Zayco on real impact
of more cities

There have been a lot of recriminations from city executives about the impact of the creation of new cities even if these municipalities do not comply with the requirements of the law.

But it was acting Governor Isidro Zayco who managed to pinpoint that the more serious implications of the loss of the Internal Revenue Funds will register in so far as countryside development. Lack of money and a cut down on monetary velocity.

When you withdraw from circulation P600 million in the province of Negros Occidental , that means less money in circulation. And it would impact on a lot of business, jobs, and the provincial economy.

Too often, city executives sound more like crying over spilt milk by decrying the decreased IRA funds for them. Of course, they talk about its impact on services and the possible layoff of casual personnel and permanent workers. Hardly anybody has spoken about how it will affect entire communities.

Zayco, however, did identify that as the major problem that could ensue.

With billions of pesos withdrawn from circulation, one can just imagine what it will do to countryside development. It will create a lot of misery for people. And that is something the government cannot afford to do at this juncture when the rising oil prices and the recession in the US is creating havoc with our economy and those of the developing societies.

That's an argument that may compel President Gloria Macapagal-Arroyo, the economist, to take stock of the current moves by the House. She must put a stop to the conversion of capital towns into cities.

Instead of allowing the capital towns to qualify in terms of population, income and areas, they would like to stimulate their progress by allowing them to partake of the decreasing IRA.

Perhaps, the best thing that can be done is to let them grow so they could qualify for cityhood.

Artificially upgrading their status into cities is no guarantee of progress. If there are towns that have progressed more rapidly than the capital towns, it is simply because the others have grown more progressively. Propping up less developed capital towns is no guarantee that they will develop more rapidly than the cities which had been created by meeting the qualifications. That should serve, instead as challenge to local executives of the capital towns to come up with more creative and progressive schemes too so that they will qualify to become cities in the future.

* * *

The trouble with IRA dependence may be captured in the statement by Dumaguete City Mayor Agustin Perdices who pointed out the city is still 60 percent dependent on the IRA. But he pointed out that others are almost totally dependent on the Internal Revenue Allotment for their operational budget.

Others, however, he added, are 90 percent IRA dependent.

Therein lies the major trap for some of the cities. And it would not be farfetched to be believed that the capital cities, when converted, would also become almost totally dependent on the IRA for their income.

That brings to the fore question that when they have to raise the salaries of city officials and department heads, as well as increase the budget of new departments, they could only set back their development.

Ooh, la la.

* * *

House Speaker Jose de Venecia reportedly called Rep. Monico Puentevella of Bacolod City “Brutus”. A very derisive term. Meaning treacherous.

But Newks yesterday came out openly against Joe DeV. The former speaker was his long-time friend. But Newks pointed out that Joe DEV had apparently hurt the feelings of members of the First Family. Thus, as part of the diehard followers of President Gloria Macapagal-Arroyo, he said, the time may have come to change the House Leadership.

He cited part-Negrense Rep. Prospero Nograles as his choice to succeed De Venecia. But Newks added, that he still has to ask Nograles pointblank about his plans for Luzon, Mindanao and Visayas.

If it will satisfy them, the other congressman form Negros Occidental are sure to shift their support to Nograles, as he put it.

If he came up with a catchy slogan which the aspirants for the Democratic Party nomination in the US have latched on to - change.

Will that finally change? The House setup?

Considering that President Gloria Arroyo had reportedly told her followers not to rock the boat, will they heed her?

That's a question that will be answered Monday or anytime next week when the House reconvenes for its session.

But the prognosis –the die is cast.*

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