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Thursday, July 01, 2004
Traders on Gloria plan: Hard work, debt ahead
LOCAL businessmen lauded President Arroyo for her 10-point program for the next six years, including the item on decentralization, but warned there will be hard work ahead to achieve it, and perhaps, also more debt.
“The President’s 10-point agenda is very good. But again the success of these plans depends on the implementation,” said Carlos Co, former president of the Cebu Chamber of Commerce and Industry (CCCI).
In a pre-inaugural speech yesterday, Arroyo vowed to create six to 10 million jobs, triple loans to small entrepreneurs, bring electricity and water all over the country, and send every Filipino child to school. She also promised to balance the budget, forge peace with rebel groups and decentralize development.
CCCI president Robert Go said Arroyo delivered a very powerful statement when she called on Filipino businessmen who have businesses outside the country to bring back their investments to help create more jobs for the Filipinos.
“This is a doable plan provided the government will also do its part of creating a healthy business environment for these investments,” he said.
According to Go, this means providing power at a low cost, limiting wage increases as the country already has a high labor cost, developing the needed infrastructure and bringing down the overall cost of doing business.
“Her plan of reconciling with the other political parties is also a good point in restoring confidence in the country,” he said.
Decentralize
Filomeno Lim, president of the Cebu Filipino-Chinese Chamber of Commerce, welcomed Arroyo’s plans to decentralize development, saying growth should not be concentrated in just one area.
“Where there is a possibility of raw materials, government should support it so investors will go there,” he told Sun.Star.
Allan Suarez, president of the Confederation of Philippine Exporters Foundation (Cebu) Inc., added: “We fully support decentralization because bureaucracy is always in Manila. They (government) should go where the action is.”
Philippine Chamber of Commerce and Industry regional governor Jose Ng was optimistic that if all the other provinces in the country develop, this will also aid in Cebu’s economic development.
However, Edwin Salazar, president of the Cebu Contractors Association, said only seven of the 10 Arroyo points were realistic.
He was doubtful about her ability to automate the elections, close the wounds of the Edsa 1, 2 and 3 protests, and make lasting peace with rebel groups, saying Moro National Liberation Front leader Nur Misuari had been given “millions” of pesos during the Ramos administration, but the rebellion continues.
The Marcos wealth issue drags on, and ousted former president Joseph Estrada and his son, Sen. Jinggoy Estrada have said they will “never recognize Gloria as president.”
Upgrade
Lim expressed concern about how Arroyo intends to fund her programs, which include upgrading the educational system and transport infrastructure.
“When we talk of upgrade, she will need a lot of money. And our government position is very difficult. We have a big budget deficit,” he said.
The Philippines ended 2003 with a budget deficit of P199.9 billion. The target deficit ceiling this year is P197.8 billion.
Philexport’s Suarez also said balancing the budget would be “very difficult to do” with more than half of the budget going toward the payment of debt.
And some of these debts are for white elephants like the nuclear plant in Bataan.
Built in 1976, the structure has never produced power. But Filipinos today are still paying P8.68 million a day in interest because Cory Aquino banned the use of nuclear power and enshrined it in the constitution. Debt repayment on the plant is the country’s biggest single obligation, AFP reports.
Suarez called Arroyo’s plans to make water, power and education widely available “motherhood statements,” saying the government did not have the money and will probably have to borrow money for these, sinking further into the debt trap.
He said it was all right to borrow so long as the proceeds went toward projects that maximized returns or could pay for themselves.
The contractors group’s Salazar also warned that electricity for all might not be as desirable as it sounds.
He said the National Power Corp. was now seeking to increase power rates as a means to pay its debts.
But higher power prices will also increase the costs of production, which will lead to higher commodity prices, he said.
On taxes, the CCCI’s Go urged Arroyo to curb corruption to encourage the people to pay their taxes. CTL/JBN
(July 1, 2004 issue)
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