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Filipinos nowadays are beset by two major aggravations
in their day-to-day lives—intolerably high rice prices
and unconscionably steep power rates. As they try to
wrest free from, or at least loosen, the choking grip of
these twin problems, they also somehow are aware that
only the government can help them.
Fortunately, there are signs the administration is at
last on the move, apparently determined to solve these
two major problems.
On rice,
its decision to henceforth invest more heavily in
agriculture is a big unprecedented step. The decision
was announced by President Arroyo at the conclusion of
the National Food Summit held at the Fontana Convention
Center in the Clark Economic Zone last week. For this
year, an additional P47 billion to P55 billion would be
spent by the government for a food-security package
intended to reduce the country’s dependence on imported
food grains, especially rice.
At least
P6 billion of that amount would be poured into the
rehabilitation of the country’s irrigation facilities.
Big and
bolder initiatives are also in the works, all aimed at
raising agricultural production and diminishing the
ranks of the dirt poor in the countryside.
But a
farmer-miller reader from Negros Island is skeptical. He
wrote to say reforming the corrupted rice industry would
be a tall order. Excerpts from that letter:
“I am a
rice farmer and rice-mill operator here in Bago City,
Negros Occidental. I’m afraid all this government noise
about empowering the Filipino farmer is pure rubbish. It
is the government’s lack of foresight and integrity that
brought about the mess we are in because, as you have
said, the government preferred to import rice instead of
doing what it was supposed to do—try to improve our
rice-production methods.
“The
ugly reality is that most of them are in cahoots with
unscrupulous rice traders. Many years back, the rice
supply was just fine. Then the El Nino [phenomenon]
struck. The drought brought down harvests and drove rice
prices sky-high, resulting in heavy imports. . . . But
after that, the traders and government officials would
somehow make up a silly story that rice volumes were low
and that more imports were needed.
“Now the
direct effect of that is local rice prices would fall to
ridiculously low levels since imported rice from
Thailand and Vietnam is very cheap because of government
subsidies of around P600-P700 landed. Result—farmers had
to sell their produce at a great loss, just to be able
to feed themselves. Traders took advantage of the very
low prices by buying up all the cheap rice and keeping
them in their warehouses and waiting for the next slump
in supply.
“Meanwhile, the farmers who are not making any money are
forced to skimp on much-needed inputs such as
fertilizers, etc. and get ever lower harvests. Hence,
the periodic shortages that are getting bigger and
bigger as the cycle is repeated. . . . Compounding the
problem is the smuggling of rice, which is mixed with
local produce. What is hard to understand is, how the
hell could an entire barge carrying thousands of bags of
imported rice slip through the ports without the
government authorities noticing it? Are they blind?
“Another
area the government dismally failed to give is credit
and infrastructure support. I myself tried to get a loan
from the Land Bank last year for postharvest
improvements, but until now no money has been released
because of ridiculous red tape in that bank. Support is
invisible in the countryside. The only way most farmers
can plant their palay is if they get the loans from the
bombay or loan sharks, and we all know where this is going. Farmers
simply cannot compete with imported or smuggled rice,
which is worsening the cycle.”—Concerned Struggling
Farmer
On power
rates, an insider in the Energy Regulatory Board (ERB)
wrote to say that things may, at last, be looking up for
electricity consumers in the country. This insider says
the Arroyo administration is trying to make sure the ERB
would start to function as mandated by law—as a genuine
watchdog of the consuming public’s interest. The key to
electric-power consumer protection is the ERB, and
here’s what’s happening in this insider’s own words:
“The
impending retirement of incumbent ERB Chairman Rodolfo
Albano Jr. in July this year has triggered a power
struggle of sorts as to who should replace him. Filling
up any board seat that may be vacated is also a
contentious question.
“Predictably, the Lopez group, which has a major stake
in the power sector in the country, would want to see
one of its own appointed to the key post, or at least
one who would be as cooperative as
Albano has been all these years. Former Lanao Rep. Alipio Badelles
Jr. has long been mentioned as a possible substitute.
Badelles was helpful to the Lopez group as a member of
the Joint Congressional Power Committee, which is the
other powerful institution in the power sector that
supposedly oversees the operations of the ERB. But
Badelles is not a lawyer, which is a requirement in the
ERB charter. As I write this, several influential
senators and congressmen are independently urging
Malacañang to appoint any of four possible appointees to
the ERB chairmanship. All four are on the Lopez group’s
shortlist.
“But
apparently, President Arroyo is a step ahead of the
Lopez group this time. Mrs. Arroyo had made a good
choice in appointing lawyer Fe Barin [who is now
chairman of the Securities and Exchange Commission]
during the early part of her administration. As ERB
chairman, Barin was so conscientious in her role as
chief protector of the interest of electricity consumers
that Meralco found it impossible to work with her. In
short, no Meralco rate-increase petition was approved
during her stint.
“The
pressure from the Lopez group to have her replaced
became so intense. For doing her job too well, Barin was
suddenly ‘kicked up’ to the SEC. Lawyer-politician
Manuel Sanchez of Antipolo took Barin’s place. But that
was when the political climate was still affable, when
the Lopez group and the Arroyos were friendly with each
other.
“Within
the first six months, the ERB gave in to a series of
rate-increase petitions filed by Meralco. That’s how
power rates in the country became the highest in Asia.
Sanchez, however, did not stay long and quit. He
apparently felt he was ready to run for Congress. He
ran, but lost.
“Under
Chairman Albano, former congressman representing Isabela,
power consumers did not fare well, either. Under
Albano, the 15.6-percent systems-loss charges on large residential
and commercial consumers, the 15.4- percent return on
rate base which is now being charged under the so-called
PBR or performance-based rate-setting rules, became
enshrined as part of Meralco billing charges. Nobody, to
this day, fully understands what these terms mean. The
public only knows these as additional items to be paid
as part of the monthly electric billing.
“The
apparent political rift between the Lopez group and
Malacañang bodes well for the consuming public. We are
betting that the next ERB chairman would be more
protective of the public interest.”—Concerned Meralco
Subscriber.
Omerta_bdc@yahoo.com |
