Gov’t must help ease poor’s burden

ON DISTANT SHORE
By Val G. Abelgas

Already saddled by a sharp increase in the prices of basic goods and services, Filipinos will now have to face additional financial burdens mandated by the government starting January 1 this year. Most working Filipinos will find their paychecks reduced by a few hundred pesos starting this month because the Social Security System (SSS) and the Philippine Health Insurance Corporation (PhilHealth), two government-owned corporations that were established by law to promote the people’s welfare, increased their premiums effective January 1, 2014.

Labor groups have opposed the increases for two years now because such increases would impose heavy burdens on the already suffering people, but the government just would not listen. Malacanang was fast in defending the increases, saying these were “reasonable and affordable.”

“The increase in SSS and PhilHealth contributions is a product of thorough study and consultation,” Coloma said in Pilipino over government radio. “It was properly calculated to ensure that it will not be a heavy burden and instead be affordable to the concerned sector,” according to Communications Secretary Herminio Coloma Jr., who as a militant student leader in the University of the Philippines marched on the streets to oppose any kind of price increase.

Coloma said labor groups were consulted, but why are the Kilusang Mayo Uno, the Trade Union Congress of the Philippines and other workers’ groups holding almost daily protests against the premium hikes? Workers and lawmakers are questioning the lack of public consultations on the increases.

Members’ contributions to the SSS will increase by 0.6 percent starting this month, from 10.4 percent to 11 percent. Employed PhilHealth members, on the other hand, will have to pay monthly contributions of P200 from P175, to be shared equally with their employers. Self-employed PhilHealth members, or individually paying members, will also be required to pay P200 from P150.

These increases may be affordable for people like President Aquino and Coloma, but for millions of working Filipinos who can hardly put enough food on the table for their family, much less pay their bills and cope with ever-increasing fares, rents and other basic needs, even the “reasonable and affordable” SSS and PhilHealth premium increases would be pushing them deeper into the throes of poverty. To top it all, Pag-IBIG Fund is planning on increasing members’ contributions, too!

Coloma must have overlooked the fact that the new year brings with it sharp increases in the prices of gasoline, petroleum and electricity, which we all know would be passed on by users to consumers through higher prices in basic goods and services. On top of these increases, the government also plans to allow rate increases in the Light Rail Transit (LRT) and Metro Rail Transit (MRT) and impose a 12-percent VAT on toll rates.

Bus, jeepney and taxi fares would definitely rise as transport owners pass on the price increases in gasoline and toll rates to consumers. Rice and vegetable prices have already increased following the devastation of rice and vegetable farms by the series of typhoons that hit the country last year. Prices of other consumer goods will also increase with the gas price spikes.

Retired Lingayen-Dagupan Archbishop Ocar Cruz chided the Aquino administration for the premium hikes, saying it only proves that the President does not know what poverty is. “The president who does not know poverty cannot feel, will not have the sense of concern for poor because he was born rich,” he said.

All these premium and price increases will put pressure on the country’s middle class and reduce their spending power, which would certainly slow down the economy. And yet, the government is not doing much to lessen the burden of the Filipino consumer. Instead, Malacanang has defended the SSS and PhilHealth premium increases, backed Energy Secretary Carlos Jericho Petilla’s stand justifying the Energy Regulatory Commission’s decision to allow Meralco to hike its power rates, allowed LRT and MRT to raise their fares, and decided to impose a 12-percent VAT on toll rates.

And all along, we thought the Aquino administration was focused on reducing poverty by the end of his term. At the rate we’re going, the “kung walang corrupt, walang mahirap” slogan could become “maraming corrupt, marami ring mahirap.”

(valabelgas@aol.com)