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Highlights Of The 95th LEDAC Meeting The President's Opening StatementThe President thanked the executive and legislative officials and guests for their attendance. President Arroyo informed the body that in the State of the Nation (SONA), she presented five (5) packages requiring administrative and legislative actions. These are: a) Social Justice and Basic Needs; b) Anti Corruption through Good Governance; c) Economic Growth and Job Creation; d) Education and Youth Opportunity; and e) Energy Savings and Independence. The President would present these packages in a series of five (5) weekly meetings of the LEDAC, to seek support from the legislative branch of government. The President explained that the package on Social Justice and Basic Needs would be overseen by Vice President Noli De Castro as the President’s designated alternate chair in the NAPC. She then presented her Framework for Social Justice and Basic Needs. She explained that the package of actions is over and above that to be discussed in the Economic Growth and Job Creation Package in order to put a social justice bias in job creation. She listed five areas that represent the conceptual framework of the National Anti-Poverty Commission (NAPC), as follows: I) Livelihood
She reminded the Council of her commitments enunciated in her inaugural address to support an increase of three (3) million entrepreneurs through microfinance and the development of two (2) million hectares of land for agribusiness. II) Asset Reform
The President explained that Asset Reform in its simplest forms means redefining land reform. The “New Agrarian Land Reform” requires that farmland be qualified as collateral for farmers to be given access to credit in lieu of credit previously provided by landlords. In the case of Urban Land Reform, the President informed the Council that the Peruvian economist Hernando De Soto and his team will be coming to the Philippines to study the Philippine urban situation, including negotiable instruments for property ownership. Dr. De Soto is expected to present his findings and recommendations in a workshop early next year. One of the outputs of the seminar will be a legislative agenda for De Soto legislative reforms including constitutional reforms. In the case of ancestral domain, the President explained that the main problem is financial in nature and she intends to use the Marcos wealth for all the three kinds of land reform. The President explained that of the PhP 38.0 billion of Marcos wealth, seventy per cent (70%) or PhP 30.0 billion shall be used for distribution to land reform beneficiaries. The President further explained that PhP 8 billion pesos for the human rights victims shall be put in escrow until such time Congress shall pass the human rights victim compensation bill. III) Essential Services
The President explained that essential services is part of her campaign agenda particularly to provide access to water, power and low cost medicines for all the barangays in the country. This means providing 200 Metro Manila barangays and 200 municipalities with access to clean potable water, energizing 4,500 barangays and ensuring that the most essential medicines are accessible to the poor and at low cost. These commitments may not need legislation but may require the funding support of the legislators through their Priority Development Assistance Funds (PDAF). IV) Protection of the Vulnerable Among
The President explained that support will be limited to the vulnerable members of these groups like street children and/or orphans among children and out of school youth, drug dependents in the youth sector, abused and prostituted women in the women’s sector, people with disabilities with lack of access to jobs; and finally, older persons without good family support system. V) Empowerment
The President defined empowerment as political participation of the poor. She explained that the KALAHI program has been doing this through mobilizing community organizations. The Kalahi process starts with the development of a community organization. The President explained that town hall dialogues were used successfully by the President and the Vice President in their consultations. These dialogues called Pulong Bayan were used by the President and the Vice-President as venues to present their program of government. The President intends to institutionalize this. Lastly, the President reminded the Council that while she has abolished 80 offices and will abolish 30 more, she will create a new office, namely, the Malacañang Office of Constituency Affairs. The President’s Pro-Poor Package Secretary Villavicencio’s presentation focused on the six (6) basic tasks for the Pro-Poor Package as follows:
Pro-Poor Legislative Proposals Secretary Neri discussed the legislative proposals for the Pro-Poor Package. The list of bills was grouped into two (2) basic categories namely: Social Justice through Land Tenure and Health Sector Reform Agenda. Social Justice Through Land Tenure Legislation The proposed Agricultural Lands as Collateral Act intends to provide farmers broader access to credit. The bill allows Certificate of Land Ownership Award (CLOA) issued under the Comprehensive Agrarian Reform Program (CARP) to be accepted by financial institutions as loan collateral. Moreover, it provides that loans obtained must be used for the improvement or development of the land awarded or the establishment of facilities that would enhance production or marketing of agricultural products, or increase farm income. The proposed National Land Use Policy Act seeks to serve as a sustainable growth map for both public and private sectors in their development projects. The measure paves the way for targeting and delineating areas open for investment in line with the country’s development plans. The proposed Land Administration Reform Act (LARA) will create a Land Administration and Management Authority, the primary agency responsible for land administration and public land management, particularly in surveying, mapping, classification and disposition of alienable lands of the public domain and patrimonial lands; registration of titles; and resources information generation and management. The Authority will integrate, streamline and subsume the functions and powers that are now relegated to the key agencies of the DENR (Land Management Bureau, Regional Land Management Services, National Mapping and Resources Information Authority (NAMRIA) and the DOJ (Land Registration Authority and Register of Deeds). Health Sector Legislative Reform Agenda (DOH) The Health Sector Reform Implementation Act shall provide incentives for programs that implement reforms in the areas of health financing, hospital systems, local health systems, public health and regulations. The Template Bill on Hospital Corporatization shall convert fiscally and technically viable national government hospitals into corporate entities to promote autonomy and assure provision of quality services by these hospitals. The Bill Amending DOH-BFAD Regulatory Mandates shall amend the Bureau of Food and Drugs Law (RA 3720) to fill the gaps in the DOH-BFAD regulatory mandates. Potential Budgetary Requirements for the Social Justice and Basic Needs Package Secretary Boncodin explained that her presentation was an initial estimate of the budgetary requirements for the Social Justice and Basic Needs Package. Her report covers only the budget submissions from national government agencies (NGAs). Other sources of funding like local government units (LGUs) and government owned and controlled corporations (GOCCs) are not included. Jobs in Agriculture Based on the targets from NAPC, Department of Agriculture (DA), Department of Agrarian Reform (DAR) and Land Bank of the Philippines (LBP) the jobs in agriculture will need at least PhP 50 million pesos annually for the hybrid rice program in 2004 and 2005. Irrigation for agribusiness will require PhP 2.9 billion for 2004 and PhP 3.4 billion in 2005. These will be funded mostly from the Agricuture and Fisheries Modernization Act (AFMA) and the Comprehensive Agrarian Reform Fund. The bulk of the financial requirements of the sector will come from the government financial institutions like LBP and Quedan Rural Guarantee Corporation (Quedancor) for credit extension. About PhP 638 million will be needed in 2004 and PhP 843 million for 2005 while the total program from 2004 to 2010 will require PhP 3.9 billion. Triple the Lending for Microfinance and Small and Medium Enterprises Secretary Boncodin presented only the Department of Labor and Employment (DOLE) and the Department of Social Welfare and Development (DSWD) components, hence, the figures are quite small. DOLE and DSWD will each need PhP 20 million for 2004 and 2005.The DBM has yet to receive the figures from the government financial institutions (GFIs). Water to All Barangays Funding requirements for the Metro Manila barangays are covered by the Manila Waterworks and Sewerage System (MWSS) and to a certain extent, by the Philippine Gaming Corporation (PAGCOR). For municipalities outside Manila, it is expected that the 200 municipalities can be covered by 2005. PhP 168 million will be required in 2004 and PhP 27 million in 2005. Low Cost Medicines The low cost medicines program is a joint effort between the Department of Health (DOH) and the Philippines International Trading Corporation (PITC). PhP 20 million has been allocated in 2004 and PhP 40 million will be allocated in 2005. The expansion of the program to LGU hospitals will require a total cost of PhP 2.375 billion starting with PhP 237 million in 2005. The Botikang Barangay programs will require PhP 25 million annually and this has been partially funded by Congressmen out of their PDAF funds. Electricity for all Barangays A total of PhP 5 billion will be needed over the next six (6) years to energize 3,508 barangays. This program will be jointly undertaken by the Department of Energy (DOE), the National Electrification Administration (NEA) and others. About PhP 1.4 billion will be required in 2004 and PhP 1.1 billion in 2005. Education for the Poor The DBM allocates PhP 2 billion annually for school buildings, hence, the NAPC requirement of PhP1.2 billion can be provided by the DBM, In fact, the DBM has released PhP 1.2 billion to date and will release the PhP 800 million as soon as the school site is identified. Secretary Boncodin expressed confidence that objective to close the school building gap can be done. However, she noted that the problem with the school building program is not the funding, but the school site. Discussions Rep. Lapus queried on the possibility of enacting a national idle land tax in order to promote productivity. The President replied that the executive leaves it to the wisdom of Congress to enact whatever revenue measures it deems fit to enact. Senator Recto suggested that the national government submit a menu of programs to local governments to fund out of their own local budgets. Governor Erico Aumentado also suggested that the national government lobby the LGUs to support the Basic Needs Packages. Senate President Drilon informed the Council that he uses his PDAF to fund school buildings in cooperation with government agencies and a non-government organization (NGO). The program has been successful in building schools at half the government cost. Rep. Andaya suggested that the PDAF funding rules be modified so that Congressmen can have greater freedom in determining what programs of the Social Justice Package they wish to support. Rep. Zialcita suggested that a stimulus package for the housing industry be considered in order to generate jobs. Senator Pimentel suggested that a national cadastral program be instituted as a De Soto reform. Secretary Gozun welcomes the proposal. However, she informed the Council that the DENR is currently updating the geodetic reference points. Secretary Gozun explained that the mandate to undertake cadastral surveys was devolved to LGUs but these surveys were not funded, hence, the gap in the last surveys. Rep. Villar also suggested that the national government review the Kalakalan program as another strategy to promote growth and employment. The President informed the legislators that she encourages the filing of De Soto bills prior to the workshop that Dr. De Soto will conduct next year. 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