projections," he explained.

The Liberal Party President stressed if the government really wants to help consumers and protect the "real economy" at this time of crisis, it must immediately support moves to suspend or remove VAT on oil.

"Maaari na ayaw nila ito sa simula. Noong nasa $90 per barrel ang langis, tinanggihan nila ito. Ngayon na nasa $130 per barrel na ang langis, mukhang nagkakaroon ito ng buhay sa Kamara," he said.

"Hindi nila dapat ipagdamot itong pera kasi hindi nila pera ito. Pera ng sambayanan ito," he said.

Friday, May 30, 2008 | posted in e-vat, food crisis, mar roxas, oil, pgma, philippines, president, rice crisis, united arab emirates | 0 comments [ More ]

Rice crisis a direct threat to Food-For-School recipients, Roxas says

Senator Mar Roxas expressed dismay that over 20,000 grade school students in Eastern Visayas will now stop receiving rice allocations under the food-for-school program of the Department of Education due to the worsening rice crisis.

"The food-for-school program has been successful in improving nutrition and reducing drop-out rates among school children. It is extremely worrisome that the rice crisis now poses a direct threat to the viability of this education program," Roxas said.

"While the government is harping on its rice access card program, what we don't know is that it's also cutting funding for other programs. It is giving rice cards to poor families in Metro Manila while taking away rice allocations that would keep poor children in school in the poorest provinces of the country. We're taking away food from one mouth to put in another. Rice access cards program are under DSWD and DA while the food-for-school program is under DepEd. Does the left hand know what the right hand is doing?" he said.

The Liberal Party President said things are bound to get worse before they get better, considering the failed auction of the National Food Authority (NFA) where only one bidder showed up.

Roxas said the failed bid forced the NFA to admit that there was a "tightness of supply" in the world market. He added that this should serve as a fair warning to government to consider long-term solutions to the rice problem.

"First, admit that there is a problem. Secondly, come up with a concrete plan that includes both short-term and long-term solutions to solve the problem. Ang problema, sa unang hakbang pa lang ay hindi na tayo nagpakatotoo," Roxas lamented.

Roxas urged the executive branch to cut public expenditures in other areas in order to sustain the government's food-for-school program.

"Officials serving in the boards of government-controlled and -operated corporations should make the supreme sacrifice of giving up some of their perks as a sacrifice for the country. We can also look into restoring a four-day work week in government so we could save on energy costs," he said.

"More importantly, the revenue collection agencies should increase their collections. Let's do what needs to be done to keep these poor children in school," he said.

The Senate Trade Committee Chairman is also for the expansion of the food-for-work program, where poor families are harnessed to help in their communities. He has misgivings about a rice rationing system, such as the rice access cards, because it could be susceptible to politicking.

Wednesday, May 7, 2008 | posted in da, deped, dswd, education, food crisis, mar roxas, nfa, pgma, philippines, president, rice crisis, visayas | 0 comments [ More ]

Roxas reiterates call for special ASEAN Rice Summit

Senator Mar Roxas reiterated his call for the Department of Foreign Affairs to formally propose a special ASEAN Leaders' Summit on Rice and Food Security in light of the impending creation of an Asian rice cartel known as OREC or Organization of Rice Exporting Countries led by Thailand.

Roxas, chair of the Senate trade and commerce committee, said the ASEAN must move as one in helping secure regional food security in light of soaring oil and rice prices.

"Neglecting to act as a regional bloc amid a rice and food crisis can raise doubts in the minds of other world leaders on ASEAN's determination to pursue economic integration," Roxas stressed.

"Before OREC is institutionalized, the ASEAN community must weigh in as a regional bloc to obtain trade privileges with its fellow members in keeping with the ASEAN spirit," Roxas said, adding that it would be unfortunate if the ASEAN bloc where the two biggest rice exporting countries in the world are members of, could not forge a common agenda on rice and food security.

He noted that the countries that would initially comprise OREC are all ASEAN members. According to the Thai government, four countries, namely, Burma, Cambodia, Laos, Thailand and Vietnam have agreed in principle to form a rice price-fixing cartel similar to the Organization of Petroleum Exporting Countries (OPEC).

The senator said that even if Vietnam and Thailand have agreed to accept the Philippines' order for 1.2 million metric tons, the government should still confirm whether such shipments are iron-clad despite the formation of OREC.

"We need to see the bill of particulars governing these orders to check whether there are fixed dates for delivery and a firm, iron-clad commitment to meet the order," Roxas added.

Senator Roxas recommends that the DFA seek a briefing from the Thai Embassy on how the creation of an OREC would affect rice importing countries such as the Philippines.

"Given the cordial relations between and among the Philippines and these five ASEAN countries, we should take a more proactive role in clarifying the role of OREC and whether it is prepared to give concessions to fellow ASEAN members," Roxas said.

Friday, May 2, 2008 | posted in asean, cambodia, dfa, food crisis, laos, mar roxas, myanmar, opec, orec, philippines, rice crisis, thailand, vietnam | 1 comments [ More ]

Roxas: Self-sufficiency key to solving rice crisis

Senator Mar Roxas, who arrived in Lucena, Quezon this morning, said rice self-sufficiency was the key in dealing with the rice crisis that has hit the country and has brought up prices by as much as P8 in the past two months.

“Kung dito pa lang sa atin, self-sufficient tayo sa ating pangangailangan ng bigas, hindi na tayo maaapektuhan sa kahit anong presyo o supply sa pandaigdigang merkado,” Roxas said.

“Nasa irigasyon, nasa suporta sa magsasaka para makabili ng tamang fertilizer at pesticide ang solusyon, na sa ganoon ang pangkaraniwang ani ay maitaas natin, mula 2.5 na tonelada bawat hektarya sa ngayon, hanggang sa pinakamaganda talaga na anim na tonelada bawat hektarya,” he added.

The senator participated in a dialogue with marketgoers at the Lucena City Public Market in the morning, after which he attended a town hall meeting in the Provincial Capitol upon the invitation of Quezon Gov. Raffy Nantes. Also present were Quezon Vice-Governor Kelly Portes, Quezon 2nd Dist. Rep. Procy Alcala, as well as various mayors, vice-mayors, councilors and barangay captains, and nongovernment organizations (NGOs) for the environment, social services, rural development, health, and women and children protection.

After the consultation, the local leaders led by Gov. Nantes, signed and presented provincial resolutions to the senator declaring their full support for his bills calling for the suspension of the value-added tax (VAT) on oil products and a tax exemption for minimum wagers, as well as the immediate passage of the proposed Quality Affordable Medicines Act.

Roxas, the Liberal Party President, congratulated Gov. Nantes, a fellow Liberal, for his responsiveness in dealing with the situation. “Maganda talaga ang ekonomiya rito sa Quezon. May balanced spending, at focused spending – hindi patingi-tingi ang pagpondo sa mga importanteng programa at proyekto. Maraming pera sa bulsa ng mga mamamayan dahil sa masasaganang ani,” he said.

Roxas said the national government should follow Quezon’s example, for self-sufficiency and productivity to occur on a wider scale. “Una sa lahat, kailangang harapin ng gobyerno ang problema. Ano ba ang problema? Ang kakulangan ng supply ng bigas dito sa atin. Dapat nang kumilos at mag-focus ang paggastos para hindi na tayo aasa sa mga imported na bigas,” he said.

He noted that even though the government has spent billions annually on rice production, this has not been done in the most efficient manner. “Bagamat may badyet para sa National Irrigation Administration, National Food Authority, Department of Agriculture at iba pang ahensya, taon-taon ay nag-aangkat pa rin ng 2 milyon toneladang bigas, dahil kulang talaga ang produksyon dito,” he said.

“Mas mabuti na ang ating mga magsasaka ang maikikinabang sa pagbili ng bigas, kaysa sa ibigay ang pera na ito sa mga magsasaka at exporter ng Thailand at Vietnam,” he added.

Thursday, April 24, 2008 | posted in arthur yap, cheaper medicines bill, e-vat, kelly portes, lucena city, luzon, mar roxas, oil, pgma, philippines, president, procy alcala, quezon, raffy nantes, rice crisis, thailand, vietnam | 0 comments [ More ]

Roxas to hold dialogues on rice situation in Quezon

Senator Mar Roxas will be at Lucena, Quezon on Thursday, April 24, to get updates and to determine the "best practices" in handling the rice situation, in order to ensure the continued availability of rice at affordable levels both in the province and nationwide.

"I want to discuss with local officials, including my fellow Liberal, Gov. Raffy Nantes, how they have managed to remain responsive to the rice situation even as the rest of the nation is struggling to do so. Quezon's best practices will help us national leaders provide for the needs of other local governments," Roxas, the Liberal Party President, said.

"Every province would have its own specific and unique concerns even on issues of a national scope, such as the impending food crisis. With the help of all, we will be able to ensure food security for the long-term. I also want to hear what their constituents' concerns are in terms of the production and distribution of rice and other commodities," he added.

Gov. Nantes invited Roxas as a special guest in a public consultation on Thursday morning with local leaders and stakeholders on national issues such as the continued rise in the prices of rice and oil to record levels. The forum will be held at the Bulwagang Kalilayan at the Provincial Capitol Compound in Lucena City.

Another issue to be dealt with is the Quality Affordable Medicines bill, which is nearing passage at Congress. The committee composed of members of the House of Representatives and the Senate, are set to meet tomorrow to finalize the bill, which Roxas said is already "99% complete."

"Once this bill to lower the prices of medicines is passed, the real work begins. I urge the national government to coordinate closely with local governments to bring the benefits of the measure to all," he said, adding that he would initiate the holding of conferences across the nation on the merits of the proposed law and how to best implement its provisions.

Roxas will also attend the graduation ceremonies of Southern Luzon State University as guest of honor, on Thursday noon at the Quezon Convention Center, also in Lucena.

Tuesday, April 22, 2008 | posted in cheaper medicines bill, e-vat, food crisis, oil, pgma, philippines, president, quezon, rice crisis | 0 comments [ More ]

Roxas on rice & oil situation: "We are looking at a perfect storm"

Senator Mar Roxas warned that the country may be in for a “perfect storm” without a concrete survival plan, as he expressed concern over rising oil and rice prices, a recession in the United States, a global food shortage and its effects on the people’s purchasing power.

Roxas, the Liberal Party President, noted that aside from the looming food crisis, Filipinos are also confronted with high oil prices aggravated by a possible slowdown in dollar remittances from Filipinos in the United States.

“No one among us would like to see such ominous clouds forming, but the reality is that we are in for rough times and we must face these threats truthfully and courageously as a nation,” the Chairman of the Senate Trade and Commerce Committee said.

“The US is faced with two quarters of negative growth which would have a direct impact on dollar remittances from that country. This in turn could reduce consumption in the Philippines which is one of the key drivers of our economy. We have before us a perfect storm of high oil prices, a rice crisis, and a slowdown in dollars and investments from the US,” Roxas pointed out.

The Senator said that instead of pointing fingers at each other, the President can convene the Legislative Executive Development Advisory Council (LEDAC) so that remedial measures can be agreed on by both the executive and legislative branches of government.

“Bakit di natin pag-usapan ang mga panukala sa House at Senado ukol sa pansamantalang pagtanggal ng 12% EVAT sa mga produktong petrolyo,” he said, but noted that while oil prices worldwide were due to external circumstances, this was not the case for rice.

Roxas said the government must not lay the blame on external factors in dealing with the high prices and more expensive imports for rice, since this problem, and its solution, could be found within the country.

“Ang ugat ng problema ay nandito sa atin, hindi sa labas. Tayo po ay nagtatanim ng ating sariling palay. Ang lupain natin ang siyang ginagamit sa pagsasaka nitong palay,” Roxas, Chairman of the Senate Committee on Trade and Commerce, stressed.

“Kung kulang ang supply, kailangan na ang Department of Agriculture, National Food Authority, National Irrigation Administration at iba pang ahensiya ng gobyerno, ay magbigay ng lunas o solusyon sa kakulangang ito,” he said.

“Kung sinasabi nila na ang problema ay nasa labas, inaamin na ba ng gobyerno na hindi na natin kayang tugunan ang ating pangangailangan sa bigas? Inaamin na ba ng gobyerno na ang policy nila ay gawing mas mahal ang bigas?” he said.

“Ini-import natin ng 100% ang langis, kase wala talaga tayong langis dito. Pero ang bigas, ang palay, ay dito mismo tinatanim. Ngunit palaki ng palaki ang ating ini-import. Sa laki ng ginagastos natin sa agriculture, sa irrigation at sa iba pa, bakit pababa ng pababa ang ating self-sufficiency sa kanin?” Roxas said.

Roxas has already urged the following: to release local government units’ (LGU) calamity funds to be used for assisting farmers in planting and harvesting rice crops to increase domestic supply; to direct LGUs to establish a food security early warning system; to reactivate the peace process in conflict areas so as to ensure unimpeded cultivation, planting, tending and harvesting of crops; and to create special investigative and prosecutorial teams to go after rice hoarders and those diverting NFA rice for commercial purposes.

Tuesday, March 25, 2008 | posted in e-vat, mar roxas, oil, pgma, philippines, president, rice crisis | 1 comments [ More ]