PGMA's Speech during the Opening Program of the 2nd Philippine International Motor Show (PIMS)

World Trade Center, Roxas Blvd., Pasay City

21 August 2008

Thank you. Thank you very much Secretary Favila for your introduction.

And congratulations to CAMPI President Beth Lee for your beautiful opening remarks and for putting all of these together.

I’d like to also greet and acknowledge our host congressman, Congressman Roxas; officers and members of CAMPI; members of the automotive industry; workers; ladies and gentlemen.

Congratulations again to CAMPI on this second motor show! This show tells the world we are ready to compete. As Beth says, the presence of 15 leading global auto brands reflects the confidence of the big auto makers of the world in our local industry and the economy.

I understand that CAMPI was formed 13 years ago --that is 1995, when I was a senator --to respond to the challenge for the private sector to play a key role in the country’s motor vehicle development. And I remember 1995 that was also the year that WTO started, and that was the year that all those special protection programs of quantitative restrictions for the motor vehicle industry ended. So you were organized at a very important time for your industry, and indeed you have been playing a key role.

You were involved in crafting the New Motor Vehicle Development Program, which focuses on the use of local parts for vehicle assembly and also on exportation. And that is the way the automotive industry in the Philippines can survive and flourish.

You have also taken a strong stand for regional integration of the automotive industry given that you have shifted your focus to exportation and for the required international standardization, including compliance with safety and the environment, safer motoring as symbolized by your support for the Safety Belt Law and cleaner motoring as symbolized by your support of the Clean Air Act.

You have come up with automotive units that not only comply with the Clean Air Act but are also fuel-efficient The automotive industry of the Philippines produces hybrid models producing flexifuel engines that blend ethanol with gasoline fuel. We await the hybrid models that shift from gasoline fuel to electric power at the touch of a button.

I asked Beth here, “So, when are we going to have that kind of hybrid model?” She said, “Coming soon.” We look forward to that. And I understand from Peter Favila that he was talking to Pepito Alvarez, and Pepito said, that he is coming up soon with that. So, we look forward to that. I saw Pepito Alvarez somewhere here earlier. Oh good! I’m glad you’re sitting down. Thank you. Congratulations Pepito and Good luck!

And we want all of these for many reasons: for one, this is part of our Green Philippines Program, wherein we want an energy efficient nation, free from reliance on costly and exhaust-spewing cars as well as smokestacks. Renewable energy is a very big help in our Green Philippines Program. So that is why we are waiting for the hybrid to become bigger in our automotive industry.

In general, for renewable energy, we can harness our sun, wind and geothermal resources and produce our own clean fuels through biofuels and not rely on foreign suppliers. But we need the will of the people and the support of CAMPI to move our political leaders to embrace this new clean Green Philippines. I asked Congressman Roxas to sit here in front because I want to thank him and through him Congress for passing the Renewable Energy Bill in the House of Representatives.

Now, I ask CAMPI to help us in our call on the Senate to pass this urgent legislation on the development and promotion of renewable energy sources. We are confident that your voices will be heard. I have heard the term ‘influential’ many times this morning. And, indeed, CAMPI is influential.

We have not forgotten that you were among the supporters of the law rationalizing the excise tax on motor vehicles, and that you were among the staunchest campaigners for the Biofuels Act. So, I would like to thank you so much for your support.

The search for cheaper and cleaner fuel has become a necessity not only because we want cleaner motoring but also in the light of the worsening global environment, environment both in terms of the ecology and the economy, and the increased pressure on economies that have little or no energy sources of their own.

The rise in oil prices we know is a global problem that is affecting consumers in developed and developing countries alike. However, we realize that the reality that the problem is global provides little comfort for those here in the Philippine who are faced by this global challenge in their homes and in their barangays.

But because tough choices have been made on tax reforms, the global crisis does not catch us helpless and unprepared. Through foresight, grit and political will, we built a shield around our country that has slowed down and somewhat softened the worst effects of the global crisis. We have the money to care for our people.

We have acted to provide price relief to our most vital industries such as transportation to minimize costs to owners, employees and commuters. Halimbawa, para sa namamasada at namamasahe sa dyip, nagpalabas tayo ng kalahating bilyong pautang upang palitan nang mas matipid na LPG, CNG o biofuel ang motor ng libu-libong jeepney.

I have already authorized the Secretary of the Budget to transfer half a billion pesos from the National Treasury to the Postal Bank which will be the main conduit for this kind of loans for transforming the engines of our public transport vehicles.

I have mandated government agencies to lower fuel consumption in liters by 10 percent and to convert 20 percent of their vehicles in major cities to use liquid petroleum gas. So, we call on the automotive industry to respond by providing more hybrid models and more vehicles using LPG, CNG or biofuels.

And we call on all businesses to respond by providing transport assistance to workers, for instance, company buses and eliminating unnecessary energy usage until prices somehow come back down.

And we call on our people to increase conservation and decrease use of unnecessary travel and energy use.

Meanwhile, we do not want our local automotive industry to suffer from unfair competition posed by smuggled Special Utility Vehicles especially. You know when there’s a smuggled sports car, we sell it an auction with a special committee composed of NGOs overseeing it and we earmark the proceeds of the auction for social welfare projects. Because super luxury cars don’t compete with any cars produced in the Philippine, but SUVs do. So rather than sell them at auction, we’d rather do away with the small taxes that we have to sacrifice in order to save the industry itself who pays more taxes. That is why you have seen pictures of smuggled Special Utility Vehicles literally being smashed by the government’s wrecking teams. So, let us together sharpen our drive against corruption and smuggling.

Last March, I instructed the Department of Finance and Customs to form a government-civil society body called PORTAL or Ports Transparency Alliance to monitor collection efforts, gather lifestyle and corruption information, and follow up major evasion or smuggling cases, in close coordination with the Presidential Anti-Smuggling Group. I hope CAMPI is active in PORTAL.

And on the macro picture, in order to promote the growth of industries like yours, as well as the best interest of the majority of our citizens, it’s essential for government to maintain a peaceful and orderly society. Most of you are aware of the disturbance of peace and order from the MILF-affiliated rebel groups who recently attacked civilians and destroyed properties in North Cotabato, Sarangani and especially Lanao del Norte.

As Commander in Chief, I think most of you also have heard me ordered the AFP and the PNP to pursue and neutralize those responsible for these treacherous attacks. But we remain committed to the peace process in Mindanao. We are not at war with the Muslim communities.

These recent developments in the South lead to a change in the basic premise of our peace efforts --the focus of our talks shall shift from the armed groups to the communities. The parameters governing our negotiations shall be a balance between constitutionality and public sentiment.

The objective of our peace processes shall be the end of all forms of armed rebellion in the country. Translated, this shall mean a national rejection of armed struggle as a means of achieving political and societal change and re-affirming our commitment to democracy.

Our engagements with all armed groups shall be about disarmament, demobilization and rehabilitation or DDR. From negotiations, our focus shall shift to dialogues with the communities, or government conducting authentic conversations or dialogues with the people. All armed groups must account for all of their actions not only to the government but most especially to the people. The force of arms does not entitle any armed group to represent the people.

DDR is about the people and government telling armed groups to give up armed struggle. Change shall be defined primarily by the people and the government.

So in this way that CAMPI has been a steady partner in our nation’s 28 quarters of consecutive growth, I have high hopes that CAMPI will also be a staunch supporter, in fact, an influential supporter in our quest for long-lasting peace in Mindanao and therefore in the whole Philippines.

And in this environment, I have high hopes that the Philippine automotive industry will stand strong and continue to expand our country’s presence in the global value chain of automotive manufacturing.

Maraming salamat sa inyo. Congratulations on this motor show!

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