Solon to PNoy on NFA subsidy: Stop fixating on profits

An opposition lawmaker on Tuesday blasted proposals to reallocate funds for the National Food Authority’s rice subsidy, saying the government has better things to do than get fixated on profits. “Ang napansin ko rito sa administrasyon ni PNoy, ayaw magpalugi (What I noticed in PNoy’s administration, it does not want to incur losses)," Zambales Rep. Milagros “Mitos" Magsaysay said at the first National People Rice’s Congress held by watchdog group Bantay Bigas in Quezon City. In an interview with GMA News, Magsaysay explained that the government must be willing to shoulder subsidies to ease public burden. “Dapat magpalugi ka for the benefit of the people (You should be willing to take a loss for the benefit of the people)," she said. Boosting social welfare fund NFA Administrator Lito Banayo, in another interview with GMA News, said the rice subsidy savings will boost funds for the Department of Social Welfare and Development's (DSWD) conditional cash transfer (CCT) program. Under the social welfare program, poor families will receive cash grants as long as they keep their children in school and ensure that children and pregnant women get regular medical check-ups. Banayo said the rice subsidy has proved costly for his agency, noting that for every P1 of subsidy the NFA spends P5 in transportation, labor, and other expenses. “Lahat ng ginagamit namin, pera ng gobyerno. So ‘pag nalugi kami, pera ng bayan ang nalulugi (Everything we spend is government money. So if we lose, public money incurs the losses)," Banayo added. He said the DSWD would be in a better position to disburse the money by distributing it directly to the needy. Not what the people want Criticizing plans to transfer the NFA funds to the CCT program, Magsaysay said, “Hindi naman ‘yun ang gusto ng tao, eh (That is not what the people want)." She said the aid will defeat its purpose, as without subsidy consumers will be forced to buy rice at higher prices. “If the trading function of the NFA is turned over to the private sector — big businesses that definitely seek profit — prices of commercial rice will surely increase and the poor will no longer be able to afford the available commercial rice in the market," the NFA Employees Association-Courage said in a statement. The private sector will be quick to take advantage once the NFA ceases to buy rice from farmers at a reasonable price, Magsaysay said. “Babaratin nila ang farmers (They will short-change the farmers)," she said. The NFA pays farmers P17 per kilo of rice, which Banayo said is way above P10.50 — the break-even price. NFA to continue buying rice Banayo clarified, however, that the NFA will continue to buy rice from farmers to keep the abusive private sector at bay. However, he said the NFA will discontinue the subsidy it gives the consuming public by selling at a loss. Lita Mariano, spokesperson of watchdog Bantay Bigas, questioned how the NFA will continue to safeguard farmgate prices when the government has slashed the agency’s budget to P2.5 billion this year from P8 billion in 2010. The P2.5-billion turns out to be a revision of an earlier “zero-budget" allocated for the agency in 2011. “What can 2.5 billion do to influence the price of palay?" said Magsaysay. “The Aquino administration does not know what it is doing." The lawmaker proposed that the President use his authority to realign government funds, and pour money into the NFA. She cited savings from other withdrawn subsidies such as that for the Metro Rail Transit (MRT). She said, “Why doesn’t he do it?" NFA debts inherited Banayo threw the criticism back to allies of the former Arroyo administration including Magsaysay. “Mahilig silang magpalugi nang katakot-takot (They liked to incur a lot of losses)," Banayo said. He said the Aquino administration inherited P177 billion in NFA debts, and that when former President Gloria Macapagal-Arroyo took over in 2001 the agency owed only P25 billion. The NFA administrator noted the agency had incurred the P25-billion debt in a span of four administrations, from the late strongman Ferdinand Marcos, to the late President Corazon C. Aquino, to former President Fidel V. Ramos, to deposed President Joseph Estrada. — VS, GMA News