Press Release
July 15, 2008

Gordon: Pending fish shortage looms, direct EVAT revenue to help fishermen affected by Typhoon Frank

"After the fish scare, we may face a fish shortage and perhaps an escalation in prices for one of our staple foods. To avert this disaster, the government has to act fast to use EVAT revenues to provide relief and soft loans to fishermen affected by typhoon Frank. We have to help our fishermen repair, refloat or replace their fishing vessels."

Senator Richard Gordon issued this warning as he called on the government to direct EVAT revenues into providing soft loans to fishermen whose boats may have been severely damaged or sunk by Typhoon Frank. The Senator urged the Coast guard and Local Government Units to make a detailed report of the fishing vessels damaged or lost in their area and include an initial assessment of the cost of repairing or replacing them.

"According to the NDCC, there are three hundred one small and medium sized fishing boats were damaged or sunk as a result of Typhoon Frank. We expect the figure to be greater because if steel hulled vessels sank, smaller bancas caught in the typhoon would not have fared any better. The estimated cost of the damage is at P600 million but the greater damage is the loss of income our fishermen. Some may have already stopped sending their children to school and there may be many who have nothing to eat," said Gordon, who recounted a conversation with Roy Vijandre, who had lost five fishing boats to typhoon Frank and is currently at a loss of how to restart his business which provides livelihood for dozens of families.

On behalf of the fishermen, Gordon called on the government to alleviate their plight.

"The disaster wrought by Typhoon Frank is bigger than what most people think it is," said Gordon.

Apart from immediate relief and soft loans for fishermen, Gordon called for fishermen to be issued dog tags and given loans to enable them to acquire two way radio communication systems or tracking devices.

"We must rise from every disaster, stronger and better prepared," said Gordon. --30--

Gordon urges use of EVAT to prioritize disaster rehab, job creation, and pump priming of economy

"The ongoing debate on scrapping or suspending or reducing EVAT may work against the interests of the poor, while letting the rich off the hook. There is a windfall in EVAT at kailangan natin singilin ito sa gobyerno, let us make government prioritize EVAT revenue spending on disaster rehabilitation for those affected by typhoon Frank, job creation to stem rising unemployment, and pump priming of the economy."

Senator Richard Gordon said this, even adding that scrapping the value added tax may result in a budget deficit in an inflationary situation and this would have dire repercussions.

"The EVAT can be used to counter inflation by giving people jobs and increasing economic activity for businesses. We can use EVAT to increase the people's purchasing power," said Gordon.

He pointed out that scrapping or suspending VAT would in effect reduce prices temporarily but the savings would be almost meaningless to the individual consumer as it would most likely be spent on other goods. By pooling and channeling funds, the EVAT can be an effective mechanism for funding programs that would encourage greater economic growth.

As an example of how this could be achieved, he proposed that EVAT revenues should be also be used to rebuild irrigation systems around the country, pointing out that apart from providing employment to people in rural areas, it would also increase our country's agricultural productivity. He pointed out that an estimated 400,000 hectares of irrigation needed to be rebuilt at a cost of P60,000 per hectare.

"If we pour in P24 Billion in improving our country's irrigation system, we will not only give jobs, we will also ensure food security. Perhaps increasing agricultural productivity to a point where food prices can go down, thereby helping cut down inflation - with food accounting for a major portion of the expenses of the poor," said Gordon.

He proposed that government use EVAT revenues to rebuild infrastructure destroyed by Typhoon Frank, explaining that this would create badly needed jobs and increase economic activity.

"As for EVAT spending on disaster rehabilitation, the government should appoint a Czar or a head that will be in charge of identifying and overseeing rehabilitation projects in a particular province and line agencies would support the Czar. This establishes accountability, allowing the government to work more efficiently and more rapidly," said Gordon.

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