TAMBULI Weekly Newsletter The Official e-Newsletter of the Federation of Philippine Industries

Volume 15 Issue No. 09 04 March 2011 ______

FPI SUPPORTS CONFIRMATION OF FINANCE SECRETARY PURISIMA BY THE COMMISSION ON APPOINTMENTS

The Federation of Philippine Industries (FPI) is strongly supporting the confirmation of Hon. Cesar V. Purisima as Secretary of the Department of Finance.

FPI Chairman Jesus Lim Arranza said “Secretary Purisima is very much qualified and competent as he had previously held the positions Finance Secretary and Trade and Industry Secretary under the previous administration.” Arranza also pointed out that Purisima is well versed in tax and revenue laws, rules and regulations having had a long stint as partner of SGV & Co.

Arranza who is concurrently also the Chairman of the FPI Anti-Smuggling Committee stressed that it is only under the current leadership of Sec. Purisima that the Bureau of Customs (BOC) headed by Commissioner Angelito A. Alvarez is closely coordinating with the private stakeholders particularly the Federation in the government’s drive against smuggling.

He also pointed out that government was able to slap PhP100 million deficiency duties and VAT against one of the 4 importers suspected of grossly undervalued palm oil. These four companies are now being audited by the BOC’s Post Entry Audit Group (PEAG) led by Atty. Jun Ligon and their importations are now being monitored, Arranza said.

“The discovery of large scale ‘technical smuggling’ on the part of these scrupulous palm oil importers was due to the strong partnership of the Federation and the BOC”, Arranza said

Arranza added that while the CIIF Oil Mills Group which he heads has imported and declared imported palm oil products at US$1,300/MT, these scrupulous 4 companies declared their importations at only between US$200 to US$300/MT or a difference of US$1,100. “These companies had clearly deprived government with at least the 12% VAT due on the difference,” Arranza said. This translates to millions considering the volumes of palm oil presently being imported into the country, Arranza added.

In addition, Chairman Arranza said that the Federation through Industry Technical Expert (ITE) deployed in the various ports is currently assisting the BOC in detecting technical smuggling and protect revenues due the government in terms of taxes and duties.

FPI, Allies Support PWPA Bid for Relief Thru Quick DENR Action on EO 23

The Federation of Philippine Industries (FPI) and other allies of the wood-based and wood-producing industry jointly voiced their support for quick action by the DENR in implementing Executive Order 23’s evaluation and compliance of legitimate wood producing companies of their agreements with the government through DENR. 2 EO 23, issued February 1, 2011, ordered for a moratorium on the cutting of trees from natural and residual forests as key provision, among other dictates that aim to curb the effects of flooding and assist in mitigating the effects of climate change in the country. It called for the creation of a Task Force that will draw up the implementing rules and regulations (IRRs) and lead in its enforcement.

FPI Chairman Emeritus Meneleo J. Carlos, Jr. said that “ while there is a felt need for this order, there is also great harm being inflicted upon the wood industry and the legitimate suppliers of logs and implementers of industrial forest management agreements or IFMA many of which are residual forests. In other words, the proper implementation of IFMAs includes the programmed harvesting of natural trees within parameters approved by the DENR. The reason that there is chaos is because the order is all- encompassing, so that net effect is a complete ban on the sourcing of our wood supply other than “those planted by man” until IFMA compliance with the rules of DENR have been confirmed.”

Three weeks since the EO 23’s effectivity, prices of wood supply have begun to rise due to market perception of scarcity. Plywood which sold for P280 per panel is now priced at P335 per panel. The construction industry, dependent on wood for its formworks and other structural tools, is among the industry sectors affected by the shortage of wood products.

Carlos said “this can be quickly alleviated if the DENR will prioritize the implementation of EO 23, giving priority to the major suppliers of wood, which number very few. Even in the absence of Implementing Rules and Regulations, the existing IFMA’s should be given attention, with the larger ones given the priority of review to determine compliance with the contract terms. Because once the review is done and the IFMA holder is declared in compliance, the wood producer can restart his tree harvesting and supply of logs to the wood industry.”

For the greening program called for in EO 23, Carlos suggests “the upland dwellers who occupy the forest lands be given the first opportunity to participate in the program. They are already properly situated. They can benefit from the supply of seedlings to plant...More than this the government can award our upland dwellers with property or tenurial rights to the lands they now occupy. It will convert them from being “kaingineros” into forest stewards and tree planters – because tree farming is a very profitable livelihood given minimal government support.” Finally, Carlos urges “our partners in industry to provide all the material support that they can to this greening program.”

Other wood industry allies that have pledged support in the bid for quick implementation of the EO 23 IRRs include the Chamber of Mining Industries of the and the Foundation for Economic Freedom.

Commitment Day against Human Trafficking

The Visayan Forum Foundation, Inc. with support from the United States Agency for International Development has invited the Federation of Philippine Industries, Inc. to their Commitment Day Againts Trafficking in Persons on Tuesday, March 15, 2011, 8:00 am – 5:00 pm, at the Crowne Plaza Galleria Manila, Ortigas Avenue, City. Their theme entitled “Mobilizing private sector commitments and innovations towards lasting solutions to trafficking of ” They will also hold a Commitment Weeks Against Trafficking in Persons on March 13 to 18, 2011.

3 Countdown: 24 days to the 9TH FPI Golf Classic Tournament

It’s only 24 days before the 9 th Annual FPI Golf Classic Tournament on Monday, March 28, 2011 at the Tagaytay Midlands Golf Course, Tagaytay City. The number of tournament sponsors continues to increase as of today:

CO-PRESENTOR: SAN MIGUEL CORPORATION .

MAJOR HOLE SPONSORS: AGC FLAT GLASS PHILS INC./FLAT GLASS ALLIANCE OF THE PHILIPPINES, COCA COLA BOTTLER’S PHILIPPINES, MANILA ELECTRIC COMPANY, ORIENTAL AND MOTOLITE MARKETING CORPORATION, PETRON CORPORATION, COLUMBIAN AUTOCAR CORPORATION, PHILSTEEL HOLDINGS CORPORATION, PILIPINAS SHELL PETROLEUM CORPORATION, PHILIPPINE LONG DISTANCE TELEPHONE/SMART COMMUNICATIONS, STEELASIA MANUFACTURING CORPORATION , SUBIC BAY METROPOLITAN AUTHORITY, UNILEVER FOOD SOLUTIONS and WHEALTH INC.

HOLE SPONSORS: BANCO DE ORO, BAYANTEL, DOW CHEMICAL PACIFIC LIMITED, EAST-WEST SEED COMPANY, GENERAL METAL CONTAINER CORPORATION/ ORIENTAL TIN CAN & METAL SHEETS MANUFACTURING, JT INTERNATIONAL (PHILIPPINES), INC., LINA GROUP OF COMPANIES, MABUHAY VINYL CORPORATION, MAGSAYSAY TRANSPORT & LOGISTICS, PACIFIC PAINT (BOYSEN) PHILS., INC., SAN MIGUEL PUREFOODS, SAP PHILIPPINES, SSI SCHAEFER SYSTEMS PHILIPPINES, INC., SUMMIT RIDGE HOTEL, YUTIVO CORPORATION and TANDUAY DISTILLERS INC.

HOLE-IN-ONE SPONSORS: ARMS CORPORATION OF THE PHILIPPINES (M1911-A2 CAL. 45 ACP & M1911-A2 9MM PARABELLUM), MITSUBISHI MOTORS PHILIPPINES CORPORATION (MITSUBISHI ASX ACTIVE SPORT CROSSOVER), UNIVERSAL MOTORS CORPORATION (NISSAN NAVARA), and NORKIS GROUP OF COMPANIES (SUNRISER) (SR100A MOTORCYCLE).

DONORS: ASIA BREWERY, INC., CEMENT MANUFACTURERS ASSOCIATION OF THE PHILIPPINES, CHEMREZ TECHNOLOGIES, INC., CHENG BAN YEK, CIIF OIL MILLS GROUP, COATS MANILA BAY, DIAMOND HOTEL, DUSIT THANI MANILA, FUTURE TRADE, EDSA SHANGRI-LA, ISS INC., GINEBRA SAN MIGUEL, GLOBE BUSINESS, KIDNEY FOUNDATION, MACROPHARMA, MAKATI SHANGRI-LA, MAXICARE HEALTH CARE, MILEAGE ASIA, PAN PACIFIC HOTEL, PENINSULA HOTEL-MANILA, PHIMCO INDUSTRIES INC., PHILIPPINE ASSOCIATION OF BLACK IRON & GALVANIZED IRON PIPE & TUBES MFTRS., INC., PHILIPPINE STEEL ROLLING MILLS ASSOCIATION, PHILIPPINE SUGAR MILLERS ASSOCIATION, RFM CORPORATION, RI CHEMICALS CORPORATION, SOFITEL PHILIPPINE PLAZA, SL AGRITECH CORPORATION, TJ’s CLEAR ART, TWA, INC., (BIOENERGY), URBAN CHEF and WELDING INDUSTRIES OF THE PHILIPPINES.

Golf players who may want to join the tournament are advised to make their reservations now. The registration fee is Four Thousand Pesos (P4,000.00) and covers the cost of the green fee, golf cart for two people, caddie fee, buffet lunch, raffle ticket and giveaway items. Golf players may contact Caren

4 Manzenares or Jojit Yap of the FPI Secretariat at tel. nos. 722-3409, 584-9642 & 727-4359; or through the following e-mails: [email protected], [email protected], [email protected] and [email protected].

The tournament is organized by the FPI Golf Committee Chaired by Chris J. Nelson, Philip Morris Philippines Manufacturing Corporation, currently also an FPI Director and Chairman of FPI Ways and Means Committee; Committee Vice Chair Henry A. Tañedo, Tin Can Makers Association, also the concurrent FPI Treasurer; The Committee members are: FPI Chairman Jesus Lim Arranza, Coconut Oil Refiners Association; FPI President George S. Chua, Arms Corporation of the Philippines; FPI Executive Vice President Edwin Ll. Umali, Mabuhay Vinyl Corporation; FPI Vice President for Manufacturing Renato R. Ermita,f AGC Flat Glass Philippines, Inc.; FPI Director Jose Ch. Alvarez, Philippine Phosphate Fertilizer Corporation; FPI Director Abeto A. Uy, Philippine Steel Holdings Corporation; FPI Director Jesus R. Montemayor, Philippine Association of Battery Manufacturers; Claro C. Arriola, Textile Mills Association of the Philippines; Dr. Pedro M. Lopez, Food Exporters Organization of the Philippines; and Ramon C. Agustines, Electric Vehicles Association of the Philippines.

LEGISLATIVE COMMITTEE HEARINGS

Senate

Monday, March 7 Time & Venue Agenda

Agriculture & Food joint with Trade & 9:00 A.M. P.S. 394 – Inquiring on the government’s ability to address Commerce Sen. C.M. Recto Room 2/F Right the sudden increase of prices of foods and other Wing, Senate agricultural products

Congressional Oversight Committee on 10:00 A.M. Briefing by the Department of Finance; Bureau of Internal the Comprehensive Tax Reform Sen. A.B. Padilla Room 2/F Right Revenue and the Bureau of Customs Program Wing, Senate

Economic Affairs joint with Public 1:30 P.M. P.S. Res. No. 330 – Inquiring on the economic implications Services Sen. J.P. Laurel Room 2/F Right of the increase in toll rates and train fares to motorists, Wing, Senate entrepreneurs, bus companies, students, low-income workers and the riding public in general

Tuesday, March 8 Time & Venue Agenda

Banks, Financial Institutions & 9:30 A.M. S. No. 2484 – Strengthening the Anti-Money Laundering Currencies [Sub-Committee on Anti- Sen. C.M. Recto Room 2/F Right Law Money Laundering Law Amendments] Wing, Senate P.S. Res. No. 82 – Inquiring on the possible amendments to the Anti-Money Laundering Act for it to be a complaint with international standards

Civil Service & Government 1:00 P.M. S. Nos. 290 & 1403 – Mining Engineering Act of 2010 Reorganization joint with Ways & Sen. A.B. Padilla Room 2/F Right Means and Finance Wing, Senate S. No. 1401 – Environmental Planning Act of 2010

S. No. 2169 – Philippine Interior Design Act of 2010

Wednesday, March 9 Time & Venue Agenda

Environment & Natural Resources joint 10:00 A.M. S. Nos. 109, 141, 647, 1369 & 2673 – Instituting a national with Urban Planning, Housing & Sen. J.P. Laurel Room 2/F Right land use policy in the Philippines Resettlement; and Finance [TWG] Wing, Senate

Thursday, March 10 Time & Venue Agenda

Environment & Natural Resources joint 10:00 A.M. S. Nos. 140, 360, 752, 827, 1353 & 2018 – Bills on with Local Government; Ways & Sen. J.P. Laurel Room 2/F Right Sustainable Forest Management

5 Means; Finance; Constitutional Wing, Senate amendments, Revision of Codes & S. Nos. 927, 1360, 1363 & 2172 – Bills on Logging Laws; Cultural Communities; Urban Planning, Housing & Resettlement; and S. Nos. 223, 350, 540, 2599, 940, 1091, 2501 & 1354 – Education, Arts & Culture [TWG] Bills on Reforestation

S. Nos. 1006 & 1186 – Bills on Forest Management in Cultural Communities

S. No. 1367 – Providing for the delineation of the specific forest limits of the public domain

S. Nos. 491, 1355, 1361, 2456 & 2630 – Bills on Greening Act

House of Representatives

Date: Monday, 07-March-2011 Committee/SubCommittee Time and Venue Agenda/Resource Person WAYS & MEANS 01:00 PM Consolidation of HBs 3224 & 3760 – Prescribing the Conf. Rms. 3 & 4 RVM Bldg. Customs and Tariff Modernization Act (Reps. Rufus Rodriguez and Reynaldo Umali)

Date: Tuesday, 08-March-2011 Committee/SubCommittee Time and Venue Agenda/Resource Person LAND USE 09:30 AM Technical Working Group meeting on HBs 414, 478, Conf. Rm. 13 RVM Bldg. 722, 829, 1233, 1348, 1695 & 3533 – Institutionalizing a National Land Use Policy, providing the framework and implementing mechanisms therefor (Reps. Juan Edgardo Angara, Kaka Bag-ao, Rufus Rodriguez, Diosdado Macapagal Arroyo, Winston ‘Winnie’ Castelo, Enerio-Cerilles, Rodolfo Biazon and Deputy Speaker Lorenzo Tañada III)

WAYS & MEANS jt/ w/ TRADE & 09:30 AM Subcommittee Report #1 on HB 3992 – Adopting the INDUSTRY AND ECONOMIC AFFAIRS R. R. Andaya Hall SW Bldg. simplified net income taxation scheme for individuals engaged in trade/business and/or practice of profession, amending for the purpose the National Internal Revenue Code (NIRC) of 1997, as amended (Rep. Giorgidi Aggabao) HB 938 – Investments and Incentives Code of the Philippines (Rep. Susan Yap) HB 4152 & 3162– Rationalizing the grant and administration of fiscal and non-fiscal incentives for the promotion of investments and growth (Speaker Feliciano Belmonte Jr. and Rep. Gloria Macapagal-Arroyo)

SUFFRAGE & ELECTORAL REFORMS 01:30 PM HBs 49 & 403 – Strengthening the political party system Conf. Rms. 1 & 2 RVM Bldg. and appropriating funds therefor (Reps. Rufus Rodriguez and Juan Edgardo Angara) HB 2877 – Declaring an elective official ipso facto resigned from his office upon the filing of his certificate of candidacy (Rep. Joseph Victor Ejercito) HB 3629 – Mandating that appointive public officials are considered resigned from their offices upon their filing of the certificate of candidacy for any elective public position (Rep. Rufus Rodriguez) HBs 3127 & 3190 – Amending RA 7941, otherwise known as the Party-List System Act (Reps. Christopher Co and Alfredo ‘Albee’ Benitez)

TRADE & INDUSTRY 01:30 PM HBs 123, 352, 1966, 3869 & 4143 – Strengthening Conf. Rms. 9 & 10 RVM Bldg. consumer protection in the purchase of brand new motor vehicles (Reps. Maria Carmen Zamora-Apsay, Susan

6 Yap, Mark Villar, Rufus Rodriguez and Roger Mercado) HB 3495 – Providing for motor vehicle warranty enforcement (Rep. Wilfrido Mark Enverga)

Date: Wednesday, 09-March-2011 Committee/SubCommittee Time and Venue Agenda/Resource Person NATURAL RESOURCES 01:30 PM HB 2175 – Mandating each city or municipality to set Conf. Rms. 3 & 4 RVM Bldg. aside a portion of its territorial jurisdiction for forest parks and providing for the maintenance thereof (Rep. Danilo Ramon Fernandez) HB 2540 – Authorizing the Land Management Bureau to conduct a survey of cadastral lots in the entire country and appropriating funds therefor (Rep. Joseph Victor Ejercito) HB 2944 – Providing for the delineation of the specific forest limits of the public domain (Rep. Rufus Rodriguez) HB 2535 – Imposing a logging ban in the 2nd District of the Province of (Rep. Florencio Garay) HB 3075 – Delineating the specific limits of forest lands, national park and agricultural lands in the Province of (Rep. Teddy Brawner Baguilat Jr.)

PUBLIC WORKS & HIGHWAYS 01:30 PM HB 4151 – Further amending certain sections of RA R. R. Andaya Hall SW Bldg. 6957, which authorizes the financing, construction, operation and maintenance of infrastructure projects by the private sector and appropriating funds therefor (Speaker Feliciano Belmonte Jr.)

Date: Thursday, 10-March-2011 Committee/SubCommittee Time and Venue Agenda/Resource Person ENERGY 09:30 AM HR 97 – Inquiry into the anti-consumer move of the Conf. Rms. 1 & 2 RVM Bldg. Power Sector Assets and Liabilities Management Corporation (PSALM) to pass on P470.865 billion of its debts and expenses to electricity consumers (Rep. Teddy Casiño) HR 106 – Investigation into the financial condition and funding of the National Power Corporation (NPC) and the PSALM, the status and schedule of payments of NPC's stranded debts and stranded contract costs, and PSALM's personnel salaries and other incentives (Rep. Ben Evardone) HR 199 – Inquiry into the debts of PSALM in an effort to lower power rates (Rep. Maximo Rodriguez Jr.)

Prepared by the FPI Secretariat

Unit 701 Atlanta Centre Condominium, #31 Annapolis St., Greenhills, San Juan City Tel. Nos. 722-3409, 584-9642 & 727-4359 i Fax No. 722-9737 E-mail: i [email protected] i [email protected] [email protected] [email protected] iWebsite: www.fpi.ph