Issues

Worsening Traffic Condition to Hamper Growth of Auto Industry – Sen. Bam

Senator Bam Aquino warned that worsening traffic conditions would hinder the growth of the country’s automobile industry.
 
“Aside from economic losses amounting to billions of pesos a day, our booming auto industry will also take a huge hit due to our traffic problems,” said Aquino.
 
To address this and other issues hounding our car industry, Aquino has filed Senate Resolution No. 929 seeking an inquiry to ensure that the automotive industry roadmap is consistent with and integrated into other existing government policies and plans.
 
“Given the local demand for automobiles and the worsening road condition and congestion, there is a need to ensure that the automotive industry roadmap is aligned with the country’s infrastructure roadmap,” said Aquino.
 
Earlier, the Board of Investments (BOI), the Philippine Automotive Competitiveness Council Inc. and relevant government agencies have been tasked to formulate development roadmap for the auto industry to ensure its viability and competitiveness.
 
Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, stressed that a clear direction is crucial for the auto industry with the 2015 ASEAN Economic Integration fast approaching.
 
“I believe that the Philippine Motoring Industry can be at the forefront and be the driver of this movement, with our capability to develop world-class products that are globally competitive and backed by a culture of quality and excellence,” the senator said.
 
Presently, Aquino said the auto industry is one of the country’s key economic drivers, accounting for 12 percent of the total manufacturing sector output and about four percent to the total GDP of the country.
 
In addition, the auto industry directly employed 60,000 workers and indirectly hired 500,000 more.
 
“Total investments have reached P120B and the industry has remitted P30B annually to the government in the form of taxes and other duties,” the senator said.
 
Aquino said the local auto industry has grown rapidly in the past three years. In 2013, it has breached the 200,000 unit sales mark with 212,414 units sold while 250,000 cars are expected to be sold this year.
  
However, locally assembled vehicles presently account for only 32 percent of the supply while competitiveness of the country’s auto parts companies is weak compared to other countries in Asia.
 
“The government should further develop and improve strategic programs to reduce the cost of doing business by cutting red tape, which ultimately benefits consumers,” Aquino said.
 
The lawmaker added that the roadmap should also encourage the entry of electric vehicles and it should be integrated in the long-term plans for the country’s environmental protection and preservation.

Sen. Bam’s Tax Bill to Unburden the Poor Gets Support

Several stakeholders are pushing for the passage of Senator Bam Aquino’s measure that exempts marginal income earners (MIE) from paying income tax.
 
The Tax Management Association of the Philippines (TMAP) and the Magna Carta for Workers Alliance (MAGCAISA) both expressed their support during the committee hearing on Aquino’s Senate Bill No. 2777 or the Marginal Income Earners (MIE) bill.
 
Representatives from both TMAP and MAGCAISA said the passage of Aquino’s measure would help unburden poor Filipinos, which is composed mainly of farmers, fishermen, tricycle drivers, small sari-sari storeowners and other micro-entrepreneurs.
 
Aside from throwing support behind the MIE bill, TMAP president Rina Manuel also called for the simplification of tax filings and processes for individuals and businesses.
 
MAGCAISA Steering Committee representative Elizabeth Angsiaco, for her part, batted for the expansion of the bill to cover all MIEs.
 
After the hearing, Aquino welcomed the snowball of support for his bill, saying the government should not take way the little income that poor Filipinos earn from their livelihood.
 
“I consider it a great disservice to our countrymen if the government will take away what was left of their meager income,” Aquino said.
 
Aside from hampering its growth, Aquino stressed that poor Filipinos will be discouraged to enter the formal economy if they would be subjected to tight scrutiny by the Bureau of Internal Revenue (BIR).
 
The senator noted that the number of registered MSMEs in the country – currently pegged at approximately 800,000 – has not grown in years.
 
“If we want to help them grow, we need to create an environment conducive for small businesses to thrive. We need to encourage those businesses in the informal economy to register and join the formal sector,” he added.
 
Aquino’s bill seeks to spare micro entrepreneurs, or self-employed individuals who earn not more than the minimum wage equivalent in their regions, from paying income tax, just like minimum wage earners.
 
The senator filed the measure after the Bureau of Internal Revenue released a memorandum circular – Revenue Memorandum Circular (RMC) No. 7-2014 – compelling MIEs to pay income tax returns.
 
According to BIR’s circular, MIEs include agricultural growers/producers such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle.

Ensure Supply, Prices of Goods in Typhoon-Hit Areas – Sen. Bam to DTI, LGUs

Senator Bam Aquino has called on concerned government agencies, led by the Department of Trade and Industry (DTI), to strictly monitor the supply and prices of basic goods, especially in areas devastated by Typhoon Mario.

“Ensuring supply and prices will keep unscrupulous traders who might take advantage of the situation in check,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

Aquino also urged the local government units to closely coordinate with the DTI in monitoring businesses in typhoon-hit areas.

“I also urge the public to report businessmen who will unjustly hold supply and jack up prices in typhoon hit areas so they can be investigated and prosecuted to the full extent of the law if guilty,” said Aquino.

According to latest reports, Mario has affected 258,976 families or 1,160,050 people in 1,126 barangays in Ilocos, Cagayan Valley, Central and Southern Luzon, Bicol, Central Visayas, Cordillera, and Metro Manila.

The death toll remained at 11 with 12 injured and two still missing while at least 81 roads and six bridges remained impassable in Ilocos, Central Luzon, and Metro Manila.

In addition, the lawmaker called on the Department of Public Works and Highways (DPWH) to speed up the repair of damaged roads and other infrastructure so as not to hamper the delivery of goods to typhoon-hit areas.

Usually, Aquino said prices of basic products in areas devastated by typhoons and other calamities increase because of supply problems.

In addition, Aquino said Republic Act No. 7581 or the Price Act imposes an automatic price freeze in areas placed under state of calamity to ensure that goods remained at prevailing prices until the state of calamity is lifted.

Among the products covered by the price freeze are basic non-agricultural necessities, including canned fish and other canned marine products, processed milk, coffee, laundry soap, detergents, candles, bread, and salt.

Also included in price freeze are fresh vegetables, roots crops, sugar, cooking oil, firewood, charcoal and medicine classified as essential by the Department of Health.

High Local Shipping Cost Increases Prices of Goods – Sen. Bam

The costly and cumbersome inter-island shipping is one of the roadblocks in increased prices of goods that will be a burden for consumers and will hamper the growth of the micro, small and medium enterprises (MSMEs) in the country, a senator said.

“As an archipelago composed of more than 7,100 islands, the country relies heavily on sea routes interconnecting the islands. Inter-island shipping is crucial in the transport of goods especially this coming Christmas season,” said Senator Bam Aquino.

However, inter-island shipping is exclusively reserved for ships bearing the Philippine flag and shipping cost impacts the movement and price of traded goods in the country.

“While this helps the domestic shipping industry, the cost of shipping is hampering trade especially for the MSMEs,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

As a response to the call of the President and key stakeholders, Aquino has filed a bill seeking to allow foreign ships to call in multiple ports provided that their cargoes are intended for import or export and duly cleared by the Commissioner of Customs.

Aquino’s Senate Bill No. 2364 will amend Section 1009 of the Presidential Decree No. 1464, otherwise known as the Tariff and Customs Code of 1978 to introduce reform in the shipping industry.

During one of the committee hearings, it was discovered that it is cheaper to send products from other countries to the Philippines than to ship goods within the country.

For example, the cost of shipping a 20-foot equivalent unit (TEU) from Kaoshiung, China to Cagayan de Oro is $360 or P16,000 only.

However, the cost of shipping the same cargo from Manila to Cagayan de Oro will take $1,120 or almost P50,000.

“MSMEs who are importing or exporting goods will be able to access a cheaper alternative in transporting their goods through co-loading in foreign ships. Ultimately, this leads to lower prices of goods for the Filipino public,” Aquino said.

If passed, the bill will allow importers and exporters to co-load in foreign ships going in or out of the Philippine jurisdiction.

Moreover, this bill gives clarification on the definition of common carriers and public service in the shipping industry.

With this bill, foreign cargoes shall not be subjected to the law concerning common carriers and public services as defined in the Civil Code and the Domestic Shipping Development Act, respectively.

Lower Customs Cost for OFWs’ Balikbayan Boxes, Packages – Sen. Bam

Good news for 10 million overseas Filipino workers (OFWs) burdened by the tedious and costly process of sending balikbayan boxes to their loved ones in the Philippines.

Sending balikbayan boxes and other low-value and low-risk packages to the Philippines will be faster and cheaper if the proposal of Senator Bam Aquino to update the current de minimis threshold is enacted into law.

“Sending a balikbayan box home especially this coming Christmas season becomes burdensome for these modern-day heroes. Currently, these packages undergo a tedious process in the customs and are charged fees that are discouraging for OFWs to send more regularly,” the senator said.

“There is a need to provide the ten million Filipinos abroad, who have been already contributing greatly to the economy the past four decades, a better customs administration by reducing the de minimis threshold,” he added.

Currently, the Philippines has the lowest de minimis threshold, or the minimal volume of declaration of goods in the customs for consignments, in the ASEAN, at PhP10 or US$0.23. The ASEAN average threshold is at a hundred dollars.

“The extremely low Philippine threshold has not been changed since 1957 and is clearly antiquated. It needs to be updated to be reflective of current prices,” the senator said.

The lawmaker explained that thresholds for customs declaration signify increased documentation and processes for shipments at entry points in the country.

“Increased documentation leads to larger turnover and delivery time of goods, and larger administration costs that would yield lower revenue impact for both businesses and government,” he added.

 By increasing the de minimis level to a more realistic and relevant figure of P10,000, Aquino saidbalikbayan boxes and other packages of OFWs, entrepreneurs and other individuals will be processed by Customs faster with minimum fees.

“Also, it will enable the Bureau of Customs to focus its efforts in looking out for high-value, high-risk and high-revenue goods for collection and enforcement, thereby making customs processes more efficient,” he added.

Speed Up Decongestion of Port to Ease Traffic – Sen. Bam

Senator Bam Aquino called on the government to speed up the process of port decongestion so as not to further burden the motorists and commuters who are already affected by the everyday traffic jams in Metro Manila.

“While decongesting Port of Manila is important, we must also guarantee that the public interest and welfare will not be compromised,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

At the same time, the lawmaker called on concerned government agencies and local government units (LGUs) to ensure that traffic enforcers are in place to help alleviate the traffic problem.

Aquino also appealed to the public to bear with the heavy traffic in the next two weeks due to the government’s campaign to decongest the Port of Manila.

“We ask the public to further stretch their patience as the government solves the port decongestion problem that we are facing right now,” said Aquino.

Aquino said the government has no other recourse but to implement drastic measures to decongest the country’s main port, saying this problem will worsen if not immediately addressed.

“Many businesses will be affected and prices of goods will go up if this port congestion problem persists and we must not allow this to happen,” the senator explained.

Aquino said the public would ultimately benefit once the port congestion problem is solved.

From September 8 to 21, the Metro Manila Development Authority (MMDA) will implement the last mile route, which will enable trucks to ply main roads, even during truck ban hours, provided that they carry cargo for shipment to their designated end-points.

Last month, Aquino’s committee investigated the port congestion problems and came up with several proposals to help solve the problem.

During the hearing, the city of Manila agreed to open more trade lane routes for trucks while concerned government agencies committed to work during weekends to hasten the releasing process in the port.

Sen. Aquino’s committee is expected to visit the Port of Manila later this month to check if there are improvements or if additional changes are necessary.

National Sports Training Center to Boost Olympic Gold Dream – Sen. Bam

After a strong showing of the Gilas Pilipinas, Azkals and the Philippine Dragonboat teams in international tournaments, a senator is pushing for the establishment of a National Sports Training Center (NSTC) that will further provide right, focused and scientific training to amateur athletes as they strive to become the next big names in the sports world.

In his Senate Bill No. 2367, Senator Bam Aquino said the NSTC would not only serve as the official venue of training for athletes, but it would also be the center for sports science research and development.

“The development of grassroots sports in the country has long been overdue.  Despite the Filipinos’ love for sports and athletics, support to achieve sustained excellence in sports from the private and public sector has been lacking,” Aquino said.

Aquino stressed that the Philippine Sports Commission (PSC), despite its limited resources, has been trying to support national athletes with a proper support system, international exposure, monthly training stipends and adequate training equipment.

However, Aquino said one major gap is a state-of-the-art facility where budding athletes can be turned into national champions and world icons.

“Through this center, we hope to produce another Lydia de Vega, Elma Muros-Posadas and Felix Barrientos, who made the country proud in the international stage,” said Aquino.

“Also, our basketball team Gilas Pilipinas, football team Azkals and the dragon boat squad will have a permanent center for training and conditioning in preparation for international events.”

The training center shall have the following sports facilities and amenities for the following non-water based sports such as archery, athletics, badminton, baseball, basketball, beach volleyball, bowling, contacts sports  (Taekwondo, Karate, Judo, Wrestling), cycling (Velodrome), dance sport, football, gymnastics, handball, lawn tennis, sepak takraw, shooting, softball, squash, table tennis, volleyball, wall climbing and weightlifting.

The center will also have other amenities, including an archery multipurpose gymnasium, administration building, athletes’ dormitory, sports science building, mess hall, recreation hall, library, weight training building, school building and conference/ seminar hall.

Require One Nurse in Every Public School – Sen. Bam

Senator Bam Aquino is pushing for the appointment of a registered nurse in every public school in the country to ensure that health and nutritional needs of Filipino students are protected.

 “Quality education, that every Filipino child deserves, is holistic in nature.  It is concerned with the whole self – physical, mental and spiritual,” Aquino said in his Senate Bill No. 2366.

“This measure proposes that students’ access to basic health care services in schools be assured by requiring every public school to employ at least one registered nurse to look after the health and nutritional needs of its students,” he added.

With a fifth of the Filipino population living below the poverty line, Aquino said health-related issues among school children arise, hampering their ability to learn and retain lessons and skills. 

“Some students might even be forced to skip school days due to sickness, further impeding their ability to learn,” Aquino said.

 The senator said having a nurse in every school emphasizes the value of health, nutrition and well being as part of the formation of our Filipino children.

Also, Aquino added the bill would help reduce the number of unemployed nurses in the country, which is currently estimated at 400,000.

The bill mandates the Department of Education and the Department of Health to employ at least one registered nurse in every public school.

The nurse will be responsible for improving the delivery of public health care services and providing relevant and timely education on wellness, hygiene, sanitation and other health safety measures to public school students.

Nurses employed will receive a monthly stipend equal to salary grade 15, consistent with the mandatory minimum entry-level pay for government nurses under Republic Act No. 9173, otherwise known as the Philippine Nursing Act of 2002.

Secure Competition Policy First, Cha-Cha Later – Sen. Bam

Pass the Fair Competition Act first before changing the economic provisions of the 1987 Constitution.

Senator Bam Aquino made this pronouncement, emphasizing that a competition law will provide Filipino businesses with the needed protection if economic provisions of the Charter are relaxed.

“We need to pass the competition law first. If you’re opening up the economic provisions of the Constitution at wala kang competition policy, then we’re opening up a lot of uncertainty,” Aquino said in a television interview.

“You’re opening up the gate pero hindi mo alam na ang papasok diyan will act fairly with the rest of the people in the house,” added Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

The senator stressed that amending the economic provisions of the 1987 Constitution is needed to entice foreign direct investments and push the country to the next level of development.

Aquino recently sponsored Senate Bill No. 2282 or the Fair Competition Act of 2014. Senate Bill No. 2282 is a consolidation of several measures, including Aquino’s Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013.

Aquino said the passage of the Fair Competition Act is long overdue because the Philippines is one of the few remaining countries without a competition policy that will protect consumers and businesses, whether big or small.

 Aside from this, the passage of a strong competition policy is crucial with the 2015 ASEAN Economic Integration fast approaching.

 

Fair Competition Act to Eliminate Cartels, Monopolies – Sen. Bam

The passage of the Fair Competition Act into law will eliminate monopolies, cartels and other unfair business practices that lead to high prices of goods and services.

Senator Bam Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, made this pronouncement during his sponsorship speech for Senate Bill No. 2282 or the Fair Competition Act of 2014.

“If this bill will be enacted into law, rice cartels that caused the sudden rice of prices will cease to exist,” the senator said, adding that President Aquino himself called for the elimination of this illegal practice to drive down prices of goods and other products.

Aquino said the bill safeguards the welfare of businesses, large and small, and protects honest, hard-working entrepreneurs against abuse of dominance and position, and other unfair practices that put both Filipino businesses and their consumers at risk.

“The Fair Competition Act, moreover, promotes a culture of healthy competition that inspires ingenuity, creativity, and innovation in addressing market needs,” added Aquino, whose Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013 was among the measures consolidated under Senate Bill No. 2282.

In his speech, Aquino said the Fair Competition Act of 2014 will, among other things, promote and enhance economic efficiency and competition and ensure that industrial concentration would not limit economic power to a few.

“It will also prohibit anti-competitive agreements and abuses of dominant position that distort, manipulate, or constrict the operations of markets in the Philippines,” the senator stressed.

Aquino added that the push for inclusive growth would be much easier with a help of a competition policy that gives entrepreneurs and small businesses the capability to compete against big businesses.

“I’m hoping this competition policy, if passed, can support our micro, small and medium enterprises, let them grow into larger enterprises and provide more jobs to our countrymen,” Aquino emphasized.

At the same time, Aquino allayed fears that big businesses with high market share will be affected by the competition policy.

“This is not against companies that have high market share. It’s against companies with high market share and who are using that position to abuse their powers or abuse smaller players in the market,” he explained.

The Philippines is one of few developing countries that do not have a valid competition policy.

In the past two decades, Congress tackled several competition bills but lawmakers failed to find common ground on key provisions, hampering their passage into law.

“The Fair Competition Act is both pro-poor and pro-business.”

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