Admitting that it is hard for him to say so as a consumer advocate, Concepcion warned that the country could indeed find itself in a fiscal crisis similar to Argentina if the government is not able to reduce its budget deficit, cut subsidies, control the country’s ballooning foreign debt, improve tax collection and pass needed revenue measures .
"The country’s international creditors may not be willing to refinance existing loans, much less extend new loans, if the Philippines does not resolve its fiscal crisis," Concepcion pointed out.
With the country in a crisis, Concepcion said that the Consumer and Oil Price Watch (COPW) supports the pending petitions for an increase in power, water, the North and South tollways, the LRT, MRT, telecommunications, transportation and shipping rates.
Current rates, Concepcion said, are below true costs and the RORB (return on rate base) approved by the regulatory agencies.
Concepcion assured that while the COPW supports the price increases, the COPW is "committing full transparency to the public."
"But the public must also accept that there can be no further wage hikes at this time because most companies are already suffering and cutting back on their production because the public is not buying," he stressed.
While he is asking the public to "bite the bullet", Concepcion urged President Arroyo to exercise "strong leadership" during this crisis.
"Our people seem willing to make the sacrifices. But they look up to the President to be strong and to exercise political will so she can turn the economy around and end the crisis quickly," he said.
Concepcion advised President Arroyo to "say No to graft and corruption, No to influence peddlers, and No to political patronage."
He added that "the President must give meaning and substance to transparency with her hands-on leadership in sensitive areas like the DPWH, BIR and Customs, and in going after smugglers and tax evaders.
The business community, for its part, Concepcion said, "should spearhead a campaign for paying the correct taxes and identifying tax loopholes for government immediately plug."
The Philippine Chamber of Commerce and Industry (PCCI), gave its assurance that "it is one with the government in putting all measures in place to rid the country of fiscal concerns."
The PCCI, according to its president Noemi Saludo, is calling on all various sector to pool together resources and contribute whatever financial means they can give to the cash-stripped government.
The PCCI is also campaigning for big and small businesses to strengthen their social responsibility and patriotism by paying the appropriate taxes to ease the government of its burden of meeting revenue collection targets.