Philippine shipping and Noah’s lament

My column last Monday ("Death stalks GMA’s nautical highway") elicited reactions from several readers. Here are excerpts from Ricky Saunders’s letter.

"Your points are well taken on what is wrong with our domestic shipping industry. But what’s the solution? Have a ‘stronger MARINA republic’? Okay, but not likely to happen.

"One solution that has been proposed (by both government and private sectors) for over a decade now is the liberalization of the domestic shipping industry or amending the cabotage law to allow foreigners to invest and operate domestic routes.

"Studies (Austria, La Salle 2004) have indicated that the domestic shipping industry is controlled by five major firms (Aboitiz, Gothong, WG&A, etc.) which can only offer so much as to the quality and quantity of their services, likely due to lack of competition as well as limited capital.

"This results in inefficiencies in this very important transport sector. For example, vegetables coming from Mindanao to Manila will be more costly than the same coming from another country. Not only passenger safety is at stake here but trade competitiveness as well.

"The solution: open up domestic routes to foreign investors! The domestic shipping industry has always countered that there is no other country in the world which has opened up domestic routes to foreigners. But so what? There is no other country in the world whose geography compares (with our more than) 7,000 islands.

"The liberalization does not have to be an all-out liberalization policy that would kill the domestic industry. We could limit foreigners to routes that aren’t serviced well due to a lack of investment. We could also limit the number of foreign operators (or) require foreigners to employ Filipino officers and seamen, etc.

"Competition will not kill the domestic industry but will force these domestic operators to shape up. Plans to liberalize the shipping industry are there. It just needs political will."

If Noah was a Filipino

While on the topic of shipbuilding, one of the later versions of this joke was shared by a friend. I find it most appropriate at this time since some election bits were added. Enjoy it.

It is the year 2003 and Noah lives in the Philippines. The Lord speaks to Noah and says: "In one year I am going to make it rain and cover the whole earth with water until all is destroyed. But I want you to save the righteous people and two of every kind of living thing on the earth. Therefore, I am commanding you to build an Ark."

In a flash of lightning, God delivered the specifications for the Ark. Fearful and trembling, Noah took the plans and agreed to build the Ark. "Remember," said the Lord, "you must complete the Ark and bring everything aboard in one year."

Exactly one year later, a fierce storm cloud covered the earth and all the seas of the earth went into tumult. The Lord saw Noah sitting in his front yard weeping. "Noah." He shouted, "Where is the Ark?"

"Lord please forgive me!" cried Noah. "I did my best but there were big problems. First, I had to get a Mayor’s permit for construction and your plans ‘did not comply with the codes’. I had to hire their ‘engineering firm’ and ‘redraw’ the plans. Then I got into a fight with Municipal Fire Safety Inspector over whether or not the Ark needed a fire sprinkler system and extinguishers. Then my neighbor objected, claiming I was violating zoning ordinances by building the Ark in my front yard, so I had to get a permit from the municipal planning office. I had problems getting enough wood for the Ark, because there was a ban on cutting trees to protect the Monkey-Eating Eagle. I finally convinced the DENR that I needed the wood to save the eagles. However, the DENR won’t let me catch any eagles. So, no eagles. The carpenters formed a union and went out on strike. I had to negotiate a settlement with the KMU. Now I have 16 carpenters on the Ark, but still no eagles.

When I started rounding up the other animals, I got sued by an animal rights group. They objected to me only taking two of each kind aboard. Just when I got the suit dismissed, the DENR again notified me that I could not complete the Ark without filing an environmental impact assessment on your proposed flood. They didn’t take very kindly to the idea that they had no jurisdiction over the conduct of the Creator of the universe.

Then the DPWH demanded a map of the proposed new flood plan. I sent them ... a globe. Right now, I am trying to resolve a complaint filed with the DOLE that I am practicing discrimination by not taking godless, unbelieving people aboard!

The BIR has seized all my assets, claiming that I’m building the Ark in preparation to flee the country to avoid paying taxes. I just got a notice from the BIR that I owe some kind of user tax and failed to register the Ark as a recreational water craft.

The NBI and ISAFP each wanted a piece of the action alleging that the Ark would be used by the Magdalo soldiers to escape. The PNP on the other hand insists that the Jemaah Islamiya might use the Ark in terror activities.

Malacañang sees the opportunity to use the Ark for GMA’s Strong Republic Nautical Highway presidential campaign sorties.

Finally the Supreme Court issued a TRO against further construction of the Ark, saying that since God is flooding the earth, it is a religious event and therefore unconstitutional.

I really don’t think I can finish the Ark for another 10 or 16 years!" Noah wailed.

The sky began to clear, the sun began to shine and the seas began to calm. A rainbow arched across the sky. Noah looked up hopefully. "You mean you are not going to destroy the earth, Lord?"

"No," said the Lord sadly. "The government is already doing that."

The smelly garbage issue on TV

"Isyung Kalakalan at Iba Pa" on IBC News (4:30 p.m. and 10:30 p.m., Monday to Friday) ends today the discussion of the mounting garbage problem of Metro Manila and many of our provincial cities. Recycling as an option to relieve the pressure on garbage disposal is not gaining ground. There are examples of local initiatives to push recycling but only with limited support. Finding landfills is still the priority of local governments. Watch it.

‘Breaking Barriers’ with Insurance Commission OIC Malinis

"Breaking Barriers" on IBC-TV13 (11 p.m. every Wednesday) will feature OIC insurance commissioner Atty. Eduardo T. Malinis on Wednesday, 10th March 2004.

After more than a decade of liberalization, there are questions about the local insurance industry that the public wants to be clarified. Is the insurance industry stronger and more viable now than when it was not liberalized? What were the objectives set for the liberalization of the insurance industry? Were they achieved? There is concern that insurance costs in the Philippines are more expensive. Is this perception correct? If so, why? Watch it.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz.