Aquino: No need for supplemental budget for Juan's damage

MANILA, Philippines –  The Aquino government bucked yesterday the proposal of senators to seek a supplemental budget from Congress or divert the funds for the conditional cash transfer (CCT) program to assist the victims of typhoon “Juan.”

“The supplemental budget might not be necessary as we only have less than three months left in the year and passing it in Congress might only start after the Nov. 8 resumption of session,” Budget Secretary Florencio said.

“By that time, rehabilitation may only commence early next year. Depending on the assessment of the typhoon damage, we have to review though the proposed 2011 budget if adjustments are needed to accommodate rehabilitation requirements,” Abad added.

Sen. Francis Pangilinan said the administration might have to seek additional budget as the losses caused by Juan were now pegged at more than P8 billion.

Sen. Ralph Recto, for his part, said the funds for the CCT program and the savings from the interest payments for the country’s debt brought about by the stronger peso could be used to help the typhoon victims.

But deputy presidential spokesperson Abigal Valte said the government would have to make a final assessment of the damage first and determine where the funds could be taken from to assist those affected.

She added that the money for the CCT program could not be realigned because it was not just for calamity victims but “mainly for long-term, if not, daily output.”

“It’s not responsive to the needs of just one situation. So it would be better if the conditional cash transfers would be the focus because we could help a lot more people through this,” Valte said.

She said the CCT program was designed for the poorest of the poor identified by the Department of Social Welfare and Development.

“Contrary to what the other sectors are saying, the CCT is not a dole-out. It is called conditional cash transfer because the recipients will have to meet certain conditions before they get the money. They should be sending their children to school and pregnant mothers should be getting vaccines and so on and so forth,” Valte said.

“So it’s not just a dole out and it’s not bound by a certain circumstance - it’s all-encompassing.”

Valte said President Aquino had also given instructions on how to help the typhoon victims and the possibility of moving out residents in high-risk places.

She said it would now be up to the Department of Interior and Local Government to see how the people in high-risk areas could be relocated.

Pag-IBIG calamity loans made available

Meanwhile, Vice President and Housing and Urban Development Coordinating Council (HUDCC) chair Jejomar Binay has directed the Home Development Mutual Fund (Pag-IBIG Fund) to allot P200 million under its Calamity Loan Program for Pag-IBIG members affected by the typhoon.

He said this would help typhoon victims whose families and sources of livelihood were affected by the devastation caused by typhoon to rebuild their lives.

“We have directed Pag-IBIG to make these loans available and to ensure that all regional offices will extend the needed assistance,” Binay said.  

The Vice President, also chair of the Pag-IBIG Fund, said Pag-IBIG will be extending its operating days, and will be open starting Oct. 23 to accept calamity loan applications from affected members the areas of La Union, Baguio, Tuguegarao, Cauayan, and Dagupan, which have been declared under a state of calamity.

Qualified to borrow loans are members who have at least 24 monthly savings and who are actively contributing at the time of their application. They need only to submit the accomplished application form for calamity loan and a barangay certification attesting that they are residents of a village declared as calamity area. Members are reminded that they have 30 days from the time of the declaration to file their applications.

Under the agency’s Calamity Loan Program, a member can borrow an amount equivalent to 80 percent of their total accumulated value of savings. 

If they have existing Multi-Purpose Loans, the remaining balance will be deducted from the proceeds of the calamity loan. Loans will be paid over a period of 24 months, starting on the sixth month from loan release.

Economic relief for farmers sought

At the House of Representatives, AnakPawis party-list Rep. Rafael Mariano said “an immediate economic relief program is badly needed by farmers who are the hardest hit by the typhoon.

He said the “immediate economic relief” could be in the form of “moratorium on land rent and irrigation fees, price support to affected farmers, condonation of agricultural loans, and full subsidy for seeds and fertilizers for the next cropping season.”

The farmer-lawmaker also reiterated calls for Congress to seriously reconsider restoring the P8-billion budget of the National Food Authority (NFA) when it goes on third and final reading upon resumption of session next month.

“The NFA’s active intervention in the buying of farmers’ palay is very crucial in Juan-affected provinces in order to stabilize prices and thwart unscrupulous rice traders in further pulling down the prices of palay,” Mariano said.

He said funds intended for production subsidies should be released by the Department of Agriculture directly to the farmer-victims of the calamity to prevent possible corruption.

“The distribution of agricultural funds to genuine peasant organizations and cooperatives and not to local government officials and congressmen to eliminate or, at the very least, minimize bureaucratic corruption,” Mariano said.

He said “genuine farmers’ organizations and cooperatives are in a better position to extend the benefits of the funds even to non-members. – With Pia Lee-Brago, Paolo Romero