Senators question removal of rice subsidy from NFA

Senators on Tuesday questioned the move of the Department of Budget and Management (DBM) to transfer the P8-billion rice subsidy of the National Food Authority (NFA) to the Department of Social Welfare and Development (DWSD). At a committee hearing on the DSWD budget for 2011, DSWD Secretary Corazon "Dinky" Soliman said they were asked to use the NFA subsidy to deliver rice to the poor using its National Household Targeting System for Poverty Reduction program. She noted that the NFA was not selling rice at P18 per kilo anymore but at the market price of P25 per kilo. She said that with their project, more poor families will be provided with rice. However, Senators Franklin Drilon and Edgardo Angara said that removing the whole rice subsidy of the NFA would in effect abolish the government agency. "Removing all the budget for subsidized rice is a total change of policy as far as NFA is concerned. NFA’s mandate is in their charter," said Angara. He explained that if the government really wants to abolish the NFA, the law must be amended. "You must amend the law. You can’t do that through the budget." Senator Francis Escudero added that Agriculture Secretary Proceso Alcala and NFA administrator Angelito Banayo were not consulted about the subsidy transfer. "DBM decided without considering the mandate of NFA," he said. But Soliman said that from her understanding, Alcala, Banayo, Finance Secretary Cesar Purisima, and Budget Secretary Florencio "Butch" Abad were consulted about the move. DSWD Undersecretary Celia Capadocia-Yangco said Banayo "voiced" his problem about the subsidy but that Purisima said it was the decision of the cabinet. "Want to reallocate fund to where it should belong," she said. Drilon said that the DSWD's program is something that must be supported, but that it should not in effect abolish the NFA. "I am open to that but it should not be done in this manner. There should be a deliberate debate that the NFA is not serving its purpose and therefore we must abolish it in a separate piece of legislation, not through a budget," he said. - Kimberly Jane Tan/KBK, GMANews.TV