Following the declaration of a state of calamity and imposition of a price freeze on basic goods in Metro Manila in the aftermath of the habagat (southwest monsoon) heavy rains enhanced by super typhoon Carina, National Unity Party (NUP) president LRay Villafuerte is pushing the congressional approval of a measure making it easier and quicker for the government to prevent undue spirals in the prices of food and other essential commodities during superstorms or other natural disasters.
The Camarines Sur congressman called on his fellow legislators to consider the passage this third and final session of the 19th Congress of a proposed legislation empowering the Price Coordinating Council (PCC) or any of its member-agencies to expand on their own the list of food and non-food items to be covered by a price freeze whenever there are emergency or calamity situations.
Villafuerte appealed for the approval of House Bill (HB) No. 7977, which seeks to amend Republic Act (RA) No. 7581 or the “Price Act” of 1992, on the heels of the Department of Trade and Industry (DTI)’s imposition of a price freeze following the July 24 declaration of a calamity state in the national capital, which, along with four other Luzon regions, had been through unusually heavier rains resulting from the Carina-enhanced habagatrains that had inundated these places.
Typhoon Carina (international name: Gaemi) had turned into a super typhoon as it exited the Philippines on its way to Taiwan.
The Senate and the House reopened last July 22 for the third and final regular session of the 19th Congress.
“To further protect consumers against hoarding, profiteering and other forms of price manipulation in the wake of super typhoons and other natural disasters or emergencies, the Congress needs to amend RA 7581 or the ‘Price Act’ by authorizing the PCC or any of its member-agencies to include or exclude by motu propio (of its own action), specific goods from the list of BNPCs (basic necessities and prime commodities) that are subject to price control for the duration of any emergency or natural- or man-made calamity,” Villafuerte said.
But as proposed under HB 7977, said Villafuerte, “the motu propio adjustments by the PCC in the BNPCs covered by a price freeze must have prior approval of the President.”
“An easier-to-declare price freeze on BNPC commodities, as envisioned under HB 7977, will best ensure that basic goods will remain affordable and accessible to people in areas affected by natural disasters or other emergencies,” Villafuerte said.
“This bill aims to initially expand the list of commodities to be covered by price control by including these four goods by virtue of their mass and necessary usage: potable water, kerosene, liquified petroleum gas (LPG) and instant noodles,” Villafuerte said.
Considered as “prime commodities” under the “Price Act” are fresh fruits; flour; dried, processed or canned pork; beef and poultry meat; dairy products not falling under basic necessities; noodles; onions; garlic; vinegar; patis; soy sauce; toilet soap; fertilizer; pesticides; herbicides; poultry; swine and cattle feeds; veterinary products for poultry, swine, and cattle; paper; school supplies; nipa shingles; sawali; cement; clinker; GI sheets; hollow blocks; plywood; ply board; construction nails; batteries; electrical supplies; light bulbs; and steel wire.
Also included on the BNPC list are all medicines classified as essential drugs by the Department of Health (DOH).
Villafuerte explained that HB 7977 aims to initially expand the BNPC list of commodities covered by price control by including potable water, kerosene, liquified petroleum gas (LPG) and instant noodles.
Villafuerte explained that, “HB 7977 thus aims to expand the definition of BNPC through the inclusion of other goods deemed to be necessities under certain situations identified in the law.
“This proposed amendatory law also provides a mechanism for greater flexibility in their respective coverage through administrative fiat, without the need for legislative enactment,” he said.
The bill mandates the DTI to come up within 90 days of the effectivity of this proposed Act its implementing rules and regulations (IRR), in consultation with the other PCC members and stakeholders.
Villafuerte, who had authored this proposed amendatory law to the “Price Act” with Bicol Saro Rep. Brian Raymund Yamsuan, said this measure aims to reaffirm the State policy “to provide effective and sufficient protection to consumers against hoarding and profiteering in the sale and marketing of said goods, especially during calamities and emergencies.”
Akin to the heavier rains unleashed by super typhoon Ondoy that pummeled the National Capital Region (NCR) in 2009, many streets across the metropolis and Luzon provinces again became virtual rivers last Wednesday arising from the intense rainfall unleashed overnight by the combination of the habagat and Carina, which turned into a super typhoon as it left the Philippines.
By Wednesday afternoon, the Metro Manila Council (MMC) declared a state of calamity in the NCR, to let the government release faster its quick-response or calamity funds and impose a price freeze on BNPC commodities in the affected areas for the duration of the state of calamity.
The DTI on the same day ordered a price freeze on BNPC goods “to protect consumers from unjust price increases during this time of crisis,” said Trade Secretary Alfredo Pascual in a statement.
Under RA 7581, prices of basic necessities are frozen at their prevailing prices for 60 days in areas that have been placed under a state of calamity.
Penalties against price manipulation and other violations of the Price Act range from imprisonment of one year to 15 years and/or fines of P5,000 to P2 million.
Villafuerte explained that HB 7977 aims to initially expand the BNPC list of commodities covered by price control by including potable water, kerosene, liquified petroleum gas (LPG) and instant noodles.
To be known as the “Expanded Basic Necessities and Prime Commodities Act,” HB 7977 recognizes the policy of the State “to protect and promote the welfare of the consumers by defining and enumerating what are basic necessities and prime commodities, ensuring their availability and price reasonability at all times, especially during periods of calamity and emergencies.”
HB 7977 seeks to rewrite or replace Section 4 of RA 7581 with the following paragraph: “Upon petition of the concerned parties OR BY MOTU PROPIO ACTION OF THE CONCERNED AGENCY OF THE PRICE COORDINATING COUNCIL and after public hearing, the implementing agency, with the approval of the President, MAY INCLUDE IN THE DEFINITION OF BASIC NECESSITIES OR OF PRIME COMMODITIES TYPES AND BRANDS OF GOODS OR may exclude from the coverage of this Act, types or brands of the goods included in the definition of necessities and prime commodities, which may be deemed as non-essential goods or luxury goods: Provided, that, any type or brand excluded may be reinstated by the implementing agency during occasions of acute shortage in the supply of the basic necessity or prime commodity to which the excluded type or brand used to belong OR IN TIMES OF AN OF THE CASES PROVIDED IN SECTION 6 OR 7 OF THIS ACT.”
Under the Price Act of 1992, a price ceiling may be imposed if any of the following conditions so warrants:
· The impendency, existence or effect of a calamity;
· The threat, existence or effect of an emergency;
· The prevalence or widespread acts of illegal price manipulation;
· The impendency, existence or effect of any event that causes artificial and unreasonable increase in the price of the basic necessity or prime-commodity; and
· Whenever the prevailing price of any basic necessity or prime commodity has risen to unreasonable levels.
RA 7581 created a PCC composed of the Secretaries of the DTI, DOH; Departments of Agriculture (DA), of the Interior and Local Government (DILG), of Environment and Natural Resources (DENR), of Transportation DoTr, of Information and Communications Technology (DICT) and of Justice (DOJ); Director-General of the National Economic and Development Authority (NEDA); and one representative each from the consumers’ sector, agricultural producers’ sector, trading sector, and manufacturers’ sector.
The sectoral representatives of the PCC shall be appointed by the President for a term of one year, without prejudice to their reappointment for another term.
