Valencia Valencia subsidy funds running low, political ramifications

Imagine the municipality of Valencia, prime host of the multi-billion geothermal plants and whose residents have been enjoying monthly electric subsidy since early 1990’s, suddenly losing it all in 2014?

Whether the politicians like it or not, one of the main issues they have to confront in the 2013 elections is the projected end by 2014 of the electric subsidy enjoyed by their constituents for the last ten years, which made Valencia a haven for foreign and local retirees.

Politicians must explain how the funds derived from the Royalty tax shares of the town, which peaked at approximately P300 million before is now down to just P77 million with no fresh funds yet coming in.

The incumbent officials, particularly the Gonzalezes, who ruled Valencia for the past 11 uninterrupted years, must explain why it utilized the 80% component of the Royalty Tax for infrastructure projects like the Industrial Park in Palinpinon and the concreting of roads while remaining quiet, when the Renewable Energy Act, which guarantee that private enterprises will earn tax holidays and pay negligible Royalty Tax shares to the Local Government Units for hosting their plants and facilities, was deliberated and passed into law.

Mayor Enrique Gonzalez and his brotherpredecessor Rodolfo Gonzalez Jr. must explain to their constituents, why if left un-replenished, the people of Valencia will no longer enjoy the P 800.00 monthly electric subsidy while the Energy Development Corporation and its subsidiary, the Green Core Geothermal, Inc., continue to reek in profits in billions of pesos for exploiting our natural wealth.

The Gonzalez family, which dominated the municipality (aside from Mayor Enrique Gonzalez, other family members currently at the helm are: uncle Procopio, ABC President; brother Freddie, incumbent councilor; and Municipal Attorney Katrina Gonzalez); are expected to render their constituents adequate explanation for the inevitable demise of the electric subsidy.

Councilor Romeo Alviola, Chairman of the Committee on Finance, confirmed that the municipality used to receive an average of P120 million annual royalty shares from the then PNOC-NPC, both government- owned and controlled corporations. However, upon their privatization and the passage of the Renewable Energy Act with nary a voice of dissent from Mayor Gonzalez, Valencia, which has not received any royalty since 2010, stands to receive, if at all, at least P15 million annually, which would not be sufficient to fund the electric subsidy of the residents requiring P30 million a year.

The host barangays are also hard pressed, for like the municipality and province, they have not received royalties since 2010. Proceeds from the Real Property Tax, which replaced the royalties, could not, in any way, fill the void left by the massive reduction of the royalty tax.

However, while the burden is upon the current administration, the opposition must also present a viable alternative on how to recover the loss of the royalty, or at the very least, help prepare the public to accept the inevitable. Both the administration and opposition must treat this concern delicately and effectively channel their messages to the electorate for they may stand or fall on this issue alone. It will be a deciding factor whether the Gonzalezes will be given that opportunity that seldom comes, prolonging their 12- year rule for another 3 years or provide the opposition the perfect opening to take over the administration. (By DemsDemecillo)

 

The P800 subsidy was one factor My asawa and I were looking forward to in making our decision to chose Valencia.

 

Myself, they'd have to pay me more than p800/mo to be compelled to live in Valencia.

 

I got Rodolfo Gonzalez as a Facebook contact and I thought it was kinda funny that shortly after he got out of office he was posting pictures of himself living life very well......

In California!

 

Who said anything about being compelled?. I said it was only one of the reasons. I guess your not a member of the Valencia Chamber of Commerce?.......

 

Perhaps a neighbor of CJ's daughter?

 

Whats wrong with Valencia?not living there myself.

 

Obviously you must be a very special and important person to hold an attitude like that.

I bow in awestruck deference to your gracious presence on this humble forum....

 

Hmmmm....The P800 subsidy is one the main attraction of Valencia why a lot people are moving up there. If it will be gone there will be a lot of vacant apartments soon.

 

Perhaps not enough pollinization in Valencia.....