3rd SONA pitches priorities amid struggle for House helm
PRESIDENT Rodrigo R. Duterte, in his third State of the Nation Address (SONA) on Monday, reaffirmed key policies of his administration such as the drive against corruption in behalf of ease of doing business, as well as environmental rehabilitation, vowing to step up these initiatives in partnership with Congress.
He also pushed for legislation against job contractualization, among other policy directions seen as disruptors in the country’s business scene.
Unlike in his past, partly improvised SONAs, Mr. Duterte this time stuck to the formal tenor of his hour-long prepared speech, that began more than an hour late at 5:15 p.m.
The speech made no reference to the political drama unfolding in Congress upon Mr. Duterte’s arrival at 4 p.m., when allies of former president and Pampanga Rep. Gloria Macapagal-Arroyo sought to wrest the speakership of the House of Representatives
from Pantaleon D. Alvarez of Davao Del Norte’s first district ( see story on S1/ 10).
In his introductory remarks, Mr. Duterte acknowledged “House Speaker Pantaleon D. Alvarez” as well as Vice-President Maria Leonor G. Robredo and Acting Chief Justice Antonio T. Carpio, both of whom have been critical of the Duterte government’s handling of the country’s maritime issues with China in the West Philippine Sea.
By evening, however, the House of Representatives was set to formally replace Mr. Alvarez with Ms. Arroyo at the speakership.
Mr. Duterte began his speech with what he vowed would be a continuing war on drugs, saying this campaign “will not be sidelined” and will remain “relentless and chilling.”
But 10 minutes into the subject, he moved on to other matters, in a speech that dwelt significantly on economic policy directions on his watch that are now familiar to the business sector.
He took a swipe at the telecommunications duopoly in his remarks on the need for a third telco player.
“Our efforts to usher in a new major player shall be rendered futile if we do not improve its odds of success in an industry that has long been dominated by a well-entrenched duopoly,” Mr. Duterte said.
“We shall, therefore, lower interconnection rates between all industry players. Not only to lessen the cost to the consumers as it will also lower the costs [for the] incoming player to access existing networks, [thereby creating] a market environment that is more conducive to competition. This is a policy which is crucial to ensure that our solution to our telecommunication problems will be both meaningful and lasting,” he also said.
On mining, Mr. Duterte said, “Expect reforms, radical ones.”
“I say this once again and maybe for the last time, do not destroy the environment or compromise our resources; repair what you have mismanaged. Try to change [ your] management radically because this time you will have restrictive policies. The prohibition of open pit mining is one,” the President also said to the applause of his audience.
He said of “our actions in Boracay,” the tourist island under rehabilitation, that this “mark(s) the beginning of a new national effort… For the other tourist destinations needing urgent rehabilitation and enforcement of environmental and other laws shall soon follow. I urge our local government units to proactively enforce our laws and not wait for us to swoop down on your areas just to do your duty and work. Some other time I would have to discuss (this matter with the) local government units.”
In the labor sector, he asked Congress “to pass legislation ending the practice of contractualization once and for all.” A pending security of tenure bill, however, has yet to be identified as priority measure.
On the Ease of Doing Business Act that Mr. Duterte enacted into law in May, he said: “We need to sustain our momentum.”
“I hereby direct all local government units — makinig sana kayo (I wish you’d listen) — and government agencies to faithfully implement this law and simplify the process. Hinihingi ko ho ‘ yan sa lahat nasa gobyerno under my
control and supervision. Huwag ho kayong magkamali (I ask this from all in government under my control and supervision. Do not make a mistake).”
Mr. Duterte thanked Congress for the passage of the first package of the Tax Reform for Acceleration and Inclusion or TRAIN law, adding that “I hope to sign package 2 before the year ends.” While the first package, Republic Act No. 10963, slashed personal income tax rates and increased or added levies on several items, the second package will cut corporate income tax rates and rescind fiscal perks deemed redundant.
He also asked Congress to approve all the remaining three to four more tax reform packages “in succession”.
On mitigating measures on tax reform, Mr. Dutete said, “We have distributed unconditional cash transfers to 4 million people, and we will help 6 million more this year.”
“Following the one-peso discount per liter in gas stations, we have also started releasing fuel vouchers to public utility jeeps and other valid franchises. Further, we have fast-tracked the distribution of NFA rice to provide affordable rice for all,” he added.
Mr. Duterte also said: “This year, we are giving P149 billion worth of subsidies to the poor and vulnerable. Next year, the amount will be increased to P169 billion. But no amount of subsidy can help the poor if some businesses take advantage of the situation to make more money. I ask businesses to cooperate with us in charging a fair price.”
“To help stabilize rice prices, we also need to address the issue of artificial rice shortage. I now ask all the rice hoarders, cartels and their protectors, you know that I know who you are: stop messing with the people… Power sometimes is not a good thing. But I hope I will not have to use it against you,” the president said.
“I am directing all intelligence agencies to unmask the perpetrators of this economic sabotage and our law enforcement agencies to bring them to justice.”