TRANSCRIPT OF SENATOR RISA HONTIVEROS INTERPELLATION DBCC QUESTIONS
09 November 2022

SRH: Mr Chairman, I go straight to one of my favorite topics to take up with our good chair every year especially since the pandemic started. Secretary Balisacan has said in recent days that in the face of high and rising inflation, there is a need to support our vulnerable sectors and families. I suppose that the Secretary said this because he meant or had to say because he meant that there was a need for more support on top of what is available already in the proposed 2023 NEP.

Is there a version of this statement by Secretary Balisacan that we can understand in budget terms?

ANGARA: Yes, your honor, I think if you look at the 2023 General appropriations bill there are various cash transfers and subsidy programs which include those targeted to farmers and fisherfolk public transport drivers, disadvantage sectors, displaced workers, totaling over 200 billion there's also 115.6 billion for the 4ps or the Pantawid Pamilyang Pilipino Program which i know you've been supportive of in through this years. So i think this will help these sectors madam senator your honor mr president.

SRH: Thank you, Mr Chairman, I agree they will help but I'm hoping that the spirit in what Sec Balicasan said in recent days is that we need that help in even greater magnitude. I wonder, Mr Chair, if the DBM Secretary is being asked by NEDA or perhaps the whole economic cluster of the cabinet to prepare a supplemental budget, for example? Malaki naman po yung windfall revenues ng DoF ngayong 2023 from the extraordinarily high cost of food and fuel imports di po ba? I think I heard the chair mentioned earlier the value of 9.7 billion pesos.

ANGARA: According to the NEDA Secretary for now there's no need for the supplemental budget but there's a need to improve the delivery system for the benefits to ensure that these get to the beneficiaries in a timely manner your honor.

SRH: I see. I'm sad to hear that that there's a sense, there's no need for such a supplemental budget. Of course an improved delivery system which we all want mas makakadeliver kung mas maraming may i-dedeliver and we, especially when we're discussing the budget, we always need more money for that perhaps through supplemental budgets. In any case, I'll leave this at that for now mr chair until the proper time.

Earlier, Mr Chair, tinatanong po ni minority leader yung mind ng economic managers natin on the matter of debt. Ngayon naman po, I'd like to ask, could we hear the views of our economic managers on austerity kasi po Mr. Chair is this really the time to practice austerity or is it actually a time to expand public spending?

ANGARA: Austerity measures according to them are very important. given the post pandemic need to ensure fiscal sustainability, your honor but on the other hand, expanding public spending in order to address the needs of vulnerable sectors as well as ensuring is important as well as to ensure the correct amount of stimulus provided for a recovering and transforming economy. Thus fiscal policy and in general economic managers face with the need to balance the number one on one hand, practicing austerity and on the other hand, practicing public spending, they have to navigate these two extremes your honor

SRH: And of course, Mr Chair tayo sa Kongreso, we also want to assist in that navigation and in achieving a certain balance or a certain golden mean and before my next question, I would also say that I understand that national government might not want to front-load its six-year borrowing plan so that it does not contribute to the upward pressure on interest rates, but having said that, we also know that or some of us know or think that there's scope for spending more: since interest rates are still low relative to, say, 2018, for example, when growth was above 6 percent. Doesn't this mean that we can afford to support the vulnerable sectors even more, as NEDA seems to propose, even if that might put some upward pressure on interest rates?

ANGARA: Be that as it may, your honor, the ball is in the court of Congress. As you know, we cannot increase the total appropriation. We can only realign so irrespective of what they think, the ball is in our court. if we would like to increase spending for these sectors then we have to take away from certain sectors also and as you said, that;s. part of the navigation that. and the difficult job we all here to perform, your honor.

SRH: I am confident, with the leadership of the Chair we can push the envelope a bit more in this department sa diwa din nararamdaman ko sa statements ng NEDA secretary the previous days.

Moving on to something actually the chair also mentioned earlier the matter of savings, BSP's Financial Inclusion Survey showed that Filipino adults with savings dropped from 53 percent to 37 percent between 2019 and 2021 -- which could mean that 9.7 million Filipinos drew on their savings until nothing was left. Walang pong natira sa alkansya, pero pagkatapos nito dumating pa itong sunud-sunod na pagtaas ng gastos sa pagkain, sa pamasahe at sa bayad sa kuryente. We just have news just practically few minutes ago tataas na naman ang presyo ng kuryente sa Meralco, 84 centavos ba yun per kilowatt hour if I remember correctly. Gusto ko pong maunawaan, Mr Chair, kung nagiging salbabida ba para sa mga taong ito, itong 9.7 million Filipinos na sinaid na yung mga naipon, naimpok nila nagiging salbabida ba para sa kanila ang ipinagmamalaki nating mataas na GDP growth rate?

ANGARA: Makakatulong po yun pero palagay ko ang mahalaga at tama po yung sinabi ng ating kasamahan tungkol sa kahirapan pero mukhang bumubukas na talaga yung, although COVID is not finished as mentioned by the head of WHO, the finish line is in sight, I think the economy really is, the good news is that I think we are seeing a return to normalcy with the economy, yung ineemphasize po ng administrasyon yung job creation, your honor, so we so record unemployment and underemployment during the pandemic but we're also seeing some improvement in the employment rate so ito po talaga yung makakatulong in addition to. What we mentioned earlier regarding the social safety nets the pro-people programs, anti-poverty programs that are scattered all over the different departments of the government.

SRH: Yes, Mr. Chair pero syempre at the same time yung pagbabalik natin sa hindi lang normal pero yung gusto nating new and better normal yung re-generation ng mga trabaho na nawala o yung pagtugon sa underemployment and then improvement sana sa earning power ng working people at yung kapasidad nila therefore na makapag impok din makapagsimulang makapag-impok din will take a little time so the earlier actions we can take are remain not just important but perhaps urgent so just so we can have a realistic expectation, mr chair, alin po ba ang mas malaki ngayon at maging mas malaki sa susunod na taon, yung pagtaas ng kita ng pamilyang pilipino dahil nga po sa recovery ng ekonomiya o ang pagtaas ng presyo ng mga pangunahing bilihin at ito nga po ay isa sa mga urgent concerns dahil wala na ng po kasing laman yung alkansya

ANGARA: I think the economy has to grow your honor large enough to net inflation and i think that's happening because in real terms the during the first half of this year yung paglaki po ng ating ekonomiya ay 7.8 percent at in real terms po yun meaning ibig sabihin yung effect ng higher prices naka-neto na po yun although yung assumption nga natin sa inflation ay nalampasan na po medyo that requires the economy grow faster if we want to help more people moving forward I think tayo duti sa Kongreso one thing we can do really is to pass the budget on time because GDP is made up of different components yung government spending is an important component and when that happens, then we've done our part i think and dun naman sa safety nets syempre open naman po tayo para pag-usapan kung pwedeng m,dagdagan po yun kasi as you mentioned some of the measures may take longer than expected. Yung reskilling natin ng mga empleyado yung creating those jobs it doesn't happen overnight tama po kayo

SRH: At yung salbabida or buffer ng mga pamilyang Pilipino ay nasaid na nga nitong panahon ng pandemya, yung savings nila so ang nipis po ng depensa nila while waiting for these economic recovery at habang hindi pa talaga natin natutugunan yung urgent problem din ng pagtaas ng presyo. And yes economy has to grow large and fast enough pero kailangan din mas maredistribute natin ng mas ayos o madistribute natin ng mas maayos mas may kautning pagkakapantay=pantay para mas marami ang makinabang di po ba Mr Chair na sa ngayon, more rather than less yung mga mayayaman na lang ang may ganansya sa GDP growth na ito.

ANGARA: Tama po kayo, tama po kayo. We already had a highly unequal society but I think previous to the pandemic we were on the right track in terms of reducing poverty that's why one of the main goals under the MTFPP is to reduce poverty to 9% by 2028.

SRH: Salamat Chair for reiterating that and I would also reiterate kasabay ng reducing poverty and i would also reiterate kasabay ng reducing poverty o baka isang susing instrumento to reducing poverty is also actually to reduce inequality, so pwedeng we approach it through poverty reduction, I think, just as important, minsan mas importante pa nga approach this matter of economic recovery and enabling Filipino families na makayanan ang pagtaas ng presyo ng mga pangunahing bilihin ay talagang through various redistributive measures para yung kapasidad din ng mas mahihirap na makinabang halimabawa sa economic recovery or sa GDP growth rate in itself ay lumakas mas may kapasidad talaga sila.

ANGARA: We would agree with you there, your honor.

SRH: Are there ways of managing inflation that are not just about raising interest rates?

ANGARA: Yes, your honor I think aside from monetary policy there's also some spending interventions and among the interventions of the government aside from the subsidy programs scattered across for fuel, for poor families, for education and health, they can also increase local production. So under the DA there's an increased budgetary support for distribution of quality seeds, fertilizer, farm production, equipment for new farming technologies to increase productivity and financial assistance through government financial institutions.

Secondly, there's also the timely importation of goods, that's why the administration issued a number of orders regarding the importation of crucial food items. There's also a need to improve logistics and leverage local government and private sectors resources to bring food closure to the consumers, basically to improve the distribution the storage chain for food, transport chain logistics chain. Energy security is also very important as you mentioned the rising electricity. The administration is also studying further measures with respect to EO 171 this is the most favored nation rates for pork, rice, corn and coal to help address food and energy inflation. There's actions to be taken with that respect, in that respect. The administration's keeping an eye on food prices in particular your honor. As mentioned, there's that targeted support to vulnerable groups amidst the elevated oil and food prices your honor. To date, the DBM has released a total of 12.4B for 3 programs, 2.5B for the fuel subsidy program of DOTR covering over 377,000 PUV drivers, there is 500 million release for the fuel discount for farmers and fisherfolk of the DA covering 158,746 farmers and fisherfolk and thirdly 9.4B for the targeted cash transfer of the DSWD which covers the bottom of the Filipino households. 12.4 million households for a period of 6 months, your honor.

SRH: Thank you very much, Mr Chairman, indeed ang dami pong ibang paraan para hindi lang imanage yung inflation per se, pero tulungan yung mga pamilyang Pilipino na makapag cope up dyan sa inflation na yan na nakakagulat dahil sa hirap ng buhay nila ay talagang nagkakaroon ng econ education ung mga pamilyang Pilipino imagine nagfifigure talaga sa top of mind concerns ng ating mga kababayan maging sa mga surveys ang usapin ng inflation.

In addition to the various interventions already mentioned by the Chair, gusto ko lang i-further pick ung brains nila about various other interventions na pwede nating gamitin halimbawa while transport costs are high and rising. Shouldn't we be hearing our economic managers talk more about pursuing PUV modernization, service contracting, and addressing congestion at the Port of Manila when the price of fish is high, ironically sa isang archipelago, shouldn't we be hearing more about finding a happy compromise between importing fish siguro yung mga magulang at lolo't lola natin, hindi nila maimagine na darating ang ganitong araw so that a compromise between that and protecting the incomes of our fisherfolk? When rental costs are high, shouldn't we be talking about supporting the budget for the housing department? Alam ni Chair yan, pangunahing concern at duty ko rin dito sa prosesong ito, and when electricity rates are high, as we were talking about earlier, shouldn't we be hearing more about mobilizing everything that we possibly can to make power from Mindanao available for Luzon?

ANGARA: Yes your honor. I think these are all important interventions you mentioned. With respect to power, I think that's a structural defect has to be addressed by the power...

SRH: The NGCP?

ANGARA: NGCP yes because they're the ones responsible for connecting the... so there... despite being there excess power in Mindanao, it's not beneficial to those in the other regions because of the lack of connectivity of the bridge. In fairness to the government, it is also released 1.4B few months ago for the libreng sakay program. This is one of those interventions meant to address the transportation woes the rise in prices and sometimes it's difficult to balance all these actions like when they allowed or they gave way to the plea of PUV dirvers for higher fares, that contributed to inflation also so there are consequences to actions that sometimes not desirable but are necessary. But definitely, I think they are definitely studying all possibilities.

SRH: Maraming salamat, Mr Chair, Of course pwede na sanang maiwasang pagbigyan yung hiling ng PIUV drivers para mas mataas na pasahe sa mga alternative interventions tulad nga nung mga nabanggit ko kanina nas service contracting. Nakatulong din sa riding public natin, karamihan, halos lahat ay galing din sa mga mas mahihirap na pamilya. Mr. Chair, we used to always hear, actually almost every year, that "the macroeconomic fundamentals are sound." But the country has a current account deficit at more than 7 percent of GDP, among the second highest in the world at this moment, and it has been driving peso depreciation. And we hear that the current account deficit could widen even more, with winter coming in Europe next month and coal prices expected to rise even more. The soundness and stability, the ship worthiness of our economic ship depends on how big the waves are going to be. In hindsight, pero syemore sinasabi nga natin our vision is always 2020 in hindsight sige, in hindsight, and then looking ahead, should we have had, say, two years of foreign exchange reserves instead of just our current, seven months?

ANGARA: Well, certainly, two years is preferable to seven months. But I think what the IMF recommends is three months and we have seven and a half months.

According to Governor Medalla, we have actually one of the highest reserves with respect to needs. So, and with respect to the current account deficit they believe it remains financeable, your honor because they foresee improvements, stronger than expected recoveries in BPOs , in travel, tourism, as well as remittances with the opening up of our economy, despite the challenges you mentioned which you're 100 percent correct that we must also be prepared for your honor.

SRH: If the current account deficit is financeable, then I guess that's also related to the earlier discussion switch the minority leader. Can we, I can almost anticipate what the Chair's response will be, but for the record can we still say today that the fundamentals are sound in relation with the waves of uncertainty that we face today?

ANGARA: Yes, your Honor.

SRH: The DOF Secretary seemed to venture into the territory of the Bangko Sentral recently by saying that the peso dollar exchange rate will not be allowed to exceed 50 pesos to one dollar. I wonder, did the President ask the DOF Secretary to make such a statement?

ANGARA: No your honor.

SRH: Is this sound practice, Mr. Chairman.

ANGARA: I don't know if I should say but your Honor according to Gov Medalla, he can suggest but they are not obliged to follow. I think it's because the Sec. of Finance is the former governor, so it's limited to this factual situation your Honor. And they're also former colleagues in the UP School of Economics so they work closely together in many respects so there's a very free flow of ideas between them, your honor. But without losing the independence of our monetary authority.

SRH: Exactly Chair. That's one of the two points I appreciated and made me smile about this recent exchange of ours na naaappreciate those signs and articulations of independence of our important institutions in the whole of government maging sa loob ng ating DBCC and I mean speaking of finance sec ay dating Bangko sentral governor din kaya nung panahon iyon i appreciated he would speak up of a different mind for example on matters of monetary vis a vis fiscal policy. I remember a time he was the bolder voices on spending public funds to achieve our economic targets or to provide the necessary social protections sa vulnerable lalo na sa unang taon ng unang buwan ng pandemya. But it was still wonderful to hear about, can suggest but not obliged to follow, I think these kinds of debates hindi lang sa Kongreso, maging sa government economic managers always eventually renounce to the good of the public.

Lastly for general principles, your Honor, isn't the exchange rate the primary tool for managing the problematic current account deficit, well to me, problematic, sabi niyo kanina Mr. Chiar it's financible, and can the DOF Secretary tell us through the Chair, how the current account deficit, it's at more than 7% of GDP, is to be managed if the exchange rate is not allowed to cost imports to become expensive?

ANGARA: Well the current account deficit is about 7% of GDP so they feel that it is manageable and as mentioned earlier it remains to be financible because it can be partly offset by the recovery in travel, BPO remittances, given the further opening of our economy, the lifting of travel restrictions, your Honor, so there's also some degree of foreign exchange intervention but in general we allow a flexible exchange rate policy because the peso depreciation will help with respects to relatively competitive exports among others, your honor. SRH: Kanina pinaguusapan ng Minority leader at ng chair ang ating pagkakautang. Together with NEDA, the DOF determines how flagship infrastructure and non-infra are to be financed especially those that will be solicited by government itself. The country's debt tended to balloon in the past 6 years because the previous administration I think took on more loans than it needed to. Halimbawa po Mr. Chair the Kaliwa Dam and the Calamba - Tumatnog* rail, were two projects that already had private proponents ready to bid for the right to shoulder the investment requirement. But the previous administration walked away from these 2 PPP projects and said that these would be financed instead with foreign loans. So, my first question about this Mr. Chair, even as we must note the continuing refusal of our indigenous communities to grant a free prior and informed consent for the previous administration's version of the Kaliwa Dam, I'd still ask, is the return to the PPP modality being explored for the Marcos Administration revision for these two major projects.

ANGARA: They are open to it your Honor.

SRH: I am happy that there has been a review of the rules on the PPP and on joint ventures at sana sa ganyang kabukasan ma-reconsider ang mga iyon bilang bagong framework o renewed framework sa ganitong mga major projects and it will also be a welcome pivot away from the previous administration's debt dependence at least in the case of such projects that I have mentioned.

Mr. Chair, the former finance sec, almost always rejected PPP projects that required tax or budget expenditures and guarantees. is this also now going to change?

ANGARA: Yes it is currently under review, I think you used the words golden mean earlier I think theyre looking for that golden mean, so to speak, we've been around the world, we want to know what is the best practice really in respect of this. How do you make it attractive enough for there to be take up by the private sector, but at the same time it's not disadvantageous for the government going forward, your Honor.

SRH: Yes, again a very welcome update for the record, Mr. Chair.

ANGARA: If I may add with your permission your honor, they also said they want there to be some kind of competition in these projects so the best deal is available, your honor.

SRH: I agree, Mr. Chair. Are there already PPP projects in the DOF's pipeline that will need complementary financing from the GAA 2023 or maybe even in the years ahead?

ANGARA:Still in the project development stage, your honor, if needed, still not in advanced stage, but thye are certainly open to exploring that.

SRH: Salamat, Mr. Chair. Well kung tutuusin may punto din naman yung dating finance secretary, ayaw nilang gagastusan ng gobyerno ang PPP projects, dahil siguro gusto nila maiwasan ang favoritism sa pamamagitan ng subsidies sa PPP projects, and I think this relates to the general principle of desiring competition na sinasabi ng ating government economic managers ngayon.

Paano matutulungan ng gobyerno ang PPP partners nito na speaking of golden means, sakto lang hindi labis pero hindi rin naman kulang.

ANGARA: I think it's difficult your honor because we've undertaken a lot of PPPs in the past and a lot of them have subsidies like if you talk about the LRT for instance there's private participation, the MRT, but there's also government subsidy with respect to the ticket. I think in fact that the government is spending billions every year to subsidize the riding public, your honor, because it is perceived to be a public need to have affordable fare. So I guess it depends on what the subject of the PPP is, if it is enough to be perceived as a public good, that the government should subisidize it, then the government will do so your honor.

SRH: Thank you Mr. Chair. At alam naman ng Chair ko na mas maluwag ako sa usapin ng public spending to support lalo na yung mga mas mahirap nating pamilya at yung mga MSMEs natin, I suppose the PPP partners from the private sector will comparatively need less assistance, pero mabuti pa rin, gaya ng sabi ng chair kanina, under review yung terms which government will invite, or will again invite its PPP partners para sustainable para sa kanila. Could the sponsor identify some of the new or upcoming policy guidance from NEDA and the DOF that will discipline the exercise of discretion by government when agreeing if and when agreeing to subsidies or guarantees and other undertakings for PPP projects?

ANGARA: According to the NEDA secretary, they've just amended the IRR for the BOT*?, the accountabilities of the government are made clearer there your Honor, we'll ask them to furnish you a copy and highlight the specific provisions.

SRH: I introduced special provisions in the budgets of NEDA and DHSUD for this current GAA 2022 which urged support for the expansion of project footprints around and towards the upcoming train stations South and North of Manila so that these can become new urban hubs via affordable housing, access in jobs in the cities and urban rural connectivity atsaka po revenues from the capture of the land value increments, that result from proximity from a major government transit project. Now using this provision, I'm told DOTR submitted naman a proposal for additional right of way around the stations, including for housing families na nadisplace naman ng DOTR rail projects. Wala pa pong categorical rejection or approval nitong proposal po no?

ANGARA: We accepted your amendment, your honor. Your question is whether we accepted that DOTR amendment?

SRH: If the Chair would know kung natanggap na po yung DOTR proposal for additional right of way around the stations?

ANGARA: The NEDA has yet to receive this proposal from the DOTR.

SRH: Okay, hindi ko pa rin nakikita so hindi ko rin intention, halimbawa, sa NEDA mamaya kung naaprubahan na ba.

ANGARA: Maybe what we can do is to ask them to update you once they receive it, any action on their part.

SRH: Thank you po. Three years ago at ito po yung puso ng tanong kong ito, a similar proposal to expand the project footprints in the vicinity of stations of the Davao-Tagum Mindanao Rail was flatly rejected by NEDA at that time, though I am guessing that the technical staff just didn't understand the idea yet at that time. Pero nabalitaan ko po na just recently na in fact so far, only Region III NEDA has actually studied this idea of transit-oriented development. So idea pa lang siya, wala pang project.

But you know, thinking about it, it might be in fact good to have transit-oriented development both as a pillar both of transport and the connectivity chapters of the new Philippine Development Plan. Would the sponsor know if the NEDA Secretary has himself studied the idea of transit-oriented urban development?

ANGARA: The Secretary says that they are open to these different modes and different ideas, but what is paramount to them is the economic viability of the project, at the end of the day.

SRH: About which the transit-oriented development idea would have something valuable to contribute. I am glad that yung pagaaral ng NEDA Region III is met with openness by the NEDA Central Office. Actually, Mr. Chair, transit-oriented urban development has been the key to ensuring the high ridership of trains and BRTs (bus rapid transits) instead of cars in many parts of the world, including in Tokyo, in Hong Kong, in Singapore. It is also an instrument for generating incomes from real property around these new urban developments around the transit nodes.

Would the NEDA agree or at least is open to the possibility that this would in fact indeed be a feasible way of paying for rail project debts and subsidize transit rides as an alternative to say, gaya ng binanggit ni Mr. Chair, yung pag-susubsidize ng gobyerno sa mga tickets, sa mga transport infra?

ANGARA: Yes, they are open. But again he emphasizes the economic viability and perhaps if it enhances the economic viability, as you mentioned, then that would argue towards the adoption of the project.

SRH: Yes, at lalo na may best practices models na ito in our own region. What has been good for Japan, Hong Kong and Singapore, very possibly and even probably could be good for the Philippines.

And gaya ng sinabi ko, it is not my intention to ask Sec. Balisacan to approve the DOTR proposal for additional right of way, which gaya ng sinabi ko kanina, I haven't even seen, but can I request the good Secretary to reply to the DOTR when he himself has understood the overall concept behind transit-oriented development na pinag-aaralan na ng Region III nila at sabi nila kanina ay bukas sila?

ANGARA: Yes, he will do so. He will keep you in the loop, as to what the response will be.

SRH: Maraming salamat Mr. Chair at Secretary. There are specialists both at the DOTR and also, my favorite department, the DHSUD, who are developing enabling policies and even pilot projects here in the Philippines for this Transit-Oriented Development -- I believe this can be a key component of the NEDA's spatial strategy - again one of the most exciting things I heard from NEDA in the past several years - aside from being, yung Transit-Oriented Development- a major source of revenue that would keep our debts down.

Last for this question: May I ask the Secretary to hear out these people, these specialists at DHSUD and DOTR?

ANGARA: Yes, you Honor, they are nodding here behind me. I take them at their word, that they will not only listen but also absorb these arguments. I agree with you that there is a lot of value that can redound to the government rather than just the private proponents of these projects.

SRH: And I join the Chair in putting store by the word of the NEDA about this.And for my last question in this interpellation para sa NEDA, Mr. Sponsor, Sec. Balisacan has previously said that a modernized agriculture sector should drive the expansion of business and employment opportunities for agri processing and food manufacturing.

The Secretary must know, however, that small producers cannot always sell to the value chain. Halimbawa po, fruit-sellers cannot sell to supermarkets if they cannot standardize the ripeness and if they cannot reduce the loss due to spoilage.

Women backyard pig farmers - yung mga unsung heroes natin nitong panahon ng ASF na gustong tumulong sa border control halimbawa at sa restocking ng nacull nating hog populations - yung women backyard pig farmers cannot sell to Monterrey or Pampanga's Best for many reasons, and one of these is the recent concern that backyard farmers might not be compliant with the rules that prevent the spread of ASF.

And as a last example, municipal artisanal fisherfolk have recently been recruited by BFAR, good news po ito na they have been recently recruited by BFAR, to supply to canned sardines manufacturers. Pero I wonder how that will turn out if the sardines can't be kept cold. So these kind of connections between the formal and informal are key so that urban-based demand can be the gateway out of purely subsistence rural agriculture. So, Mr. Chair, do we have a program that can help connect rural producers as sabihin natin as "subcontractors" to the value chains of the formal retail and manufacturing sector?

ANGARA: Yes, your Honor, in fact the Secretary of NEDA came from the DA and he's given me a list. He agrees with you that there is a need to help these people have access to the value chain.

He points to some of the programs and initiatives of DA - there is the Farm and Fisheries Clustering and Consolidation or F2C2 Program and this allows smallholders of the economies of scale and increase their participation in value-adding activities and agribusiness. The backward linkages will be improved, backward linkages meaning production and sourcing of raw materials will be improved by instituting farm managers who will organize small farms and provide technical assistance and market advisories to ensure that production volume and quality will meet required standards of business establishments.

So this program, the F2C2 Program, focuses on community production and processing projects to promote a coordinated value chain system. As of October 2202, 480 out of 767 or 63 percent of the identified clusters have been validated by the F2C2 program and 118 out of 144 cluster development plans have been finalized for implementation.

Secondly, there is the Agri-Business Venture Agreement and Sugarcane Blockfarms Program. This is investment through production and marketing partnerships which increase the access of agrarian reform beneficiaries or ARBs to production inputs and capital, as well as the needed marketing and logistics support to enhance productivity and profitability of the lands awarded under the CARP.

So promoting these further engagements in production and marketing has facilitated the transformation of ARBs into viable enterprises that could provide a steady source of produce or raw materials for larger processing establishments, your Honor.

Third is the Kadiwa ni Ani at Kita. So in partnership with local government units, agribusiness companies, private companies and international agencies, the DA pursues the Kadiwa ni Ani at Kita in NCR and other areas. This initiative seeks to directly connect food producers to consumers, reducing the cost of agriculture and fishery products. Today the program has generated P349.30 million in sales from the 2020 regular Kadiwa outlets operating nationwide, benefiting 27,619 farmer cooperatives, associations, and agri-fishery enterprises and serving over 987,000 households.

Under the 2023 appropriations bill, the DA has proposed P18.13 and P276 million for Kadiwa selling activities and Kadiwa food systems and for the enhanced Kadiwa financial plan, this is to provide farmers organizations with additional capital to purchase supplies and equipment, and also assisting state universities and colleges in rural provinces for the procurement of processing facilities, reefer vans, hauling trucks, the establishment of trading posts, among others.

Fifth is the Community Fish Landing Centers or CFLC Program implemented by the DA-BFAR, the NAPC, and the Philippine Fisheries Development Authority as well as LGUs are involved here. This is designed to ensure high quality fishery products for consumers.through the provision of whole-chain facilities, improving product handling and compliance to safety standards. Fish landing site monitoring is also regularly conducted to ensure the availability, accessibility and price stability of fish and other fishery products.

Sixth is the regional and municipal fish ports equipped with facilities such as breakwater landing key, refrigeration - some of the issues you mentioned earlier is not having access to cold storage your Honor.

Seventh is the Farmer and Fisherfolk Enterprise Development Information System, pursuant to the Sagip Saka Act authored by our former colleague Senator Kiko. The DA maintains this information system which contains a list of agriculture and fishery enterprises and a roster of private companies engaged in these activities.

Eighth is the Agri-Negosyo Loan Program or Anyo and the Capital Access for Young Agri-Preneurs to fund capital requirements of small farmers and fisherfolk, MSMEs and any youth who wish to engage in agriculture. Here the borrowable amounts for individuals is P300,000 but for MSMEs this can range from P300,000 to P15 million depending on the assets of the borrower, payable up to 5 years. Some are zero interest, your Honor. Ninth is the second additional financing for the Philippine Rural Development Plan, for a more modern value chain-oriented and climate resilient AMF sector, designed to address disruptions in the acquisition of inputs and farming implements, resulting in increased productivity, decreased losses and unemployment in the agriculture sector.

The DA is also promoting urban and periurban agriculture and backyard gardening to shore up local production. So these are some of the interventions that may touch on your query about helping some of our farmers, fisherfolk and those working in the sector, your Honor.

SRH: Maraming salamat Mr. Chair, and I am also glad that the Chair mentioned the PRDP or the Philippine Rural Development Plan. There was also a similar development plan designed under the previous agriculture secretary and I hope that we can continue pushing forward with the implementation of this comprehensive plan for agriculture.

Just as my last question for this interpellation, of the various programs mentioned by Mr. Chair, ano po yung scale ng mga programang ito, are they ambitious enough so that agricultural activity can become the basis for accelerated growth of other sectors of the economy? ANGARA: They are quite ambitious since the budgets for these programs are increased by over 30 percent. I think this shows the seriousness of the administration in addressing these issues in the short-term and long-term.

SRH: Maraming salamat, Mr. Chair and also for mentioning the matter of long-term, I hope that in these six years we will be able to push the envelope on various matters discussed. Alam ko naman dito sa Kongreso, lahat tayo we do what we can, legislatively, to see that through our budget and yung iba nating legislative work. Maraming salamat Mr. Chair. Ifollow up na lang ng opisina ko yung sa DOF, and sa NEDA, yung ibang hindi ko na lang muna itinanong.

ANGARA: Maraming salamat your Honor, for the very good interventions, for holding the agencies accountable and for pushing the envelope in this respect. We are very appreciative of that.