Lawmaker dares DTI officials, Marcos Jr. cabinet to live on minimum wage for a month | ABS-CBN

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Lawmaker dares DTI officials, Marcos Jr. cabinet to live on minimum wage for a month

Lawmaker dares DTI officials, Marcos Jr. cabinet to live on minimum wage for a month

Vivienne Gulla,

ABS-CBN News

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People buy various meat and produce at the Agora Public Market in San Juan City on February 21, 2023. Maria Tan, ABS-CBN News/File
People buy various meat and produce at the Agora Public Market in San Juan City on February 21, 2023. Maria Tan, ABS-CBN News/File

MANILA - Kabataan Party List Representative Raoul Manuel dared the officials of the Department of Trade and Industry, and members of the Marcos Jr. administration to live on minimum wage for a month, after Trade Secretary Alfredo Pascual issued a statement last week on the sufficiency of the existing minimum wage for a family of five.

During on Thursday’s House Committee on Appropriations hearing on DTI’s proposed 2024 budget, Manuel said that the trade chief’s statements appear to be “detached from reality”.

This observation did not sit well with Pascual. He clarified that minimum wage should be studied by experts, but the DTI is working hard to help improve industries so that more Filipinos will have the opportunity to get better paying jobs.

"I am not an expert on deciding on minimum wage.. Ang sinabi ko pwedeng pagkasyahin," Pascual said.

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"Mas maging careful pa rin sa statements na sinasabi natin. Kasi hindi ito ‘yung first time na may mga statements tayong binabanggit na ang dating talaga ay para bang detached 'yung officials natin sa realities ng toiling Filipinos," Manuel replied.

"As learning experience… I would actually want to challenge our DTI officials, isama na rin ‘yung mga nasa cabinet, i-try siguro isang buwan to live on minimum wage para direct talaga, mas makunan natin ng basis ang ating positions and pronouncements on minimum wage," he added.

“I take exception to the comment of the good congressman that we are detached from reality. In fact we are so much in touch with reality that's why we have programs to address the needs of our fellow Filipinos, particularly in terms of creating and generating better quality and higher paying jobs,” Pascual asserted.

ACT Teachers Party List Representative France Castro also called out Pascual for his statement on possible alternatives to rice.

"Doon sa binanggit ninyong alternative diet ng Pilipino, sa kamote at mais, kung titingnan po natin, as mahal po.. Ang presyo po ng masarap na kamote, ng matamis na kamote ay P60-P70. ‘Yung mais naman po, sabi n’yo white corn, ganun din halos ang presyo ng kamote. Paano n’yo kaya nasabing alternative ‘yun sa bigas?" Castro asked.

"Na-misreport ‘yung sinabi ko, at misinterpreted… Sabi ko naman sa UP, noong ako ay pangulo ng UP, pinag-aralan na namin ‘yang issue ng sufficiency ng rice supply. One of the studies we made, an alternative we proposed was a mix of rice and white corn. 70% rice, 30% corn. Pero kinukwento ko lang ang study. Wala akong pinropose na adjustment or change at that point in time,” Pascual clarified.

Lawmakers also asked about DTI’s efforts to help stabilize the price of rice in the market. Gabriela Party List Representative Arlene Brosas said she received reports that in some areas, which are under a state of calamity, the price freeze is not being enforced. Pascual said the monitoring of prices for agricultural products is under the mandate of the Department of Agriculture, but the DTI is providing assistance.

"'Yung presyo ng bigas ay nasa mandate ng Department of Agriculture, pero tumutulong kami sa pag-monitor. Sumasama kami sa mga task force ng gobyerno para ma-address ang anti competitive practices for example, hoarding, cartelization, and profiteering ng traders and merchants,” he told the committee.

The DTI said it is also setting up agri terminals that seek to connect farmers and retailers to reduce the role of traders, who, Pascual said, augment the price of agricultural products. It has a three-year action plan to improve the supply chain through the use of logistic solutions.

FDI VS INVESTMENT PLEDGES

Of the 130 projects from the investment pledges made during the foreign trips of President Ferdinand Marcos Jr., only 9 are operational so far, according to the DTI. These are in the business process outsourcing, technology, healthcare, and manufacturing industries. Pascual admitted that this is “relatively small” in percentage compared to the investment pledges.

"There are 2 verifiable facts on our foreign direct investment. In 2022 and 2023 there has been a decline. Correct?” Albay 1st District Rep. Edcel Lagman asked.

“Yes,” Pascual answered.

“The pledges generated by the President during his foreign travels have not been realized at the moment?” Lagman further asked.

"Mayroon na pong na-realize, ‘yung 9 projects from US, Singapoore, Europe… new projects… ‘Yung 9 projects 205 million USD,” Pascual replied.

"With all the visits so far that we have done, we’ve been able to generate investment leads in the total amount of P71 billion USD. These projects numbering 130 projects will form part of the pipeline of investments that we will work on so that they are realized this year and the coming years,” he added.

BUDGET CUTS

Several lawmakers lamented the proposed budget cuts for DTI's programs that seek to develop local industries and promote consumer education. They are pushing to increase the proposed 2024 budget for DTI and its attached agencies, which is at P7.9 billion.

"Kaugnay sa tinapyasan na budget ng programang industry development mula P529 million ngayong 2023 tungong P439 million sa 2024. Ano ang mararating ng budget na ito? Mas malaki pa ang confidential funds and travel expenses ng Pangulo kesa sa programang ito na siyang titiyak na lilika ng trabaho,” Brosas said.

"We might have to sacrifice some initiatives we’ve lined up in favor of just doing what we’ve been doing over the years. In a way it contributes substantially to the performance of our role. But our country in order to progress needs more effort in other important areas like developing new industries or creative industries or working on the upscaling of our MSMEs,” Pascual replied.

Pangasinan 4th District Rep. Christopher De Venecia said funding for the industry development program and the consumer education program was reduced supposedly due to the low utilization rates. But the DTI explained that this is caused by the late release of budget for these programs.

"Sana binawasan nalang natin travel expenses ng pangulo, nilagay nalang natin ditto... Kailangan natin tulungan ang MSMEs natin. Bakit nagmi-misprioritize tayo ng budget?” Brosas said.

The DTI also sought to augment the capitalization for Small Business Corporation that has loan programs to help micro, small and medium enterprises.

"I think SB Corp is a lending agency that we really need to support and capitalize fully. Because it has already established a track record. We are very happy with their collection rate, 90%, 85% during the pandemic. They have existing network of microfinance and lending institutions through which they course their funds. I think it will be helpful for the MSME to further augment the capitalization of SB Corp,” Pascual told the committee.

"Micro, small and medium enterprises comprise 99.5% of the businesses in the Phiilppines, making them the backbone of our economy. This sector employs 63% of our labor force. Unfortunately, it seems that the government support in these sectors seems to be lacking. Looking at the budget, although there was an increase of P750 million for this year compared to last year, in 2022 the budget for this P3 or support for these sectors is P2 billion. In 2023, it was 750 million. Now for this coming year P1.5 billion… Considering that this sector comprise the bulk of the Philippine economy…I believe that we need to further increase the budget,” Muntinlupa City Rep. Jaime Fresnedi said.

PAPER MANUFACTURING

TGP Party List Representative Jose “Bong” Teves Jr. urged the DTI to help protect local paper manufacturers from increasing paper imports. He said imported papers were sold at a lower cost in the Philippines compared to its price in the country of origin, which for Teves, may constitute a possible violation of anti-dumping measures. He added that if this practice continues, local paper manufacturers may be forced to implement massive lay-offs.

“Kawawa naman ang paper manufacturing industry sa ating bansa kapag ito ay nagpatuloy,” Teves told the panel.

“Paper manufacturing industry in the Philippines is over P55 million worth of investments, with 22 local paper manufacturing companies… Almost 2 years nang nagsasagawa ng unscheduled shutdown of operation ang paper producers dahil sa pagtaas ng importation ng papel sa ating bansa. If these shutdowns remain, maaaari itong magresulta sa massive lay off ng libu-libong emplyeado ng mga paper manufacturer dahil sa pagkalugi at hindi pa kasama rito ang mga truck ng delivery nila ng kanilang paper products,” he added.

"We fully agree with your observations. Mayroon ngang dumping na nangyayari sa ating paper industry coming from foreign countries. We were able to impose safeguard duties on paper for 10 years, nag-lapse na noong 2018. One year lang ang kailangan antayin before the industry… pwede nang mag-file ulit ng elevant trade remedies including anti-dumpung or safeguard duty,” DTI Undersecretary Ceferino Rodolfo said.

The DTI said it welcomes a dialogue with the group of paper manufacturers to address the issue.

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