Senator Poe bats for FOI, more transparency to ease public opposition to mining MANILA - Senator Grace Poe-Llamanzares has called on mining companies to embrace transparency to improve public perception of an industry whose $1.4-trillion potential remains untapped because of peoples opposition to their business. “This $1.4 trillion valuation does not even include possible resources in Benham Rise off the eastern seaboard of Luzon Island, all of which remain underground because theres something wrong with the system, the senator said in a speech during todays opening of this years Mining Philippines Conference and Exhibition. By: Orti Despuez, InterAksyon September 16, 2014 “For one, the Philippine mining sector suffers from a public perception problem. To some extent, all forms of extractive businesses are not exactly popular anywhere in the world. But in the Philippines, people’s perception of mining is colored through the prism of post-colonialism rhetoric, environmental disasters, and a lack of transparency in the mining industry,” Poe said. She said big mining firms should take the lead in promoting transparency and removing public opposition, which has prevented P12 billion in potential investments from entering the Philippines. “I am also fully supportive of the Philippine Extractive Industries Transparency Initiative (PH-EITI) because it promotes greater transparency in the mining sector,” Poe said, adding that member-companies of the Chamber of Mines of the Philippines (COMP) should publish what you pay. PH-EITI is a government-led effort to encourage mining firms to disclose their tax payments and fiscal incentives. To date, 40 of the 51 mining companies operating in the Philippines have subscribed to the campaign, opening their books to the Bureau of Internal Revenue (BIR). In this regard, Poe said many of the mining industrys perception issues can be resolved if Congress passes into law the Freedom of Information (FOI) bill. “I think it is to your interest to inform the people how much exactly you are returning to the people in terms of taxes, jobs generated, livelihood, CSR projects, etc,” she said. “Moreover, since most mines only have a 30-year lifespan, you must also provide the people of your community with livelihood alternatives and skills training programs to prepare them for the day when your mines cease operations,” she said. “As good corporate citizens, you in the mining sector have a moral obligation to ensure that your extractive activities do as little damage to the environment as possible. The general idea is: when your mine runs out, your company must be able to say that they left the people and the community better than they were when they first began working together,” Poe added. COMP president Benjamin Philip Romualdez said the group subscribes to the senators view about transparency. “The industry views with optimism the many moves to change the policy regime. We trust that the House of Representatives and the Senate will put the best interests of nation-building and economic development in their hearts,” he said. The Aquino administration is pushing a bill amending the Mining Act of 1995, specifically its provision revenue sharing between the government and the private sector. Under the Executives proposal, a 10 percent tax on gross revenues and 50 percent of the adjusted net mining revenue -- whichever is higher -- would be slapped on big mining companies. COMP however is bucking the revenue sharing scheme proposed by the Executive, since this would make the Philippines tax rate more prohibitive than in other countries. “The uncertainty on the kind of investment direction that government wants, for instance, is enough reason for us to be concerned about our investors,” Eulalio Austin Jr., Philex Mining Corp president, said on the sidelines of the Mining Conference launch. “We counter this, however, by moving forward with business operations and CSR programs even in the midst of uncertainties,” he said. InterAksyon is the online news portal of TV5, which like Philex is chaired by Manuel V. Pangilinan.
Posted on: Tue, 16 Sep 2014 15:18:47 +0000
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