PEOEPLE'S STRUGGLE
Herman Tiu Laurel
11/12-18/2012
THE three issues that should be topmost in the public's mind this week are named in out title. First, the victory the public has won against the MRT fare hike; second, the new electricity rate hike that the Wholesale Electricity Spot Market (WESM); and third, Obama II and what it means for Filipinos and the World.
Victory over MRT/LRT fare hikes
After the All Saints Day holidays DOTC secretary Antonio Abaya made an obtuse statement to the effect that the MRT fare hike he announced earlier "…must be adjusted upwards only if the railway systems service improves."
This was partially an announcement that the MRT fares would no longer be increased on January 13 as earlier scheduled, a step backwards for the DOTC and an admission of the resounding victory of the arguments put forwards by the campaign of various commuter crusaders who have battled to oppose and stop the MRT fare hike.
The Aquino III government has been pushing the MRT fare hike since Day One of its administration but never presented actual MRT figures on the cost of operations to the public without exposing the scam Aquino III's oligarchs-backers wrote into the original contract.
The DOTC secretary is also obviously reacting to this writer's article last month entitled "Lower the MRT fares" where we reported the results of research and studies made by the RILES Network (of which I am co-convenor and spokesman) with a coalition of NGOs, including Agham (a group of scientists) which found that the MRT O&M (operation and maintenance) cost per passenger is only P9.11/trip.
Agham's Giovanni Tapang used the "farebox" method, dividing the total revenues by the entire cost of O&M and found that MRT commuters are actually paying more than enough to run and maintain the MRT. Abaya is quoted saying "actual cost of transporting passengers from end to end of the railway station costs P60…. the government must subsidize P45 of the cost since only P15 is collected from the passengers as fares", there are several lies there.
Taxpayers/Commuters subsidizing scam
The P60 cost is rather the financial burden to fulfilling the sovereign guarantee to the 15% profit margin and P 60/ passenger fare in the Fidel V. Ramos contract with "investors" Sobrepeñas, Ayala, Agustines and Campos groups. These groups have cashed in their profits selling the MRT contract several times over to, among others, the MRTC3FC, Goldman Sachs and GAS of Bobby Ongpin, and then Arroyo's government buying back 80% to get Goldman Sachs' court collection suit off its back but without a single voting share. The balance of 20% is owned now by Manny Pangilinan's group which expects to takeover completely after a fare hike is made.
Abaya is covering up for these scams when he hides this truth from the public and lies if he maintains the story that government will take 100% control. Abaya inaccurately claims "…the government must subsidize P45 of the cost …." The Aquino III government is not paying the subsidy. It is the taxpayers, you and me, as well as the MRT/LRT commuters paying the subsidy. The State includes the people, the government or administration is not the people.
Commuters are also already P5 for that subsidy, over the P 9.11/ passenger O&M cost. Investments in improvements can already be made based on the present fares since the MRT commuters pay P 5 over the O&M already, if they take the scam cost-burden out.
Columnist Michael Tan of the Inquirer wrote supporting the fare hike "if there is an improvement", that inaccuracy is a disservice to the millions who take the MRT/LRT on a daily basis; media has a responsibility to fully understand the issues and inform the public accordingly.
Lower the MRT/LRT fares
The Palace is saying "P6 MRT 3 fare hike is a 'good compromise'," so the fare hike is not off the table at all. From the very beginning of the MRT fare hike controversy I wrote that the P10 fare hike was a ploy and only a negotiating position. I told my two youngest sons who take the MRT/LRT to their respective universities every day, "The government is really aiming for a P 5 fare hike, starting at P 10 and scaling down to half that they hope the public will eventually, easily swallow."
So, let's not be fooled. There is absolutely no justification for any fare increase. There are still other sources to raise fund without any fare hike, like reversion of revenues from ancillary business such as advertising and real estate values to the MRT operations, maintenance and improvements; or change of overpricing maintenance contractors like Sumitomo to other s or to in house maintenance that would be cheaper.
The RILES Network has started the petition signing campaign for a "Lower the MRT fare" crusade. We are scheduled to start on November 13 and will appear again at different MRT stations to commuters to sign on and ensure justice for the millions of MRT/LRT passengers. There is no compromise in Truth and Justice in a democracy when it comes to the people's welfare.
The only rule to follow is "The greater good for the greater number of people", and the Aquino III government and its DOTC secretary is still trying to hoodwink the 95-million Filipinos to favor the vested interests of not more than a dozen individuals in the Philippine oligarchy and their foreign financial partners. We the people have won one victory in the MRT/LRT fare hike struggle – we must carry to the next level: Lower the MRT/LRT fares!
Power hikes again
"Power rate hike looms", the newspapers headlined last November 9, allegedly due to higher generation prices in the Wholesale Electricity Spot Market (WESM) the reports say: "There was a de-energization of the Luzon-Visayas interconnection from October 8 to 13, 2012, so that Luzon's supply from Visayas was reduced. During this period, market prices rose significantly."
This means cheaper geothermal sources in the Visayas failed to deliver to the grid and higher cost power from oil fed generations were tapped. Power rates were expected to drop due to the hydro-electric reservoirs being full and consumption of air conditioning being lower. This problem of rising power rates when it should go down is due to privatization and apportionment of the State power assets to countless private companies, losing the benefit of economies-of-scale.
A breakdown in one generating unit cannot be compensated for by another unit; instead during such disruptions private generating company increases its rates to profit from the opportunity, selling through the WESM (Wholesale Electricity Spot Market). Last month the price at the spot market went up because, Meralco said, "two coal-fired power plants underwent repair and maintenance, the 647-megawatt Pangasinan Sual 1 power plant had shut down … while Sual 2, which generates 647MW was also closed… "There is no incentive to maintain reliability at all times since breakdowns are also opportunities to increase rates. Meanwhile, Meralco will start collecting on the "bill deposit" January, completely unjustifiable but apparently approved by the ERC which never held a public hearing on this. We'll have to organize and oppose this in the streets and in court when January comes.
O-"boom" or "bomb"-ma?
Some commentators opine that a Democratic U.S. president is going to be good Filipinos for being more open to immigration. That helps individuals but not the nation. The Philippines will always be a market to pry open wider and wider for predatory business interests such as "hot money" investments, businesses repatriating profits, as well as goods and loan shark services.
Obama II will generate U.S. jobs by exporting – that means a strategic devaluation of its Dollar to reduce imports and push U.S. goods and services into other markets. The recent loss of the Peso exchange rate to the Dollar is the effect of what Guido Mantega, Brazil's finance minister, call "currency war". Obama's victory will bring no "boom" but bring an economic "bomb", and the Philippines must pick up the courage to set up the "bomb shelters" - institute safety net policies such as "currency" and "capital" regulation to contain the damage to our OFWs, exporters, BPOs and all other sectors.
(Watch GNN's HTL show, GNN Channel 8, Saturdays, 8:15 to 9 p.m., 11:15 p.m. and Sunday 8am, and over www.gnntv-asia.com: tune to 1098AM radio Tues. To Fri. 5 to 6pmhttp://newkatipunan.blogspot.com)
Victory over MRT/LRT fare hikes
After the All Saints Day holidays DOTC secretary Antonio Abaya made an obtuse statement to the effect that the MRT fare hike he announced earlier "…must be adjusted upwards only if the railway systems service improves."
This was partially an announcement that the MRT fares would no longer be increased on January 13 as earlier scheduled, a step backwards for the DOTC and an admission of the resounding victory of the arguments put forwards by the campaign of various commuter crusaders who have battled to oppose and stop the MRT fare hike.
The Aquino III government has been pushing the MRT fare hike since Day One of its administration but never presented actual MRT figures on the cost of operations to the public without exposing the scam Aquino III's oligarchs-backers wrote into the original contract.
The DOTC secretary is also obviously reacting to this writer's article last month entitled "Lower the MRT fares" where we reported the results of research and studies made by the RILES Network (of which I am co-convenor and spokesman) with a coalition of NGOs, including Agham (a group of scientists) which found that the MRT O&M (operation and maintenance) cost per passenger is only P9.11/trip.
Agham's Giovanni Tapang used the "farebox" method, dividing the total revenues by the entire cost of O&M and found that MRT commuters are actually paying more than enough to run and maintain the MRT. Abaya is quoted saying "actual cost of transporting passengers from end to end of the railway station costs P60…. the government must subsidize P45 of the cost since only P15 is collected from the passengers as fares", there are several lies there.
Taxpayers/Commuters subsidizing scam
The P60 cost is rather the financial burden to fulfilling the sovereign guarantee to the 15% profit margin and P 60/ passenger fare in the Fidel V. Ramos contract with "investors" Sobrepeñas, Ayala, Agustines and Campos groups. These groups have cashed in their profits selling the MRT contract several times over to, among others, the MRTC3FC, Goldman Sachs and GAS of Bobby Ongpin, and then Arroyo's government buying back 80% to get Goldman Sachs' court collection suit off its back but without a single voting share. The balance of 20% is owned now by Manny Pangilinan's group which expects to takeover completely after a fare hike is made.
Abaya is covering up for these scams when he hides this truth from the public and lies if he maintains the story that government will take 100% control. Abaya inaccurately claims "…the government must subsidize P45 of the cost …." The Aquino III government is not paying the subsidy. It is the taxpayers, you and me, as well as the MRT/LRT commuters paying the subsidy. The State includes the people, the government or administration is not the people.
Commuters are also already P5 for that subsidy, over the P 9.11/ passenger O&M cost. Investments in improvements can already be made based on the present fares since the MRT commuters pay P 5 over the O&M already, if they take the scam cost-burden out.
Columnist Michael Tan of the Inquirer wrote supporting the fare hike "if there is an improvement", that inaccuracy is a disservice to the millions who take the MRT/LRT on a daily basis; media has a responsibility to fully understand the issues and inform the public accordingly.
Lower the MRT/LRT fares
The Palace is saying "P6 MRT 3 fare hike is a 'good compromise'," so the fare hike is not off the table at all. From the very beginning of the MRT fare hike controversy I wrote that the P10 fare hike was a ploy and only a negotiating position. I told my two youngest sons who take the MRT/LRT to their respective universities every day, "The government is really aiming for a P 5 fare hike, starting at P 10 and scaling down to half that they hope the public will eventually, easily swallow."
So, let's not be fooled. There is absolutely no justification for any fare increase. There are still other sources to raise fund without any fare hike, like reversion of revenues from ancillary business such as advertising and real estate values to the MRT operations, maintenance and improvements; or change of overpricing maintenance contractors like Sumitomo to other s or to in house maintenance that would be cheaper.
The RILES Network has started the petition signing campaign for a "Lower the MRT fare" crusade. We are scheduled to start on November 13 and will appear again at different MRT stations to commuters to sign on and ensure justice for the millions of MRT/LRT passengers. There is no compromise in Truth and Justice in a democracy when it comes to the people's welfare.
The only rule to follow is "The greater good for the greater number of people", and the Aquino III government and its DOTC secretary is still trying to hoodwink the 95-million Filipinos to favor the vested interests of not more than a dozen individuals in the Philippine oligarchy and their foreign financial partners. We the people have won one victory in the MRT/LRT fare hike struggle – we must carry to the next level: Lower the MRT/LRT fares!
Power hikes again
"Power rate hike looms", the newspapers headlined last November 9, allegedly due to higher generation prices in the Wholesale Electricity Spot Market (WESM) the reports say: "There was a de-energization of the Luzon-Visayas interconnection from October 8 to 13, 2012, so that Luzon's supply from Visayas was reduced. During this period, market prices rose significantly."
This means cheaper geothermal sources in the Visayas failed to deliver to the grid and higher cost power from oil fed generations were tapped. Power rates were expected to drop due to the hydro-electric reservoirs being full and consumption of air conditioning being lower. This problem of rising power rates when it should go down is due to privatization and apportionment of the State power assets to countless private companies, losing the benefit of economies-of-scale.
A breakdown in one generating unit cannot be compensated for by another unit; instead during such disruptions private generating company increases its rates to profit from the opportunity, selling through the WESM (Wholesale Electricity Spot Market). Last month the price at the spot market went up because, Meralco said, "two coal-fired power plants underwent repair and maintenance, the 647-megawatt Pangasinan Sual 1 power plant had shut down … while Sual 2, which generates 647MW was also closed… "There is no incentive to maintain reliability at all times since breakdowns are also opportunities to increase rates. Meanwhile, Meralco will start collecting on the "bill deposit" January, completely unjustifiable but apparently approved by the ERC which never held a public hearing on this. We'll have to organize and oppose this in the streets and in court when January comes.
O-"boom" or "bomb"-ma?
Some commentators opine that a Democratic U.S. president is going to be good Filipinos for being more open to immigration. That helps individuals but not the nation. The Philippines will always be a market to pry open wider and wider for predatory business interests such as "hot money" investments, businesses repatriating profits, as well as goods and loan shark services.
Obama II will generate U.S. jobs by exporting – that means a strategic devaluation of its Dollar to reduce imports and push U.S. goods and services into other markets. The recent loss of the Peso exchange rate to the Dollar is the effect of what Guido Mantega, Brazil's finance minister, call "currency war". Obama's victory will bring no "boom" but bring an economic "bomb", and the Philippines must pick up the courage to set up the "bomb shelters" - institute safety net policies such as "currency" and "capital" regulation to contain the damage to our OFWs, exporters, BPOs and all other sectors.
(Watch GNN's HTL show, GNN Channel 8, Saturdays, 8:15 to 9 p.m., 11:15 p.m. and Sunday 8am, and over www.gnntv-asia.com: tune to 1098AM radio Tues. To Fri. 5 to 6pmhttp://newkatipunan.blogspot.com)
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