Trade exec laments 'insufficient' state support to pandemic-stricken firms
MANILA, Philippines — A legislative hearing turned emotional on Wednesday when an executive from the trade department admitted government support to pandemic-stricken firms has been falling short without an economic stimulus.
“Nahihirapan talaga ako kasi kapag lalapit ‘yung mga companies wala akong maibigay na concrete program or concrete support in terms of finances (I'm really having difficulty because every time companies approach me for assistance, I cannot give them a concrete program or concrete support in terms of finances),” Trade Undersecretary Rafaelita Aldaba told the House economic affairs committee.
“Well, of course, kapag nagpe-present ako, sinasabi nila, inspiring naman talaga ‘yung program ng gobyerno, but the truth is kulang pa talaga, ‘kulang pa talaga,” she said, breaking slightly into tears.
Aldaba, upon questioning by Marikina Rep. Stella Luz Quimbo, said the department is fervently awaiting the passage of House Bill No. 6815 or the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill. The measure allocates P1.3 trillion to programs such as wage subsidies and interest-free loans to help the economy recover from the pandemic’s damage.
But as Quimbo indicated in the hearing, there is one big stumbling block to ARISE bill’s enactment, and that is the opposition from economic managers. Policymakers, led by Finance Secretary Carlos Dominguez III, have repeatedly said the government cannot afford an expensive stimulus package without risking its prized fiscal health and credit rating.
Sought for comment, Dominguez said in a Viber message the finance agency has “made our position very clear” when it comes to funding ARISE bill. He said the discussion on the bill is now left between the Lower House and the Senate.
Disagreements between the legislature and the Executive department left the ARISE bill and other stimulus measures stuck in Congress before the chamber went on break last June 5.
Officials tried to reach a compromise, and hopefully request President Rodrigo Duterte to call a special session, but that plan now seems unlikely with only a few days left before Congress starts a new session on July 26.
“Usec [Undersecretary], we want to cry with you. We have been working hard everyday on this ARISE so we’re all very frustrated with you,” said Quimbo, one of ARISE bill’s main authors, in Filipino.
“The fact is we really need to release money already, as in direct subsidies just so we can revive the industries that were lost. That’s the only way…,” she added.
Labor department data show 501 establishments have closed down as of July 13, laying off 121,921 people.
Existing aid loses funding as well
In the absence of a stimulus, Aldaba said the Department of Trade and Industry used its existing support programs to fund a coronavirus response. But programs such as P3 fund for small and medium enterprises (SMEs) is also “already depleted.”
The Duterte administration opted to use existing funds in the P4.1-trillion budget to finance a costly COVID-19 response. However, the authority to move around funds in the budget already lapsed last June 25, and has so far not been renewed. Without such power, allocations to COVID-19 interventions, like P3, risk getting lost.
For Aldaba, the best long-term fix remains a stimulus “just like what other countries are doing.”
“Naiiyak ako kasi naalala ko yung mga sumusulat sa akin. Sobrang awang-awa ako kasi parang humahanap ako ng bangko para mai-connect sila para makakuha ng mga loans. Kaya sana ng mapasa na ‘yung ARISE kasi ‘yun talaga ‘yung mga kailangan ng companies ngayon, liquidity…, financial support,” she said. — Prinz Magtulis
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