Sponsorship speech of Rep. Casiño for House Bills 1724, 3029, 3030

Delivered during the hearing of the House Committee on Energy
August 20, 2008

The four House bills being proposed by representatives from the party lists Bayan Muna, Gabriela and Anakpawis – HB 1724 repealing the Oil Deregulation Act of 1998, HB 3029 regulating the industry, HB 3030 establishing a centralized oil procurement mechanism, and HB 3031 re-establishing state ownership of Petron, which is in another committee – are attempts to legislate medium-term solutions to the problems plaguing the oil industry.

Exactly what are these problems? From a layman’s perspective, these are the following:

1. Frequent and steep oil price hikes;
2. Transfer pricing and other unfair practices of the foreign-dominated oil cartel;
3. The inability of the State to protect the people from the oil oligopolies;

These were the very same problems supposed to be addressed by the Oil Deregulation Act some 10 years ago. But these problems persist and have even worsened.

Since the first deregulation law in 1996, there have been at least 81 rounds of oil price hikes. Prices have risen by some 400%. Since Mrs. Arroyo came to power, prices have increased by 275%. In 2006, prices increased 36 times. This year, prices have increased by at least 18 times.

Deregulation was supposed to break the stranglehold of the oil cartel, the so-called Big 3 of Shell, Petron and Caltex. To date, they are still the dominant players, controlling 85-90% of the market and practically all oil refineries. The cartel’s profits, both here and abroad, are at an all-time high. Their monopoly operations have become more sophisticated. As an effect, the smuggling of oil has become a rampant practice.

In the face of all these, the state has failed to protect the people. Deregulation has tied the hands of the government and reduced it to being a mere spectator – shouting and pleading with the oil companies every time oil prices go up but not being able to actually do anything about the situation. In most cases, the Department of Energy and the President herself become the spokespersons and apologists of the oil companies.

What do we propose?

Basically, we want to develop a strong national oil industry that is:
• Owned and controlled by Filipinos
• Regulated, transparent and accountable, with the State itself as a major player; and
• Sustainable, aimed towards self-sufficiency and geared for national development

Towards this aim, we are proposing the following measures:

HB 1724 repeals RA 8479 or the Downstream Oil Deregulation Act of 1998.

HB 3029 creates a 6-person Petroleum Regulatory Council – a quasi-judicial regulatory body that will:

• monitor, regulate and hold hearings on oil and petroleum prices
• maintain a comprehensive database on the industry
• manage a buffer fund, called the Oil Price Buffer Fund (OPBF)

Unlike the previous Oil Price Stabilization Fund (OPSF), the proposed buffer fund is for the strict and unique purpose of cushioning the impact of frequent and drastic price fluctuations. It prohibits all other reimbursements and specifically prohibits the President from tapping the fund. After five years, funds may be invested in secure instruments.

HB 3030 - Creates the National Petroleum Exchange Corp. as a subsidiary of the Philippine National Oil Company (PNOC). Within 4-5 years, the Exchange Corp. is envisioned to be in-charge of importation, storage, sale and distribution of all oil and petroleum products in the country.

The state-owned PNOC-NPEC shall formulate a Centralized Petroleum Procurement Plan, which will determine the country’s total oil requirements including the formation of a buffer supply, and negotiates accordingly with suppliers, whether private or state-owned, for the best prices and terms.

Integral to the operation of both bills is the government buy-back of Petron, as envisioned in HB 3031. This is to be done in stages, with government initially controling 51% of the company and then 100% within four years. Petron is to be reoriented as a state-owned company with social and developmental functions and responsibilities. Four billion pesos is initially allotted for the buy-back, with the rest to come from future the earnings.

There are other features of the bill which I leave to the committee’s discretion to deliberate on.

Thank you, Mr. Chairman.

Towards a pro-Filipino and pro-people Mining Act

To our comrades in KAMP, our compatriot indigenous peoples from north to south, the Center for Environmental Concerns, guests and observers, warmest militant greetings from Bayan Muna!

During the Marcos dictatorship, the joke used to be that Ferdinand and Imelda Marcos had a very simple mining policy: that is mine, this is mine, everything is mine. I guess the times have not changed that much.

Seriously now, the policy framework of the current government, as enshrined in the Mining Act of 1995, can be summed up as follows: the more the merrier, the bigger the better. Never mind if the site targets are in populated areas. Never mind if most, if not all remaining mineral deposits in the country are in the ancestral domains of our tribal brothers and sisters. Never mind if mining operations are environmentally hazardous. As long as it is large-scale, foreign-owned, and geared for export, then by all means, mine the country. It is a policy premised on the sell out of our indigenous peoples, the national patrimony and the environment.

You know better than I the catastrophic impact of such a mining policy. The big time mining projects and applications for the same have fomented divisions and conflicts in and among various tribes and have caused the forced evictions and displacement of indigenous peoples in Abra, Benguet, Cagayan, Nueva Vizcaya, Mindoro, Zambales, Caraga, Davao Oriental, SoCSKSarGen, the Zamboanga Provinces, and in non-IP areas like Samar and Negros, to name a few.

The entry of mining companies severely alter the customary laws and ways of life of our indigenous communities. Their laws, interests and opinions are least considered by the government and mining firms. The word of the DENR secretary and the President usually prevail over any opposition from the communities. The current Mining Act and related laws allow the use of deception, bribery and strong-arm tactics to force mining operations into an area.

Many tribal communities have become severely divided between those for and against mining. So does mining destroy not only the environment and the people's livelihood but their families as well. No amount of royalties and local taxes can compensate for IP communities displaced by mining operations. Their land is their life.

Bayan Muna stands with the indigenous peoples, environment defenders and the rest of the Filipino people who oppose this kind of a mining policy. While we hold the view that mining is highly important in nation building, it should not be done at the expense of our people's rights and the environment. Our country's natural wealth of mineral resources is finite and needs to be reserved for Filipino citizens and optimally exploited for the genuine development of the nation.

In this light, we are one with you in opposing all forms of foreign, large-scale mining operations in the country. We are one with you in asserting your rights and protecting the environment. We are one with you in calling for the repeal of the Mining Act of 1995.

In this light, we must work towards a new mining policy that respects human rights, especially those of indigenous peoples, and gears the industry towards building a progressive, independent and self-reliant national economy. This of course should be based on the requisites of addressing the country's industrialization requirements and to modernize the backward and inefficient agriculture production under a framework of genuine agrarian reform, social justice and food security.

Such a mining policy would be the complete opposite of the current government framework that is premised on nothing but profits and tongpats, thus the stress on large-scale, foreign mining operations for export.

We believe that we can promote and propagate our People's Mining Policy with renewed vigor and in an additional arena, the halls of the legislature. Our measure (House Bill 1793) to repeal the Mining Act of 1995 is now pending in the House Committee on Natural Resources. We have realized, though, that it is not enough to call for the repeal of the Mining Act. If we want to up the ante and totally engage government in a policy debate on matter, it is important to come up with a concrete, alternative proposal. This is the importance of fleshing out the People's Mining Policy into an alternative piece of legislation. We hope KAMP and all tribal organizations will help us in crafting such a bill.

Such a pro-Filipino mining bill is premised on the principle that our national patrimony - our finite mineral resources, our lands, our biodiversity - should be conserved and developed according to our terms and our needs as a people. It should not be exploited just to meet the demands of the free market.

In particular, we hope to take the cue from your sector on the following issues:

1. the right of indigenous peoples to self-determination and ancestral domain;

2. a wider and more democratic free, prior and informed consent (FPIC) process for all communities affected by mining, especially IP Communities;

3. democratic consultations and participation at every stage and level of mining activity in tribal lands;

4. job priority, security, living wages, safe working conditions for mine workers;

5. stringent application of international environmental standards and safeguards;

6. a total mining ban in environmentally- critical areas and conservation priority areas;

7. absolute prohibitions on the dumping of mine wastes and tailings into rivers, lakes and seas.

These are just some of the ideas that we would want to incorporate into the pro-Filipino mining bill. You are in the best position to contribute your ideas on what the indigenous peoples would want to include in the bill we are to draft.

Let me emphasize though that we harbor no illusions that Congress will pass such a bill or change the current situation faced by the indigenous peoples. Our bill will be a political statement, an alternative policy that will show the public what should be done. Its main aim will be to expose the criminal nature of the present policy and the government that implements it and to engage government and the industry in a public debate to highlight the issues and push forward our mass campaigns against large-scale, multinational mining operations.

In other words, this will just be an additional arena for our battle. Our main battle front is still in our communities. Our main weapon is still our mass struggles and campaigns.

We shall await your proposals for inclusion in the pro-Filipino mining bill to be filed by Bayan Muna in Congress.

Thank you and tuloy ang laban ng katutubo at sambayanang Pilipino! #