Pamalakaya urges gov’t to set aside P 32-B production subsidy to combat oil price hikes

Pamalakaya urges gov’t to set aside P 32-B production subsidy to combat oil price hikes

The left-leaning fisherfolk alliance (Pamalakaya) on Tuesday urged the national government to set aside P 32-B worth of production subsidies to small fishermen across the country to caution the impact of successive oil price increases and the current global economic and financial crisis.

The militant group pressed the call after oil companies led by Chevron, Shell and Petron raised anew prices of petroleum products by an average of P 1 raising the prices of diesel to P 30 per liter and regular gasoline to P 40 per liter. According to Pamalakaya, small fisherfolk employing small fishing boats used regular gasoline and consumed at least 10 liters per fishing activity.

“This fighting demand of the small fisherfolk for monthly production subsidy to arrest the uncontrollable hikes in the prices of petroleum products and the global economic and financial crisis is long overdue. But this government is not taking our legitimate call seriously,” Pamalakaya vice-chair for Luzon Salvador France said in a press statement.

France recalled that the demand for production subsidy was submitted to the office Agriculture Secretary Arthur Yap on July 2008. “It’s been in the office of agriculture secretary, but Secretary Yap is not doing his assignment. The small fisherfolk are been kept in the dark with regards to their legitimate crusade for production subsidy,” he said.

The Pamalakaya leader said the main purpose of the P 32-billion production subsidy is to keep the wheel of production in the fisheries sector moving, because it is currently battered by high prices of oil products and skyrocketing prices of fishing gears and equipments.

Under the annual P 32-billion production subsidy for the fisheries sector proposed by Pamalakaya, all fishermen who own a small motorized banca will receive a minimum P 4,500 monthly oil subsidy, while those who operate non-motorized banca will receive P 2,000 monthly production subsidy.

According to Hicap, the P 4,500 monthly subsidy constitutes about 50 percent of the monthly expenses spent by fishermen owning a small fishing boat in their daily fish capture. The Pamalakaya leader said the proposed measure if approved will benefit 313,985 small fishing boat operators and will cost the government a monthly production subsidy of P 1.4 billion per month or P 16 billion per year.

Pamalakaya’s proposal for production subsidy for 630,000 non-motorized fishing boats operators across the country will cost the national government some of P1.3 billion per month or roughly P 15.67 billion per year. All in all, the total subsidy for a little over small fishermen will cost he government some P 32 billion in total production subsidies annually.

The group said 100 percent of the production subsidy for fisherfolk operators of small fishing boats will go to oil, while around 50 percent of the proposed subsidy for owners of non-motorized fishing boats will go to gas subsidy, while the rest will go to other production and food needs of small fishermen.

Pamalakaya said the production subsidies for small fishermen could be addressed by immediately and indefinitely suspending the annual payments of foreign and domestic debts that eats up more than one-third of the annual national budget.

“The proposed fishery production subsidy program is about 10 percent of the national government’s allotment to debt servicing. It would be better if we suspend if not totally stop paying these fraudulent loans acquired and accumulated by the previous and present administrations for their own corruption purposes,” the group said.

Pamalakaya also said the national government should also oblige commercial and aquaculture operators to give their fish workers the mandated minimum wage and the President should certify as urgent the pending bill in both houses of Congress granting private workers a P 125 across the board, across the country wage increase.

To improve the purchasing power of the Filipino fishermen, the workers and the poor, Pamalakaya said the government should scrap the 12 percent expanded Value Added Tax on all petroleum products, consumer good, utilities and services.

“These are doable items and sound economic measures to ease the burden and cushion the impact of global economic and financial crisis. But this government is not listening to the concrete and legitimate demands of the people, the group asserted. #


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