|
IGNORING
questions about the legality of its sourcing funds for a
slew of inflation-busting subsidies, Malacańang Palace
Monday launched the latest in a series of programs
funded by the initial proceeds of the value-added tax
(VAT) on oil: a P1-billion loan assistance to convert
public-utility vehicles (PUVs) into “green” means of
transport.
The
President launched Katas ng VAT: Pantawid Pasada at the
21st anniversary celebration of the Land Transportation
Franchising and Regulatory Board (LTFRB) at the SM Mall
of Asia. This subsidy, she said, would help shield PUV
drivers and operators from soaring oil prices.
“From
the Katas ng VAT and the Vehicle Pollution Control Fund,
we are launching today a P1-billion fund to be loaned
out to drivers of jeepneys and other public-utility
vehicles so that they can convert their engines to run
on LPG, CNG and other alternative fuels that are far
cheaper than gasoline and diesel,” she said.
In
explaining the move, which is part of a government
scheme to use oil VAT proceeds to provide relief to
sectors badly hit by high oil prices, the President said
that “oil, like food prices, is a global issue that is
beyond the control of the government, but we are giving
targeted relief in terms of oil for those who need it
most, and that is you, the drivers and operators of
public-transport vehicles.”
She
added: “Because of our robust economy, we can invest in
our primary sectors to shield the poor from the impact
of soaring prices of rice and oil. We have alloted P4
billion from the VAT on oil to fund different programs
we call Katas ng Vat,” she said.
Under
the scheme, the Department of Energy with the
Departments of Science and Technology, of Trade and
Industry and of Transportation and Communications, will
oversee the conversion of PUVs to alternative fuels
through an interest-free loan program that would cost
each participant as little as P80 per day in repayment,
Mrs. Arroyo said.
Transportation Secretary Leandro Mendoza said there are
two kinds of conversion, a full engine replacement
costing P250,000 and another providing for a 30-percent
conversion into LPG, which costs P70,000.
Mendoza
claimed participants could save more than 50 percent in
fuel costs, and would allow them to earn bigger profits—jeepneys
that undertake the 30-percent conversion are estimated
to generate an “additional P220 per day.”
This is
why, he said, public transport groups were “pleased”
with the program, enough to withdraw a fare- hike
petition.
Mrs.
Arroyo said in her speech that the government is
targeting to provide loans for the conversion of 10,000
jeepneys, buses and taxis through the Development Bank
of the Philippines and possibly through the Philippine
Postal Savings Bank.
“Where
else can you find a loan that would require you to pay
only P80 per day for a P200,000 loan? And not only that.
It is interest-free,” she said.
Unfazed
by questions about the legality of the “Katas ng Vat”
subsidy programs, Mrs. Arroyo enumerated other efforts
she had launched in the past couple of weeks, beginning
with the P2-billion subsidy for four million families
consuming less than 100 kilowatt-hours every month or
Katas ng Vat: Pantawid Kuryente; and the Katas ng Vat
Para sa Estudyante, a P1-billion fund divided equally
between scholarships and student loans.
“We will
tirelessly pursue efforts to respond to the challenges
brought about by the global economic slowdown and high
oil and food prices. This has dealt a heavy blow on the
poor. . . so the government will do all it can to
sustain our economic gains,” she said.
Palace
officials defended the subsidies against allegations
that they are illegal since they were not authorized by
Congress.
“There’s
definitely justification for the Palace to undertake
such measures. . . . My initial take is Malacańang has
the full authority to be able to undertake these
projects,” said Press Secretary Jesus Dureza, who
embarked on his new job that day.
Deputy
presidential spokesperson Lorelei Fajardo said in a
statement that Mrs. Arroyo “acted within the powers
afforded the Executive.”
She
acted “in response to the needs of our poorest of the
poor. This is a concrete measure undertaken by the
President. We responded to the need of the times and
brought relief to the people. It may be best for all
concerned to think of ways to help alleviate our
people’s continued suffering brought about by the world
financial, fuel and food crisis,” Fajardo said.
Senate
Minority Leader Aquilino Pimentel Jr. had questioned the
legality of the subsidies, particularly the P500 per
family power subsidy, asking the Palace to state clearly
the source of the funds. He echoed points raised by
former national treasurer Leonor Briones and former
budget secretary Benjamin Diokno that the Executive
cannot simply arrogate unto itself Congress’s
constitutional prerogative over the public purse by
lining up programs to spend what are claimed to be
“windfall” from VAT collections on petroleum products.
These are seen to swell by more than P18 billion this
year over the program, on account of soaring prices of
crude oil, which have proportionately jacked up the
taxes due as well. |
