The House of Representatives on Wednesday approved on second reading the Duterte administration’s priority measure creating the Coconut Farmers and Industry Trust Fund (CITF).
Voting through viva voce, lawmakers passed the House Bill 8136 or the Coconut Farmers and Industry Trust Fund Act. The bill seeks to consolidate all assets and benefits emanating from the coconut levy, and creating a Trust Fund, to be used to rehabilitate and modernize the coconut industry for the ultimate benefit of coconut farmers and farmworkers.
House Committee on Agriculture and Food Chairman Wilfrido Mark M. Enverga said the utilization of the Trust Fund created under this proposal shall be in accordance with the Coconut Farmers and Industry Development Plan.
Enverga, who sponsored the bill, added that the plan shall be prepared by the Philippine Coconut Authority (PCA), in consultation with all the stakeholders concerned, and approved by the President of the Philippines. He said the plan shall be subject to mandatory annual review.
The lawmaker said under the bill, the plan shall set the directions and policies for the development and rehabilitation of the coconut industry within 99 years.
“[This will be] guided by the following objectives: to increase incomes of coconut farmers; to alleviate poverty and promote social equity; and to rehabilitate and modernize the coconut industry towards farm productivity,” he said.
Enverga added that Congress must first provide a law for the disbursements of the funds, in line with its constitutional authority. He said the absence of a legislative authority in the disbursement of public funds would render the funds idle and no income can be derived from it. “And the farmers are deprived of the help they most need, especially during this most difficult time.”
Citing the the Bureau of Treasury, Enverga said the cash component of coco levy assets now stand at P76.4 billion as of December.
Also, citing Presidential Commission on Good Government, the lawmaker said the coco levy assets, including its properties, is now at P300 billion.
The bill directs the PCA to submit the development plan to the Office of the President within 120 days from the effectivity of this Act, and complete the Coconut Farmers Registry.
Under the bill, the annual utilization of the trust fund includes: 10 percent for shared facilities program; 10 percent for farm improvement through diversification and/or intercropping such as projects on livestock, dairy, poultry, coffee, and cacao production; and, 10 percent for development of hybrid coconut seed farms and nurseries, to encourage self-sufficiency.
The bill also allocates the 10 percent of the trust fund for empowerment of coconut farmer organizations such as scholarship program; 10 percent for Health and medical program and; and, 10 percent for their cooperatives.
It also provides the following: 10 percent for credit provision through the Development Bank of the Philippines and Land Bank of the Philippines; 10 percent for infrastructure development; 10 percent for training of farmers in farm schools through the Technological Education and Skills Development Authority (Tesda); and, 10 percent for planting and replanting.
The bill, meanwhile, reconstitutes the Philippine Coconut Authority to ensure the participation of coconut farmers in the crafting and implementation of the Plan.
Under the bill, the PCA Board shall now be composed of the following: the Agriculture Secretary as chairman; the Finance Secretary as vice chairman; the Budget and Management Secretary; the Science and Technology Secretary; and, the Trade and Industry Secretary. Three representatives from the coconut farmers sector—one each from Luzon, Visayas, and Mindanao—and one representative from the coconut industry sector would also be included in the PCA board.
The bill also creates the Coconut Levy Advisory Board, which shall be composed of representatives from the coconut farmers and their organizations, industry associations, civil society organizations, academe, and other stakeholders in the coconut industry.
The measure also directs all government agencies holding Coconut Levy Funds and/or assets to transfer any and all monies to the Trust Fund within a period not exceeding five years from the effectivity of this proposal. Immediately upon the enactment of this proposal, the Bureau of the Treasury shall transfer P5 billion to a separate Trust Fund Account.
It also provides that an initial allocation of P5 billion shall be available to the PCA, which shall include disbursements for the formulation of plan. However, any unexpended portion of the said fund by the end of each year shall revert to the Trust Fund.