USE RAPID RESPONSE, IRON WILL TO ARREST FALL-OUT FROM STRONG PESO, HIGH OIL PRICES, ROXAS TELLS GOVERNMENT

Rather than reviving the anti-subversion law and expanding its coverage, the administration should focus its attention on pressing concerns like the economic fall-out that may arise from high oil prices and a stronger peso.

The reaction of Senator Mar Roxas, chair of the Senate trade and commerce committee and president of the Liberal Party was in response to the administration's pronouncement that it is seriously considering an expanded anti-subversion law.

The senator noted that despite assurances of Energy Secretary Angelo Reyes during a Senate hearing that he will check the books of oil companies, no concrete actions seem to be in the offing to compel oil companies to cooperate with the DoE. Meanwhile, the senator raised the alarm on continued inflows to the country's dollar reserves.

"With Transco, the winners bid $3.95 billion, which will come into thesystem, further weakening the dollar, further strengthening the peso.

Some analysts in fact say the peso can be at the $36-$37:1 range in a ew months. Kapag ganyan ang nangyari, lalong magdurusa ang ating mga OFWs, exporters, call centers at tourism sector," the senator warned.

The LP president also countered the statement of AFP Chief General Hermogenes Esperon that the AFP needs some "rapidity" in going after terrorists, members and supporters of the communist party and its armed wing, the New People's Army hence the need to revive the anti-subversion law. Roxas said he supports the noble mission and heroism of military soldiers but that a revival of a draconian law is not the solution.

"I believe that what the people need is a more rapid government response to basic problems. I call on the administration to seriously consider these two specific proposals:

1) Stop foreign borrowings and shift to domestic borrowings to temper the strength of the peso; and,

2) Agree on a suspension of EVAT on oil and oil products for a six-month period or at the very least, until prices in the world market has stabilized," Roxas said.

The senator said continued savings on interest rates on debt payments would more than make up for the loss in revenues caused by a temporary suspension in the EVAT on oil.

The former DTI Secretary cited the urgent appeal for help from the Seaweed Industry Association of the Philippines (SIAP) led by its president Benson Dakay.

In a letter to Roxas, the SIAP pointed out: "The export sector and our unsung heroes, the OFWs, have been affected the most with the government's policy of non-intervention to arrest the peso gains. This problem creates a chain reaction among our dependents who are the suppliers, contractors, farmers, our workers and their families."

Dakay pointed out that shutdowns and slowdowns of factories engaged in seaweed export have led to the displacement of about 100,000 farmers and workers. "Slowly, our products are no longer competitive in the world market and what worries us is when other countries take advantage of our export industry situation because most of them have a stable currency," SIAP said.

The senator also cited several letters from Filipinos over seas expressing support to his proposal to cut foreign borrowings.

"Rather than rely on foreign loans which will further strengthen the peso, let's increase our domestic borrowings and introduce policy reforms to guarantee full transparency in obtaining and implementing all loan agreements," Roxas stressed.