Press Release
January 29, 2009

P300 Economic Stimulus Funds? Source? Utilization?

I would like to start with a global concern, the global issue of economic meltdown, this is indicated by the fact that even the richest countries are feeling the consequences of this economic meltdown, ..the US is earmarking US$825 Billion, translated to pesos, that is P39 Trillion...meaning 25 times our national budget...we can not afford that...

China is earmarking more than US$500 Billion and the European Union is talking about hundreds of billions..

During the budgetary deliberations, I raised a question to the Executive...I was asking the projection of jobs lost by the Filipinos...and globaly...because we are one of the labor exporters in the world..we stand to loose jobs as much as more than 600,000 jobs abroad...and I insisted that it will not only be the OFWs who will loose their jobs but including the domestic factory workers...and the latest news item coming out from officials from the Executive, is that 200,000 Filipinos more could loose their jobs..so altogether the possibility of 800,000 Filipinos could loose their jobs.

There is a mention by the Executive Dept that we are earmarking a little over P300 Billion to provide for this economic stimulus.

I raise two basic questions :

(1) From where are we going to generate these funds, because if we say this is provided for in the Yr 2009 budget, I can not see it there..because the Yr 2009 budget is for the continued operations of the government and to provide funds for routine programs...

Are we going to resort to borrowings again? And where are we going to borrow from? Of course, one such source is from government controlled or influenced financing institutions such as the Landbank, SSS, GSIS and even Pag IBIG, the only problem there is that the funds in these institutions are earmarked for other functions.

If indeed there will be members of the SSS who will loose their jobs, the SSS is supposed to provide the social security for the members, and therefore it will put a strain to the liquidity of the SSS, so I don't think the SSS could be a source of the economic stimulus funds.

How do we generate this P300 Billion to provide the stimulus?

(2) How are we going to use this P300 Billion Economic Stimulus Funds, during the budgetary deliberations, I insisted in anticipation then of the consequence of this global economic meltdown� that it be focused on two basic programs...

Number One Program is JOB GENERATION, but I am not talking about job generations as mobilizing an army of street sweepers, I am referring to the construction of economic infrastructures like irrigation systems, digging and building of distribution of irrigation canals in Central Luzon not only to tap the full potential of the San Roque Dam but also the Casecnan Dam.. it could also include irrigations in Panay, Bukidnon... Salog Valley of the Zamboanga Peninsula..we can use it to build roads, flood control projects..projects that is not going to be a one time deal project..but will have beneficial effects for the following years...

Second Program is the increased production of goods... food stuff especially rice. We eat 12 M metric tons of rice every year, but we are only able to produce 9 M metric tons..so year in and year out, you witness this country having to import anywhere from 1.5 to 3 Million metric tons a year.

We have to address the consequences of the global economic meltdown in the Philippines... I am appealing to everyone in government to put our talents, efforts and resources so that we can generate needed economic stimulus fund and be able to use it wisely.

There is a need for transparency, otherwise the Filipino people will be suspicious about the fund. ****

Rent Control Law - According to the findings during the census of Yr 2000, there are 1.5 Million renters in the country, that might have increased...1.3 Million of that are concentrated in the highly urbanizing localities... it is in these urbanized areas where you have job opportunities... those coming out of the rural areas that can not be supported by the land that they till...come to the cities looking for jobs.

More than 600,000 families are concentrated in Metro-Manila.. affordable housing in terms of amortization, are moving farther and farther away from the job sites..so if they can afford a half a million peso low cost or socialized housing, they will have to amortize this at the cost of P5,000...thumb rule is for every P100,000 you borrow, you amortize at P1,000 a month.

If you work in Metro-Manila and are living in Cabuyao, how much would be the daily transportation... it could probably reach by as much as P100 a day... because they can not afford that.. so a reverse migration happens...meaning those relocated outside of Metro-Manila come back to look for a place to rent..even if it is just a room..

Or, if they can not afford..I am afraid that if we do not address this problem of shelter and rent is part of the problem... informal settlers will increase...

The Rent Control Law had been enacted in 1947, during the time of President Roxas or 62 years ago, and yet every year, every Congress we need to address the problem..so I am proposing we enact a Rent Control Mechanism PERMANENTLY... I am looking at delegating the authority for the adjustment of this rent to a body.. like HLURB because..that function requires quasi-judicial powers and the HLURB has experience on this...

I am proposing that body be HLURB reinforced in as far as membership of the board is concerned... because I am proposing the creation of a board with HLURB as the core.. with representation from people's organizations, developers, government ...

I do not see that the problem of housing in this country will be solved within my generation, even your generation..so why not make it permanent...except that the need for adjustment as the situation changes will be provided by a body that we will create... HLURB reinforced.

We are studying if P10,000 pa rin ...

Almost all of the resource persons during the hearings.. the housing agencies, the developers including the Subdivision and Housing Developers Association, Inc, the National Real Estate Association... yung Chamber of Real Estate and Builders Association, Inc may konting reservations but when explained to them..they agree half-half - everybody sa resource persons agree we need together a permanent loan to address the problem of shifting rental rates.

When they gave back to me the Housing Chairmanship..last week of November.. we were busy on the budget..there was a break.. but first session day, we conducted a hearing.. we might ask the President to certify this law...

News Latest News Feed