ROXAS SAYS NO NEED TO PANIC OVER MARKET PLUNGE
Says ensuring benefits of fiscal reforms like VAT more important

Filipinos should not worry so much on the stock markets downward slide of almost 8%, as it will have little impact on the real economy and the lives of millions of ordinary Filipinos, Senator Mar Roxas said.

Mr. Palengke attributed yesterdays stock market decline to the fragile nature of financial markets, which do not necessarily follow the fundamentals of the economy, but only short-term investment sentiments.

Global markets are largely inter-connected and vulnerable to external factors, such as speculations about a slow-down in the US economy or new government policies that affect financial markets in other countries, Roxas explained. Senator Roxas chairs the Senate committees on trade and commerce and on economic affairs.

In the same manner, Roxas pointed out, that the growing strength of the financial markets as asserted by the government in previous statements does not have a major impact on the peoples quality of life.

He explained that the stock markets performance, in general, should not be considered as an accurate barometer of economic performance. More accurate indicators include gross domestic product and unemployment.

Economists and market analysts have considered yesterdays plunge as a correction, which followed a steep decline in Chinese share prices on reports of a potential government crackdown on fraudulent stock market practices. Correction, in stock market language, means a temporary decrease in a bull market, or a consistently growing market.

Roxas instead stressed that ensuring benefits from the peoples sacrifice in fiscal reforms such as the Reformed Value-Added Tax (RVAT)which increased VAT by two percentage points to 12%-- is more important.

For the Philippines , our focus should still be on translating fiscal reforms to immediate, tangible benefits for our people, Roxas stressed.

The senator agreed with the concern raised by World Bank Country Director for the Philippines Joachim von Amsberg who said fiscal progress should bring about social results and infrastructure.

Hindi dapat trickle-down effect lang ang habol natin sa mga benepisyo ng RVAT kung hindi gushing effect, kung saan mas makatotohanan at malaki ang pakinabang nito sa ating mga mamamayan lalo na sa mga mahihirap, Roxas stressed.

Roxas said the RVAT funds must be treated as an extraordinary peoples fund that can be used to finance specific solutions to perennial problems.

I believe that these RVAT collections should not disappear into the black hole of the General Fund, it must not be part of the usual a little bit here and a little bit there apportionment equation. It certainly must not be part of political horse-trading (pork) and most definitely, it must not be part of the usual consumption-type campaign spending for the coming elections, he said.

He added that the RVAT fund should be treated as our peoples sariling sikap version of the Marshall Plan (used to rehabilitate Europe at the end of World Wart II) or as the peoples own Official Development Assistance to the nation.

During its 61st Anniversary Celebration, the Liberal Party-Drilon wing proposed as its campaign platform that the government bestow a special status on the RVAT funds and separate it from regular sources of government revenues.

The funds can be used to solve specific problems, and provide the people specific benefits, such as:

1. A Competitive Educational System Fund and fix all grade one and 1st year HS problems this year and go onto grade 2 and 2nd year HS next year, and thereafter progressively go on until educational problems are permanently and completely solved.

2. Fast and Fair Justice Build and equip court salas and hire the needed number of public attorneys, fiscals and judges to ensure that justice is accessible to all and that poverty will not stand in the way of justice.

3. Available and affordable health care Finance the restructuring of the countrys health delivery system so that primary health care is readily available to all Filipinos. Revisit and reinvigorate the Generics and IP laws in order to make medicines affordable. Align all government procurement of medicines to the intents of the Generics Law and the Doha Declaration on healthcare so the people will get more for their money.

In relation to the upcoming polls, Roxas also said the idea of political debates on the economy and other major issues is a good vehicle for the people to be more informed about how the country is faring and for the voters to gauge which party has a concrete plan of action to offer.

The only debate that really matters is on how to improve our peoples lives, Roxas said.