MANILA -- The Cabinet’s economic development cluster made several proposals to President Rodrigo Roa Duterte to help country cope with the ongoing conflict between Russia and Ukraine.

During the President’s Talk to the People on Monday, National Economic and Development Authority Director General and Socio-economic Planning Secretary Karl Kendrick Chua presented the proposals of the economic team.

One of the leading proposals is shifting the country’s alert level status to Alert Level 1 at the soonest possible time, and open all schools for in-person learning to boost the internal economy and mitigate external concerns.

“So while we cannot prevent the risk from coming from the global perspective, we can strengthen our domestic economy to provide the people with more jobs and opportunities,” Secretary Chua explained.

As the gasoline and diesel prices dramatically increase, he proposed to expand the fuel subsidy program for public utility vehicles (PUVs) from P2.5 billion to P5 billion.

The government, he said, must continue working with the private firms on promotional discount of oil companies up to 1 to 4 pesos per liter discount to help alleviate additional burden on jeepney and other PUV drivers and operators.

Chua added that the next step is to raise the petroleum buffer stock from 30 to 45 days. At the same time, he suggested supplying extra gasoline coupons to agricultural farmers, with a budget increase from P500 million to P1.1 billion.

The first tranche will be handed out in March, and the second tranche in April, he said, predicting that by that time, the government will have additional revenues to fund the subsidies.

There must be an increase in the buffer stock of liquefied petroleum gas (LPG) from the current 7 to 15 days, expansion of supply and coal price reduction, as well as maintenance of buffer stock at the current 30 days minimum.

The fifth measure they recommended is to promote energy conservation in both the commercial and public sectors.

To lessen costs, local governments, industrial parks, and subdivisions should suspend or eliminate pass-through costs for delivery, trucks, and other services, the NEDA chief said.

“Number seven is to fully implement the service contracting, the subsidy that we give to, for instance, buses to operate, and to expand it to all public transport routes. Number eight is to promote e-vehicles and expand access to charging stations. And number nine is to aggressively promote active transport including bicycles,” he added.

NEDA also recommended granting support to the overall agriculture sector by implementing vigorously the Plant, Plant, Plant program part 2, subject to the availability of funds and provide targeted fertilizer vouchers to farmers, and to discuss with bilateral partners possible additional supply of fertilizers.

Rice inflation and buffer stock must be closely monitored and concessional loans or funding must be provided for working capital particularly in the procurement of post-harvest facilities and warehouses.

The Rice Competitiveness Enhancement Fund (RCEF) implementation and other parts of the national rice program in the budget should be accelerated to increase local production.

The government must also temporarily import rice to keep prices low and make sure the country has adequate rice for all.

The supply of rice must also be expanded while reducing its price by extending the 35 percent tariff rate until December 2022, Chua suggested.

“Mr. President, you have issued an executive order for this but it will expire in June. So that we maintain a good supply of rice and keep the prices low, we propose it sa extension,” he said.

It was also recommend that the most favored nation (MFN) tariff rate for corn be reduced to 5 percent in quota and 15 percent out of quota, and that a minimum access volume of 4 million metric tons be allowed to take advantage of the lower tariff rate until the end of the year.

Chua pointed out this is a temporary measure to ensure that that the country has adequate feed to attain a stable price of chicken and pork in the market.

“And we will import more feed wheat and produce more cassava because these are substitutes for feeds, for chicken and for pigs, for instance,” he said.

On pork, there’s a proposal to lower its price by extending its lower tariff rate of 15 percent in quota and 25 percent out quota with a Minimum Access Volume (MAV) of 200,000 metric tons until December 2022.

According to the NEDA head, there is an EO that will be effective until May but it must be extended to ensure adequate supply and lower pork prices.

“We also propose to accelerate the release of imported pork from the cold storage so marami pong na-import na pork, but we have to release it for the people’s consumption, especially outside NCR,” Chua told the President.

“We propose also to pass the livestock and daily bill now pending in the Senate kasi ito ‘yung tutulong talaga sa hog raisers and to increase our daily production. And finally, to remove all the non-tariff barriers that prevent the smooth or proper importation of pork,” he added.

Another measure is intended to ensure sufficient fish supply. NEDA proposed the issuance of a CNI or Certificate for the Necessity to Import small pelagic fish from the ocean from the second quarter to the fourth quarter.

For sugar, Chua said the government has to address a court temporary restraining order (TRO) that prevent it from pursuing sugar importation. He told the President that the economic team has proposed direct importation by the industrial users such as food manufacturers, beverage manufacturer on a 1:1 ratio.

At the same time, an expansion in wheat sourcing is also necessary, he said, adding India has offered the Philippines to provide assistance.

And lastly, Chua said that since renewable energy and agriculture are vital to the country, NEDA proposed that they be included in the Strategic Investment Priority Plan (SIPP) under the Board of Investment (BOI) to intice investors to come in and thereby ensuring the country’s food supply and energy requirements. (PND)