Bicam approves P100-B coconut levy trust fund

The bicameral conference committee approved on Wednesday a bill creating a P100-billion coconut levy trust fund to be used for 25 years for the benefit 3.5 million farmers.

Senator Cynthia Villar said the trust fund will be invested in Treasury bills and handled by the reconstituted Philippine Coconut Authority.

“‘Yung coco levy fund ilalagay sa Treasury bills and then it will earn around two to three percent a year, idadagdag sa principal amount. Basta ang gagastahin P5 billion a year,” Villar told reporters after a two-hour meeting.

She said the fund will be in place starting next year and run for approximately 25 years.

“Sa ngayon P105 billion ang pera nila, kung idi-divide sa P5 billion that’s 25 years pero mage-earn pa ng interest,” she said.

The Senate version of reconstituting the PCA prevailed instead of creating more committees, Villar noted.

“Gusto namin reconstituted PCA para isang overhead lang.  Mahirap ‘yung maraming committee, maraming gastos so sini-simplify namin ang management para less ang overhead.

“Para lahat ng pera mapupunta for the benefit of the coconut farmers,” she said.

The PCA will be composed of four representatives from the government, one from the industry, and six coconut farmers.

The joint congressional panel approved earmarking the income or interest earnings from the trust fund for the following programs:

• Shared facilities, 30 percent

• Scholarship, 15 percent

• Empowerment of coconut farmer organizations and their cooperatives, 15 percent

• Farm improvements (to encourage self-sufficiency), 30 percent

• Health benefits, 10 percent

Villar said another P10 billion in mandated appropriations for PCA will come from the General Appropriations Act.

“‘Yung ibibigay ng gobyerno na P10 billion for the coconut industry ano naman ‘yun 20 percent for infrastructure, and that should be followed by PCA,” she said.

Also to be disbursed from the fund are the following items:

• planting and replanting, 20 percent

• intercropping, 10 percent

• shared facilities, 20 percent

• research and development, 10 percent

• fertilization, 5 percent

• new products and marketing, 5 percent

• credit through Landbank and Development Bank of the Philippines, 10 percent

Villar said the funds will be subject to review by the Commission on Audit.

President Rodrigo Duterte has asked for the approval of a coconut levy trust fund during his State of the Nation Address (SONA) last week. —VDS, GMA News