INTRODUCTION
The Filipino people will find more meaning in tomorrow’s celebration of our 98th independence anniversary with these new measures — thirteen new laws and three international agreements ratified by the senate. These measures form part of our continuing bold reforms to speed up Philippine development by increasing our globally competitive capabilities and enhancing the Social Reform Agenda (SRA).
FUNDING OUR ECONOMIC MOMENTUM AND SOCIAL REFORMS
RA 8182 which raises the limits set by the Foreign Borrowings Act of 1966 (RA 4860) is both urgent and extremely important to our growing economy.

To sustain our growth momentum for 1996-1998 alone, it is estimated that we would need some p435 billion for our social reform agenda (SRA) and GATT-WTO-related adjustment measures or the so-called safety nets.

We have been unable to fully avail of concessional Official Development Assistance (ODA) funds offered to us because of certain limitations. While we may increase domestic borrowings to finance our development projects, we would not want to compete with the private sector for limited investible funds.

Inasmuch as ODA loans are less burdensome to the country than commercial loans, it was therefore necessary for us to seek the means to exempt ODA from the foreign debt ceiling. Furthermore, we are no longer qualified for certain ODA facilities such as the World Bank’s International Development Association (WB-IDA) facility because we already surpassed last year the $1,000 per capita GNP standard.

RA 8182 does not enable government to borrow indiscriminately. On the other hand, its provisions ensure prudent borrowing and efficient use of funds and include among others: tasking the National Economic and Development Authority (NEDA) to annually review all ODA-funded projects; and mandating the Commission on Audit (COA) to conduct an annual audit of all ongoing and completed projects. Both NEDA and COA must report their findings to congress not later than the 30th of every June.
REPEAL OF THE UNIFORM CURRENCY LAW
The Uniform Currency Law of 1950 (RA 529), adopted when the country restricted foreign exchange, has been rendered irrelevant by the Foreign Investments Act of 1991 and other new measures to deregulate our foreign exchange transactions. We, therefore, repeal this obsolete law that prohibited payments in foreign currency or in Philippine currency measured in foreign exchange through RA 8183.

But let me emphasize that we have not weakened the primacy of the Philippine peso since its legal tender power remains undiminished. On the other hand, this new act asserts the effectiveness of our monetary and financial management. The true value of the Philippine peso is, after all, not obtained through artificial controls but by a healthy market economy and sound macro-economic and financial policies.
THE OIL EXCISE TAX: FIRST COMPONENT OF CTRP
In support of our oil deregulation program and as part of our Comprehensive Tax Reform Program (CTRP), RA 8184 has been enacted to simplify our present oil tax structure — in effect, it integrates the current specific taxes, the p1.00 special oil levy and the 7% differential of the tariff reduction on crude oil.

This serves as a reasonable compromise between government’s objective to promote financial stability despite the fluctuations in the world oil prices and the oil companies’ pricing to reflect their support for government’s policies towards consumer welfare and environmental enhancement.

This law reduces the price of regular gasoline by five centavos (p0.05), aviation turbo by one peso and fifteen centavos (p1.15), fuel oil by ten centavos (p0.10), kerosene by thirty centavos (p0.30) and liquefied petroleum gas by forty -one centavos (p0.41). It does not affect the prices of unleaded premium gas and diesel, and increases the price per liter of premium gas by forty-six (p0.46) centavos.
CONTINUING OUR SRA AND ADMINISTRATIVE REFORMS
Equally important to us are these other laws that strengthen our pursuit of social reform.

When disasters struck in the past, on-the-spot relief and rehabilitation efforts were inevitably delayed because local government units lacked the authority to disburse calamity funds on their own. RA 8185 ensures quicker response in times of disaster by authorizing local government units to prepare for and pro-act to prevent or mitigate loss of lives and property.

To guarantee judicious spending of calamity funds, the law holds the municipal or provincial councils (Sanggunian) responsible for approving disbursements but only upon the recommendation of the local disaster coordinating councils. Furthermore, this law specifically apportions fund distribution as follows 30% for pre-disaster activities; 20% for quick response; and 50% for relief and rehabilitation. Thus, we do not only speed up rescue efforts but also encourage disaster preparedness and management in local governments.

RA 8186 enhances the pyramidal structure of and rank upgrading in the military by rationalizing the distribution of various general/flag officer’s grades. Likewise, it limits the tenure of officers from the grades of colonel or navy captain upwards. Its net effects, therefore, are improved performance among ranking officers and higher morale among the junior officers who will now enjoy better chances for promotion.

Most welcome to fathers and minimum wage earners are our most recent labor-related reforms.

RA 8187 institutionalizes a 5-day paternity leave to any employed father whose legal wife has just given birth. The law’s important social and economic implications lie in encouraging the new father to give moral and material support so that he can pay better attention to his family’s welfare. This law upholds our people’s high regard for the family, promotes the implementation of the newly-launched Philippine Plan for Gender-Responsive Development, and affirms our fulfillment of international conventions for the welfare of the family, women and children.

That our social equity objectives must especially focus on our most marginalized sectors is the rationale of our existing wage policies. But studies indicate that one out of five employers continue to violate the minimum wage law.

We seek an end to this illegal deed through RA 8188 which imposes double indemnity on employers who violate the prescribed increases or adjustments in wage rates. This law increases the amount of fines and the number of years of imprisonment of any violator, in addition to doubling unpaid benefits to the aggrieved employees.
CONTINUING ELECTORAL REFORMS
In furtherance of electoral reforms, RA 8189 protects the integrity and credibility of the voter’s list through a process of continuing registration. Under this law, a qualified voter registers only once and is assigned a non-transferable voter serial number which is his alone for life. This system reduces the possibility of multiple registration of voters, decreases the Commission on Elections’ (COMELEC) task of periodically cleaning up the voter’s list, and also brings down official election costs.

This is an important component of our objective to institutionalize honest, orderly and peaceful elections (HOPE) by safeguarding Filipino voters against the evil minds and dirty hands of election manipulators.
QUALITY EDUCATION AND HEALTH
Teacher applicants and elementary pupils are the most important beneficiaries of RA 8190 which grants hiring priority to teacher-applicants who are residents of the barangay, municipality or city where the public school is located. We recognize the trade-off involved here, particularly in the choice between the highly qualified teachers vis-a-vis those who only meet minimum requirements but are residents of the community.

But we believe that hiring local residents as teachers will solve the problems of absenteeism and lack of long-term commitment that arise from the teachers’ living far from their assigned schools. The quality of basic public education should significantly improve with this law.

In furtherance of public health, we create the National Commission on Diabetes through RA 8191. Diabetes mellitus, a chronic disabling condition affecting some three million Filipinos, has become a major health menace. The possible complications arising from diabetes include strokes, kidney failure and blindness. Because anti-diabetes medication costs so much, only a few can afford adequate treatment. The newly-created commission will collaborate with other sectors in controlling this disease as well as increase public awareness.
LAWS OF LOCAL APPLICATION
I give my special greetings to the hard-working people of Sagay City in Negros Occidental, whose productive efforts enabled the municipality to become our newest city under RA 8192.

We also have RAs 8193 and 8194, respectively, establishing the Jose Rizal memorial state college in Dapitan City and creating an engineering district of the DPWH in the first congressional district of Zamboanga del Norte.
OUR INTERNATIONAL COMMITMENTS AND TREATIES
On this occasion, I express my appreciation to the Senate which has ratified three international agreements.

The ratification of Protocol IV of the United Nations Inhumane Weapons Convention of 1980 complements our earlier call for the Asia-Pacific region to be a nuclear weapons-free zone. I proudly announce that, with the exception of Laos, the Philippines is the first Southeast Asian country to ratify this protocol. We will continue to campaign for the prohibition and abolition of weapons of mass destruction, including those with devastating or exclusively injurious effects such as blinding laser weapons and land mines.

We are happy over the senate’s ratification of the Philippines-Canada social security agreement. This agreement confers on both Philippine and Canadian nationals equal protection under their respective social security laws, including the entitlement to Filipino migrants to Canada of old-age security benefits. This is the first agreement of its kind between Canada and an Asian country, and will accordingly give new benefits to the hundreds of thousands of Filipino-Canadians, including overseas workers.

The third agreement is the Hague Convention on the protection of children, providing requirements for inter-country adoption, which we signed in May 1993. Although RA 8043, enacted in 1994, authorized inter-country adoption, the reach of this law is only within Philippine territory. We ensure through this treaty that the rights of the adopted Filipino child are respected by his non-Filipino adopting parents everywhere.
CLOSING
Congress had to work overtime to pass these bills, and on behalf of our government and people, I thank most sincerely their authors, sponsors and supporters. This package of laws is the legislature’s latest assurance of support for our total Philippine team efforts to achieve sustained growth and sustainable development.

We had hoped that the other measures certified as urgent would be passed before Congress starts its new session in July, but we also appreciate our legislators’ caution and prudence on some of our bold reforms.

Still, I continue to appeal, in the strongest possible terms, to congress to take advantage of the coming recess to review the merits of other pending critical bills and to pass them before the year ends. I refer particularly to the proposed agricultural productivity and irrigation act of 1996 which would fortify our food-security measures.

I make a similar impassioned appeal for the passage of the amendments to the Expanded Value-Added Tax and the two remaining components of our Comprehensive Tax Reform Program. All these urgent bills are crucial not only in ensuring our growth momentum but also in guaranteeing a greater degree of social equity for our people, the majority of whom must still be lifted from poverty to economic self-sufficiency.

I give my special thanks to Senate President Nepali Gonzales and House Speaker Jose de Venecia for their selfless leadership and for steering all these new laws clear of partisan and vested interests, and also to the members of both chambers for their support.

As the first session of the 10th Congress ends, we advance substantially and determinedly towards a better future by these new laws designed for greater people empowerment and global competitiveness!!

Maraming salamat sa inyong lahat at maligayang pagdiriwang ng ating ika-siyamnapu’t-walo (98) na anibersaryo ng kalayaan.