Bill to address possible unemployment amid Covid-19 filed

 A PARTY

-list lawmaker is pushing for the passage of the proposed PHP485-billion stimulus package that is likely to address the possible unemployment impact of the coronavirus disease (Covid-19) crisis. 

During the virtual hearing of the House Defeat Covid-19 Committee economic cluster on Tuesday, AAMBIS-OWA Rep. Sharon Garin said the overall assessment of the panel is that Covid-19 will highly impact the livelihood of half of the labor force.

"The effect of Covid-19 is possible unemployment of at least 30 million Filipinos," said Garin, referring to daily wage and informal workers.

The proposed Philippine Economic Stimulus Act (PESA) pushes for economic interventions aimed at protecting Filipino families and jobs; assisting workers and business entities facing hardship due to the pandemic, and preserving the country’s trajectory to economic prosperity.

"With all the inputs from members, agencies, and private sector, the interventions are grouped in 4 parts, all with the same purpose, maintain employment level and targeted assistance to industries so that they retain employment level,” Garin said.

“Primarily, the interventions are not direct amelioration or dole-outs, otherwise it won't be sustainable and affordable," she added.

The PHP485-billion economic stimulus package will include PHP20 billion for test kits to build up consumer and business confidence; PHP130 billion worth of loans under Landbank of the Philippines, Development Bank of the Philippines, Small Business Corp., and Philippine Guarantee Corp.; PHP25 billion capitalization for National Development Corp.; PHP150 billion for individual subsidies under Department of Labor and Employment and PHP160 billion for sectoral assistance.

Meanwhile, Marikina Rep. Stella Luz Quimbo said the passage of the economic stimulus package could help effectively re-open the economy in the Covid-19 aftermath.

She said one obstacle in re-opening the economy is the liquidity concerns of firms, especially those that did not have revenues during the lockdown yet continued to pay overhead costs, including payroll and interest expenses.

Another obstacle, Quimbo said, is the so-called “fear factor” especially among workers because the country has no mass testing.

“Timing is key. Ideally, economic stimulus is in place as soon as we re-open our economy. So the bill is for purposes of re-starting after we re-open,” Quimbo said.

“The increases in government spending being proposed are direct kinds of spending, such as wage subsidies, and budget augmentation for government financial institutions,” she added.