The Senate’s taking too long

With the passage of the new excise tax law taking just too long, those in the automotive industry may already have jugged stubs for fingernails as they continuously bite on them or may have thinned out the seat of their pants having sat on the edge of their chairs for quite a while.

The industry players are holding their breaths, what with the Damocles’ Sword hanging above their heads, by way of the currently deferred controversial BIR Revenue Regulation 4-2003 due to take effect should the bill fail to become a law by June 6. Well, of course they do have legal means to further suspend its disastrous implementation. If the implementation was deferred three times, why not four?

And the past days’ weather was not on the side of the industry either; as the final interpellation of the bill was washed away by last Tuesday’s rains and floods, further shortening the working time for the bill’s possible passage.

My recent talks with some of the major industry players reveal that at this point what is paramount to them is to have a definite ruling. Whether the bill is finally approved is still of important consequence but what tops their agenda is to have some firm ruling to base their business plans on for the next 12 months or at least up to the end of the year – with or without a new excise tax law.

It is no longer a secret that one of the major stumbling blocks for the inflow of foreign investments is the country’s penchant to change many major rules and policies, as there is a change of administration and to make matters worse, even several times over within an administration. As big multinational business concerns work on five- to 10-year plans, having a business here can be very difficult in terms of making projections and long-term marketing strategies. Of course, aside from our highly politicized government culture we can also charge this phenomenon to our being a developing country that’s still in its infant stage.

But as we have our problems as a country, these big businesses have their own problems too and the Philippines, sad to say, may not be on top of the list of their major concerns.

Be that as it may, the furtherance of the tentative state that the local automotive industry presently finds itself in is in the hands of the Senate. As it dilly-dallies in the passage of the new excise tax bill, the industry will continuously be in a state of suspended animation. Notice that newly launched car models don’t even have firmed up prices? This is so because the passage or non-passage of the bill would tremendously affect the pricing of almost all motor vehicles in the different categories.

I understand that force majeure of the past few days played a major role in the shaping of the present scheme of things. But can the Senate try to make up for it by exerting double efforts? Just suggesting, not meddling.

More than what meets the eye

One of our major topics in last week’s column elicited a "raised eyebrow" reaction from no less than the president and chairman of Travel Cooperatives of the Philippines and the National Association of Independent Travel Agencies, Mr. Bobby Joseph. In that write up I mentioned that the present hotel rates that we have in the Philippines seem to be higher that those of our neighboring countries in the Asean. So much so that many of our countrymen opt to travel to these countries than see our local tourists’ offerings thinking that they may be spending just a little more or probably even less but still have the distinction of having traveled abroad.

Bobby was saying though that we should be very careful in grabbing these publicized tours as many Filipino travelers have already found themselves spending a lot, lot more than what was advertised upon realizing that the accommodations specified in the ads do not meet the high standards that we have and therefore many have opted for those that are acceptable but are a lot more expensive.

But he also concedes though that if we just walk in to most hotels anywhere in the country we would most probably be charged their published rates, which are relatively higher than those given to travel groups. So the best thing to do if one plans to see places within the country is to consult first with a local travel agency and find out how much it would really cost before jumping into those overseas tours that seem to offer less expensive travel packages.

Aside from learning these realities of the travel business, my long chat with Bobby while we were at the Century Park Hotel’s Cellar Pub, which incidentally he runs, may bear other fruits as we have agreed in principle to a "cooperative venture" between his groups and Sunshine Television Ventures to help promote travel to local vacation and tourist sites as well as to international destinations through our TV show Business & Leisure. We envision this as a business/private sector initiative to help the government, in our own little way, in its efforts to promote our tourism industry.

There are ambitious plans being laid to reach this goal and I shall apprise our readers of the laudable projects being conceived as they get firmed up.

DECS out to kill small lending institutions?

A lot has been said to alleviate the sad plight of our teachers in trying to survive the "hand-to-mouth" existence that is an unfortunate reality to most of them. Many politicians have even broached the idea of utilizing SSS or GSIS funds in order to extend small loans to them in times of dire need considering that the big financial institutions would rather not mess with what they regard as a non-profitable venture. But as it has turned out there was nothing behind these fiery speeches except to woo the votes of these hardworking teachers. Beside many doubt the idea’s viability.

Responding, for quite a while now, to these monetary needs that require instant attention sans the bureaucratic red tape, heaps of paper work and more importantly collateral to secure such loans are the small lending institutions whose legal existence and operations are even embodied in the General Appropriations Act. It is these small lending institutions that come to the aid of our poor teachers in times of dire needs and emergencies by extending small loans to tide them over fast. Now to remain viable and be able to ensure the continuance of such service to the teachers, legislators have made provisions in the GAA for these lending firms to be able to collect payments for these loans through the Automatic Payroll Deduction Scheme.

Our sources have decried that everything was going well for the teachers and the small lending institutions until some new top officials in the DECS came into the picture and are now trying to overhaul this time-honored and tried and tested system by requiring all small lending institutions, including those which have long track records of efficiency and integrity, to be re-accredited and to submit all imaginable paper requirements. Now worse, according to our sources, these small lending institutions, many of which have been in this humanitarian service for years and years are being asked to restructure their service interest rates to the point of having to endure a non-profitable or worse a losing business operation.

In the meantime, some teachers are now biting at the usurious five to six operators just to make both ends meet and to respond to emergencies as many of the long-time small lending institutions face the prospect of going belly up should they concede to the whims of the new DECS officials.

Who’s out to kill the small lending institutions, which have been for so many years serving the immediate monetary needs of our poor teachers?

There must be a better way to do things rather than this.

Mabuhay!!! Be proud to be a Filipino.

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