Tuesday, September 26, 2006 Severino: Bredco, this time with feelings By Gil Alfredo Severino Think Economics
I AM a student of Free Market Economics therefore anything that sounds like “takeover” is anathema. Any business endeavors therefore, be it public or private, will be evaluated using market forces as paradigms.
Hardcore Mainland China and Russia are enough proofs that a government planned economy is vulnerable to inefficiency and mismanagement. And so, the early morning of Wednesday, September 20, 2006, senior mentor Aksyon Fred Salanga’s running commentary on the Bredco comeback stimulated my thoughts to reminisce things that countered my ideation. Seeing the SP Special Committee Report of September 20, 2006, however, I need to commend the minority Special Committee of Proponents for putting the Bredco Port issue to fore and this time with feelings.
At one point, I did my very best to be objective in my pronouncements by simply asking for technical studies on both sides and urged SPM Lyndon Caña to be mindful of the Bacolod inland rivers and ensure sufficient supply of potable water for the City. Being the Chairman of the SP Committee on Environment and to “rant and rave” over Bredco is a little off-tangent.
Meanwhile, I confess difficulty tracking SPM Elmer Sy being the Chairman of the SP Committee on Infrastructures; perhaps I have not read much or heard over the radio with regards to his position, a port like the Bredco port being a basic infrastructure need of the City. We need expressions from SPM Elmer Sy.
The silence of Vice-Mayor Renecito Novero is deafening; the pretext of proximity and affinity is not a liability but a contribution being the better representative of Bredco. Their side must be heard in the free market of ideas.
Now, Free Market Economics is most viable in an environment where government regulation and intervention are in place and functional. Contrary to beliefs that the market operates under “the invisible hand” better handled by private entities rather than overt legalities and its agencies is a misconception.
Markets are in its optimal when operating within the law and governed by men and women of the law with aspirations to transform private entities to a resounding success, sanctions included. Government must take exception and intervene when proven beyond doubt that private invisible hands are consciously or unconsciously working against the greater good represented by the law.
Extending the Bredco Port issue to a bigger hearing is a good start, but it is a mere start. Reading through the Report, violations, on whose side it was committed is hazily seen and is not consensual, yet a legal position was clearly stated. Statements on matters of finance must undergo reliability tests. Intervention is not bad, but it means extending benefits beyond private usages and the City Government has the responsibility to prudently allocate scarce resources among players where business is but one component; benefits mean counting the cost. Proving private violations is insufficient without the corresponding cost, i.e. what is the cost outlay for the City in running a port after deciding to build a Government Center on the strength of a loan and planning to invest in a Triple A slaughterhouse in an arrangement with another private entity? Initiating a “good start” does not translate to competence.
Harnessing PPA for training is not competence building. It must start with the negotiating team in the first place and they are not covered by PPA training.
The Special Committee Proponents finally stood for “decisive move” in the title transfer to the City. I believe that exploring mediation and arbitration to the farthest extent, approached with psycho-intellectual know-how, is equally decisive.
This was a suggestion, too. Do things with feelings, this the point.
For questions and comments, please email gil_severino@yahoo.com
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