Tuesday, October 02, 2007

How safe is Manila Water?

If you read the papers, and only those, you may never know. This is a dilemma which plagues consumers of many kinds of products. If one consumer has doubts about the quality of a product, it might happen that what she spends verifying product quality might not be worth it. She can spend time and effort and finally know that the product was sub-standard. Then what? The government regulatory agency might say that they would do something about it? In the meantime what?
In the past year or two, cancer survivor Pinky Tobiano has been publicizing results about water quality tests conducted on samples in Metro Manila. Initially, I was alarmed about the test results in regard to bacteria. But lately, after watching her on the show of Korina Sanchez, where results in regard to lead content were discussed, I was alarmed. How can this be happening?
In the mid nineties, I wrote a paper discussing the benefits and costs of eliminating the lead content in gasoline and the paper concluded that a well phased-out program in regard to lead in gasoline was beneficial. But water is a more essential product than gasoline and I ask myself why government could be so far behind in the regulation of lead in water.

If you are reading this and you have children, call me, even if I may not have the best advice. Somehow, I will, and can tell you how to direct your ire.

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Who will set limits on Sky?

I recently read a news item that the dominant CATV company in the Philippines, Skycable, will replace the content of six channels starting next year. In an news report, the cable company's spokesman exhuded confidence that consumers would not switch to other providers because of the company's decision. What is the source of his confidence? Simple. As the dominant player in the field, the company just doesn't care. As far as I know, cable rates are not regulated and quality of service is not in their vocabulary. In the United States CATV rates are regulated in areas where there is no sufficient competition. But who is minding the store in regard to CATV? The simple answer: No one!

Earlier today, I visited the website of the National Telecommunications Commission and the only information that was returned in response to my queries were on potential regulations in regard to 'chatrooms' on cable channels.

In retrospect, I remember why I decided to subscribe to cable back in October or November of 2000, and that was because of Erap's impeachment trial. The coverage by the free networks were simply unsatisfactory. Also, that was also the time of the mesmerizing saga of the US elections, Gore vs. Bush and the related court battles. But at the time, Sky rates were nowhere near the clouds. Now, almost eight years later, there is not enough competition in CATV services, and we have to contend with the bad taste of the country's leading network.

One of the channels which will be axed starting next year is Jack tv, which carries The Daily Show with Jon Stewart, one of the best comedy shows providing incomparable international political commentary. One of the guests last week was Bolivia's Evo Morales, who showed Stewart the extent of his dumbness.

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Friday, July 20, 2007

Reyes: Energy is a political commodity

It is one thing to say that it requires great political skill to manage energy policy correctly and quite another to say that energy is a special political commodity, just because price movements can bring political unrest.

Since the deregulation of the downstream oil industry in the second half of the 1990’s (after a supreme court hurdle and a decision I found ignorant), petroleum products pricing has in the main been left to market forces. This is not to say that there is no market power being exercised by the major players. There clearly is, but I do not miss the days of the Oil Price Stabilization Fund (OPSF) and the associated subsidies, when prices were regulated and such regulations were hostage to political acceptability (including by coup plotters).

Just imagine if refined productc prices were still regulated now, with the P/$ exchange rate and the world price as these are now. I’m glad consumers---most of them anyway---are adjusting without taking to the streets. I dare say that even now, petroleum prices are lower than they would be if we considered the full impact of their use on the environment. If prices were still regulated today, the government would be heavily subsidizing oil prices and it would not be beyond the current administration to subsidize prices just to remain in power. This would have been disastrous as oil price subsidies generally benefit the richer sections of the population---regardless of the protestations of the misinformed sections of the Left.

Comes now the newly designated energy secretary, who candidly admits his only qualification to the post is that he is ‘full of energy.’ It is also likely that he is full of something else. It might also be true that he is indeed a fast learner and that thus far, he has not disappointed the appointing power. But if he indeed has the management experience and the IQ to manage difficult government departments, Reyes should have been appointed chief of PIGSA (Philippine Inter-Galactic Space Agency) which needs his skills.

The truth is that Malacanang has just been using him as a convenient football and kicking him to energy conveniently leaves the DENR post vacant for the former mayor of Manila, he I cannot name because I puke because of all his sanctimoniuous and false religiosity---although I might still puke even if the religiosity were sincere. The former mayor would have been more obviously incompetent in the energy post. This does not mean he would be good as environment secretary, or that Reyes would do so badly at the energy post, though this is laden with many challenges that even Lotilla was just beginning to appreciate. But we cannot fault Popo for leaving now. Popo deserves a rest, although the timing is not good, especially with the problems of power sector reforms not really close to resolution. (Manila Standard Today yesterday said Lotilla was fired. False).

Former energy secretary Geronimo Z. Velasco passed away a few days ago and his passing was publicly announced by an acquaintance at the PNOC. It might be that the man did the nation a great service. But comparisons are difficult because he managed the energy sector under radically different circumstances. And he had economic and political resources unimaginable at this time. Our sympathies to his family and friends.

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