The BALANE Party By-Laws

THE CONSTITUTION OF

LAPIANG BAGONG LAKAS NG NUEVA ECIJA

(LAPIANG BALANE)

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P R E A M B L E

WE, who earnestly desire and envision, with the aid of Divine Providence, the emergence of the Novo Ecijano as the New Filipino in a New Philippine Republic - one that is peaceful, stable, progressive and self-reliant; where justice and the rule of law reign at all times; one that puts the people’s interest and welfare first and foremost; where the rights and duties of every citizen are recognized and accounted for; one that is founded on utmost respect for human dignity; and where national honor is the core and soul of the New Filipino - hereby organize ourselves into the Bagong Lakas Ng Nueva Ecija.

A R T I C L E 1

NAME OF THE PARTY

Section 1. The formal name of the Party shall be BAGONG LAKAS NG NUEVA ECIJA.

Section 2. The short name shall be “BALANE”.

A R T I C L E 2

PRINCIPLES AND OBJECTIVES

Section 1. The Party adopts and adheres to the following guiding principles for the establishment of a Philippine society committed to freedom and democracy and to the improvement of the quality of life of all Filipinos, especially the poor and disadvantaged:

(1) PEACE - Peace as an end and peaceful means to achieve the objectives of the Party. This shall also mean freedom from violence and the use of active non-violence to achieve the objectives of the Party.

(2) PROGRESS - Progress not only for individuals but for the masses as a whole. This shall also mean provisions for opportunities to better oneself in accordance with our democratic environment but in tandem with the social justice principle.

(3) JUSTICE - Giving to each one his due. This also presupposes accountability for public officers and duty to country for every citizen.

(4) HONOR - National honor and dignity as the highest principle. This transcends politics, economics or even personal honor. This also means self-worth, self-respect, integrity and dignity.

Section 2. The Party, believing that the most basic human need is food without which survival is impossible, ensures food security for the Filipinos.

Section 3. The Party, underscoring the need for free marketplaces of ideas, adopts a policy of free college education in state universities and colleges.

Section 4. The Party adheres to the following programs of governance:

- Subsidized housing and/or mass housing with “Balik-Probinsya” and commercial tree plantation as components;

- Urban land reform and renewal;

- Entrepreneurship projects in all subdivisions, instrumentalities, branches and agencies of government;

- Transactional transparency and accountability programs for all public officers in all subdivisions, instrumentalities, branches or agencies of government;

- Negotiation, arbitration, mediation, and amicable settlement as the principal method/means of conflict resolution;

- Moratorium and/or restructuring of foreign and domestic debts;

- Investment and employment programs with the public and private sectors as lead agents of stability and change;

- Effective and accountable corporate governance in the national and local governments;

- Maximum utilization of time (Maxitime) and all available natural resources within the context of a rational and comprehensive pro-environment program;

- A national, consensual population management program;

- Medical and social custody as new concepts in the containment of drugs, health, or domestic violence problems;

- Provision for a comprehensive OFW program;

- Total gun ban policy;

- Provision for a national sports program;

- Barangay development as the core, focus and model of national development;

- Provision for a networking system between private and public, domestic or foreign employers and colleges or universities to ensure employment of students after graduation;

- Rationalization of wage, interest, and price policies to spur consumer spending, raise taxes and over-all economic growth;

- Provision for energy and technology security;

- Priority for mass transport and research and development or personal transporters;

- Total ban on the sex and illegal drugs industry;

- Provision for individual health and educational services;

- Electoral reforms

A R T I C L E 3

MEMBERSHIP

Section 1. It shall be understood that membership in the Lapiang Balane shall be both a privilege and a responsibility.

Section 2. Any Filipino can apply for Party membership provided that he is at least fifteen (15) years of age and adheres without reservation whatsoever to Party ideology, objectives, policies, and willing to submit to Party discipline.

Section 3. Application for membership shall be filed with the Membership Committee of the Party which shall conduct adequate screening of the applicant in accord with its duly issued policies and guidelines. The nominations and recommendations of the Membership Committee shall then be transmitted to the Executive Committee for final approval. It is understood however that the Chairman of the Party may directly accept applications for membership and act thereon after consultation with the members of the Executive Committee.

Section 4. New members shall be inducted and their oath of affiliation administered by any ranking official of the Party according to procedures prescribed by the Membership Committee. The Oath of Affiliation of every member of the Party shall be as follows:

“I, __________________, do hereby solemnly swear that I will uphold and advance the principles, objectives and program of the BALANE, abide by its Constitution, raise its prestige and widen its influence among the people, that I will fight for the interests of our country and people and serve them wholeheartedly and unselfishly to the best of my ability.” So help me God.

A R T I C L E 4

RIGHTS AND DUTIES OF MEMBERS

Section 1. A bona fide member of the Party in good standing shall have the following rights and privileges:

1.a) To nominate, vote and elect officers of the Party in meetings wherein he is entitled to vote under and by virtue of this Constitution and the By-Laws, and/or by the rules and regulations duly issued by the Party; and to be nominated, elected or appointed for any Party position or office for which he is qualified;

1.b) To be informed of official Party matters and to have full access to services, facilities and resources of the Party;

1.c) To be accorded proper protection by the Party whenever his civil and political rights as a Party member are violated;

1.d) To recommend to the Membership Committee candidates for membership to the Party;

1.e) To petition for the imposition of appropriate disciplinary measure on erring Party members.

Section 2. A Party member shall have the following duties and responsibilities:

2.a) To adhere at all times and to promote the vision, principles, ideals, and the platform of the Party;

2.b) To obey the orders and directives of the duly elected officers and duly constituted governing bodies of the Party;

2.c) To regularly attend meetings, official Party activities and functions wherein his presence is required;

2.d) To actively and wholeheartedly support and campaign for the official candidates of the Party in every election;

2.e) To pay his membership fees, monthly dues, and other assessments as may be duly approved by the Party;

2.f) To report any information that may affect the interest of the Party;

2.g) To observe organizational discipline.

2.h) To observe and obey the Party Code of Conduct.

A R T I C L E 5

PARTY DISCIPLINE

Section 1. No Party member shall be suspended or expelled except for a valid cause and after proper hearing and due process by the organ of the Party duly organized and constituted for such purpose.

Section 2. A Party member may be reprimanded or suspended if he commits any of the following acts:

2.a) Lack of interest or unwillingness to participate in Party activities and functions;

2.b) Non-payment of membership dues and other special assessments;

2.c) Other inimical acts as may be determined by the Executive Committee.

Section 3. Party member shall be expelled if he commits any of the following acts:

3.a) Disloyalty to the Party;

3.b) Culpable violation of this Constitution and the By-Laws of the Party;

3.c) Unjustified and prolonged failure to discharge his duties and responsibilities;

3.d) Conviction by final judgment of a competent court of a crime involving moral turpitude;

3.f) Other inimical acts meriting the penalty of expulsion as may be determined by the Executive Committee.

Section 4. The Executive Committee shall formulate and issue the appropriate implementing rules and regulations for imposing Party discipline

A R T I C L E 6

ORGANIZATIONAL STRUCTURE

Section 1. BALANE’s organizational structure shall consist of the following:

1.a) The Provincial Assembly which is the highest governing body of the Party shall be composed of all the bona fide members of the Party.

1.b) The Provincial Council which is its second highest governing body of the Party shall be composed of all elected Party members not lower than the City/Municipal Councilors.

1.c) The Executive Board which shall be composed of all elected Party Members not lower than City/ Municipal Vice-Mayors

1.d) The Executive Committee which is the Party’s implementing organ and responsible for the overall day to day management and administration of the Party.

1.e) The District Chapters which shall consist of all bonafide members of the Party in the four (4) Congressional Districts and chaired by the highest elected party member in the concerned District or District Chairman.

1.f) The City/Municipal Chapter which shall consist of Barangay Chapters and which shall be chaired by the highest elected party member in the City/Municipality as a Municipal Chairman.

1.g) The Barangay Chapter is the basic unit of the party which shall consist of all bona fide members of the Party within the concerned Barangay and whose Chairman shall be designated by the Executive Committee of the Party.

1.h) The Kababaihan chapter which shall consist of all bonafide Party members from the women’s sector and whose Chairwoman shall be designated by the Executive Committee of the Party.

A R T I C L E 7

PROVINCIAL ASSEMBLY

Section 1. The Provincial Assembly shall be the highest governing body of the BALANE. It shall be convened at least once a year.

Section 2. The powers and functions of the Provincial Assembly include the following:

2.a) To propose and amend the Program and Constitution and by laws of the Party;

2.b) To ratify the election of the members of the Executive Committee by the previous council within 30 days from such election which an objection(s) has been advanced in to the Provincial Council.

2.c) To ratify the list of candidates for elective position to be fielded by the party as well as other candidates who may be supported by the party as recommended by the Executive Committee; and

2.d) To decide on any matter submitted to it by the Executive Committee.

A R T I C L E 8

THE PROVINCIAL COUNCIL

Section 1. The Provincial Council shall be the second highest governing body of the Party. It shall regularly meet quarterly or as decided upon by the Executive Committee.

Section 2. The powers and functions of the Provincial Council are the following:

2.a) To submit reports and recommendations to the Provincial Assembly;

2.b) To adopt reports and recommendations of the Executive Committee and approve plans of actions; and

2.c) To decide on important issues affecting the people and the party.

2.d) To elect the officers and members of the Executive Committee.

A R T I C L E 9

THE EXECUTIVE BOARD

Section 1. The Executive Board shall be the third highest governing body of the Party. It shall regularly meet quarterly or as decided upon by the Executive Committee.

Section 2. The powers and functions of the Executive Board are the following:

2.a) To submit reports and recommendations to the Provincial Council;

2.b) To adopt reports and recommendations of the Executive Committee and approve plans of actions; and

2.c) To decide on important issues affecting the people and the party.

A R T I C L E 10

THE EXECUTIVE COMMITTEE

Section 1. The Executive Committee shall consist of the following:

a) The Party Chairman, who shall be elected by a majority vote of the provincial council in an election duly called for the purpose by the executive committee. The presiding officer for the said election shall be the outgoing chairman or in his absence, the highest national or local elective public official of the party;

a.1) The Chairman Emeritus - There is hereby designated an honorary Chairman, who shall be recognized as the elder statesman and adviser of the lapiang BALANE even after retirement from office.

b) The four (4) Congressional District Chairmen who shall be designated as Party Vice-Chairmen.

c) The party member who was elected as member of Provincial Board who garnered the highest number of votes;

d) The party member who was elected as President of the Mayors League;

e) The party member who was elected as President of the Vice-Mayors League;

f) The party member who was elected as President of the Councilors League;

g) The party member who was elected as President of the Association of Barangay Captains;

h) The party member who was elected as President of the Sangguniang Kabataan;

i) The Chairperson of the Kababaihan Chapter; and

j) Such other members as may be provided and/or designated by the Provincial Council in the absence of the above. (c-h)

Section 2. The Executive Committee shall meet at least once a month. A special meeting may be called by the Chairman or by the majority of the members of the Executive Committee.

Section 3. The Executive Committee shall have the authority to conduct and administer the affairs of the Party. The powers and functions of the Executive Committee are the following:

3.a) To decide on any matter within its jurisdiction and issue directives;

3.b) To submit reports and recommendation to the Executive Board, the Provincial Council and to the Provincial Assembly;

3.c) To issue statements in the name of the Party;

3.d) To appoint a national auditor and general counsel/s for the party as well as other officers as the need may arise;

3.e) To designate temporary officers in the Executive Committee to replace vacant positions until the Provincial Council elects a permanent replacement;

3.f) To call the Provincial Assembly, Provincial Council, Executive Board, District Chapters and City/Municipal Chapters; to a regular or special meeting.

3.g) To create and supervise, through the Secretary-General, the General Secretariat; and

3.h) To create and supervise other committees necessary to carry out the work of the Party.

A R T I C L E 11

THE DISTRICT CHAPTER

Section 1. The District Chapter shall meet as often as called by the District Chairman.

Section 2. The powers and functions of the District Chapter are the following:

2.a) To decide on any matter within its jurisdiction and issue directives;

2.b) To submit reports and recommendation to the Executive Committee; and

2.c) To issue duly approved statements in the name of the Party within the District.

A R T I C L E 12

THE CITY/MUNICIPAL CHAPTER

Section 1. The City/Municipal Chapter shall meet as often as called by the Municipal Chairman.

Section 2. The powers and functions of the City/Municipal Chapter are the following:

2.a) To decide on any matter within its jurisdiction and issue directives;

2.b) To submit reports and recommendation to the District Chapter; and

2.c) To issue duly approved statements in the name of the Party within the City/Municipality.

A R T I C L E 13

THE BARANGAY CHAPTER

Section 1. The basic unit of the Party is the Barangay Chapter. Every Party member shall belong to a Barangay Chapter.

Section 2. A Barangay Chapter shall have a minimum of fifteen (15) members and shall meet as often as called by the Barangay Chapter Chairman.

Section 3. The powers and functions of the Barangay Chapter shall include the following:

3.a) To implement the programs, policies and decisions of the party;

3.b) To ensure the involvement of members through education, campaigns and other activities;

3.c) To conduct studies on the principles and program of the party and current issues and to subscribe to party publications;

3.d) To recruit members and see to it that they fulfill the requirements for membership;

3.e) To submit reports and recommendations to the Municipal/City Chapter;

3.f) To elect officers of the Barangay Chapter; and

3.g) To create organizational structures or machinery appropriate to the size of the Barangay Chapter.

Section 4. The Barangay Chapter shall have an executive committee of at least seven (7) members which shall include the Chairman, Vice Chairman, Secretary, Treasurer, Auditor, Sangguniang Kabataan representative and the Kababaihan representative.

Section 5. The officers of the Barangay Chapter, other than the Chairman, and other members of the executive committee shall be elected in a meeting called for such purpose by the Barangay Chapter Chairman.

A R T I C L E 14

THE KABABAIHAN CHAPTER

Section 1. The Kababaihan Chapter shall meet as often as called by the Chairwoman.

Section 2. The powers and functions of the Kababaihan Chapter shall include the following:

2.a) To implement the programs, policies and decisions of the party;

2.b) To ensure the involvement of members through education, campaigns and other activities;

2.c) To conduct studies on the principles and program of the party and current issues and to subscribe to party publications;

2.d) To recruit members and see to it that they fulfill the requirements for membership;

2.e) To submit reports and recommendations to the Executive Committee;

Section 3. The Kababaihan Chapter shall have an executive committee of at least seven (7) members which shall include the Chairman, Vice Chairman, Secretary, Treasurer and Auditor.

Section 4. The officers of the Kababaihan Chapter, other than the Chairwoman, and other members of the executive committee shall be elected in a meeting called for such purpose by the Kababaihan Chapter Chairwoman.

A R T I C L E 15

FUNCTIONS OF PARTY OFFICERS

Section 1. The Party Chairman shall:

1.a) Call and preside over the meetings of the Provincial Assembly, the Provincial Council, the Executive Board and the Executive Committee;

1.a (i) The decision of the chairman on all party matters whether administrative, disciplinary or political such as but not limited to questions or issues on national or local elections of members, alliances or coalitions with other national or local parties shall be final and non-appealable.

1.a (ii) The chairman may also override any decision arrived at by any body, board, committee, council or assembly herein created.

1.b) Issue directives and statements on behalf of the Party; and

1.c) Make representation on behalf of the Party.

1.d) All decisions, communications or other notices or processes of the party shall be duly signed by the chairman.

Section 2. The Party Vice-Chairmen shall:

2.a) Take over the functions of the Party Chairman in the latter’s absence or incapacity; In case there are two or more Party Vice-Chairmen present, the highest ranking elected official shall preside;

2.b) Perform such other tasks which may be assigned by the Executive Committee and/or the Party Chairman;

Section 3. The Secretary-General shall:

3.a) Form and head the General Secretariat which runs the day-to-day functions of the Party; and

3.b) Recommend such deputies and personnel as may be necessary subject to the approval of the Party Chairman.

Section 4. The Deputy Secretary-General shall:

4.a) Assist the Secretary General in discharging his functions; and

4.b) Perform such other functions as may be assigned by the Secretary-General and/or by the Party Chairman.

Section 5. The Treasurer shall:

5.a) Plan the budget of the Party for approval by the Executive Committee; and

5.b) Act as over-all manager of the funds and resources of the Party.

Section 6. The Auditor shall:

6.a) Check and audit all resources and funds of the Party; and

6.b) Form auditing teams to investigate any reported financial anomalies.

Section 7. The General Counsel shall:

7.a) Act as the legal counsel of the Party; and

7.b) Make representation on behalf of the party in regard to all legal matters.

Section 8. Term of Office - The term of office of the chairman and other officers of the party shall be for 3 years or coterminous with the term of their public elective office. The death, permanent incapacity or resignation of the chairman shall operate to create a vacancy in the office of the chairman.

A R T I C L E 14

FUNDS AND RESOURCES

Section 1. The basic funds of the BALANE shall come from membership fees and dues and other special assessments.

Section 2. Fund-raising activities shall be launched.

Section 3. Contributions in cash and in kind shall be accepted provided there are no conditions contrary to the principles of the Party and to existing laws.

A R T I C L E 15

SPECIAL PROVISIONS

Section 1. Where regular organs of the party do not yet exist, provisional bodies of leadership may be formed until the requirements of this Constitution can be applied.

Section 2. The party may establish or enter into a coalition or alliances with other parties, organizations or individual candidates in line with its principles and program for electoral campaigns and long-term plans for the purpose of achieving common goals.

A R T I C L E 16

AMENDMENTS

Section 1. Amendments to this Constitution may be made with the concurrence of two-thirds of all delegates to a Convention called for the purpose by the Executive Committee.

Section 2. Any member or body of the party may propose amendments to this Constitution but these shall be subject to adoption by the Executive Committee which shall endorse these for consideration in the Convention.

BY-LAWS

OF

LAPIANG-BALANE

Article 1

NATURE OF THE ORGANIZATION

Section 1. BALANE is a political party adhering to a Constitution and a Program and all policies and decisions promulgated by its duly authorized bodies.

Article 2

OFFICES

Section 1. The office of the party shall be principally located in Quezon, Nueva Ecija.

Section 2. Provincial, city, municipal and barangay offices shall be established by the party in such places as the needs of the party may require.

Article 3

MEETINGS

Regular and special meetings of the party shall be called by the chairman and by the different bodies as provided herein.

Article 4

PARTY DISCIPLINE

Section 1. Any member or officer of the BALANE who commits serious violations of the Program, Constitution and By-Laws and legitimate policies and decisions of the party at any level shall be subject to disciplinary action.

Section 2. Disciplinary actions shall be meted out based on the gravity of the violation and these shall include the following: censure, demotion, suspension and expulsion from the party.

Section 3. Expulsion from the party may be meted to a member or officer of the party for willful violation of the Constitution and for acts inimical to the interest of the party and the people.

Section 4. The party shall also work for the recall or removal from public office of party members and officers who have been found to have committed acts inimical to the interest of the country and the people.

Section 5. In meting out disciplinary action, due process shall be upheld:

• Any member of the party with a complaint against a body of leadership, officer or another member of the party may do so before the chapter he belongs to or at the next higher level. Complaints of a serious nature may be brought directly to the Executive Committee.

• A fact-finding committee shall be formed by the body where the complaint has been lodged or by an appropriate body assigned to investigate the complaint.

• The report of the fact-finding committee shall be submitted to the body that formed it for appropriate action. In case of expulsion, this must be based on two-thirds of the votes of the members of the appropriate body.

• In case of expulsion, the decision shall be reviewed by the next higher level of leadership.

• Any disciplinary action against an officer of the party shall be decided upon by the corresponding body that elected him/her to the position.

• Decisions on complaints and disciplinary actions may be appealed for review by the next higher body of leadership up to the National Convention. In all cases, the Executive Committee decision of the party chairman shall be final and non-appealable.

Article 5

DUES AND ASSESSMENTS

Section 1. All applicants to the party shall pay a one-time membership fee of five (5) pesos minimum.

Section 3. Members of the party may be charged with special assessments by the leading bodies of the party on the basis of specific projects or requirements.

Section 4. All members are encouraged to provide additional contributions based on their individual capacity.

Article 6

AMENDMENTS

Section 1. The By-laws of the BALANE may be amended by a majority vote of the members of the Provincial Council as recommended by the Executive Committee.

1

Explanation of Vote: House Bill No. 2454

Explanation of Vote: House Bill No. 2454

Rep. Eduardo Nonato N. Joson

1^st District of Nueva Ecija

November 5, 2007

Mr. Speaker I vote NO to HB 2454 or the General Appropriation Bill for the following reasons:

1. Noon isa sa mga battlecry ng oposisyon laban kay President Marcos ibasura ang PD 1177; ngayon paglipas ng tatlong (3) presidente, buhay na buhay pa rin ang PD 1177, baon pa rin tayo sa utang at sukdulang kahirapan.

2. Bukod sa PD 1177, ang mga plano,policy,patakaran at pamamaraan sa budget ay walang pagbabago sa nakaraang dalawampung (20) taon. Wala kahit isa mang problema natin ang nalutas ng budget.If we are going to consider the budget as a tool for development, it has not been able to solve or approximate the solution to the problems of poverty, unemployment, housing,quality education,poor health services,very poor infrastructure facilities and very very poor farmers or state of agriculture in our countryside where the majority of our poor people eke out a living. We do not even have a national economic master plan duly approved by congress. Maybe Mr. Speaker, we should begin with our own distinct development plan and said plan should be the basis of the national budget. It is about time that we really assert the power of the purse.

And lastly Mr. Speaker, change must begin now. Change in policies, change in ourselves and more importantly change in our views and perspectives. We must think out of the box. Matagal nang nakakahon sa kahirapan ang ating bayan. Kailangan ang bagong pananaw sa priorities at pump priming para tuluyan nating umunlad. Kaya ibasura ang PD 1177 nang umakma ito sa ating kakayahang magbayad or capacity to pay in relation to our gross domestic product,unahin ang mga economic infrastructures gaya ng irigasyon, job and business creation, labor intensive investments at economic zones, expansion of the retail trade and microenterprise credit system kaysa mere physical infrastructure at social services, unahin ang problema ng kahirapan, pagkain,trabaho at housing at higit sa lahat unahin ang magsasaka.

Thank you Mr. Speaker

TURNO en CONTRA

TURNO en CONTRA
Representative Eduardo Nonato N. Joson
October 11, 2007

Mr. Speaker I rise to speak against HB2454, the 2008 General Appropriations Bill for the following reasons:
I. The Appropriation Bill does not meet the requirements of the "means-end" test, wherein the means must correspond, achieve or approximate the objectives or purposes of the bill.
The budget is a tool for development. It also seeks,among others, to solve the recurring problems that we are experiencing and what is undeniable is the fact of poverty as one of our most pressing problems. Others will say that our debt burden is the problem. Our sponsor, the Hon.Lagman proposes that the issue of population is the key issue in any expenditure measure or any economic development for that matter. Peace and order, quality education and health concerns follow in rapid succession. What is undeniable, Mr. Speaker, is that whatever the problems are, we have failed to solve the said problems in the last 20 years or more. We have been left behind by our neighbors in terms of economic development. We have failed to achieve NIChood status as President Ramos would have said it. And it would seem that as President Erap would have stated it,we are a nation of hoods - hoodlums in uniforms, hoodlums in robes, hoodlums in barong tagalog etc. where every transaction is laced with scandals, scams commissions and outright thievery. Corruption is thus seen as the most progressive industry that we have aside from baby-making as the principal product and made in the Philippines. Politics is a business and political destabilization is a game for power brokers and would be messiahs of national salvation.
“Naiwanan na tayo sa pansitan kundi man sa kankungan Mr. Speaker, at ang tanong: “meron ba tayong maling ginawa, ginagawa at gagawin pa? Tama ba ang pagtanaw sa ating mga problema? Tama ba ang solusyon sa ating mga problema? Tama ba ang mga patakaran o policies para ma-solve ang mga problema ng bansa? Ano nga ba ang pinakamalaking problema ng bansa? Magkakasundo ba tayo na ang pinakamalaking problema natin ay kahirapan?” Are we going to be in agreement that poverty is the most pressing problem that our country faces today Mr. Speaker?
Mr. Speaker, I believe that poverty with its twin or corollary effect of economic underdevelopment is our principal problem. Consequently, the budget as a tool for development must address and be the principal means to solve the problem of poverty.

Under RA 8425 otherwise known as the social reform and poverty alleviation act, poverty per se was not defined. Instead, what was provided for is “absolute poverty” or that which refers to the condition of the household below the food threshold level; and “relative poverty” as referring to the gap between the rich and the poor. Webster on the other hand defines “poverty” as the state of being poor or without competent subsistence; need; penury or the condition that relates to the absence or scarcity of requisite substance or elements; poverty is also synonymous with beggary,destitution,distress, indigents,mendicancy,need,pauperism,penury, privation and want.
In the Philippine Context, statistics by the National Statistical Coordination Board (NCSB) released last June 2006 indicates that approximately 24 out of 100 Filipino families did not earn enough in 2003 to satisfy their basic food and non-food requirements. In terms of population,30 out of 100 Filipinos in 2003 had income short of the minimum cost of satisfying the basic requirements of food, health, education, housing and other amenities of life. Other statistics just like the news, support the widening gap or inequality between the rich and the poor.
Twenty years ago, I termed the great divide as a split level economy, a Pajero economy (ngayon yata BMW na) and a nation of squatters literally and symbolically. Makikita rin ang mukha ng kahirapan sa pader na naghihiwalay sa ating mga subdivision at high rise condominiums at mga bahay na kariton, tagpi-tagping tirahan at mga palaboy at pulubi na nagkalat sa ating mga lansangan. Ito ang mapait na katotohanan Mr. Speaker at kahit anong development theory o poverty alleviation policy pa, kasama na ang social reform agenda ng dating Presidente Ramos, millenium development goals, medium term Phil development plan, angat pinoy ni erap, kabisig ni President Cory at kabalikat ni President GMA, sa nakaraang dalawampung taon, sa aking personal na experience at pananaw, lumala pa ang kahirapan batay sa mga lumalabas na hunger statistics. According to the national nutrition council, hunger worsened by 6.8 percentage points from 14.7% in the 1st quarter to 21.5%(equivalent to about 3.8 million families) in the third quarter due to high food prices. At patuloy na walang pag asenso ang ating mga magsasaka sa kanilang kabuhayan kahit pa nagkaroon ng land transfer at distribution. Buti na lamang at meron na siyang anak na OFW na alipin sa ibang bansa habang siya ay alipin sa sariling lupa. ......
As to the causes of poverty, Mr. Speaker, it was pointed out by one economist (Philip Gerson) that poverty persists and the Philippines lagged behind its ASEAN neighbors in reducing poverty incidence "can be attributed to past economic policies that retarded growth by discriminating against agriculture and discouraging investment in human capital. These policies in turn sustained powerful interest groups that blocked or delayed economic reform." Other contributory causes of poverty flow from the population issue, lack of capital resulting from lack of savings/low income and productivity and back to capital as a condition sine qua non for development; poor governance by leaders; lack of quality education and corruption as part and parcel of waste of government resources that could have been used for poverty alleviation.
The man on the street would simply say that “mahirap siya dahil hindi nakapag-aral, lupa lang sa paso o sa kuko niya ang kanyang pag-aari, walang trabahong mapasukan o siya kasi ay magsasaka lamang o mahirap lang po kami. Mahina po ang kita ng tindahan at puros utang pa;marami akong anak na ipinag-aaral at iba pang kadahilanan na di makayang sabihin ang mga katwiran. Ang maliwanag Mr. Speaker, isang kahig isang tuka pa rin;kapit sa patalim;loan dito loan duun;ang kawalan ng pag-asa ay nakabakas pa rin sa kanyang mukha kasunod ng pagkibit balikat at pagsara ng mata at pandinig sa kanyang kinasadlakan.”
It is very clear then Mr. Speaker that something is wrong. The domestic labor market has a very limited absorption capacity. There is a mismatch between courses and jobs. Working abroad becomes a better if not a survival option. Mr. Speaker, there are many problems that need to be solved and we must begin with the basics: food, jobs, new businesses or livelihood enterprises including new direct foreign investments that are labor intensive or that will create subsidiary businesses. In all of this Mr. Speaker, there is a need for change if not a redirection of policy and resources especially the national budget to address the above-mentioned concerns.
From the above mentioned discussion, Mr. Speaker, it is very clear that for the last twenty years, the budget as a development tool has not been responsive in solving the most basic of our problems, poverty and underdevelopment.
I will thus go to the second reason as to why I am speaking against this bill.
2. Mr Speaker, the appropriation bill reflects old and outmoded policies which do not address present and future realities. In other words Mr. Speaker, there must be a paradigm shift or thinking out of the box in order to move the country forward and out of the rut that we are in.
Mr Speaker, for twenty three years that i have been in politics, seven years of which i was a member of the legislature there was no substantial change in the budget process starting w/ the yearly budget message of the presidents, the contents of the budget and the policies behind the budget. It would also appear that interpellations made in the congress hew along the same old refrain although the sponsor or singers may change. The same old songs or policies remain and continue to dominate to the detriment of our people and ultimate economic development of our country. Again Mr. Speaker, we have been left behind. It is time to change our policies so that we can pump prime or jumpstart the agricultural sector w/c involves 70% of our people categorized as poor. The slums or squalid squatter areas unfit for human habitation must be declared as such and a comprehensive national housing program be immediately implemented. The concept and policy of economic infrastructures as the most basic of policy must be brought to the fore,debated over and implemented at the soonest possible time.
To illustrate my point:
The appropriation in the 2008 national budget for the Department of Agriculture is approximately P3.3 billion (P3,326,956,000.00). The Agriculture and Fisheries Modernization Program is proposed to be given P21.4 billion (P 21,438,712.00). The National Housing Authority appropriation is P5 billion (Php5,000,000,000.00) and the National Home Mortgage Finance Corporation P1.4 billion (Php1,400,000,000.00). The Housing and Urban Development Coordinating Council is given a mere P99.7 million (Php 99,770,000.00).
On the other hand, the disparity with appropriations for other departments is obvious. The Department of National Defense shall be getting P50.9 billion (Php50,916,627,000.00). The Department of Interior and Local Government’s appropriation is set at P52.38 billion (Php52,382,339,000.00). A bigger chunk is appropriated for the Department of Public Works and Highways at P86.75 billion (Php 86,754,923,000.00).
The alternative budget proposed by some sectors make adjustments by increasing the appropriations for several programs of departments such as Health, Education, Agriculture and Environment.
However, more than adjustments in the appropriations, Mr. Speaker, there is a need for a comprehensive reassesment of our Budget policy. There is an urgent need to make the national budget responsive to the problem of poverty which besets our nation.
From the way this representation sees it, a re-adjustment of our framework is in order. As I have mentioned, investing in physical infrastructure should be seen vis-à-vis investment in economic infrastructures. This may create confusion for some. How is this different you may ask? Let me elaborate Mr. Speaker. In my own definition, “Economic Infrastructure” comprises financing, expenditures or investments which directly create jobs, business or other income generating activity that would directly benefit the person or sector involved, resulting in the receipt of income, savings, capital or increased purchasing power. This concept is also a familiar component in the economic development of Singapore. In the 2007 Budget Statement of Singapore, it was a declared policy of the administration to enhance investments in economic infrastructure which is defined as major investments that will help support the growth of Singapore’s high-value manufacturing and services economy.
From this premise, it is projected that investing in economic infrastructure shall create a multiplier effect, thus, spurring economic growth with the aim of alleviating poverty. The numbers are down Mr. Speaker in terms of improvement in the lives of our people. Among the three pump priming activities mentioned here Mr. Speaker, I would propose the focusing of budgetary resources in building up the economic infrastructure of our country.
In so doing Mr. Speaker, we will be able to create new jobs, businesses and investments which directly affect our economic development. By way of example Mr. Speaker, instead of the usual road construction, we develop the dairy industry of a particular province; instead of other physical infrastructure, the retail and livelihood sectors be primed first. Although there is a study that says that roads have a very high return of investment in terms of economic benefits, other avenues for growth must be explored to its fullest extent. Emergency employment may also be financed from government funds and the private sector may be induced to come in through fiscal and other incentives especially in the agribusiness sector.
Mr. Speaker, there is no denying that the present administration has tried to do the latter but in terms of accomplishment, there was no substantial impact at all.
The second area where there is a big potential of pump priming the economy is in housing. The ratio of economic benefits or return of investment for every peso spent in housing activities is sixteen times. Thus, in the absence of any other better cost-benefit ratio activity, a paradigm shift to housing as an economic tool for development may be our new option as Japan and Singapore were able to do in their development history.
Unfortunately, this sector is often overlooked and given a measly budget. Activity in the housing industry is not deemed an economic activity but more in the line of welfare or social services, as illustrated in the Table of Sectoral Allocation fo National Government Expenditures for Fiscal Year 2006-2008 (Table B.7a, National Expenditure Program FY2008, DBM Publication).
In the 2008 budget, President GMA proudly declares that from the 2006 allocation of P6.1 billion, the housing and community development sector has been provided with P7.6 billion. On the other hand, P75.3 billion is allocated for DPWH infrastructures like roads and bridges, flood controls, national buildings, water supply and other public work projects.
The economic contribution of the housing sector is sorely overlooked. Traditionally viewed as a social development service, figures show that housing is a labor-intensive activity that can provide massive employment opportunities for about 1,063,037 urban and rural construction workers in the housing industry every year. The HUDCC projects that constructing a low-cost housing unit requires an average of eight persons working for three weeks or a total of 124 man-days.
Aside from employment opportunities, housing could generate downstream economic activities. There shall be an upsurge of productivity in other related industries such as construction and real estate sectors, even the mortgage markets and banking industry. It’s benefits to the economy cannot be gainsaid. Directly, the homebuilders and employees who work for the builders experience an increase in economic activity in terms of expenditures. Indirectly, linked businesses, suppliers of goods and services and providers of operating inputs also benefit. For example, those in the wholesale trade provide lumber, roofing, electrical, plumbing and other components. Those in the motor freight firms will be engaged in the delivery of components to the wholesaler and construction sites. There is also an increase in demand for management and consultancy services, engineering and architectural firms who participate in the design and planning of housing units. Ultimately, the increased economic activity results in more income for the persons involved in the housing industry and affiliated businesses, also increasing their spending power which will redound back to economic growth.
Even LGUs benefit from investments in the housing industry as this translates to fees in the form of licenses and permits and a higher tax base because of higher assessments. Studies also show that more activities follow when there is a residential area because of the establishment of hardware stores, retail establishments,service establishments, schools, medical centers, etc. Hence, housing projects are termed as locators of consumers. An increase in population due to resettlement is also a factor in increasing an LGU’s IRA. An example of this is the upsurge of housing activities in the various Cavite towns in the early 2000’s. There was a marked increase in local revenues due to a dramatic increase in payments of realty taxes. Such income derived from the payment of realty taxes enabled the province to increase allocations for the Local School Board.
This was also a principal policy of Singapore in its exemplary strides in its economy. Most of the residential housing developments in Singapore are publicly built through its Housing and Development Board. Very few people in Singapore live below the poverty line.
Another engine of development not maximized to its full potential is the agricultural sector.
The magnitude of poverty in the Philippines is highest in the rural areas especially in the agricultural sector. Poverty incidence in the Philippines remains relatively high at 33%, with 3 out of 4 poor Filipinos (about 73%) residing in rural areas. The task of combating poverty and inequity thus draws immediate attention to the rural population, which depends on agriculture for income and livelihood.
The government’s current anti-poverty measures are inadequate to address the problem. In spite of the more than a million jobs generated by agriculture, rural unemployment and underemployment continue to be severe as over 1 million rural workers remain to be unemployed and 3 million are underemployed every year. The administration proclaims that production targets have been exceeded and farm incomes raised, but these are not enough to improve international competitive position, ensure long-term sustainability and improve overall rural welfare. Such shortcoming may be attributed to an apparent lack of strategic focus on programs and projects. Thus, poverty and inequity have remained problems in the countryside.
Instead of focusing on physical infrastructure, higher budget allocation should be given to the agriculture sector to create a greater and direct impact of the lives of the Filipino people.
What is needed is a more holistic approach in reducing rural poverty that will not only address the production bottlenecks in agriculture. This approach calls for the promotion of AGRIBUSINESS. This will not only address agricultural production constraints but also post-production handling, value-adding and distribution concerns, all of which are the major and inter-connected determinants of job creation and income stability in the countryside.
Agriculture is the major source of raw resources on which the rest of the economy depends. It accounts for 20% of the GNP or 1/5 of the economy while 1/3 of the population is employed in agriculture or agriculture-related industries. Farm incomes generally improve with the growth of production coupled with favorable price movements. Rapid, sustainable and equitable agricultural growth is therefore a key to achieving the Government’s target of solving the poverty problem. Studies show that for every 1% increase in per capita agricultural output results to a 1.61% increase in the incomes of the poorest 20% of the population.
Translated in layman’s terms, Mr. Speaker, this growth in personal income shall increase the spending capacity of the population, which will ultimately redound to the benefit of our economy, opening further opportunities for growth in other industries.
Given the performance of Philippine agriculture, there is much that the government can do to create a favorable environment to improve agricultural productivity and rural welfare. The required public intervention to bring about this development will entail an increase in public investment level to more productivity-enhancing expenditures such as Research and Development. It will also require more effective mix of policy inputs, capacity-building, market reforms and improve governance to bring the right investment environment that would encourage private sector participation. Amid increasing physical resource constraints and growing population, higher productivity in agriculture should be aggressively pursued. Expanding irrigation will help boost grain yields, strengthening the research and extension system will enhance agricultural productivity and facilitate on-farm diversification, improved rural infrastructure will reduce transport cost and increase accessibility to markets and public service.
Hence, the benefits of investing in the agricultural sector makes it imperative to prioritize rural infrastructure and raising agricultural productivity.
3. Lastly Mr. Speaker, political will and reforms must come into the picture if we are to concretize the aspirations of our people for a better life. This budget is a tired antiquated rehash of an indolent will and lacks the backbone for the implementation of reforms which are sorely needed if we are to catch up with our neighbors in terms of development and/or qualitative improvement in the lives of our people. The trickle down theory must turn into a downpour. Our people can no longer wait. We have failed to meet the targets set by the millenium development goals and the medium term Philippine development plan. A new approach and economic strategy must be adopted if we are to be considered a developed country which is domestically progressive and globally competitive. We must begin at home then onwards to find our own niche in the sun of international dignity and standing. We must begin now.
Thank you Mr. Speaker