One side of the oil depot issue

We ran a few weeks of our cruise in this column, and we thank our countless readers who sent their varied reactions to our short but thoroughly enjoyable European sojourn. Most of them found the tips for first-time cruisers very helpful. Others who have already gone through a cruise previously delighted in reliving the familiar experience. Anyway, after savoring two weeks off on a languorous vacation centered as much on scenic visual treats as the Bacchanalian splurges, it is time to buckle down to business once again.

Here are some inputs on a couple of issues.

We had a talk recently with Manila City Mayor Fred Lim on the TV show Business & Leisure on his controversial decision to keep the oil depots in Pandacan. For sure, the environmentalists are howling, and some of our politicians are also raising hell, but he cited some reasons behind his decision, difficult as it is to make because of the virulent opposition it is meeting.

Though I am very sure there are merits as well on the other side, I am giving due space and airing the mayor’s side hereunder, as relayed to us during the interview. If given the opportunity and data to air the other side, we would certainly do so as well, in the interest of fair play.

On the issue of dangers to the residents of Pandacan because of the continued stay of these oil depots in the area, Mayor Lim pointed out that these oil companies have been around for decades without any incidence of fire, explosion or similar accidents-Chevron (Caltex) since 1907, Shell since 1914 and Petron since 1917. Mayor Lim says these oil companies, large as they are, adhere strictly to international security standards which, among others, implement a no-fly-zone in the immediate surroundings precisely as part of their stringent precautionary measures.

I think what the kind mayor is most worried about is the impact on employment of his constituents. The move could easily displace thousands of workers employed by these multinational companies. Over the years, whole generations have chalked up employment records in these oil companies, from the grandparents and down three generations. Should these oil firms move to Batangas, it would not be feasible to retain employees from Manila. Likewise, it would be a difficult decision to uproot the family of existing employees to move to an entirely new city if they wish to keep the job.

On the issue of pollution, Mayor Lim posed this question: if the oil depots are moving to Batangas, wouldn’t they be bringing the same risk of pollution, if indeed it is a serious danger posed to the residents, to the relocation area? If it is a risk for Manila residents, it would be the same for Batanguenos, or any other place for that matter, so the argument does not hold up well.

Mayor Lim also pointed out that these oil companies have contributed much to the coffers of the City of Manila. The city has a lot of ongoing projects funded by these taxes, from education (Pamantasan Ng Lungsod ng Maynila, city colleges, etc) medical care (government hospitals, centers), to livelihood projects, etc. The sudden loss of tax revenues from these oil companies will impact the city’s pro-poor programs.

He relayed to us the concerns of Sec. Angelo Reyes of the Dept. of Energy, the Traffic Management, the DOTC and the PNP. Sec. Reyes sees a very probable disruption of supply with the depots several hours away, especially with the traffic situation still very volatile in the South because of ongoing construction work on the tollways. The disruption of supply could translate to even more increases, as much as P2 -P3/liter. Actually, because there are more expenses entailed because of the added distance, these are expected to be tacked on to the basic cost of gasoline, so I guess we can expect an even bigger price increase?

Should they move to Batangas, they expect about 500 trucks hauling gasoline daily to the different gas stations in Metro Manila. I can imagine the traffic that these humongous haulers can cause in our streets. And with 500 trucks pounding our streets daily with their truckload of gasoline, what would our streets be like in a year’s time?

And lastly, there are 1,600 gas stations in Metro Manila that these trucks have to serve. The incidence of hijacks increases with this scenario, and the PNP would be hard put to police the deployment of 500 trucks daily.

That’s one side of the coin. The other?

Go organic!

We also had an interesting chat, through our TV show Business & Leisure’s Biz Watch segment, with PDAP’s Executive Director Jerry Pacturan. PDAP is the Philippine Development Assistance Program established in 1986 for the purpose of poverty reduction and to address social inequity through rural development work. Funding is essentially provided by another NGO, the Canadian International Development Agency which has supported them since PDAP’s inception.

Among the products that PDAP is pushing is organic rice which they have been supporting small farmers to get into as they are cost-efficient, though labor intensive. Going organic as far as rice farming is concerned has multiple advantages. For one, being labor-intensive, it creates jobs in the countryside. It prevents environmental destruction caused by chemical farming, and is healthier for the farmers as they are not exposed to harmful fertilizers, pesticides, etc., and to the consumers as well.

There is a growing demand for organic rice, here at home but more so abroad. It’s a pity that we can’t export this, though, because of the current ban on rice export, mainly brought about by our own low production of rice. Here at home, though, big malls now have special sections for organic produce. PDAP’s own brand of organic rice, Healthy Rice, is produced in Cotabato.

The other products are seaweeds and muscovado sugar. Tawi-Tawi is the main supplier of Eucheuma seaweeds from which they extract Carageenan, an important ingredient of cosmetics, food products, and even beer. This is already a developed industry, and the Philippines is the world’s biggest supplier of Eucheuma, serving about 80 percent of the world’s needs. It is a pity though that the farmers who are into seaweed culture have remained poor, so the PDAP is currently supporting them so that not only the traders or processors can profit well from the seaweed industry.

Muscovado, erstwhile poor man’s sugar, now constitutes the new sunrise industry. There is a very high demand for this which we can’t even serve fully, especially in the US, Japan and Europe where the non-organic brand sells for four to five Euros, or P300/kilo. Our organic muscovado should be able to command a better price. In 2003, our muscovado export reached about $ 3.7 billion, and still growing.

The PDAP is developing organic rice areas in the country as part of their advocacy of Promoting Rural Industries and Market Enhancement and establishing market linkage. The coffee growers of Kalinga have benefited well from the technical support of PDAP as well. We hope that the bill they are pushing in both houses, the Organic Agriculture Act, will get prioritized as this provides an alternative farming system for our marginalized farmers.

Mabuhay!!! Be proud to be a Filipino.

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