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Friday, January 26, 2007

 

BIG DEAL
By Dan Mariano
Pay hike bill, too good to be true


As of this writing, Sen. Jinggoy Estrada was reported to have backed away from sponsoring a bill seeking a nationwide, across-the-board P125 raise in daily wages. He was supposed to have done so last Monday as Congress resumed its regular session.

As the saying goes, if it’s too good to be true, it probably is.

For several years now, unions have campaigned for a comprehensive hike in floor pay, which Congress last granted in 1989. They kept their fingers crossed that during this election year lawmakers would be more accommodating of organized labor’s proposal for a P125 raise.

Unions’ campaign hurt

Now it turns out that the unions’ campaign toward a living wage has become a victim of the very same politics that they had hoped would boost their cause.

Estrada balked after Cavite Rep. Crispin Remulla moved to recall the bill that the House of Representatives had passed last month. Remulla claimed that he merely wants to “correct potential legal infirmities” before it reaches the bicameral conference committee.

At the Senate, Estrada said he would prefer to sponsor his own wage-hike measure when the House is through rectifying its own version of the bill.

Estrada had previously said that the pro-administration House passed the pay-hike bill in order to score points at the oppositionist Senate’s expense.

“I think it was blackmail on the part of the House,” Estrada was quoted saying. “If we in the Senate do not act on this, the congressmen would point again to the Senate and say that the Senate is not doing anything, or that the Senate does not want to pass the measure.”

‘Bait and switch’

Estrada called it “blackmail,” but he probably meant “bait and switch.” He said that when the congressmen passed the pay-hike bill they knew “fully well that our economy will collapse.”

If Estrada really believed—like his House counterparts—that the P125 raise would be disastrous to the economy, why did he announce that he would support it in the Senate?

All that Estrada wanted to do, it now turns out, was to put President Arroyo—who would be expected to veto the bill—on the spot.

Estrada and the congressmen were merely playing political basketball, dribbling the pay-hike bill like the proverbial leather on the court made up of the hopes of millions of Filipino workers for decent wages.

Foul!

Yap’s rosy forecasts

Following the release of official data showing that Philippine agriculture expanded by 3.88 percent in 2006, some analysts were quick to describe it as a “lower-than-expected” growth rate for the farm sector, which accounts for a fifth of the country’s gross domestic product.

What the analysts missed, according to officials of the Department of Agriculture, was the bigger picture. The DA had targeted agricultural growth to reach 4 percent in 2006 and the 3.88-percent expansion just narrowly missed the target. Moreover, the 2006 figure was a lot higher than the 2005 level of 2.31 percent.

Previously the farming sector grew 5.23 percent in 2004, 3.51 percent in 2003, 3.81 percent in 2002 and 4.46 percent in 2001.

Data showed that before the Philippines was ravaged by a series of typhoons in the latter part of 2006 agricultural growth targets were on track, with first quarter figures at 3.91 percent, the second quarter posting a high of 6.6 percent and the third quarter at 4.22 percent.

Spoiler typhoons

The strong performance of the agriculture sector in the first three quarters of 2006 was a result in large part of the DA’s stepped-up implementation of programs that boosted yield. From September to December, however, typhoons ravaged large swaths of the archipelago. Result: the farming’s fourth quarter growth slid to 1.64 percent.

Officials said that damage to farmlands was minimal due to early planting, which the DA encouraged. In contrast, the fisheries subsector was badly hit—still it emerged the top gainer last year.

Fisheries posted a solid 4.93 percent in the first quarter and an even better 11.24 percent in the second. Growth in subsequent quarters sagged to 5.77 percent and 3.48 percent due to “extreme weather events,” which damaged fish pens.

Rising fuel prices also curtailed commercial fishing, officials added.

Still, DA Secretary Arthur Yap told newsmen recently that the agriculture sector faces a “brighter scenario” this year.

Raising rural incomes

He said the DA will intensify its bid to boost farm and fisheries production and raise rural incomes. Yap expects agriculture to expand by 4 percent to 5 percent in 2007 and even 7 percent to 8 percent in 2008.

Yap anchored his upbeat forecasts for 2007 and 2008 on government plans to raise public spending on rural infrastructure—including, irrigation and postharvest facilities—and seed technology to further boost farm yields and minimize crop wastage due to inadequate storage facilities.

In addition, Yap cited a flurry of foreign investments in the sector, topped by 19 projects funded by Chinese investors, which the media reckoned to total about P240 billion.

“We can say that 2007 is an investment year for the agriculture sector,” Yap said. “We would be expecting an array of investments in this sector and the government itself, through the DA, would be pouring more money in hard infrastructure this year.”

   
 

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