For some senators, airline P 8.6-B bailout offer will be invalid

Senator Grace Poe (Henzberg Austria / PRIB Senate)

MANILA, Philippines – Some senators said Tuesday they were unwilling to support the country’s three biggest airlines’ request for a monthly government bailout of P8.6 billion, with one of them, Grace Poe, arguing that members Most vulnerable in the transport sector should have priority in the granting of state subsidies.

Poe, who conducted an online Senate hearing on Monday about the effects of the new coronavirus crisis on public transportation, noted that many jeepney and trike drivers in Metro Manila were complaining that they had not yet received the financial aid that the government promised.

News reports show that several jeepney drivers are resorting to begging on the streets to survive, as the government has yet to lift travel restrictions since President Duterte imposed a blockade on all of Luzon two months ago.

“You always have to help the weakest members of society first,” Poe said at an online news conference.

“Although companies are important because they provide jobs, the weakest are really the daily wage earners, the drivers of public services, because they are [badly] affected by the shutdown (of the economy), “he said.

Big companies can borrow

“They are the ones that should be prioritized. Imagine if [airlines] would be asking for a ransom from [P8.6 billion per month], small drivers who have not yet received subsidies will be affected, “he added.

In addition, Poe said large companies already in the red due to the crisis could obtain loans from banks and other financial institutions to help them recoup their losses.

And the drivers? Will be [we just let] they borrow from [loan sharks]? she said.

Roberto Lim, vice president of the Philippine Air Carriers Association (Acap), told the Poe public services committee that the group members would need a monthly fiscal aid of P1.3 billion in wage subsidies, P500 million in airport fees and P6 .8 billion in working capital to deal with the suspension of flights and the travel ban.

Acap is comprised of Philippine Airlines, Cebu Pacific, and AirAsia Philippines, and their affiliates. PAL and Cebu Pacific have cut nearly 500 jobs since March, while an aviation support company laid off 400 employees in early April.

Priority basic needs

Senator Francis Tolentino echoed Poe’s opinion, noting that the government’s fiscal resources were “very limited” as it still had to fund the social improvement program for 18 million low-income Filipino households.

“We must prioritize people’s basic needs, which include agriculture and even education, such as student scholarships and teacher grants,” Tolentino said.

“We [also] they have to help even those in the informal labor sector, “he said.

Senator Panfilo Lacson said it was important for the government to act first on the financial concerns of the “word of mouth,” who lost their source of income due to government-imposed policies to combat the pandemic.

“Large companies, such as airlines, must belong to the second or third priority level and [helping them] it should depend on the availability of resources, ”Lacson told the Inquirer in a Viber message.

Senator Sonny Angara, chairman of the Senate finance committee, said that any bailout program for a certain sector should be carefully studied and should be part of a much broader economic stimulus program.

“We want, as much as possible, to help people keep their jobs,” he said.

Detailed security plan

Poe expressed disappointment that Acap has failed to come up with a detailed plan on how to ensure passenger safety once operations resume.

“Of course, [Acap] you have to affirm what will help you. But they didn’t talk much about the security measures they are going to take on their own, “he said.

“It seems there was a lack of concern for the passengers compared to the presentation they had for the rescue they need. That was missing, I thought,” he added.

The senator also noted that only 10 percent of the approximately 390,000 registered taxi, jeepney, and bus drivers had received financial assistance from the Regulatory Board and Ground Transportation Franchises.

“It is frustrating because people will die not only from the virus, but also from hunger and depression,” said Poe.

“I am really sorry for drivers who have not yet received financial aid. So far, the list of beneficiaries is still being validated. [by other state agencies]. That is one of the tragedies that we have seen. “

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