Herrera backs creation of economic advisory body

Former senator and now Rep. Ernesto Herrera (LAMP, Bohol) supported President Estrada's decision to create an economic council to recommend policies that would attract foreign investments into the country.

"The creation of this team is timely in the wake of reports that investments have plummeted to their lowest in five years," he said.

He said the President's decision represents an honest-to-goodness attempt on the part of the administration to map out a new economic strategy.

"In convening the council, the President recognizes the paramount importance of the economy in governing the country's affairs. The solution to most of the country's problems is tied in one way or another to the economy. So there must really be closer coordination in the formulation of our economic policies and monitoring of our economic programs," he said.

Herrera pointed out that the council's work would complement the job of the Economic Monitoring Group, which was created earlier to deal with complaints from the private sector about government policies.

He suggested that for starters, the economic council should look into the problems plaguing the garments and textile industry, and into the slow implementation of foreign-funded projects.

Herrera called attention to the threat of international funding agencies to withhold further assistance to the country if $11 billion worth of foreign-assisted projects are not finished on time.

He said the council should not agree to the proposed reduction by P11 billion of funds set aside in this year's proposed budget as local counterpart for foreign money flowing into infrastructure projects.

Herrera himself is opposed to such reduction, saying it would mean the loss of precious foreign funds and projects that generate jobs and income for the people.