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17 JANUARY 2007
bulet-arow.gif (856 bytes) Statement of Secretary Ignacio R. Bunye Re: Heritage Foundation
bulet-arow.gif (856 bytes) PGMA signs into law Biofuels Act of 2006
bulet-arow.gif (856 bytes) DFA says Davide appointment legal, constitutional
bulet-arow.gif (856 bytes) PGMA moves to implement ASEAN accords
bulet-arow.gif (856 bytes) RP-Sino agreements to benefit RP economy, fuel growth, says PGMA
bulet-arow.gif (856 bytes) PGMA reappoints Laguardia as MTRCB Chief
bulet-arow.gif (856 bytes) PGMA sees 2007 as "boom year" for RP economy
bulet-arow.gif (856 bytes) Cimatu leaving for Lebanon to assess situation
bulet-arow.gif (856 bytes) AFP success over Abus offshoot of Balikatan -- Ermita

Statement of Secretary Ignacio R. Bunye Re: Heritage Foundation

The Heritage Foundation may have its own way of looking at it but there is actually a silver lining in the report, which states that the Philippines reaps high marks in terms of fiscal freedom at 84 percent; trade freedom, 74.8 percent, and freedom from government, 91.4 percent. 

We accept that there is much ground to cover in fighting bureaucratic corruption but we are moving forward in the administrative and judicial aspects.

The issue of economic freedom will neither set back the boom year that we have set for 2007 nor the sentiments of optimism and hope rising among the people.

We are going past the restrictive hurdles in the economy and this would have been speeded up by Charter reforms, but the direction is clear: a strong and vibrant Philippine democracy under the blessings of economic freedom and free enterprise.

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PGMA signs into law Biofuels Act of 2006

President Gloria Macapagal-Arroyo formally signed into law today Republic Act No. 9367, also known as the "Biofuels Act of 2006."

R.A. No. 9367 will promote the use of alternative transport fuels consistent with the Declaration on East Asian Energy Security ratified by the 16 heads of state of the Association of Southeast Asian Nations (ASEAN) and its dialogue partners during the just-concluded 12 ASEAN Summit in Cebu.

The President affixed her signature on the new law, along with Senate President Manuel Villar and House Speaker Jose de Venecia Jr. during the ceremonial signing held at Malacaņang’s Rizal Hall this morning.

Among the lawmakers who witnessed the signing of R.A. 9367 were Bukidnon 3rd District Rep. Juan Miguel Zubiri, principal author of the law; House Energy Committee Chairman Alipio Badelles, Senior Deputy Majority Leader Arthur Defensor and Bacolod City Rep. Monico Puentebella.

Also present were Sen. Miriam Defensor-Santiago, chairperson of the Senate Committee on Energy, Execuitve Secretary Eduardo Ermita and Energy Secretary Raphael Lotilla.

The Chief Executive actually signed R.A. 9367 last Jan. 12, the day she flew to Cebu to chair this year’s summit of the leaders of ASEAN and its dialogue partners.

The Biofuels Act of 2006 seeks to reduce dependence on imported fuels with due regard to the protection of public health, the environment and natural ecosystems consistent with the country’s sustainable economic growth that would expand opportunities for livelihood.

The Act mandates the use of biofuels as a measure to develop and utilize indigenous renewable and sustainably-sourced clean energy sources to reduce dependence on imported oil.

It also intends to mitigate toxic and greenhouse gas (GHG) emissions and increase rural employment and income.

It ensures the availability of alternative and renewable clean energy without any detriment to the natural ecosystem, biodiversity and food reserves of the country.

The Act also mandates that within two years from its effectivity, all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components of at least five percent bioethanol in the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country.

Biofuel refers to bioethanol and biodiesel and other fuels made from biomass and primarily used for motive, thermal and power generation with quality specifications in accordance with the Philippine National Standards (PNS).

Senate Energy Committee Chairperson Santiago lauded the approval of the Biofuels Act, saying the country would now have its own homegrown and renewable sources of energy as the first benefit.

She said the Philippines would realize a huge savings as statistics show that the government is spending around P280 billion on oil consumption annually.

"Definitely, we can save at least 10 percent or P28 billion a year with this Act. Our environment would become greener and cleaner since oil pollutants would be eliminated from our atmosphere. There would be more income for farmers while for the consumers, it will mean eventually lower prices, whether gasoline or diesel," she said.

Ford Group Philippines Chairman Henry T. Co also expressed full support for the mandatory use of biofuel by oil companies based in the Philippines.

"The plant (Ford Group) would definitely and directionally use that, whether in some form of alternative fuel technology. It may not be directable focus but we will use the selectable fuels because we feel it is the most appropriate technology in the country. We have a lot of resources to support ethanol production," Co said.

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DFA says Davide appointment legal, constitutional

The appointment of retired Supreme Court Chief Justice Hilario Davide Jr. as Philippine Permanent Representative to the United Nations is legal and has constitutional basis.

Acting Foreign Affairs Secretary Erlinda Basilio issued the clarification today in response to opposition claims that Davide’s appointment in place of Ambassador Lauro Baja Jr. is illegal and unconstitutional.

"The appointment of former Chief Justice Davide is legal and has a constitutional basis," Basilio stressed during the weekly press briefing of Executive Secretary Eduardo Ermita in Malacanang this afternoon.

President Gloria Macapagal-Arroyo inducted the 71-year-old Davide last Sunday at the sidelines of the East Asian Summit in Cebu.

Opposition Senator Jinggoy Estrada, however, threatened to file a complaint with the United Nations to question Davide’s appointment even without prior confirmation from the Commission on Appointments.

Estrada claimed that Davide’s oath-taking disregarded Congress and the rule of law.

Basilio said it is within the power of the President to appoint and induct a person who is qualified to a certain position.

Ermita added that Davide can occupy his new position while awaiting the confirmation from the CA.

"In the case of former Chief Justice Davide, he is being posted not in a diplomatic force, but in a mission to the UN as permanent Philippine representative. So, therefore, he can occupy the position even while awaiting the confirmation," Ermita said.

Ermita noted that at least 11 Cabinet officials continue to do their function even without any confirmation from the CA after the President has reappointed them.

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PGMA moves to implement ASEAN accords
President Gloria Macapagal-Arroyo instructed today four major government departments to implement immediately the various accords agreed upon at the just concluded 12th Association of Southeast Asian Nations (ASEAN) and East Asia (EAS) Summits held in Cebu.

These accords concern migrant workers, the ASEAN leaders' statement on the Doha development agenda, the expansion of air linkages within the Brunei-Indonesia-Malaysia-Philippines-East Asia Growth Area (BIMP-EAGA) and the aligning of "pertinent" government energy programs to allow for the active participation in pursuing the goals set forth in the ASEAN leaders' declaration on energy security.

The President issued the instructions during her speech at the Financial Executives Institute of the Philippines (FINEX) induction of officers held at the Hotel Intercontinental Manila in Makati City this afternoon.

"I am instructing the Department of Labor (and Employment) to produce the detailed Philippine position on the protection and promotion of the rights of migrant workers," the President said.

Under the Declaration on the Protection and Promotion of the Rights of the Migrant Workers, the ASEAN member countries will promote decent, humane, productive, dignified and remunerative employment for migrant workers as well as establish and implement resource development and reintegration programs for migrant workers in their countries of origin.

The President said that "the Philippine detailed position will be an input to a regional plan of action" which will help ASEAN leaders assess the implementation of the Declaration.

She also instructed Department of Trade and Industry Secretary Peter Favila "to hammer out a refurbished plan to give more force and teeth to the ASEAN leaders' statement on the Doha development agenda of the WTO (World Trade Organization) in consultation with his counterparts in the region."

The Doha talks -- so named because they were launched in the capital of Qatar -- began in 2001 but WTO Director General Pascal Lamy halted them last July because of irreconcilable divisions among the major trading nations.

The Doha talks, aimed at alleviating poverty and boosting the global economy, have been stalled primarily because of disagreements among the major trading powers on the ticklish issues of tariffs and farm subsidies.

The details of the Memorandum of Understanding (MoU) on expanding air linkages within the BIMP-EAGA, meanwhile, will be the main task of the Department of Transportation and Communications (DoTC), the President said.

She added that the expansion of air linkages within the BIMP-EAGA will greatly ease travel time between the BIMP-EAGA countries and further boost trade and tourism among them.

"You know what's important about this agreement between Brunei, Indonesia, Malaysia and the Philippines is that the East Asian Growth Area, which for us means Mindanao: we will be granting freedom rights to one another. In other words, a Philippine Airlines (flight) can travel from Brunei to Sulawesi and that will ease travel among our countries especially the regions that compose the BIMP-EAGA," the President said.

Lastly, the President directed the Department of Energy (DoE) to "dovetail all our pertinent programs with the Cebu Declaration on East Asian Energy Security so that we can participate actively in pursuing the common ends defined by the leaders."

The energy pact signed by the leaders of the 10-member ASEAN and its dialogue partners calls for a concerted region-wide effort to harness alternative sources of energy to ensure continuous energy supply for their growing economies in the face of dwindling world oil reserves.

The leaders cited the need to strengthen programs to develop renewable energy sources such as biofuels and hydropower sources since "these resources are important aspects of our national energy policies."

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RP-Sino agreements to benefit RP economy, fuel growth, says PGMA
President Gloria Macapagal-Arroyo pointed out today that the 12 agreements signed between the Philippines and China during the two-day visit of Chinese Premier Wen Jiabao will fuel the nation's economic growth and development.

In a roundtable discussion in Malacanang this afternoon, the President said she is optimistic that the agreements will bring economic, social and diplomatic benefits to the country and to the Filipino people.

Trade and Industry Secretary Peter Favila noted that. the agricultural sector would benefit most from the visit with a total of 17 contracts signed as part of the agreements.

He cited the quarantine and sanitary measures as among those that would benefit the Filipino farmers.

Agriculture Secretary Arthur Yap said that among the relevant contracts signed was the biofuel agreement where four plants will be established, including an ethanol plant.

This ethanol plant, according to the President, will help reduce fuel prices.

Finance Secretary Margarito Teves said the signing of the loan agreements between the Philippines and China further enhanced the agriculture sector and transport system.

Lito Arenas, a farmer from Manaoag, Pangasinan, acknowledged with gratitude the drying machine given him from the P20 billion agricultural modernization fund.

"Nabiyayaan po ako ng drying machine para sa pagpapatuyo ng mangga, Ma'm, bilang parte ng inyong postharvest facilities, at tinulungan din po ako sa pagbebenta ng dried mangoes. Malaki po ang naitulong ng inyong programa," Arenas said.

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PGMA reappoints Laguardia as MTRCB Chief
President Gloria Macapagal-Arroyo has reappointed Ma. Consoliza P. Laguardia as Acting Chairman of the Movie and Television Review and Classification Board (MTRCB) and named seven other officials to various government posts.

Laguardia has held the top MTRCB post since 2003.

The President also appointed Editha G. Demetria as Acting Executive Director and Eric Henry Joseph F. Mallonga as Acting Member of the board.

Named to various government positions were Maria Bernardita T. Flores as Executive Director of the National Nutrition Council, Lydia P. Fernandez as Assistant Secretary of the Department of Health;

Jeremias N. Paul, Jr. as Undersecretary of the Department of Finance; Ma. Belen V. Matibag as Deputy Executive Director of the Dangerous Drugs Board, and Pedro R. Cabuay Jr. as Presidential Assistant I, Office of the President.

The President signed their appointment papers on Jan. 4, 5 and 9 this year, respectively.

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PGMA sees 2007 as "boom year" for RP economy
President Gloria Macapagal-Arroyo said today that 2007 will be a "boom year" for the Philippine economy, marked with improved revenue collections and important infrastructure programs aimed at enticing more investment opportunities.

In her speech keynoting the Financial Executives Institute of the Philippines (FINEX) induction ceremonies held at the Hotel Intercontinental Manila in Makati City this afternoon, the President pointed out that the "social payback" of this rosy economic outlook will directly benefit the Filipino people.

"The Philippines reaps high marks in terms of fiscal freedom, trade freedom and freedom from government. We are going past the restrictive hurdles in the economy," the President said.

"And we have set 2007 as the boom year for the economy," she added.

The President noted that her landmark revenue collection measure -- the Expanded Value Added Tax (E-VAT) Law -- has surprised even a hard-nosed economist like her, with the amount of revenues it had generated.

"Collection efficiency is up. We have collected more in VAT revenues than we had projected. We did not want to be overly optimistic as to assume revenues related to our 100 percent tax collection efficiency," the President noted.

"We assumed an 80 percent tax collection efficiency in projecting revenues to match expenditures but we have surpassed that which means we have achieved more than 80 percent tax collection efficiency only in the first year of implementation when there was supposed to be so many things to iron out," she added.

The President claimed that because of this phenomenal collection achievement, even the National Power Corporation (NAPOCOR), considered as the "main culprit in our consolidated public sector deficit," was able to remit a multibillion-peso dividend to the government.

This, she pointed out, allowed the payment of debts and in the process saved the government some P37 billion in interest to debt service for 2006.

The President vowed to continue weeding out the grafters and corruptors in government saying it goes hand in hand with her E-VAT Law to bring forth change in government.

"Of course, related to the tax collection efficiency, the hunt for the corrupt will continue without letup and the US has recognized these efforts by giving us a $20-million grant to improve our revenue and anti-corruption efforts under the Millennium Challenge Account," the President said.

She called on the Filipino people to remain united to finally achieve her goal of "removing the yoke of poverty that has pinned us down for decades" and for the Philippines to join the ranks of First World nations by 2020.

"To be able to attain that we must strengthen our unity now that we are able to see palpable signs of progress," the President said.

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Cimatu leaving for Lebanon to assess situation
Ambassador Roy Cimatu, chief of the Presidential Middle East Preparedness Committee (PMEPC), will fly to Lebanon this week to ensure the safety and welfare of Filipinos who maybe caught in a sectarian conflict of violence there.

Foreign Affairs Undersecretary Esteban Conejos announced today during the weekly press briefing presided by Executive Secretary Eduardo Ermita in Malacaņang this afternoon.

Cimatu, according to Conejos, will assess the situation in Lebanon and make sure that the existing plans are upgraded to respond to any type of contingency and emergency scenarios.

He said that since the end of the conventional conflict in July, the government, especially the PMEPC, continued monitoring the political and security situation in Lebanon.

Last week, Conejos said, the PMEPC briefed Vice President Noli de Castro, the head of the Lebanon Task Force. Together, they decided to upgrade the contingency plans of the task force "to ensure that we are able to address all types of threats."

"Right now Lebanon is facing a situation where a sectarian conflict is a possibility. So we are also looking at this type of threat, not just external but internal disorder," Conejos explained.

But despite this, Conejos said, the Philippine government is not about to conduct evacuation procedures for all overseas Filipino workers (OFWs). At present, there are 20,000-23,000 Filipinos living and working in Lebanon.

In preparation for a possible escalation of civil disorder in Lebanon, Conejos said Cimatu will send a recommendation to Vice President De Castro for the final decision to evacuate all OFWs.

Among the specific instructions of the task force are to: 1) make an assessment of the political and security situation in Lebanon; 2) look into the plans to account for all Filipinos and ensure that better identification system will be implemented; 3) reactivate the Filipino communities; 3) consider the possible routes for evacuation; 4) actually check these routes; and 5) identify all resources to be used so that the government can immediately respond to any emergency situation.

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AFP success over Abus offshoot of Balikatan -- Ermita

The death of Abu Sayyaf commander Abu Sulaiman is the effective collateral result of the Balikatan military exercises between the Armed Forces of the Philippines (AFP) and the United States.

Executive Secretary Eduardo Ermita made this assessment today following the successful military operation that led to the death of Sulaiman who had a $5-million bounty on his head.

The AFP, which has been on a hot pursuit of the Abus, captured the terrorist camp in the jungles of Talipao, Sulu on Monday.

Ermita said that due to the Balikatan exercises, Filipino soldiers were given access to high-tech armaments and accurate intelligence information.

"Even our pilots were provided training and equipment like night vision goggles so that they can fly in and out of the area even at night. These are among the favorable effects of the Balikatan exercises," Ermita said.

With the death of Sulaiman, Ermita strongly believes that the Abu Sayyaf Group is now demoralized and continues to weaken because the center of their gravity had been killed.

He added that the strongest message brought by the new impressive military offensive is that the government is "succeeding in our counter-insurgency and counter-dissident operations."

During his weekly press briefing in Malacaņang, Ermita received a call from AFP Chief of Staff Gen. Hermogenes Esperon Jr. confirming published reports that Sulaiman had been killed by military troops.

"He’s (Sulaiman) now dead," Ermita said quoting the message he received from Esperon.

Sulaiman’s group is believed to be the protector of Jemaah Islamiyah bomb expert Dulmatin, who goes by one name, and Umar Patek, who are both being hunted by the AFP in Sulu.

Just last week, military troops killed Abu Sayyaf commander Binang Sali in a shootout in Patikul town, also in Sulu. Earlier this month, a key aide of Dulmatin and five ASG terrorists were also killed in a high speed shootout in the waters off Tawi-Tawi islands.

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