Priority attention on inflation
After initially downplaying the adverse effects of the country’s highest inflation rate in nine years, Presidential Spokesperson Harry Roque said last week the administration would give it full attention.
In early September, he described the inflation rate as, historically high but not ridiculously high, so there was nothing to be worried about.
His nonchalant posture drew strong reaction from the sectors of our society whose wages can barely cope with the escalating prices of goods.
The administration was brought back to its senses after a Pulse Asia survey showed a double-digit drop in the President’s approval and trust ratings due to high inflation. A later survey indicated that 63 percent of Filipinos wanted the administration to address rising consumer prices.
The administration is now singing a different tune. According to Roque, it will set aside its campaign to adopt a federal system of government so it can focus on addressing inflation.
The turnaround may be interpreted as an indirect admission by the administration of its failure to appreciate the gravity of the problem and take appropriate remedial measures.
It was ridiculous for Roque to cite the federalism issue as “justification” for the administration’s belated expression of concern about the inflation rate. For all intents and purposes, federalism is dead in the water between now and possibly after the 2019 elections.
Only those who want to remain in the President’s good graces or dip their fingers in promotional funds are talking about it. For the majority of Filipinos, the levels of significance of the proposed change in the form of government and high cost of daily living are not the same.
In his announcement, Roque cited the executive orders the President would be issuing to facilitate the importation of rice, sugar and fish as proof of the administration’s strong resolve to minimize the adverse effects of high inflation.
Outside of those orders, he was silent about other measures the administration intended to take to bring down the inflation rate to a more acceptable or reasonable level.
While the administration’s economic managers are knocking their heads together to come up with those action plans (assuming they will not go traipsing around the world again to “sell” the Philippines), there are some things the administration should not do to avoid aggravating the problem.
At the top of the verboten list is the proposed Tax Reform for Attracting Better and Higher-quality Opportunities (Trabaho) bill that, among others, aims to remove some of the tax perks presently being enjoyed by some companies.
In a Senate hearing, the Department of Labor and Employment warned its enactment would result in job losses in the export and services sectors.
That concern was shared by several foreign chambers of commerce. They served notice they may transfer their operations to more tax-friendly Asean countries if they lose their tax privileges. Their pullout would invariably result in the dislocation of thousands of Filipino workers.
Why rush the enactment of that bill? The warnings about possible massive job losses cannot and should not be ignored.
Further consideration of the Trabaho bill should be held in abeyance until the administration is able (hopefully) to reduce the inflation rate to manageable levels.
A similar cautionary approach should be taken on jobs that were adversely affected by recent natural calamities, i.e., small-scale mining and quarrying.
While the goal behind the proposed ban on those activities is motivated by noble intentions, its implementation will result in more serious employment problems.
For Filipinos already reeling from the inflation rate, the loss of their source of income will be emotionally devastating.
Let’s keep our fingers crossed that Roque’s statement the administration would give full attention to the inflation problem is not one of the President’s statements that should not be taken seriously.
