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Sunday, September 11, 2005
Rising fuel costs threaten fishing industry
ALREADY "bleeding" from the drastic decline in tuna catches in the Asian and Pacific waters over the last three months and the increasing fuel prices, tuna industry leaders are facing a potential "triple whammy" with the Supreme Court's declaration on Thursday that the expanded value-added tax (VAT) law is constitutional.
Marfenio Tan, President of the Soccsksargen Federation of Fishing Association and Allied Industries Inc. (SFFAAII), said the High Court's decision would ultimately set off unprecedented increases in fuel prices over the next weeks and eventually bloat the already rising operating costs of fish producers.
"That (increasing fuel prices) is actually our number one problem right now. Unless we find some alternative solutions, the tuna industry would be in peril," Tan told reporters.
He said such concerned would be among the issues that would be tackled by tuna industry stakeholders in the two-day 7th National Tuna Congress held last week.
Tan pointed out that diesel fuel and petroleum-based lubricants presently eat up around 40 to 60 percent of the cost per trip of a 1,000-ton tuna purse seine fishing vessel.
He said that at an average, a four-day tuna fishing expedition could use up about 10,000 to 15,000 liters of diesel fuel or equivalent to a maximum of P465,000 at P31 per liter.
Tan said the expenses for a regular fishing trip of a local fishing vessel reach around US$600 to US$700 per metric ton.
"It now takes three to four days for our fishing boats to get a substantial catch because of the decline in resources in fishing areas region-wide. This means higher expenses and lower profit margins," he said.
Tan said the tuna catches of local fishing vessels started to dip after the Asian tsunami last December. Over the last three months, the catches reportedly declined by 20 to 30 percent.
He said tuna fishing fleets in Asia and the Pacific and even in the United States feels such situation.
Tan urged the national government to hold the implementation of the E-VAT law and set up measures that would stop any further increases in oil prices in the country.
The expanded VAT ends tax exemptions on the sale of electricity and oil products; coal, natural gas and indigenous fuels; cotton, cotton seeds and non-food agricultural products; domestic air and sea transport; medical and legal services; works of art and literary works.
Before the Supreme Court issued a temporary restraining order (TRO) hours after the expanded VAT law was first implemented two months ago, fuel prices immediately increased by an average of P3 per liter.
The TRO will extend to 15 more days to allow opponents of the new tax law to lodge an appeal regarding the new ruling.
Tan said the local tuna industry has yet to make an official stand regarding the expanded VAT but most of them agree that the implementation of the tax law should be delayed until their current woes would be solved.
"If possible, our government should consider giving us some subsidy. Before, we were given a P1 subsidy per liter on diesel but it had since been scrapped," he said. (Allen V. Estabillo)
(September 5, 2005 issue)
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