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    Booster shot for agriculture

    Trust the usual skeptics to sneer at government efforts to stave off a food crisis, the most recent one the unveiling of a P43.7-billion package for agriculture at the recent National Food Summit.

    While it may be true that the raft of interventions amounting to billions should have been done long ago as part of a coherent strategy to attain food self-sufficiency and food security, the infusion of much-needed funds in agriculture at this time will no doubt stimulate the farming and fisheries sectors, and allow the country to be shielded from the adverse effects of a global food crisis.

    Bear in mind that the looming food crisis is global in scope. We have climate change, burgeoning population growth, sky-high oil prices and the growing trend toward biofuels use as the main reasons we face the dire prospect of scarcer and more expensive food looming in the horizon.

    The Fields program unveiled last week spans a wide range of agricultural concerns: fertilizers, irrigation, education and training, loans, dryers and other postharvest facilities and seeds. With billions allotted for each category, certainly the unscrupulous will find ways to divert public funds to private pockets. That’s why the creation of an Ombudsman for agriculture is a step in the right direction.

    Banks look askance at farmers applying for loans because they have nothing to show except the land they till. Thus, the President’s recommendation to Congress to pass a new law allowing farmers to use their land as collateral for bank loans is another step forward for the rural sector.

    Between now and 2010, farmers can avail themselves of a total of P20 billion in credit.

    The multipronged Fields program to be handled by the Department of Agriculture, we’re told, has gotten the nod of major stakeholders, including the Philippine Chamber of Commerce and Industry, as well as the food processors and exporters, corn producers, broiler integrators, commercial fishers and vegetable growers. It’s not only local  business that’s gung-ho about the program, even the UN World Food Program, we’re informed, has rendered the verdict that since the Philippines grows 85 percent of its food needs and can very well import the remainder, it is on  the right track in preventing a food crisis. 

    Another anomaly  

    If your electric bill reflects a higher generation charge and you cough up more of your hard-earned money to keep the lights on in your house every month, blame the state-run National Power Corp. (Napocor) for your woes.

    Napocor recently awarded a contract worth more than P320 million for three panamax shipments of coal for its Pagbilao power plant to an Indonesian firm, PT Marsitero Marloan Prakarsa, which is represented here by Transpacific Consolidated Resources Inc. (TCRI). On the surface, there’s nothing wrong with the deal: Napocor wants coal, bidding takes place, and a supplier wins the contract. But wait.  It turns out that TCRI was registered only on October 25, 2007, and that it had an authorized capital stock of only P1 million, P250,000 of which had been subscribed, and only P62,500 had been actually paid up. Apart from this, TCRI was found to be registered in the outskirts of Cebu province but managed to conduct business in Metro Manila. It gave as its address a teeny-weeny business center in a budget hotel in Quezon City.  

    So the question is: Why did Napocor award a multimillion-peso contract to a company that is undercapitalized and with no track record whatsoever in coal procurement? TCRI’s registration papers say it will “engage in the supply and procurement of coal, oil products and other indigenous natural resources in the Asian and European market.” But if TCRI is merely a coal trader or a middleman in coal procurement, why did Napocor conclude a deal with the firm when it can do so directly with coal manufacturers to obtain much lower prices?

    Will Napocor please clear up this matter, since it involves the public interest?

    Mining firms and CSR

    Environment Secretary Lito Atienza is right:  mining companies should improve their community-engagement and-development programs for their operations to be sustainable.

    “Mining companies must consult and engage their host communities in charting the social-development program they have for them. As the mine advances, the people within and around it must also grow and develop individually and as a community. This is the intention of the social provisions of our mining laws and policies, and this is the way to go for all mines,” Atienza said.

    As I see it, if the government wants mining to be a major contributor to the economy, mining firms both local and foreign ought to be more fully aware of their social responsibility. This requires not only dialogue and consultation with host communities, but also putting up development projects, such as school rooms and health centers, that respond to the real needs of the people. We should not countenance the get-rich-quick schemes of mining firms that want only to extract maximum profit and do nothing to address environmental, health and social-acceptability concerns. This is what’s responsible mining is all about.  

    E-mail: ernhil@yahoo.com

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