Bleak Christmas, mass layoffs seen

A top business leader predicted a bleak Christmas for Filipinos this year and mass layoffs next year unless the present political crisis is resolved immediately.

Raul Concepcion, head of the Federation of Philippine Industries, told radio station dzRH yesterday his group was volunteering to avoid laying off workers until the end of the year, but said it could not prevent looming price adjustments.

"We have to arrest things immediately because if not, by January or February, the economy will collapse," Concepcion said. "Because by then, businesses might have to cut production by 50 percent."

He said businessmen have cut back on importations by 50 percent for the next two months.

"What I must stress is that the peso’s rapid depreciation reflects the mood of the entire country and not just business groups," Concepcion said.

Meanwhile, Defense Secretary Orlando told reporters yesterday businessmen, who are demanding President Estrada’s resignation, do not represent the sentiments of the local and international business communities.

Mercado said the calls for resignation and the protest rallies are just part of the "political dynamics" in the country, and these will not be considered as threats to national security.

"I think our economic managers are the best ones to disprove the fears of this particular group," he said.

Concepcion said smaller companies have started cutting payrolls, and predicted that the country will have a bleak Christmas and even a worse New Year for the economy.

"Our people are terrified at the element of uncertainty," he said.

Concepcion urged Congress to speed up the impeachment process against President Estrada, which officials have warned could take months.

Concepcion said the President should go to Congress promptly, face his accusers and present more convincing evidence than his blanket denial that he has not received a single centavo from gambling operators.

The House of Representatives is scheduled to start public hearings on Nov. 6 on charges that Mr. Estrada took more than P400 million in bribes from operators of jueteng.

Mr. Estrada has rejected calls for his resignation but said he would step down immediately if his detractors presented proof that he is a crook. – AFP, Paolo Romero