Sunday, July 22, 2012

Mines: Theirs or Ours?

PEOPLE'S STRUGGLE
Herman Tiu Laurel
07/16-22/2012



The global and national economy is actually all about the "mining" industry; that is, what is mine and what is theirs. The question at the center of it all is, "Whose 'mine' are we talking about?"

The world's 1% believes it to be "all mine" while it thinks that the 99% poor saps like you and me (yes, including the middle class, with the broad masses at the bottom) don't have any right at all to any of it. Oh, maybe, the rest of the 99% can have a little in taxes the 1% pays, like the 2% mining tax the Philippine law stipulates--which is now supposed to be raised, albeit still to a measly 7%.

In some countries like China, the 99% own all the mineral wealth of their lands--managed, of course, through and by the state. That way, it is factored in as part of their national economic development plan. Take China's wealth of "rare earth minerals." These are being used to dominate the solar energy and electric transport industries of the world for that country's benefit.

Meanwhile, in the Philippines, where trillions worth of gold have already been extracted in centuries, the country has remained among the poorest.

What is yours and mine
The Executive Order (EO) issued by BS Aquino III recently has kept open almost 800 mining concessions and existing operations in place, while calling for a moratorium on new ones. It increases the taxation and other fees on mining operations but leaves the triple-lion's share or 90% to the corporate miners who are actually an even smaller percentage (maybe 0.01%) of the global population. These extremely lucky companies include Alcoa, Anglo American Rio Rinto, Barrick Gold, and Xstrata which is behind the Tampakan mining operation that is the subject of the "Danger in Perpetuity" episode some months back of my cable TV show on the world's most dangerous mining projects.

The domestic mining companies, in like manner, represent an extremely small percentage of the population, like the Zamora brothers, who have used that wealth to control other resources such as government and its finances, as highlighted by an early 2011 OpinYon issue on the brothers' control of the BS Aquino III regime and their pressures to monopolize the Development Bank of the Philippines (DBP) that led to a DBP executive's suicide.

The question of "theirs" or "ours" is the fundamental issue every Filipino concerned with the mining issue should focus on. If we, as I do, believe that the mineral wealth of this country is a God- and nature-given national patrimony and bounty that all Filipinos present and future can and should share in, then we should take the position that all mining activities must totally be of, by, and for the nation.

Private mining interests can participate as contractors on the basis of cost, or through other variations of cooperatives with local residents and small miners, or in partnerships and joint ventures if necessary. But as private corporate mining giants have had a record of exploiting and extracting with nominal safeguards that eventually cause disastrous environmental damage years or decades later, leaving the unimaginable economic and environmental costs for the local populations to suffer, the state must have all the credit and capital it needs to open and exploit the mines in behalf of the people, and afford the safeguards for present and future generations.

Let me end this segment by paraphrasing Woody Guthrie's populist "This Land Is Your Land" in answer to the imperialist anthem "God Bless America:" "These mines are your mines, these mines are our mines, these mines are not 'their' mines, from Luzon to the Mindanao islands, from the Benguet to the Tampakan mines, these mines were made for you and me…"

While the oligarchs are wont to say, "What is yours is mine," we say, "These are yours and mine."

Danger in Perpetuity
One of the most controversial mining issues in the country today is the Tampakan Copper Gold Project operated by Sagittarius Mines Inc. (with Xstrata) in the tri-boundaries of South Cotabato, Davao del Sur, and Sarangani.

According to Clive Montgomery, conservation and development consultant and specialist on impact of extractive industries, the Tampakan project is one of the most dangerous mining projects in the world. It has been estimated to produce 2.7 billion tons of mine wastes which will be placed atop the mountain sitting above its open pit mine site. The mine wastes will be stacked up to 300 meters high and cover 500 hectares; and considering that the project is located just 10 kilometers away from Mount Matutum, an active volcano, seismic activities within the mining area can cause the gargantuan mine wastes to avalanche down to the populated areas and water sources. An example of this is the March 24, 1996 disaster in Marinduque where the collapse of mine tailings containment resulted in an avalanche of over 1.6 million cubic meters of tailings.

The Marinduque mine tailings poisoned 27 kilometers of river and coastal areas, and an inestimable impact on the river and the people who depend on it for their living. The deluge of tailings displaced river water and flooded low-lying areas, destroying crops and vegetable gardens and clogging irrigation channels to rice fields. The release left the Boac River virtually dead. Such tragedies, however, happen not only in the Philippines.

On July 19, 1985, the tailings dams of the Val di Stava mines near Tesero, Northern Italy collapsed, bringing sand, slime, and water downhill at a velocity approaching 90 kilometers per hour, killing people and destroying trees, buildings, and everything in their path, until these reached the river Avisio. The mudslide alone killed 268 people and completely destroyed three hotels, 53 homes, and six industrial buildings, also demolishing eight bridges and seriously damaging nine other buildings. The thick layer of mud measuring between 20 and 40 centimeters covered an overall 435,000 square meters over 4.2 kilometers. (Click on "Stava Mine Failure" on YouTube.)

A study entitled, "Reported tailings dam failures: A review of the European incidents in the worldwide context," by a group of European experts, reporting on "a corpus of 147 cases of worldwide tailings dam disasters, from which 26 (are) located in Europe," shows that, in many of these cases, thousands have died and hundreds of thousands of hectares of land and rivers were poisoned.

Whenever the life of a mine site is over, the corporate mining interests simply pack up and leave, while promising their tailing ponds and mines will be safe forever.

It is thus better that we, the 99%, keep mining moderated, modest, and stretched out over decades of conscientious extraction rather than at the plundering rate of corporate profit-predators.

BS Aquino III's Mining EO allows the continuation of almost 800 corporate mining operations, hence the headline, "Tampakan investor upbeat after EO issuance."

Mining in all economic fields
However, the "mining" industry is not only for minerals and metals; it is in all human economic fields of endeavor. The oligarchs are into every "mining" field as they "mine" in the water and power industries in the Philippines. They are "mining" in money, too.

In the power sector, this 1% has claimed as "mine" (or "theirs") our nation's geothermal and hydroelectric resources, along with all the power plants that consumers and taxpayers had paid for since the establishment of the National Power Corp. (Napocor) decades ago.

One commodity that is supposedly "ours" (i.e. the people's) is our money or our peso. But, as the bankers claim it to be theirs, as do the IMF, World Bank, and ADB, we the people have had to borrow "their" money for every move we make and everything we desire to do.

Filipinos should thus begin to understand that money, like our land and seas, is a national patrimony and exists only because we the people use it. And with this understanding, we should demand that money (in our case, the peso) be also treated as a public utility for us to claim our power over it.

How do we claim public ownership over our money? By nationalizing the banking system and instituting public control over monetary policy and matters, by taking these away from the IMF et al., including the puppet Monetary Board.

If anyone shall protest that that will be prone to corruption, it will only prove that he or she does not understand what's really going on in the monetary system here and in the world.

Philippine media has dwelt almost nil on the scandal now raging in Britain, on the rate-fixing scandal of the LIBOR (London Interbank Offered Rate), which determines the interest rates of bank-to-bank loans and which, as BizNews' Tony Lopez explains, affects our peso and all our financial transactions down to the payment of our small bills. This rate-fixing scheme led by Barclays (fined $450 million by regulators), involving the Bank of England, Citibank, JP Morgan, HSBC, and five others, came about as the bank lied to lower its rates and upgrade its credit standing.

Filipinos will never climb out of poverty because these "banksters" (banker-gangsters) are always going to extract surplus capital from the Philippines through fixing interest rates and buying local politicians like BS Aquino III who kowtow to them. So, whether it's in mining, utilities, or money, are we still going to sit idly by while they continue to get what's "ours" as "theirs"?

(Watch Destiny Cable GNN's HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m., this week on "Consumer Updates: Water and Power Scams;" visit http://newkatipunero.blogspot.com)

Monday, July 16, 2012

Lie-bor and our labors

DIE HARD III
Herman Tiu Laurel
7/16/2012



Ten million Filipinos labor overseas, often in horrendous conditions, to earn a few dollars. Even more Filipinos, almost 20 million families, labor each day in various conditions of difficulties to eke out a living to pay for food, water, electricity and other basics. Over and above all that, they also pay for one thing that they never even completely understand — financial interest on everything. They are paying interest for the P 5.1-trillion national debt that continues growing in interest payments, and the P2-trillion national budget includes P800 billion automatically appropriated for debt payment, half of which is interest payments. They are paying for the interest on securitized projects of the PPP (public-private partnership projects) or the MRT, the power companies such as Meralco and the water companies such as Manila Water and Maynilad. The basic facts of Filipino life today are death, taxes, and interest rates on debt.

On June 27, the international finance media reported that Barclays Bank had been find by £290 million or $451 million for manipulating Libor (London Interbank Offered Rate) between 2005 and 2009. It had been lying and falsifying its submissions (misreporting, some describe) to the Libor setting mechanism on such critical matters as cost of borrowing from other banks. It did this to boost its appearances as a solid financial institution and maintain high rating and lower interest cost to itself. Libor is calculated by the BBA (British Bankers' Association) and published by Thomson Reuters financial information group daily after 11:00 a.m. (London time), fixing rates for three currencies: the US dollar, British pound sterling and the Japanese yen. Evidence of the rate fixing included e-mails of Barclays executives, as The Globe and Mail reports: "The scandal — complete with e-mails showing bankers boasting of manipulating interest rates and congratulating each other with offers of champagne — has triggered fierce criticism about the financial industry in general and Barclays in particular."

Barclays has dragged in other major banks into what seems to be industry practice, lying and falsification to manipulate their interest costs. Barclays is being investigated for its manipulation from 2005 on, and this couldn't have gone on so long without knowledge of financial authorities. The British paper Financial Spectator suggests this is so, "In the statement, the bank confirms that it had close contact with the Bank of England and other authorities regarding the liquidity crisis in October 2008 … Paul Tucker, the deputy governor of the Bank of England (BoE) …. advised that a number of senior figures within Whitehall were concerned (about) Barclays' Libor submissions... Mr Diamond (Barclays' head) explained this by advising Mr Tucker that he believed other banks were 'posting rates at levels that were not representative of where they would have to undertake business'", i.e. other banks were also falsifying to window dress their submissions. Now, the BoE and other major banks are dragged into the scandal.

The Guardian reports the Barclays' scandal is just the tip of the iceberg. One Website reflecting my sentiment aptly called "Hang the Bankers," reports other global banks being investigated and sued on Libor fixing: HSBC, Lloyds and Royal Bank of Scotland, JP Morgan, Citibank, et al. Interest rate "rigging" comes in many forms, while these commercial banks do it and can be found criminal in the act, governments like the US of A. can rig it and it is accepted as law, as the almost zero percent interest rate in the US for its bankers is today. For Filipinos who labor to pay interest on everything with interest rates from the lowest of just over four percent that the BSP (Banko Sentral ng Pilipinas) is paying for example to keep local banks' moneys from OFWs and other inflows parked with it, to the $36-billion  bonds costing as much, to commercial rates of up to 10 percent or consumer finance that is much, much higher, the news of such bank manipulations of interest rates such as Barclays should cause an epiphany, and call for independence from Western banking enslavement.

The Philippines is no longer short of capital to fund its development, as a Filipino banker confirmed to me in a recent discussion. The banker, who was also a major OFW contractor, explained that the over $ 20-billion earnings of the nation annually is more than sufficient and only an OFW bank is needed to consolidate this for investment which will earn the OFWs handsomely on interest. But our national ruling elite in finance and politics refuse to acknowledge the fact that the Philippines is already financially self-sufficient and the traditional bankers with their foreign partners would lose their interest earnings from our country and politicians like Sonny Belmonte who wants Cha-cha to allow in foreign financial predators.

Our politicians are operators for these global and local shylocks. Our nations' labors should not be stolen of its fruits by the lying boors of Libor, Eurobor (Euro Interbank Offered Rates), the US Federal Reserve or other foreign manipulated rate setting bodies.

The Philippines currency and interest rate sovereignty will only be restored with policies we had during the "Filipino First" era: currency and capital controls.

(Watch Destiny Cable GNN's HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m., this week "New Sin Tax: Sin against Filipinos"; visit http://newkatipunero.blogspot.com)

Sunday, July 15, 2012

Fixed wages will solve the problem

BACKBENCHER
Rod P. Kapunan
7/14-15/2012



The paralyzing traffic jam we experience daily could be resolved by compelling bus, and possibly taxi and jeepney, operators to pay wage instead of commission to their drivers and conductors. Fixing their daily wage is well grounded as it is for the safety of the passengers and commuters. It will also ease the traffic snarl that occurs in our major thoroughfares.

Notably, those drivers whose day's earnings depend on the number of passengers they could take, viz. to reach the so-called "boundary" or rent they would remit to the operator to entitle them to a commission, has indeed been pinpointed as the source of most vehicular accidents and cause of unnecessary traffic, and sometimes tempt deceitful conductors to cheat passengers by not returning their change. The proponents argue that it is on that rat-race system to meet the rental mislabeled as "boundary," which on the average is fixed at 9 to 10 percent for the drivers and 7 to 8 percent for the conductors of the bus earnings that turns them into some kind of hell drivers resulting in complete road pandemonium.

Paying drivers their fixed wage could be a possible solution to the irritating problem of buses and passenger vehicles converging at certain intersections all wanting to pick up as many passengers they could. They would not budge an inch to let other vehicles pass, neither would they leave until after all seats have been taken, nor would care if one exasperated passenger is cursing them for being late. In fact, we are the only country in the world that allows commuter vehicles to converge in such strategic choking points and use them as their terminal to pick up passengers. It is on this chaotic situation where corrupt policemen and traffic enforcers take advantage by ignoring the problem all for the "kotong" they receive either from the individual drivers or from the bus operators for the assurance of not being driven away.

Likewise, commuters take the risk to get a ride and agonizingly wait for their bus or jeepney to finally move. For their lack of safety concern in wanting to take their ride, they too contribute to the gridlock and make possible the unwanted vice of tong collection to proliferate. During rush hours, when all are in a hurry to arrive on time, many of them are rather suicidal chasing moving vehicles just to be able to get inside ahead of the rest. Because drivers too are eager to get their quota, they too would not bother to pull their vehicle to the side to avoid blocking the road. It is typical of a dog-eat-dog society.

Besides, the operators of passenger vehicles and their drivers failed to realize vehicles that keep on moving after loading or unloading their passengers conserve more fuel than those that stop and wait to pick up passengers. Those "on the go" are able to save gas up to one third of the consumption compared to vehicles that stop and wait to pick up passengers. Even if those vehicles carry less passengers than those that wait, in the long run they are able to carry more passengers if divided by the number of loops they are able to complete. For instance, if normally they would be able to make an average of seven to eight loops for a 12-hour run, they could only manage an average of five to six loops for the same number of hours with much less passengers, if divided by the loop, and more fuel spent because of their habit to stop and wait to pick up passengers.

Finally, if those bus drivers and conductors are thinking they would earn less if the Department of Labor would insist they be paid on a fixed wage, I say they are dead wrong. This does not mean this column now takes back its original advocacy in wanting to deregulate wage. Rather, in their eagerness to maintain their day's commission ranging from P700 to P800 for the drivers and from P600 to P700 for the conductors, respectively, they overlooked that they drive for an average of 10 to 12 hours. If their commission is divided by the number of hours plus a 25 percent premium for overtime pay for those hours worked beyond the required eight hours work, that would definitely fall below the current minimum of P412 daily.

Most important, drivers and conductors take a rest or are not able to work the next day to complete the six-day a week work. They are only able to work for an average of 4 days a week. If the actual number of days they drive in a week is divided by six their income would dip steeply below the minimum wage. This explains why most bus operators would not care less about the traffic jam and accidents that happen. At the back of their mind, profit is what counts.

The fear that fixing the wage for drivers and conductors would result in them failing to pay the "boundary" with the excess mislabeled as "commission" is capricious and arbitrary. Bus operators must realize that their fixed rental is based on what is profitable, notwithstanding that public utility vehicles is a form of public service vested with public interest. Nonetheless, through time and motion study, the problem could be resolved not to mention that giving our drivers their fixed income would finally relieve us of the serious problem of traffic jam and vehicular accidents caused by crazy drivers racing to meet their commission quota.

(rgkapunan_office@yahoo.com)