PIA Dispatch - Wednesday, December 17, 2008

Gov't crafts measures to speed up job generation

Manila -- The government has outlined measures to help further speed up the creation of employment, as the country's employment level grew by 2.6 percent as revealed in the October 2008 Labor Force Survey.

Per report of the National Statistics Office, total employed persons increased to 34.5 million, from 33.7 million in the same period last year.

NEDA Director-General Ralph Recto said that the government has outlined initiatives as part of the country's economic sustainability in the light of the global slowdown.

"These initiatives are multi-pronged in creating and safeguarding Filipino employment and livelihood," Recto said.

The NEDA press report disclosed that Recto in a memorandum to President Arroyo noted that the "government will speed up the creation of employment by ensuring that the allocated budget is fully and efficiently spent," adding that "resources will be shifted from slow to fast-moving and uncomplicated projects with visible employment results".

Recto said that the lowering of corporate income tax rate, exemption of minimum wage earners from paying taxes, increase in personal exemption of non-minimum wage earners are steps to encourage business expansions and entrepreneurial activities.

The government, business and labor sectors should come up with mechanisms that is expected to help "preserve as much employment as possible, while making industries cost-effective and productive," Recto said.

Another measure for employment generation is to undertake more training vouchers and scholarships for the young labor force, said Recto as he emphasized that "this initiative will help create a better human resource that is ready for the economic upturn. (PIA 6)


October 2008 employment rate surpasses 2007

Roxas City -- The country's employment rate in October was recorded at 93.2 percent, says the National Statistics Office (NSO).

According to NSO Administrator Carmelita Ericta, the 93.2 percent employment rate in the Philippines explains that nine in every 10 persons in the labor force were employed in October 2008.

Based on the results of the Labor Force Survey, the unemployment rate of the country was estimated at 6.8 percent in said month, she said.

Among the regions, the highest unemployment rate was recorded in the NCR at 12.8 percent. The next highest rates were posted in CALABARZON (10.0%) and Central Luzon (8.1%).

The October 2008 figure is slightly lower than last year's figure of 93.7 percent, Ericta said in an online news, adding that the National Capital Region (NCR) posted the lowest employment rate at 87.2 percent.

Apart from the NCR, Central Luzon (91.9%) and CALABARZON (90.0%) had employment rates below the national value (93.2%), she said.

Accordingly, out of the estimated 58.2 million population 15 years old and over in October 2008, some 37.1 million persons were in the labor force. This placed the labor force participation rate at 63.7 percent.Last year's labor force participation rate was 63.2 percent.

Among the regions, Northern Mindanao posted the highest labor force participation rate at 71.6 percent.

Ericta stressed that of the total 34.5 million employed persons in October 2008, almost half (49.6%) worked in the services sector, with those engaged in wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods comprising the largest sub-sector (18.9 percent of the total employed).

She added that workers in the agriculture sector accounted for 35.7 percent of the total employed, with workers in the agriculture, hunting and forestry making up the largest sub-sector (31.5% of the total employed).

Only 14.7 percent of the total employed were in the industry sector, with the manufacturing sub-sector making up the largest percentage (8.4 percent of the total employed), she said. (PIA)


Job creation projects for rebel-infested communities in Sarangani under way

MAASIM, Sarangani—President Gloria Macapagal-Arroyo today inspected the repair and rehabilitation of a school building here in line with the government’s setting up of pro-poor projects particularly in rebel-infested and infiltrated communities in the countryside.

Upon her arrival, the President was immediately briefed by Defense Secretary Gilberto Teodoro on the status of the ongoing project at the Maasim Elementary School which is being constructed under the Emergency Employment Program (EEP) of the Department of National Defense (DND).

“This is a good idea and I hope that the project would continue to work,” the President said as she personally participated in the ongoing construction by putting a hollow block on the pile.

The P250,000 repair and rehabilitation of the school building employed 29 construction workers from the area. “This is a pilot project in the province in compliance with the President’s directive to provide pro-poor programs in rural areas as a way to uplift the lives of the people in the community,” Teodoro said.

“The President was so pleased and she is hoping that we would be able to sustain the project,” he added.

Two more projects costing a total of P2M are also underway in Maasim proper.

The same type of project -- which includes the farm-to-market road -- will also be implemented in two other Sarangani municipalities, Kiamba and Maasim, with a project cost of P4.5 million.

Secretary Teodoro said the Emergency Employment Program was launched last month with a road repair and rehabilitation project in Pikit, North Cotabato.

He added that starting next year, the DND will also launch livelihood programs to provide income-generating projects to some 300 families IN THE area.

“Malaking tulong sa amin ang proyektong ito dahil nabigyan kami ng trabaho,” said Cesar Tualdo, a construction worker who earns P250 daily from the DND’s EEP.


PGMA seals law to help address global climate change

Roxas City -- The government has taken a remarkable mitigating measure to help address the global problem of climate change.

President Gloria Macapagal-Arroyo has already signed the Renewable Energy Act of 2008 that would help the Philippines 60 percent energy self-sufficient by 2010.

The new law is the first and most comprehensive renewable energy legislation in Southeast Asia that will enable the Philippines to capture a part of the soaring investments in renewable energy development worldwide pegged at $71 billion last year, President Arroyo said.

She explained that with the Renewable Energy Act, "we can now move aggressively to develop these resources" namely, solar, biomass, geothermal, hydropower, wind and ocean energy technologies.

The President pointed out that the new law provides the legal and institutional framework necessary for harmonizing policies on the swift development of renewable energy technologies.

"From 45 percent before our administration, we became 57 percent self-sufficient in energy in 2007, as we aim now to reach 60 percent by 2010, thanks in part to legislation and in part to the development of our renewable energy resources," the President said.

The Renewable Energy Act was signed as part of the country's celebration of the National Energy Consciousness Month this December.

This year's activity that started last December 2 has a theme "Enerhiya para sa Matatag na Ekonomiya."

Activities for said celebration have been lined up, including the Philippine Hosting of the 36th APEC Energy Working Group (EWG 36), PLATTS Oil Forum, the Green Energy Awards Program Ceremony and Launching of Renewable Energy Database and Information System (REDIES), Energy Technology Conference, Investment Forum, Bloodletting activities, Basketball Exhibition Games, and Bike for a Cause, among others. (PIA)


PGMA plays Santa Claus to 2,000 poorest of the poor in Sultan Kudarat

ISULAN, Sultan Kudarat – President Gloria Macapagal-Arroyo has made Christmas memorable for some 2,000 indigents here as she spearheaded the distribution of family food packs and the conduct of a medical and dental mission at the provincial capitol grounds today.

A big crowd of people with top local officials applauded as the President went up the stage along with Sultan Kudarat Gov. Teng Mangudadatu and Isulan Mayor Dado Pallasigui.

“This is a historic event for the people of Sultan Kudarat because no less than Her Excellency President Gloria Macapagal-Arroyo will be leading the distribution of Christmas gifts today,” said Gov. Mangudadatu in his welcome remarks.

Mangudadatu also took the opportunity to thank the President for the financial assistance she extended to the province for the construction of the provincial hospital and sports complex and other projects.

“We know, Mrs. President, that your goal has always been to help the people, and in this gathering today, you have again proven to us that you are a real working President,” he added.

Mayor Pallasigui also thanked the President for her Christmas gifts to this town that include free medical and dental checkups and the distribution of free medicines and multivitamins under the auspices of the Department of Interior and Local Governments (DILG) and the Philippine Amusement and Gaming Corp. (Pagcor).

“In behalf of Isulan town where 90 percent of the indigent beneficiaries came from, we thank the President as we promise her to work in unity with her for us to provide better services to our constituents,” Pallasigui said.

Also welcoming the President upon her arrival on board the presidential chopper were Sultan Kudarat Rep. Arnulfo Go (second district) and Pax Mangudadatu (first district) and Eastern Mindanao Command (EastMincom) Commander M/Gen. Armando Cunanan, Philippine National Police (PNP) regional director Fidel Cimatu and 601st Brigade Col. Marlou Salazar.

After the welcome remarks of Gov. Mangudadatu, the President immediately started giving away the 3,000 gift packs to the beneficiaries earlier identified by the Department of Social Welfare and Development (DSWD) and the provincial government.

“Maraming salamat sa Pangulo dahil naalala niya kami ngayong Pasko,” reacted Consolacion Bonifacio, a 78-year-old resident of barangay Kudanding, Isulan, who had to seek the assistant of a distant relative just to personally meet the President.

After gracing the gift-giving activity that lasted for 30 minutes, the President took time to shake hands with the crowd before flying to Maasim, Saranggani for the emergency employment program of the Department of National Defense.


D.A. asks for FAO for assistance in containing Reston virus

The Department of Agriculture has formally asked the United Nations Food and Agriculture Organization (FAO) for technical assistance in containing the latest resurfacing of the Ebola Reston virus in the Philippines and in testing an initial 10,000 head of swine in two quarantined Luzon farms where the infection had been detected.

In a report to DA Secretary Arthur Yap, Director Davinio Catbagan of the Bureau of Animal Industry (BAI) said he has formally requested the FAO to send a team of experts to assist the Department in its investigation into the Reston case in a letter to Kazuyuki Tsurumi, who is the FAO Representative to the Philippines .

The letter was sent to FAO after the DA and the Department of Health (DOH) announced last week the presence of the Reston virus in the two quarantined farms in Pangasinan and Bulacan as well as the precautionary steps that they have taken to prevent the spread of this disease, which is not harmful to humans.

“As per communication with Dr. Joseph Domenech, we likewise would like to request for a team of experts to assist us in the conduct of the investigation to determine the source of the infection and to set up diagnostic and prevention and communications plans,” Catbagan stated in his letter.

Domenech is the chief veterinary officer of FAO in Rome .

Catbagan said the swine testing for the presence of the Reston virus will be conducted as a precautionary measure in the interest of public safety.

The BAI will be doing the tests on the 10,000 head of hogs for free, he said.

He noted that the Philippines has consistently shown that it has acted in a “transparent and responsible” manner in dealing with the Reston issue.

It must be emphasized that only six (6) samples out of the 28 pigs tissue samples were found positive of the Reston virus by the Centers for Disease Control (CDC) Plum Island .

Additional samples sent to the Research Institute for Tropical Medicine (RITM) after those earlier tests were all found to be free of the Reston virus. As of 6 pm last Wednesday night, the RITM, which is the accredited laboratory in the country to conduct such tests, reported to the DA and BAI that, based on preliminary test results, the additional 94 samples collected from the pigs in the identified pig farms all tested negative of the virus.

The DA and DOH, along with experts of international health institutions, have pointed out that the Reston virus has shown no evidence so far of being harmful to humans since its discovery in 1989. This particular strain of the virus was first discovered in the Philippines 19 years ago among crab-eating macaques or monkeys that the Laguna-based Ferlite Farms had been exporting to the US-based Hazleton Laboratories in Reston , Virginia .

Officials of the WHO, FAO and RITM who attended a marathon consultative meeting hosted by the DA at its Quezon City office last Wednesday told over 20 industry leaders that this latest resurfacing of the Reston virus in the Philippines is just an “animal health issue and (they) do not consider this a significant public health concern at this time.”

The Reston virus is entirely different from the three other Ebola subtypes, which are all potentially fatal to humans. Unlike the Zaire , Ivory Coast and Sudan strains, the Reston strain has not been found to be fatal like the three other strains or to have caused illnesses to humans in contact with the infected animals.

The DA has invited international health organizations to conduct a risk assessment on the presence of the Ebola Reston virus in the country in line with the government policy of transparency on this issue and the concerted efforts to engage global authorities in containing this infection.

Yap has said the risk assessment will determine the extent of a potential risk or threat of the Reston virus to animal and human health in the country.

The risk assessment, according to Catbagan could be conducted by the WHO, FAO or the Office International des Epizooties (OIE) or World Animal Health Organization.

Officials of these international health institutions earlier commended Yap and DOH Secretary Francisco Duque for their respective offices’ quick or “appropriate action” in containing the latest resurfacing of the Reston virus.

WHO country representative to the Philippines Dr. Soe Nyunt spoke on behalf of OIE and FAO in thanking Yap and Duque for their efforts in immediately addressing the Reston issue.

The other international experts who joined Nyunt during that DA-hosted meeting with stakeholders were Dr. Julie Hall, team leader of its Emerging Infectious Diseases Division; Anthony Hazzard, WHO regional adviser for Food Safety; Carolyn Anne Coulombe, WHO technical officer (Risk Communications) Communicable Disease Surveillance and Response; and RITM director Remigio Olveda.

Yap had also revealed that the DA is preparing a support program to assist hog producers in farms where the Reston had been detected and to provide incentives to other growers to encourage them to participate in the concerted government program to stamp out this virus.

This planned support program will include the purchase additional laboratory kits needed to check the presence of this virus among local swine as well as assistance to livestock growers whose infected hogs will be culled or destroyed by BAI-led, quick-response government teams led to prevent the spread of the Reston disease among animals.

WHO experts Dr. Nyunt and Dr. Julie Hall, team leader of its Emerging Infectious Diseases Division, have confirmed that, based on historical evidence, the Reston virus has been found to be “non-pathogenic” and does not cause illnesses to humans in the past.

Yap said the WHO has also declared that pork that is properly handled, washed and cooked is safe for human consumption because heat from adequate cooking kills viruses, including Reston .
He pointed out that although “no current reports of unusual illnesses nor deaths in pigs have been reported, the DA and the DOH have engaged stakeholders in the hog industry, local and international health and animal experts, to assist the government in the pro-active eradication of this virus” and in the interest of transparency in government.

Besides tissue samples taken from pigs in the affected areas, Yap said tests were also done on the handlers in the farms where the virus originated; and even the butchers in the slaughterhouses where the animals were usually sent, as a precautionary measure. All the tests conducted on human samples yielded negative results for the presence of the Reston virus, he said.

Tests done by the RITM confirmed that the disease discovered in the affected hog farms cannot be transferred from pigs to humans.

As a precautionary measure, Yap had also suspended all Philippine pork exports until further notice. (DA-PRESS OFFICE)


RP addresses emerging issues on children

Iloilo City -- The Philippine government has passed national laws, developed programs, and undertook action plans to address emerging issues on children.

This was disclosed by Secretary Esperanza Cabral during the Third World Congress Against Sexual Exploitation of Children and Adolescents held in Janeiro, Brazil.

She said that the DSWD has recorded some 8,151 cases of child abuse in 2007.

A United Nations Study on Violence Against Children issued in 2007 revealed that sexual exploitation of children is increasing globally, the DSWD press report disclosed.

In the Philippines, Secretary Cabral disclosed that the 2008 Implementation Report on the "Optional Protocol to the Convention on the Rights of the Child on the Sale of Children, Child Prostitution and Child Pornography" noted that poverty has pushed millions of Filipino workers to leave their families in pursuit of substandard but better paying jobs abroad. This translates to millions of children growing up without one or both parents.

Secretary Cabral said that the country enacted two major laws on the protection of children—Republic Act 9208 or the Anti-Trafficking in Persons Act of 2003 which addresses sexual exploitation of women and children; and Republic Act 9231 that prohibits using, procuring,offering or exposing children to prostitution, production of pornography and pornographic performances.

Cabral also highlighted the different prevention, protection and reintegration programs for children at risk of abuse: the Pantawid Pamilyang Pilipino Program (4Ps) which is a social assistance and social development program that aims to break the inter-generational cycle of poverty by providing families with means to develop their human capital, and the Philippine Time-Bound Program (PTBP) which supports the prohibition and elimination of worst forms of child labor.

She commended the Child Wise Tourism Project of the Department of Tourism which aims to train tourism personnel, tour guides and even taxi drivers to identify and report child sexual exploitation in the tourism industry.

The "Amended Omnibus Guidelines for Minor Traveling Abroad" which defines when a travel clearance is required and shall be issued to a minor traveling alone to a foreign country, or accompanied by a person other than his or her parent, was adopted to prevent cross-border trafficking of children.

Secretary Cabral added that the Philippine government has set-up various child-friendly facilities and procedures to shield victims from the trauma of recalling their horrible experiences. She cited the Child-Friendly Investigative Studios and the Protocol on Child Friendly Investigative Interview now being adopted by government agencies nationwide.

The DSWD Secretary recognized multi-sectoral efforts in curbing cases of commercial sexual exploitation in the country. She commended concerned government agencies, non-government organizations, and the civil society for their active involvement in awareness raising campaigns.

She vowed that the Philippine government will "ensure that children's welfare will be a top priority in legislative and development agenda," the DSWD press report disclosed. (PIA 6)


Gov't declares unilateral 4-day truce

The Arroyo Administration will enforce a four-day unilateral suspension of offensive military operations (SOMO) with communist guerrillas for the holidays.

Executive Secretary Eduardo Ermita made the announcement today before the scheduled Cabinet meeting.

Ermta said the SOMO will be effective from Dec. 24-25 and from Dec. 31-Jan. 1.

The military has said earlier that the SOMO would be exclusive to the NPA since there was an existing ceasefire agreement between the government and the Moro Islamic Liberation Front (MILF) while offensives against the Abu Sayyaf group would continue, it being a terrorist group.

Meanwhile, pursuit operations against the “renegade” MILF commanders Ameril Ombra Kato, Abdullah Macapaar, and Ahleem Sulaiman Pangalian, accused of attacking civilian communities in Lanao del Norte last August, would also continue.

Only government initiated attacks would be suspended while security operations like patrols will continue.

"The suspension of military operations is a policy being followed and we might just do that in keeping with the spirit of Christmas," Ermita said.

The Defense department, military, Department of Interior and Local Government and Philippine National Police drafted the recommendation for the SOMO.


PGMA fetes world-class RP business performers

President Gloria Macapagal-Arroyo led this morning the conferment of awards on the country’s business organizations that have achieved overall organizational performance excellence, making them national and global role model, in simple ceremonies held at the Heroes Hall in Malacanang.

The President, assisted by Trade Secretary Peter Favila and Ambassador Cesar Bautista, co-chair of the National Competitiveness Council, presented a trophy to each of this year’s three recipients of the Philippine Quality Award, the country’s counterpart of the prestigious Baldridge National Quality Award of the United States.

The recipients were the Sutherland Global Services for Commitment to Quality Management; First Philippine Industrial Corp. for Proficiency in Quality Management; and, United Laboratories, Inc. (UNILAB) for Performance Excellence.

This year’s conferment ceremonies is a milestone since it is the first time that an organization in the Philippines ---the Unilab, won the Philippine Quality Award’s highest level.

The Unilab is a 100 percent Filipino-owned company that develops, manufactures and markets a wide range of prescription and consumer products.

On the other hand, the Sutherland Global Services is a multinational information technology-enabled and business process outsourcing (BPO) company specializing in customer management and back-office services for Fortune 1000 clients.

The First Philippine Industrial Corporation is a joint venture of First Philippine Holdings Corporation and Shell Petroleum Company Limited of the United Kingdom, that provides the safest, most reliable, and most economical bulk fuel transport contributing to nation-building and sustainable development.


New Glan port to transform Sarangani into a growth area

GLAN, Sarangani – President Gloria Macapagal-Arroyo will be back in this province tomorrow (Wednesday) to inaugurate the newly-expanded port in this town, a government undertaking to further boost and enhance the exchange of trade between Indonesia and Sarangani province.

Only two weeks ago (Dec. 3), the President was in this province to visit the town of Alabel to distribute various livelihood assistance and Christmas goodies to its residents. From Alabel, the President made a side trip to Jose Abad Santos, Davao Del Sur.

Upon her arrival at the Glan Port in Barangay Poblacion, the President will be briefed by Glan Mayor Enrique Yap. Jr. on the port project and its impact on the economic life of the residents of the municipalities of Glan and Jose Abad Santos.

The President would then lead the ceremonial ribbon-cutting and unveiling of the marker to signal the formal opening of the port to be followed by the send-off for M/V Al Gani (an Indonesian cargo vessel) carrying Philippine products bound for Indonesia. The travel time from Glan port to Tahuna port in Indonesia is about seven hours.

Expected to welcome the President on her arrival here are Glan Mayor Enrique Yap Jr., Jose Abad Santos (JAS) Mayor Alex Wangkai, Sarangani Mayor Jerry Cawa, Philippine Ports Authority (PPA) Administrator Oscar Sevilla, barangay chairwoman Dr. Vivien Yap, and Glan School of Arts & Trade Vocational School Administrator Antonio Jomillo, Jr.

Also, expected to welcome the President are Glan Vice Mayor Venancio Wata, Jr., Atty. Ronnie Silvestre, Customs District Port Collector (Davao-based), Consul General Lalu Malik Partawana of the Republic of Indonesia, and PPA Port District Manager Abdussabor Sawadjaan., PPA Port District Manager.

The Port of Glan now plays a very important role in the economic development of Jose Abad Santos and Glan through cross border trade and the increase of people mobility between Jose Abad Santos-Glan Cooperation Triangle (JAGS-CT) and Indonesia.

The JAGS-CT was established to develop the area as an alternative economic and trading hub for the Brunei, Indonesia, Malaysia and Philippines-East Asean Growth Area (BIMP-EAGA).


Ombudsman calls on the citizenry to join government campaign against corruption

PASIG CITY – Ombudsman Merceditas Gutierrez has called on the citizenry to help the government in its drive against corruption, not only in government but also in Philippine society.

In her speech during the launching of the 1st National Summit on United Nations Convention Against Corruption (UNCAC), which was timed with the commemoration of the International Anti-corruption Day, Gutierrez said that “we (the government) are really committed to fighting corruption.”

“This is the day for all sectors of society to join hands in fighting corruption to save our people from the quagmire of poverty,” she added.

Gutierrez called on everyone to do his/her part in curbing corruption not only in public but in private life as well by providing the Office of the Ombudsman with documents and evidence to back up their criminal or administrative complaints against grafters.

“If affidavits are not available, the complainants may identify such documents so that we can subpoena them,” she said.

She added that in filing denunciations of corruption against government personnel, complainants may not identify themselves to avoid reprisal or harassment.

The Ombudsman also reported that her office is now making headway in the Bolante Case and that by January of 2009, investigators should have already completed their work on the Fertilizer Fund Case.

The summit is the government’s contribution to the United Nation’s (UN) global fight against corruption.

It aims to provide opportunities for the government sector and civil society to come together and adopt a national road-map to eradicate corruption.

From the launching of the UNCAC up to March 2009, series of Focus Group Discussions (FGD’s) will be conducted by different groups from the government, private and the civil society sectors to formulate effective ways of combating corruption.

Results of which will be further subjected to scrutiny by working groups from the three (3) branches of government, civil society and the private sector for further consultation and validation before implementation.


2GFMD reports presented on "International Migrants Day"

MANILA (PNA) - The Philippines observes International Migrants Day on Thursday, with a day-long forum when official reports of government and civil society on the Second Global Forum on Migration and Development (2GFMD) will be presented at the National Center for Culture and the Arts (NCCA) in Intramuros district.

December 18 has been designated as “International Migrants Day” by the United Nations-linked International Office of Migration (IOM), while the whole period of December is observed as the “Month of Overseas Filipinos” by the Commission on Overseas Filipinos in the Office of the President.

The two-phased 2GFMD was hosted by the Philippines in October 28-31 with more than 1,500 government and civil society participants.

The first two days were devoted to sessions for government officials, while the latter two, sponsored by the Ayala business group, were for private-sector stakeholders in cross-border migration.

The Philippine Migrants’ Rights Watch leads an Inter-Agency Committee in conducting the forum, on the theme “Together to Make Migration A Choice.”

The theme echoes the longing of President Gloria Macapagal-Arroyo for overseas employment to someday be "just an option" for Filipino workers.

Aside from representatives of government, non-government and international organizations, private sector, academe, overseas Filipinos and their families are expected at the forum. (PNA)


Yap welcomes house panel of agri-agra law amendments

Secretary Arthur Yap of the Department of Agriculture DA has welcomed the approval by the House of Representatives at the committee level the DA-backed amendments to the Agri-Agra Law, calling this a major step towards realizing the government's goal to pump more loanable funds into the farm and fisheries sector at a time of a looming global economic slowdown.

Yap also thanked the House agriculture committee chaired by Rep. Abraham Kahlil Mitra for passing these proposed amendments that will plug loopholes in Presidential Decree No. 717, otherwise known as the Agri-Agra Law, a 30-year old statute mandating banks to make available at least 25% of the total loanable funds to the agriculture sector.

"With the timely action of the House agriculture committee on this urgent legislative measure, we are inching closer to seeing Congress eventually pass a new law that will make the Agri-Agra Law an effective instrument to ease the tight rural credit squeeze and help our farmers fight off the negative impact of the global financial crisis," Yap said.

Yap noted that Mitra was correct in pointing out that the Agri Agra Law in its present form is a "weak law without teeth or compelling force."

Mitra had pointed out the need for the swift approval of amendments to PD 717 that, "while the total compliance of banks to the law was P91 billion short of that mandated, the collected penalties (due to non-compliance) for 2007 stood at a measly total of P 26.51 million."

"That's not even a percent of the gap between mandated and actual compliance – a mere 0.00029% to be exact," Mitra noted.

He further said that with the credit gap in the farming sector standing at a whopping P157 billion at the end of 2007, some 1.68 million farmers were forced to run to informal sources to acquire loans.

The proposed act that was approved by the House agriculture committee on Tuesday (Dec. 16) proposes a "more sensitive penalty scheme that is more responsive to the degree of a bank's non-compliance without being too punitive at one percent of non-compliance," Mitra pointed out.
The bill also provides that 90% of the collected penalties go to the Agricultural Guarantee Fund Pool (AGFP) to strengthen the country's guarantee system and protect banks from the risks of lending.

The proposed act also provides for a review mechanism after five years of the law's implementation to allow the DA, Department of Agrarian Reform (DAR) and the Bangko Sentral ng Pilipinas (BSP) to assess whether the law has achieved its purpose.

Yap agreed with Mitra's observation that the swift passage of the proposed amendments to the Agri Agra law has now become an "utmost necessity" in the wake of the ongoing financial crisis sweeping across the globe, which could prompt banks further tighten their lending to the agriculture sector.

The Food and Agriculture Organization (FAO) had earlier warned nations against overlooking the possibility of another food crisis in its preoccupation with the current chaos in the financial markets, Mitra pointed out.

Earlier, Yap said that the emergency program that Government is mapping out to keep in check the looming global recession will have to address the anemic private investments in agriculture, a job-generating sector that accounts for nearly a fifth of the country's Gross Domestic Product (GDP).

Greater investments from the banking sector will enable the government to sustain and even boost the growth momentum of Philippine farms, and this could be attained, Yap had said, by overhauling the alternative programs in the Agri-Agra Law.

Although the farm sector accounts for 16% to 17% of GDP and employs 11.9 million Filipinos or a third of the national labor force, agriculture and fisheries receive a measly 4% and 0.3%, respectively, of bank loans, lamented Yap in citing the latest BSP data.

The Agri-Agra Law mandates that at least 25% of banks' total loanable funds should be made available to the agriculture sector, 15% of which is for agriculture stakeholders, and the 10% balance for agrarian reform beneficiaries (ARBs).

Yap had said the financial entities that have been providing loans to farmers and fisherfolk are mostly government banks and financial institutions, so "more funds could be unleashed to the farm and fisheries sector by commercial banks only through amendments to PD 717."

In 2007, the total credit requirement of the agriculture sector for palay, corn, coconut, sugarcane and fisheries was estimated at P200 billion, but banks were only able to finance P48 billion or 24% of this requirement.

Because of the availability of alternative forms of compliance, such as investments in government bonds and development loans for education, hospitals and socialized housing, loanable funds are being redirected to these financial instruments.

As of December 2007, of the total loans to be directed to the agriculture sector, the direct compliance rate was only 9.85% of the mandated 15% for agricultural lending and only 2.24% of the 10% quota for ARBs, latest BSP data show. (DA-PRESS OFFICE)