Leveling the playing field for the benefit of all

Transportation and Communications Secretary Pantaleon Alvarez can often be heard on AM talk radio in the morning graciously answering the numerous questions fielded by radio interviewers on everything from unlicensed buses plying EDSA to cuts in free text messages for cellular telephone users.

However, rather than seeing the interviews as one of the "obligations" of a public official, Alvarez sees it as one way of "staying in touch with the Filipino people and, even bit by bit, communicating the vision of the Department of Transportation and Communications and the President."

"It’s only because text messaging and EDSA traffic are the issues that affect many Filipinos in Metro Manila on a day-to-day basis that I probably get asked a lot about these things. And while DOTC does monitor all these issues, we work within a larger sphere, where we try to implement the President’s vision for all Filipinos."

And what is that vision? First, says the Secretary, is to develop the country’s infrastructure to meet the needs of the people for basic services. The second is to create a level playing field where companies contend to provide the best and most affordable form of services and infrastructure to the public and business – those necessary to compete on a global level.

As one example, he cites the mobile telephone industry. "It wasn’t regulation that caused rates to fall to where they are today. It wasn’t a government order that made companies charge about 0.40 US cents a minute for overseas calls, a fraction of what they were a few years ago. It was competition. And competition will be possible only if you have a policy and regulatory framework that allows, or even mandates, the providers to lay their wares out on the table and tell consumers: It’s your choice."

Talking to the DOTC secretary makes one think that this official has been into transportation and communications policy all his life.

Well, not quite.

A graduate of the Ateneo Law School, then Atty. Pantaleon D. Alvarez had his first taste of public policy and its effects on the Filipino’s life while working as a lawyer with then Sen. Wigberto E. Tañada, son of one of the grand old men of Philippine politics, Lorenzo Tanada.

"For five years, I got a taste of what it was like to consider issues from a public policy perspective. But I could never dissociate it from my own views on the kind of services that we needed, even just as basics, and those that we need to really make it in a competitive environment. It’s a lesson I now bring to the Department," he explained.

From the law office, he moved on to the Manila International Airport Authority, where he initially worked as an action officer in 1993. He was appointed assistant general manager in 1994 and chief operating officer in 1995.

However, the siren song of politics and a desire to put into action what he had learned during the last 10 years proved too strong. In 1997, he quit the airport authority to run for Congress in the lone district of Davao del Norte under the party of former defense chief Renato de Villa. Congressional and constituency work kept him busy, including that as vice-chairman of the transportation and communications committee of the House.

When President Gloria Macapagal-Arroyo assumed office and appointed the congressman as the new DOTC Secretary, the primary question asked was: Who is he? "The primary advantage of this is that there is no emotional or intellectual baggage attached to my appointment. I was a clean slate."

Alvarez knew that "who he was" was not important compared to the responsibilities he held in the new position. The fall of the previous leadership showed a public that was less than willing to tolerate corruption and the creation of a privileged few in government. However, events of May 1 also impressed upon Alvarez the urgency of the need to address the real issues important to the poor, such as jobs, health, and education.

Again, the Secretary stressed the need for cooperation between the public and private sector. "Government has neither the funds nor the full expertise to implement all the infrastructure needs of the country. For this reason, we are working with the private sector for them to participate in providing the infrastructure."

"However, I am emphasizing that this will be done within the context of a level playing field. There will be no preferences, no advantages given to one party, no privileges. Compete on the merits and provide the best and most affordable services to the Filipino public, our entrepreneurs and businesses."

It is guaranteed that this approach will bring him some enemies among those who would like to see otherwise. "Well, that’s the risk, but we would rather that the DOTC absorb these attacks rather than let the quality of service suffer or costs rise because competition was not present."

For one, he is in favor of introducing more competition into air travel. "The benefits of the liberalization policy are indisputable. What we are doing now is to put muscle into it. We should adopt and enforce the implementing rules and regulations to Executive Order 219 to guide and govern the full liberalization of the aviation sector," he said in one earlier interview. Thus, Cebu Pacific has now been formally designated a flag carrier, giving the airline the ability to fly to international destinations in addition to Philippine Airlines.

"These are both Philippine carriers. However, with this we have introduced competition into the sector with the goal of causing them both to improve service and prices."

Also at the top of his list is how to improve the country’s moribund rail system, especially the network outside Metro Manila. Secretary Alvarez recognizes the large capital requirements for both the operations of the train system and the maintenance of the tracks. He is, therefore, exploring the possibility of government maintaining the tracks and civil works while the private sector proponent runs the trains. "One advantage of an efficient train system is that it can carry both passengers and cargo at a reasonable cost. And, as our experience with inter-island vessels has shown, people are willing to weigh cost against speed, and choose the former when time to the destination is not as important."

He noted that in the United States, the trains system served as a back up when airlines were grounded during the recent terrorist attack. An efficient rail system, even with government support, will pay for itself many times over due to the spill-over effects on the economy. "If you have a rail system with good coverage and planning, it will help transport goods and people more efficiently and effectively. It can boost tourism as rail is a fast, reliable, and safe way of seeing the country. Plus, it will provide competition to bus and airlines. We have neglected our rail system too long. We welcome all comers.

Plans are also in the works to boost the current capacity and length of light rail systems in the metropolis to reach some of the provinces such as Cavite. "Metro Manila will remain the center of government and business. More people need to get to work on time, but the cost of living is pushing them out of these centers. We, therefore, have to use the rail system so that they can live where it is affordable, but still work in Metro Manila." This includes revitalizing the line of the Philippine National Railways from Sta. Mesa to Calamba in Laguna, a project estimated to cost P14 billion, and three years to implement.

However, considering the financial viability of the Metro light rail systems, Alvarez would like to reduce, maybe even eliminate, the amount of support or coverage provided by government to the companies that implement these services.

In terms of communications, Alvarez acknowledges that advances in technology are pushing both the levels of service and technology. "What we want to do is continue with the policy and regulation that encourages competition in the provision of these services, and minimizes the effects of red tape and the bureaucracy. The free market has worked quite well in the telecoms sector and our goal is to push its benefits even further." Early on in his term, he identified the following as his department’s top goals: the P5.77-billion Alternative Communications Program (ACP) to be funded by the private sector, an information communication policy for the information economy, a convergence bill and its master plan, creation of a universal access fund to finance telecommunications projects, privatization of DOTC telecommunications facilities, establishment of a national test bed for new information and communications technology applications, completion of the National Telecommunications Project I-2.

The Secretary himself admits that it is impossible to define each and every program and project that his department will implement. "Rest assured, however, that our goal is to provide the infrastructure and services that the Filipino needs, from the farmer needing to get his products to the market to the programmer communicating with companies that need his services abroad."

He adds that, where possible, "private sector participation will be sought, but on as level a playing field as can possibly be had."