Thursday, August 26, 2004 RP will survive tough times: Arroyo
* Mass retrenchment of workers feared under fiscal crisis
MALACAÑANG believes that the country will overcome "the tough times" it faces as the government appealed to critics and legislators to stop grandstanding on the fiscal situation.
Presidential spokesman and Press Secretary Ignacio Bunye made the statement as Malacañang, appearing to calm down both the financial sector and the public, now refers to the fiscal crisis as "tough times" that the Philippines must face.
The admission of Arroyo Tuesday that the Philippines is under a fiscal crisis has resulted in jitters in the stock market and a drop in the value of the peso since Monday.
But with the fiscal crisis, companies may have to resort to mass retrenchments in order to survive, according to a Chinese-Filipino businessman.
Bunye stressed that the President does not need any emergency power or special power to handle the fiscal situation.
He added that the "fiscal crisis" is a mere technical term, which the economic managers had already fully explained.
"The situation is extraordinary and this calls for extraordinary solutions and we hope that the parties concerned, the legislature, all the other agencies of government as well as the local government units would share, contribute to the solution of the problem," he said.
He however failed to elaborate on what "extraordinary solutions" are needed but claimed that it does not include any emergency powers or special powers as suggested by Sen. Rodolfo Biazon or an economic Martial Law as claimed by Sen. Joker Arroyo.
"We're facing tough times. Definitely, that's the situation and these tough times require sacrifice on the part of everybody. We're saying that we need tough solutions to these extraordinary problems (but) we don't think that that's (special powers) called for. We believe that the President has sufficient powers to deal with the situation and that's what we were doing," Bunye said.
Budget Secretary Emilia Boncodin said while they don't believe any emergency powers is needed by the President, they would welcome it if it would mean expediting the passage of the needed revenue bills and the rationalization of the government bureaucracy.
Bunye said the government needs public understanding and support and any "efforts to paint ulterior motives on the government are uncalled for."
"We should avoid grandstanding on the truth. The candor of the President is a means to invite enlightened debate, not unreasonable labeling. Our situation calls for extraordinary solutions that must be equitably shared across sectors and institutions," he added.
Arroyo lauded legislators and barangay officials who responded positively to her call for belt-tightening, adding that their offer is a "gesture of patriotism and statesmanship" that would inspire the public to exercise austerity measures.
"We are facing tough times but this crisis can never put down the spirit of the Filipino. The government will lead the way in terms of restraint as well as in service. But this is a two-way street in which our combined sacrifices should meet and carry us through. The Filipino can do it if we think as one nation and one people," she said.
At least nine senators promptly agreed to give up 50 percent of their Priority Development Assistance Funds (Pdaf) as their contribution to the government's efforts to address the fiscal crisis.
Some barangay leaders also proposed a freeze on their Internal Revenue Allotments (IRA) at present levels, which means there would be no increase this year in the IRA for local government units (LGUs) if the proposal were adopted.
As to the proposed cut-off of the IRA, Bunye said this is not yet final as it is still being studied by the economic managers.
While the IRA is automatically appropriated, under the law, the President may reduce the amount if the economic managers declare a state of unmanageable deficit and after consultation with local officials.
Meanwhile, Robin Sy, president of the Filipino-Chinese Chamber of Commerce and Industry Inc. (FCCCII), said mass retrenchment would be the last resort of companies as the country experiences a financial crisis.
Sy said while there had been strong competition as a result of trade liberalization, the business community still believes that the fiscal crisis could be addressed through other means.
"There are other measures to solve the problem and retrenchment is not one of them because high unemployment is a much worst problem than the fiscal crisis," Sy told reporters during the celebration of the 50th anniversary of the FFCCCII.
Sy said if the unemployment problem would be resolved, the poverty problem and fiscal crisis would also be addressed.
Sy is optimistic that the fiscal crisis would be resolved but the business community and all Filipinos should help the government address the problem.
Benjamin Co, chairman of the industrial relations committee of the FFCCCII, said the fiscal crisis "is not that too much alarming" since the problem had been the problem not only of the Arroyo administration but also of previous administrations.
It is only this time that the problem was given more focus, Co added.
He said solving the fiscal crisis would all depend on how the government would respond to the problem and the drastic solutions it intends to implement to address the matter.
Co also said abolishing government offices, while it may be good at first glance, will contribute to the unemployment problem.
Based on the latest National Statistics Office-Labor Force Survey, the country's unemployment rate is at 13.7 percent or 1.7 percent higher than the 12 percent unemployment rate recorded in April 2003.
Meanwhile, at the two-day employers summit at the Philippine Trade Training Center (PTTC), the Employers Confederation of the Philippines (Ecop) adopted measures to prevent the displacement of workers.
Leaders of Ecop came up with alternatives on job creation and that displacement of workers would be their last recourse.
"We shall preserve jobs in the face of economic challenges by adopting adjustment measures with minimal labor displacement and retrenchment as a last resort," the Ecop said.
And to help government in its goal to create six to 10 million jobs in the next six years, the FFCCCII will hold a job fair on September 3 with big companies participating in the event. JMR/Marie Neri
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