Malacanang expressed confidence today that with peace seemingly at hand in Mindanao, development in the southern part of the country is expected to accelerate.

Press Secretary Ignacio R. Bunye said in a radio interview this morning that hand in hand with the possible signing of a peace agreement with the Moro Islamic Liberation Front (MILF) early next year is the expected development assistance from member countries of the Organization of Islamic Conference, the United States and other multinational organizations.

"These countries are ready to lend a helping hand in the development of Mindanao," he said.

Bunye was reacting to published reports quoting government peace panel chairman Silvestre Afable as expressing optimism that a final peace agreement with the separatist MILF could finally be signed in the first quarter of 2006.

The peace talks, according to Afable, are nearing the final stages.

Several Arab countries and organizations like the OIC, including Libya and Saudi Arabia, strongly support the peace talks.

US President George Bush has reportedly offered as much as $30 million in financial assistance to help develop Mindanao the moment the MILF seals a peace accord with the Arroyo government. The money would be used to help the rebels integrate to the community.

MILF chieftain Murad Ebrahim has said that his group is sincerely pursuing peace in Mindanao.

Bunye also said in the interview that next year could be the turning point as far as the country’s economy is concerned as he cited the positive signs despite the ongoing political crisis.

"The inward remittance of our overseas Filipino workers is one of the reasons why the peso continues to gain strength," he said in the vernacular.

The effect of that, he said, is lower import costs particularly in energy.

"That’s why we see the economy finally taking off next year," he said.

President Arroyo, in her speech at the submission in Malacanang yesterday of the Consultative Commission’s report on the proposed revision of the 1987 Constitution, said the government can afford to give a P5,000 bonus to state workers and proposed a tax exemption for minimum wage earners because its budget shortfall as of November was P37 billion below ceiling.

President Gloria Macapagal-Arroyo is expected to announce anytime this coming week the package of non-wage benefits Malacanang is crafting for both state and private workers as recommended by the Department of Labor.

Press Secretary Ignacio R. Bunye said in a radio interview this morning the non-wage benefits would be a welcome news for laborers and minimum wage earners.

" I think the President will announce it this week as discussed with the Labor department and other concerned agencies like the Departments of Finance, Trade and Energy," he said in the vernacular.

Among the proposals which Executive Secretary Eduardo Ermita had earlier hoped would be announced before Christmas are the exemption of minimum wage earners from paying income tax and a concessional loan from the Development Bank of the Philippines for the purchase of buses for the use of employes.

The DOF had earlier said it plans to exempt from paying income tax low-paid government workers like drivers, messengers, clerks and utility workers.

The plan originally included only minimum wage earners from the private and public sectors.

There are about 2.8 million minimum wage earners or those earning P325 per day.

President Arroyo had earlier said the government can afford to give a P5,000 bonus for state workers and propose a tax exemption for minimum wage earners because its budget deficit as of November was P37 billion below ceiling.

Bunye expressed the hope that the national budget would be passed as soon as possible so that the government workers could readily benefit from it.

Malacanang said today the recommendations submitted by the Consultative Commission (ConCom) on the proposed revisions of the 1987 Constitution will still be subject of deliberations by Congress before these are finally submitted for approval by the people.

In separate radio interviews this morning, Press Secretary Ignacio R. Bunye noted that what is important is the ConCom has prepared a framework for discussion which will be studied, scrutinized and debated upon by both Houses of Congress before it is presented to the Filipino voters in a plebiscite.

Bunye said Malacanang expects many debates on the proposed provisions and public approval of the ConCom’s recommendations still entails a long process. Among such recommendations are those dealing on the form of government, transitory and economic provisions.

"It is not final, those are not the final provisions of the proposed Constitution," Bunye said.

He stressed that the independent studies made by the ConCom members had also been scrutinized by the different sectors of society during more than two months of nationwide consultations.

"Let’s keep an open mind on all these proposals," Bunye said, adding that Congress has the final say if the Concom recommendations to amend the 1987 Constitution would be adopted and presented to the people in a plebiscite.

The ConCom report on constitutional reforms was presented to President Gloria Macapagal-Arroyo in Malacanang yesterday.

In accepting the report, the Chief Executive commended the patriotism and dedication of the ConCom members whom she bestowed the Presidential Merit Medal "for crafting this framework of change."