Saturday, June 11, 2011

House panel OKs bottled water price control during crisis

The House committee on trade and industry has approved a bill which would subject potable water in containers, noodles, fruits, household liquefied petroleum gas (LPG) and kerosene to automatic price controls during severe shortages, calamities and similar emergencies.

House Bill 4801 is an expanded version of a measure originally introduced by House Deputy Majority Leader and Pasig City Rep. Roman Romulo, proposing to classify bottled drinking water as a basic necessity to safeguard consumers against possible pricing abuses during disasters and other adversities.

Under the Price Act, or Republic Act 7581, prices of all "basic necessities" are instantly frozen whenever a locality is declared a disaster area, in a state of calamity, under an emergency or martial law, or in a state of rebellion.

On top of bottled drinking water, Romulo said the committee chaired by Bataan Rep. Albert Raymond Garcia added noodles, fruits, household LPG and kerosene to the basic necessities list.

At present, the Price Act’s list of basic necessities is limited to rice, corn, root crops, bread; fresh, dried and canned fish and other marine products; fresh pork, beef and poultry meat; fresh eggs; fresh and processed milk; fresh vegetables; coffee; sugar; cooking oil; salt; laundry soap and detergents; firewood; charcoal; candles; and drugs classified as essential by the Department of Health.

Under the Price Act, Romulo said that unless sooner lifted by the President, the automatic price freeze on basic necessities would remain effective for the duration of the condition that brought it about, but not for more than 60 days.

As to basic necessities wholly imported or deregulated under existing laws, such as household LPG and kerosene, he said the bill approved by the House committee confines the price control to not more than 15 days.

Romulo said that under the Price Act, government may also use a special buffer fund to procure, purchase, import or stockpile any basic necessity and devise ways to distribute them for sale at reasonable prices in areas where there is insufficient supply, or a need to effect changes in prevailing prices.

He said the law also authorizes the President, upon the recommendation of the National Price Coordinating Council, to impose a price ceiling on any basic necessity under certain conditions.

Romulo warned that essential water resources in general and bottled drinking water in particular would be extremely vulnerable to hoarding and profiteering during widespread flooding, a severe dry spell, or similar emergencies.

He added: "Due to lack of access to clean water, many families now use potable water in containers. Even the poorest of the poor have been forced to consume bottled drinking water to keep their infants, children, and nursing mothers safe. They deserve adequate protection during a crisis.”

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