Malacanang branded today as premature talks about the term limit of President Gloria Macapagal-Arroyo, stressing that it would all depend on the transitory provisions of the amended Constitution to be drafted by Congress as well as the recommendations of the Consultative Commission (Con-Com).

Press Secretary and Presidential Spokesman Ignacio R. Bunye emphasized in a radio interview this morning that the proposal to shorten the term of the President will be covered by the amended Charter.

"The foremost consideration in changing the Charter is changing the form of government as well as economic reforms. Congress must amend the Constitution first before we proceed to other matters," he said.

Bunye was reacting to published reports that the President has agreed to hold elections for a new parliamentary government in 2007 once a new Constitution is ratified next year.

The report quoted an unnamed source as saying the President made the commitment to former President Fidel V. Ramos and Speaker Jose de Venecia Jr. during a private meeting Monday.

Bunye neither confirmed nor denied the story other than saying it is hard to confirm a report quoting an unnamed source.

"Alam ninyo, mahirap mag-comment sa speculation. Ang sinasabi lang natin ay ano talaga ang realistic. Ano ang realistic? Ang importante ay magkaroon muna talaga ng desisyon na amyendahan (The important thing is there must first be a decision to amend the Constitution)," he said.

The Press Secretary said that while the Executive branch is amenable to Charter change and a strong move in the House of Representatives to amend the Constitution, the same cannot be said of the Senate.

In a press briefing this afternoon, Executive Secretary Eduardo Ermita reiterated the President’s support of Charter change, saying the Chief Executive believes that Charter change is the solution to the political crisis hounding the country.

"The President is serious in stating that the solution to the political crisis is Charter change. She made her sentiments about Constitutional change clear in her State of the Nation Address last July," Ermita said.

Ermita said he shared the view of Bunye that it is premature to talk about term limits when Congress has yet to decide on Charter change.

"We cannot anticipate what the different committees of the Consultative Commission would recommend as to the form of government and the transitory provision," he said, adding that the Commission is still consulting people in the provinces.

Ermita said the best sign that the President is serious in amending the Charter is her decision to form the Consultative Commission, which she has tasked to submit its recommendations by Dec. 15.

The implementation of the Expanded Value Added Tax (EVAT) and other positive developments helped improve investor confidence in the country.

Finance Secretary Margarito Teves said this was the assessment made by foreign investment firms following the decision of the Supreme Court that upheld the constitutionality of the VAT Reform Law (Republic Act No. 9337).

In a recent report, US-based investment house Merrill Lynch upgraded its evaluation on Philippine debt papers to "overweight" on improving fiscal outlook following the SC decision and favorable political developments. An overweight rating is a recommendation to buy which is considered the best rating for debt papers.

"The fiscal outlook appears stronger for 2006 in the medium term, and the government should be able to bring down the level of public debt," Merrill Lynch said.

US investment bank Morgan Stanley also gave an "overweight" rating on the country’s debt on strong revenue collection which is expected to reduce the budgetary deficit.

The VAT Reform Law is projected to raise P81.4 billion in additional revenues for the government in 2006. This will help the national government to trim its budget deficit to P124.9 billion (2.1% of gross domestic product) next year from the programmed P180 billion (3.4% of GDP) this year.

The positive outlook by foreign investment banks was consistent with the reaction of the secondary market on Philippine debt papers following the SC decision. The most recent ROP issue priced at 4.1 percentage points over benchmark US Treasury rates went down to 3.6 percentage points immediately after the SC lifted the temporary restraining order (TRO) on the EVAT.

It is estimated that the government will save around $10 million for every $1 billion in new borrowings with every percentage point decline in borrowing rates.

Teves said the encouraging recommendation on Philippine debt papers boosts the government’s resolve to put its fiscal house in order.

"We remain committed to the fiscal reform agenda which we believe will bring the government to balanced budget by the end of 2008 and help improve the lives of our people in the long run," he said.

President Gloria Macapagal-Arroyo has designated Department of Agriculture (DA) Secretary Domingo Panganiban as the "Anti-Avian Flu Czar" to spearhead a multi-agency Task Force organized to effectively prevent the disease from creeping into the country.

Executive Secretary Eduardo Ermita, in his regular weekly press conference in Malacaņang this afternoon, disclosed this development as the government mounts an all-out information drive to make the general public aware on the serious threat of the bird flu that is now rapidly spreading across the globe.

Ermita said President Arroyo also appointed Secretary Cerge Remonde, head of the Government Mass Media Group, to assist Panganiban in the information campaign against the deadly avian flu.

"You might want to know that the President has designated Secretary Domingo Panganiban to head the task force to conduct an effective bird flu watch to be assisted by Chairman Cerge Remonde," Ermita announced.

He said the Panganiban–Remonde tandem will oversee an intensive information campaign similar to what the government, through then Health Secretary Manuel Dayrit, successfully carried out and effectively prevented the dreaded Severe Acute Respiratory Syndrome (SARS) plague from spreading in the country.

Malacaņang clarified today the issue of Foreign Affairs Secretary Alberto Romulo’s trip to the United States, saying he went to the United Nations on an important official diplomatic mission.

"Secretary Romulo is on official mission to the US. He had meetings with foreign ministers and diplomats in connection with our work as a non-permanent UN Security Council member," Executive Secretary Eduardo Ermita said during his weekly press briefing at the Palace this afternoon.

The clarification was in response to questions by media reporters about the trip which some quarters alleged was to solicit support on behalf of President Gloria Macapagal-Arroyo.

Ermita said Romulo met with US Secretary of State Condoleezza Rice and US National Intelligence Director and former US Ambassador to the Philippines John Negroponte to discuss the gains the country has achieved in its war on terror and its fiscal and economic reforms.

The Executive Secretary pointed out that every time Secretary Romulo, or any other Foreign Affairs Secretary for that matter, goes on an official visit to other nations, getting the support of that particular nation is part and parcel of that trip.

Executive Secretary Eduardo Ermita confirmed today Malacanang plans to give Metro Manila a facelift in time for the expected influx of balikbayans and foreign tourists during the Christmas and New Year holidays.

Ermita said President Gloria Macapagal-Arroyo disclosed her plan to beautify Metro Manila during the Cabinet meeting in Malacanang this morning.

"We discussed the need to put things in order in Metro Manila to show our visitors that things are all right in the Philippines despite all these destabilization moves that happened before," he said.

"The President wants to give Metro Manila a facelift so our visitors will appreciate that there are beautiful places in the Philippines and we have every reason to be proud of our country," he added

The beautification program includes the repair of roads radiating from the Ninoy Aquino International Airport (NAIA), the Epifanio de los Santos Avenue (EDSA), Quirino Avenue and Roxas Blvd.

Ermita said the President wants to showcase Metro Manila to foreign visitors as the country’s center of business and commerce.

"And, of course, she reminded all government personnel, from the Bureau of Customs, Bureau of Immigration and Deportation (BID), Department of Tourism (DOT) and other agencies to show Philippine visitors the best of Filipino customs and traits such as our innate friendliness and hospitality for which we are known all over the world," Ermita said.

Also discussed in the Cabinet meeting was the reopening of the Montalban and Navotas landfills to avert the looming garbage problem in Metro Manila.

Chairman Bayani Fernando of the Metro Manila Development Authority (MMDA) reported to the President that Metro Manila generates an average of 5,000 metric tons of garbage daily as he underscores the need for the immediate reopening of the two landfills.

President Gloria Macapagal-Arroyo visits San Juan, Batangas tomorrow to lead the symbolic switch-on and inauguration of the town’s newly-upgraded power lines and substation.

The President will also preside over the ceremonial unveiling of the markers of the seven bridges constructed in various barangays of the town under the President’s Bridge Program.

The Chief Executive will be accompanied by Energy Secretary Raphael Lotilla, Public Works and Highways Secretary Hermogenes Ebdane, Presidential Management Staff (PMS) Undersecretary Marilou Frostrom and Assistant Secretary Cynthia Norton, among other government officials.

Before the inauguration of the power substation, the President will be briefed by San Juan Mayor Rodolfo Manalo about the various projects and programs undertaken by his administration in support of the Chief Executive’s 10-point agenda.

The upgrading of the electric power substation and transmission lines in the town was implemented through funds provided by the National Electrification Administration, with the Batangas Electric Cooperative as the implementing agency.

The construction of the seven bridges was funded by the national government, with financial assistance from the International Bank for Rural Development.