INTRODUCTION
Mr. Speaker, the distinguished members of the Senate and the House of Representatives, particularly the authors and sponsors of these two new laws; our co-workers in the executive branch; ladies and gentlemen.

I suppose a lot of the travel plans were ruined because of these two new laws. Recess have had to come later to our weary members of Congress. To their credit we have once been shown that they are willing to go the extra mile, all for the interest of the nation. For this, I express to you, gentlemen of the senate and of the house, our people’s appreciation and my personal thanks.

Before the passage of these legislative measures in congress, there were evident differences in position between the two chambers. The fact that I have now signed into law these two measures is a tribute to their open-mindedness and our common resolve to help move our country forward. They, the members of congress, have found ways to reconcile their differences and to come up with a common version of each bill.

These two new laws are not the antidote to cure all our economic ills. Neither are they perfectly satisfactory in their present form. But they are positive building blocks to our economic recovery. They are but some of the bitter pills we will have to swallow to nourish and strengthen our economy and put it into better shape.
REPUBLIC ACT 7653 (THE NEW CENTRAL BANK ACT)
Republic act number 7653 entitled “The New Central Bank Act” creates a new financial institution called the Bangko Sentral ng Pilipinas or BSP — Boy Scouts of the Philippines in the first version, Bangko Sentral ng Pilipinas in the second version — eventually replaced the existing central bank.

Why do we need this new Bangko Sentral ng Pilipinas?

Because we have to fight poverty because we are in a race with our Asian neighbors to achieve the status of a newly industrializing country or NIC. And in this race, we have lagged far behind. Our economic vehicle is in poor condition. It needs restructuring and fine tuning and we are doing this through the package of economic reforms we have introduced since early in this administration.

We have formulated a Medium-Term Philippine Development Plan or MTPDP which we have submitted to congress for approval. We have created special economic zones, provided for a longer lease period of private lands in favor of foreigners, and embarked on numerous power, telecommunications, highways, transport and other infrastructure projects to attract foreign investment. We are in the process of breaking up cartels, and intend to liberalize the entry of foreign banks. We are moving to increase badly-needed government revenues and improve our tax effort. We have launched all these measures designed to attain a more dynamic, robust and sustainable economy.

The existing Central Bank, a vital institution in charge of supervising the money, banking and credit system of our country, is in a state of decrepitude, hemorrhaging from a huge deficit amounting to more than P300 billion.

We are not here to discuss how the Central Bank managed to sink into such a sorry state. The reality is there.

Rather, we should not focus on our losses, but we should look forward and concentrate our efforts on winning the economic game. The existing central bank just could not perform anymore in its present condition, in spite of heroic efforts to correct the sins of the past.

Under Republic Act Number 7653, the Bangko Sentral ng Pilipinas will concentrate on maintaining monetary and price stability and enable it to intervene positively for our economic benefit. Capitalized at P50 billion, the BSP will operate from a position of strength in the performance of its functions. And so we look forward to an environment of more stable and lower interest rates, reduced inflation and non-inflationary economic growth.

I am confident that the new Monetary Board and the Secretary of Finance will come up with an acceptable formula to retire the Central Bank liabilities and losses at the least cost to the government in accordance with the provisions of this new law.
REPUBLIC ACT 7654 (AMENDED TOBACCO TAX ACT)
Regarding Republic Act Number 7654 or the Amended Tobacco Tax Act, which revises the excise tax base on tobacco products and is, strictly speaking, only the first revenue measure passed by Congress. All the previous legislative measures concerning taxes were primarily tax collection enhancement measures which did not impose any additional taxes or increase the rates of existing ones.

Notwithstanding the approval of this new law, however, continued legislative enactments and executive action must be undertaken to optimize the benefits due our people in the form of increased revenues and to level the playing field, so to speak, among all tobacco product manufacturers.

All these, I intend to pursue vigorously and continuously.

A unique feature of this new law needs special mention and deserves our commendation. Section 3 provides as follows:

And I quote, “fifty percent of the increment in total revenue collected under this act for a period of one year from its effectivity shall be allocated and disbursed solely for purposes of providing emergency productive employment to workers displaced by the present electricity power crisis. For this purpose, the secretary of labor and employment, in consultation with the secretary of finance, shall promulgate the necessary rules and regulations for the effective implementation of this section.”

And I further quote, “provided, likewise that twenty-five percent of the increment in total revenue collected under this act in 1995 shall be collected and segregated as a trust fund to be disbursed solely for funding the National Health Insurance Program as may be hereafter mandated by law.” unquote.
CLOSING APPEAL
And so, I urge Congress to give similar urgency and priority to other revenue measures which i have already certified but which are still pending for lack of time. The national interest and public welfare demand such urgency.

Mr. Senate President, Mr. Speaker, ladies and gentlemen of Congress, I do not wish to keep you any longer. Again, our heartfelt thanks for your extra efforts.

Mabuhay ang Kongreso!

Mabuhay ang Pilipinas!

Maraming salamat po.