No permit = New weapon

When Valenzuela Mayor Rex Gatchalian first did it, little did he realize that he was introducing a “New Weapon” against unpopular projects and programs of the national government or private companies in particular. Now even provincial officials have started using the “New Weapon” of choice. I refer to the “denial of a Business Permit” or withdrawal of a “Permit to operate” that are required before any business or facility can be opened, operated or gain occupancy of its facilities. It was Mayor Rex Gatchalian who personally served notice to NLEX withdrawing the latter’s business permit until they resolved the multiple problems created by the DOTr directive to shift to cashless transactions on all toll ways using the RFID. No one realized just how powerful a local government was until Gatchalian withdrew the said permit and prevented a giant company such as NLEX from operating within Valenzuela City.

There was a time when local officials could only go to Malacañang for help or go to court for a Temporary Restraining Order or TRO. But now we see the city council of San Fernando, La Union passing a resolution to suspend the operations of the controversial Private Motor Vehicle Inspection Center or PMVIC in their locality. I heard that other provinces or cities whose constituents have called on local officials to copy the examples of Valenzuela City and San Fernando, La Union would soon follow this. Given that the next election is coming soon and that prospective candidates have started seeking radio and TV interviews, chances are the “New Weapon” to fight off what’s unpopular will be used and maximized by current elected officials.

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Judging from the recently approved executive order placing a price cap on pork and chicken, we once again see how government officials always opt for the fast and easy but forget about the correct and long term solutions, particularly concerning the sale and price of pork. This is what happens when the general public and government officials only go as far as public markets to check on prices or do desk top dialogues with stakeholders but don’t or have not seen what’s on the ground.

It is ironic and almost a sick joke that everyone – the Senate, Congress, the Department of Agriculture and stakeholders – all agree that the culprit and guilty parties behind the high prices of hogs and pork are the invisible “viajeros,” transporters and consolidators who buy the hogs at “baratan” prices, then turn around and sell the same at high prices and huge profit to the market vendors, who have no choice but to simply add on their operating cost and a small profit. But in spite of this long established fact that is common knowledge, government officials always automatically choose to use the quick and easy solution of price control and massive importation as well as transport subsidy for the stuff government is redirecting to address a shortage. But why is the government not addressing the real problem of farm gate prices, viajeros and redirecting subsidies to the real farmers or producers?

Price control at the meat stalls only solves one problem but not the root of the problem. One thing I learned about the business is that there is no “official daily or weekly government reference for farm gate price” that the Department of Agriculture and its regional offices can post or announce daily and should be followed or used by hog raisers in selling their hogs and piglets. Farm gate pricing has been a guessing game or based on “rumors” at best. By determining and announcing a fair and profitable daily or weekly farm gate price for livestock, the Bureau of Animal Industry and the DA can protect hog raisers from hustlers and predatory buyers who haggle them down. When you combine an official weekly or daily farm gate price with a price cap on pork, the squeeze will be on the viajeros and consolidators who will now be forced to live with a profit based on what is left between farm gate and retail price. Our friends at the Bureau of Internal Revenue and the DA should also require market vendors and outlets to regularly collect and submit upon request OFFICIAL receipts and contact details of their suppliers for tax purposes and bio security and contact tracing in case of ASF.

By setting reasonable but profitable farm gate prices and providing subsidies at farm level, producers will be encouraged to register their farms as well as pay taxes if and when they make a profit. If the viajeros howl, check if they are registered, tax paying people and then study their books if they do deserve transport subsidy. This of course is doubtful because from what I learned recently in Batangas, a group of transporters have formed an alliance and agreed to set a baratan price when they buy from backyard raisers in San Jose and Alitagtag town. A friend of mine got so mad that he decided to call several raisers to form their own transport group because it would be cheaper than to lose so much money to the viajeros and transporters in the long term. Perhaps the DA can also consider working out setting up buying stations, slaughter and transport of hogs under a city or town. Maybe when this happens, the mayors will recognize that their town or city can also earn revenues by supporting agriculture-based businesses instead of driving them out. It’s a lot of work but it can be done and should be done because we all benefit, including government.

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