Press Release
November 10, 2009

Transcript of ambush interview with Senate President Juan Ponce Enrile

Oil Shortage

Q: Sir, reaction lang sa statement tungkol sa oil shortage.

SP: If the distributor, dealers of gasoline, diesel, kerosene and other fuel products do not import then we will have really a shortage and I guess because of their opposition to the E.O. that was issued to control the price of their product, well, you cannot compel them to do business.

Q: So how would we resolve?

SP: Well they are deregulated. The only solution is for the government to import if they have the money to import and the mechanism to import.

Q: Sir hindi ba artificial lang yung shortage?

SP: I don't know. I'm not sure of the inventory but it's possible. These people do not carry long inventories. They will lose money if they will keep their money idle.

Q: Pero sir if we import di ba 'yung prices noon will be really high?

SP: Well it will be high but then again how will you distribute it? These players are the owners of the retail outlets, the gasoline stations. The government sold its gasoline stations. That was the foolishness of the policy of selling Petron in the past. Not this government but, previously, it was sold. They did not anticipate situations like this. That is the reason why the Marcos government bought the old Mobil and ESO facilities in the Philippines, both the refineries and retail outlets, in order that the government, in a situation like this, can protect its own citizens. But some people were foolish in selling it.

Q: Sir may problem if you import you can't distribute it pala.

SP: Yes. Who will distribute? How will the jeepneys go to the ships to get their share?

Q: Sir in other words the government cannot do anything pala...

SP: Well, if they want, they have to seize the retail outlets of these companies and then bring in the supply.

Q: Pwede ba yun sir, seize?

SP: Pwede, if the government wants to do that but it will be messy.

Q: Using what powers sir?

SP: The powers of government. The police power of government. When the people are in trouble, the government can do anything to save the people that is why it is government.

Oil Deregulation Law

Q: Sir, do you think time na para i-review 'yung Oil Deregulation Law?

SP: It's the time we must decide whether we like market economy or not. We have tried regulation. We were losing our plants so we deregulated. But the mechanism that we had in place when we deregulated was thrown away. That was Petron.

Q: Sir, would you recommend to buy back Petron?

SP: Too late in the day. What are we? Seesaw? Ano ba kayo atras-abante?

Q: Sir, plausible 'yung seizing?

SP: Well, if your people are in trouble, what are you going to do? You'll exercise emergent powers?

Q: Hindi ba ma-question 'yan sa Supreme Court?

SP: Well, never mind, let it be questioned but at least in the meantime, you're doing something to protect your people.

Q: Sir, do you think naging alarmist ang Department of Energy with Secretary Reyes announcing na within 15 days we'll have a short supply of fuel?

SP: Never mind if he is alarmist or pacifist, the fact is, what are the facts? Don't make conclusions. Find out the situation.

Q: 'Yung libro kailangan na bang buksan na talaga, pwersahin na ng gobyerno?

SP: Pwede. Buksan na ang mga libro. Buksan ang mga tangke. Buksan ang mga bulsa kung kailangan.

Q: Sir, ayaw nga nila.

SP: Do not theorize. Do not temporize when your country is in trouble. Use every means to save it. Now, we have plenty of dollars. They can import. They can buy from any market. But these contracts are locked in ahead of time. Supply contracts cannot be done just like going to the market to buy bangus or galunggong.

Q: Sir, hindi ba ang dating ni Secretary Reyes is he's lawyering for the oil companies?

SP: That is an impression. I will not comment on that.

Q: Pero 'yung shortage na 'yan sir is created by the oil companies?

SP: No, the shortage is created by supply and demand. Now, these people bring in products according to their schedule of supplying their market. If in their opinion they have to recover certain costs, they have to increase the price. I do not know the government's basis in issuing an executive order to put a cap. You cannot force businessmen to lose money. They are not involved in charity.

Q: So sir, mali 'yung EO na 'yon?

SP: If you are dealing with businessmen, you have to be very careful unless you have strong evidence to show that indeed, they are manipulating the market. That is why, we have offered to them a legal mechanism to challenge them and that is the Anti-trust Law that we passed in the Senate. It's languishing in the House of Representatives. We have done our duty in the Senate. We are asking the House of Representatives to pass these laws, to protect the people especially in a situation like this.

Q: Sir, the Palace said that it's going to stick with the EO?

SP: Well, that is the responsibility of the Palace if they can really sustain this so they really have to prepare to supply the gap of the demand in the shortage of supply. Otherwise, you will have a standstill economy. You just imagine a situation when there is no fuel in the country. Nothing can move. You can starve Manila in a few days. We went through this during the time of Marcos. That's why we never tinkered with it. I'll tell you, three days of no transportation around the country, you'll have food riots in Manila.

Q: Sir, do you think hindi well-studied 'yung EO na pinalabas?

SP: When people are hungry, parents will see their children crying for food, you're in trouble.

Q: Sir, ang mali talaga noong binenta 'yung Petron?

SP: Mali na binenta 'yung Petron. The purpose of why the government acquired Petron was precisely to use it as a foil against the propensity of Shell and Caltex and the other players to increase their prices inordinately. Petron was not intended to be a profit-making organization but to balance the power of the market of Shell and Caltex. And they sold it to Aramco. They also allowed Aramco to get its own supply of crude from its own mother company. So, ginisa tayo sa ating sariling mantika.

Ethics Case Against Senator Villar

Q: Sir, mayroon na hong committee report tungkol sa ethics complaint (against Senator Villar)?

SP: Ginagawa pa. Maraming dokumento ang pinag-aaralan.

Q: Mga before the break sir?

SP: We will see what we can do. We will try our best.

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