Press Release
October 6, 2008

Gordon: Teachers to be free from shark loans with 'text-for-change' bill

Public school teachers would no longer be lured into taking shark loans once the text-for-change bill, which would require telecommunication companies (telcos) to remit part of their income from text messages to fund the country's education and health requirements, is passed into law, Independent Senator Richard J. Gordon today said.

During the weekly Kapihan sa Manila Hotel, Gordon said if teachers are well-compensated, they no longer have to enter into loan transactions that are usually burdensome because of the high interest they will have to pay.

"If we give our teachers the right compensation, we are saving them from the burden of debt. If their financial problems are lessened, they can concentrate more on their teaching and our children would benefit well from that," he said.

"We say that teachers are our children's second parents. If that is so, then it is reasonable to ensure that they are well-compensated. If we expect them to take care of our children, then we should also address their concerns," he added.

A public school teacher is earning a monthly salary of P12,000, but after standard deductions, they practically take home P10,000 or even less. And if they enter into loan transactions, they even end up taking home nothing at all.

Public school teachers also have to contend with a population of 50 pupils in one clss shift. Some public schools even have two to four class shifts a day, increasing the teachers' workload but with no additional pay.

Gordon explained that through Senate Bill 2402, or the Health and Education Acceleration Program (HEAP) bill, the problem of teachers' low remuneration will be finally addressed.

Through HEAP, telcos would remit part of their multi-billion revenues from local text messages to the HEAP Corporation, which will spearhead the rehabilitation and acceleration of education and health infrastructures in the country.

With the generous amount that can be generated once the bill is passed into law, the government will be able to pay teachers with an adequate salary, which would take away most of their financial problems, allowing them to focus more on their teaching.

Assuming there are 400 million text messages sent per day and every text message costs P1.00, and half of which will go to the HEAP fund, the government will be able to collect at least P73 billion in one year alone.

"With P73 billion a year, the government can fund all shortages in school facilities and manpower, which is at P23 billion. Add to that, we can provide for teachers' training and have their salaries increased to a more reasonable amount and even give them bonuses," Gordon said.

The country suffers from an existing backlog of 12,418 classrooms at the cost of P6.95 billion; 1,744,237 school seats at P1.39 billion; 44,200,000 textbooks at P2.78 billion; 12,733 teachers at P2.48 billion and an additional P25 million for their training; and 24,709 principals at P4.43 billion.

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