No. 62 - August 17, 2001
GMA's Legislative Agenda

President Gloria Macapagal-Arroyo delivered her first state of the nation address at the opening of the first regular session of the 12th Congress on 23 July. She enumerated the core of her vision: jobs, education, housing, and food. She said these are the aspirations of the masses, which she enclosed in the story of three letters written on paper boats addressed to her coming from three kids from Payatas named Jason, Jomar, and Erwin.

The President has concrete targets for specific executive departments to work on, but critics feel these are highly ambitious targets that cannot be met given the current economic state the country is in. She emphasized the thrust for free enterprise, agriculture modernization, poverty alleviation, and the upliftment of moral standards in government.

President Arroyo recognizes the role of the legislature in hastening changes in all these areas for development. She asked Congress to "enact laws on capital market reform such as the Personal Equity Retirement Act, the Investment Company Act, the Securitization Act, and Amendments to the Securities and Regulation Code," as well as "a law providing for a gross income tax."

The President also asked Congress to create a Department of Information Technology and Communications, as well as a Department of Housing, so that efforts to strengthen both the government's programs for technological development and mass housing will be more focused.

She stressed that advancements in information technology as well as agriculture modernization will generate more jobs.

Quite expectedly, detractors of the current administration voiced out the seeming impossibility of the goals Arroyo has set. Though she suggested that all politicians "set aside bickering and politicking for at least one year" so her administration can be given a chance to perform, that plea fell on deaf ears in the House and Senate.

The Legislative-Executive Development Advisory Council (LEDAC) met on 15 August to set its legislative agenda for the 12th Congress. The measures were included which were consistent with the four components of President Arroyo's national agenda. See table.

Comeback
The opening of the 12th Congress saw two comebacks at the helm of each of the chambers of Congress: Representative Jose de Venecia, Jr. as Speaker of the House and Senator Franklin Drilon as Senate President.

Majority rules
Former two-term (1992 and 1995) Speaker de Venecia returned to Congress and regained the House speakership despite attempts by opposition lawmakers to delay the election. De Venecia garnered 185 votes. Seventeen others voted for Nueva Vizcaya Representative Carlos Padilla, the opposition's compromise candidate, and one (Rep. Ronaldo B. Zamora) abstained. Only 199 out of 206 Congressmen were present during the election for House Speaker.

De Venecia says the 747 Economic Action Plan aims to take on the tough task of addressing the budget deficit so that "a balanced budget and surplus" will be available by the time his term ends. He is aiming for 7% growth over seven years beginning 2003.

The new speaker disclosed that the Philippines had committed access to "US$10 billion in Official Development Assistance (ODA) from Japan and Europe largely in concessional 30-year funds, with 1/3 of one percent interest and 10-year grace periods on capital." However, Congress must provide a 25-percent counterpart fund of $2.5 billion.

To source the counterpart funds, De Venecia suggests stronger tax collecion without imposing new taxes; equity securitization of a portion of the national government share of the Malampaya offshore Palawan gas project; a final resolution of the coconut levy fund which will provide at least P70 billion for the modernization of the coconut industry; and a final resolution of the Marcos wealth of more than $650 million placed in escrow with the PNB.

Power sharing
Senator Franklin Drilon, on the other hand, won back the Senate Presidency, but by the slimmest of margins. He received 13 votes (Senators Arroyo, Barbers, Cayetano, de Castro, Flavier, Legarda, Magsaysay Jr., Pangilinan, Pimentel Jr., Recto, Revilla, J. Osmeña, and Villar Jr.), while 11 (Senators Angara, Biazon, Drilon, Estrada, Honasan, Jaworski, Lacson, Oreta, Ople, S. Osmeña, Sotto) voted for Senator Aquilino Pimentel, Jr.

Senate President Drilon will only be holding on to the post until 2002. Senator Renato Cayetano is expected to replace him as part of a term-sharing scheme. The new Senate President, however, will have to be ready for more scrutiny from the opposition, who would have wanted to keep Pimentel in the post to maintain the Senate's independence from the Arroyo administration. Oppositionists maintain that President Arroyo had a hand in the bid for senate presidency when she announced her preference for Drilon.

First termer Senator Manuel Villar, Jr. was voted Senate President Pro-Tempore and Senator Loren Legarda-Leviste as Majority Floor Leader. Senator Pimentel is now Minority Floor Leader.

COMELEC Ranks Recto 12th
The Commission on Elections (Comelec) finally declared Ralph Recto as the 12th place winner in the 2001 senatorial race. As such, Recto will be serving a full term of six years, while re-electionist Gregorio Honasan, who is ranked 13th, will finish the remaining three year-term of now Vice President Teofisto Guingona, Jr.

The canvass report showed that Recto got 10,498,940 votes while Honasan received 10,454,527 - a difference of only 44,413 votes.

Opposition camp Puwersa ng Masa protested the ruling, saying the declaration was illegal since it did not get the approval of the majority of the seven-member Comelec. Only Chairman Alfredo Benipayo, Commissioners Rex Borra, and Florentino Tuason approved the resolution. Commissioners Luzviminda Tancangco and Rufino Javier dissented, while Commissioners Mehol Sadain and Ralph Lantion were absent.

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