Once more, I would like to thank the Senate for the passage of the lateral attrition bill, as I anticipate that this will be cleared smoothly through bicameral consensus with the House.

The recently-concluded special session notches upward our common determination to put our fiscal house in order.

It is a positive harbinger of the new year and marks the will and vigor of the executive-legislative partnership to ride the tide of national hope.

We acknowledge the concerns of the clergy of Quezon; and Government is on a strong offensive as far as the implementation of environmental laws and prosecuting illegal loggers are concerned.

The toll of disasters on human lives and anguish cannot be glossed over by the entire nation.

President Arroyo shall continue to lead a comprehensive program to keep communities out of harm’s way as we push forward the ramparts of sustainable development.

The PNP preemptive operation affirms the vigilance and readiness of our law enforcement agencies round the clock.

Our fight against terrorists will not rest until they are all brought to justice and our society is secure.

Terrorists will be surveilled and tracked down wherever they are and they will not be allowed a minute of rest or the space to hide.

The emergence of new dairy zones and the initiatives taken by private sector players underscored the progress made by the local dairy industry in 2004.

In his report to Malacanang, National Dairy Authority (NDA) Administrator Salvacion M. Bulatao said that every year during the last four years, NDA notched double digit growth rates in milk production, herd buildup and milk sales.

"Our dairy local products proved to be competitive in an unprotected trade environment for dairy with drinking yogurt, sterilized milk and Gouda cheese among our winners," she said.

The three products, Bulatao said, contributed to the 81 percent increase in commercial sales of locally produced milk and milk products.

The NDA also increased the coverage of milk feeding programs in cost-sharing schemes with local government units (LGUs) and the NDA. The program will cover 100,000 malnourished children by 2005.

NDA’s top achievements in 2004 represent a combination of the maturing of programs pursued in the last four years and the breaking of new ground, together with partners in innovative modes of collaboration.

These achievements include:

President Gloria Macapagal-Arroyo capped yesterday’s National Day of Prayer and Mourning with an hour-long spiritual song offerings, video clips and conjoined prayers with several clerics from various religious groups last night in Malacaņang.

The prayer vigil, which ended at 10 p.m. Friday, was offered for the victims of the December 26 tsunami that battered the coastlines of the Indian Ocean, killing tens of thousands of people in South Asia and parts of East Africa and leaving horrendous destruction to property across several nations.

The prayer vigil was also offered in thanksgiving to God for sparing the Philippines from the disaster that left 150,000 dead and millions homeless.

The President was escorted to the vigil by First Gentleman Atty. Jose Miguel Arroyo. Members of the Cabinet led by Foreign Affairs Secretary Alberto Romulo were also present.

Earlier, she had met with 100-year-old monk Reverend Suey Kim at the Seng Guan Buddhist Temple in Tondo, Manila where monks lit incense and offered prayers for the tsunami victims.

The President returned shortly before midnight Thursday from Jakarta where she attended a special summit on the tsunami disaster.

The Medium Term Philippine Investment Plan (MTPIP) was the main agenda of the 5^th Cabinet Meeting which President Gloria Macapagal-Arroyo presided over last night at the State Dining Room of Malacaņang.

The MTPIP, which has three parts, contains the government priority programs and projects in support of the Medium Term Philippine Development Plan (MTPDP), which is regularly updated based on the approved annual public sector budget.

According to Socioeconomic Planning Secretary and NEDA Director General Romulo Neri, the total budget requirement of the MTPIP for the next five years is P2.2 trillion, of which infrastructure alone requires P1.2 trillion.

In infrastructure, the transport sector, which includes roads, bridges and the like, requires a total of P502 billion, power with P241 billion, while water with P156 billion. This will bring power to all towns in the country.

In railway constructions, a large amount of P131 billion is needed, which include the South Rail Project to Bicol, the LRT Line 2, and the North Rail Project.

Another big one, Neri said, is the MRT loop and LRT I line extension.

In power, a total of P241 is needed, of which power generation alone requires P158 billion. Much of this is on geothermal energy. About P100 billion worth of projects is required, many of them green field power plants that include the Sucat and Malaya conversions.

With a deep sense of hope and renewed purpose, President Gloria Macapagal-Arroyo said Friday night that the year 2005 would be a year of urgent change and of fervent hope for the Filipino people.

In her message at the traditional vin d’ honneur held last night at the Malacaņang’s Ceremonial Hall, the President said it is important to enact vital legislations to increase revenues, pass a budget that invests in her 10-point, pro-poor program, and to take executive action towards wiping out corruption.

The President said the nation is at crossroads, and must move forward with decisive action in Congress, the unity of the people and a clear direction from your elected leadership.

"The economy is the foundation of our hope and the creation of jobs the central organizing principle of my government. My pledge to the people of the Philippines in my election campaign of just six months ago was to create jobs, bring fresh water and electricity to those who have none, and build new classrooms and equip schools with modern technology,"’ the President said.

During the cocktail reception, the President appealed for the support of every single person and the resolve amongst the political and business leadership, to pull together, in the same boat, "to move this nation in the right direction."

"I can’t do it alone, nor even with the full weight of the government by my side. We need to harness the power of the nation and spark the individual power of each soul that makes up this nation, if we are to forge a new Philippines," she said.

The President remained hopeful that year 2005 will be a year of transformation and change that will move the nation forward.

She reminisced that during the year 2004, the nation faced a contested election, the loss of the movie icon Fernando Poe, Jr. and far-flung responsibilities of securing the lives of the overseas Filipino workers like Angelo dela Cruz.

She added that last year great typhoons struck the Philippines that in the end were dwarfed by the tsunami on December 26 that devastated some South Asian countries and caused grief of unimaginable proportions.

"The death and destruction of nature is a humble reminder of our own vulnerability. And shame on us, as leaders, if we inflict our own political tsunami upon this great nation of ours if we don’t come together and take the bold steps necessary to get our nation back on track," the President said.

She asked the Filipino people to join her in eliminating waste, fraud and abuse in government, and in fighting corruption, in stopping illegal logging and identifying tax cheats.

She sought the help of Congress to pass legislations that would strengthen the country’s finances and institutions that govern the nation and approve a national budget that will invest in the poor and allow them to live a life of dignity, meaningful work and rewards.

Joined by First Gentleman, Atty. Jose Miguel Arroyo, the President then offered a toast to some 250 guests at the vin d’ honneur that included Vice President Noli de Castro and members of the diplomatic corps led by its dean, Archbishop Antonio Franco, Apostolic Nuncio to the Philippines; heads of specialized agencies of the United Nations; Cabinet members; leaders of both houses of Congress and other government officials.