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PRESIDENTIAL DECREE NO. 1971
PRESIDENTIAL DECREE NO. 1971 -
REVITALIZING THE PHILIPPINE SUGAR INDUSTRY AND REORGANIZING THE
PHILIPPINE SUGAR COMMISSION, AND FOR OTHER PURPOSES
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WHEREAS,
the Philippine Sugar Commission was created under Presidential Decree
No. 388, as amended, to support the sugar industry and to foster its
continued economic growth and development with the end in view of
promoting public welfare; chanroblesvirtualawlibrary
WHEREAS, global and domestic conditions have brought the sugar industry
into imminent collapse, thereby using the economic dislocation not only
of the sugar planters and millers but also of the sugar workers and
their families;chanroblesvirtualawlibrary
WHEREAS, under uncertainties in the sugar industry have spawned serious
peace and order problems in the affected areas of the country resulting
in a grave national emergency;chanroblesvirtualawlibrary
WHEREAS, unless the grave emergency confronting the sugar is remedied
with dispatch, the sugar industry may altogether collapse and
deteriorate to a level beyond economic recovery, and thereby adversely
affect the national economy;chanroblesvirtualawlibrary
WHEREAS, there is now a pressing need to reorganize the Philippine
Sugar Commission and its subsidiary, the National Sugar Trading
Corporation, to make the said Commission more responsive to the present
requirements of the sugar industry, and to maintain and preserve its
viability as an industry essential to the economic stability of the
country;chanroblesvirtualawlibrary
WHEREAS, the price of sugar is way below the production cost, and in
order to uplift the economic predicament of sugar producers, the
Commission must determine the price of sugar as closely as possible to
the production cost plus a reasonable margin of profit for the industry;chanroblesvirtualawlibrary
WHEREAS, the sugar industry must be more resilient and expedient in
meeting the exigencies of changing world market conditions;chanroblesvirtualawlibrary
WHEREAS, there is need for a concerted effort by the Government and the
private sector in the planning and direction of sugar production and
marketing on a national basis;chanroblesvirtualawlibrary
WHEREAS, in support of such concerted effort it is necessary for sugar
producers to participate directly in the formulation of national
policies and the orderly planning and supervision of the production and
marketing of sugar, by electing their representatives to the Commission.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President Republic of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby order and decree: chanroblesvirtualawlibrary
Section 1. There is hereby declared a grave national
emergency in the sugar industry, necessitating its revitalization by
way of an industry rationalization program to be promulgated by the
Philippine Sugar Commission, subject to the approval of the President
of the Philippines. The sugar industry rationalization program shall
take into account the promotion of the interests of sugar planters,
millers, workers and consumers alike. For this purpose, the Philippine
Sugar Commission is hereby reorganized in the manner set forth in the
succeeding sections hereof.
Section 2. Section 3 of Presidential Decree No. 388,
as amended, is hereby further amended to read as follows:cralaw:red
"Sec. 3. Philippine Sugar Commission. — In order to
carry out the foregoing policy, there is hereby created the Philippine
Sugar Commission, hereinafter referred to as the Commission, to
rationalize and revitalize the sugar industry.
"The Commission shall be composed of a Chairman and eight (8)
Commissioners. The Minister of Trade and Industry, the Minister of
Agriculture and Food, and the Governor of the Central Bank shall be
ex-officio members of the Commission. The other six Commissioners, who
shall be Filipino citizens, shall be the elected representatives of the
sugar producers; Provided, however, That four (4) of the six
Commissioners shall be elected by the planters and the other two (2)
shall be elected by the millers; Provided, further, That the four
representatives of the planters shall be elected from among themselves
through an election by the various planters associations, and the two
representatives of the millers shall likewise be elected from among
themselves through an election by the individual milling companies
which were operating during the crop year 1983-1984; Provided, finally,
That the Chairman of the Commission shall be elected by all the
Commissioners from among the six elective Commissioners.
"The initial election of the representatives of both planters and
millers to the Commission, for a term of two years, shall take place as
soon as possible, but in no case later than three (3) months from the
date of effectivity of this Decree, Thereafter, the planter and the
millers shall elect their representatives once every two (2) years.
"Voting for the representatives of the planters and the millers shall
be on the basis of one vote for every 1,000 piculs net production share
computed in accordance with the official production records of the
Philippine Sugar Commission for crop year 1983-1984. The production
basis for voting in succeeding elections shall be the production of the
crop year immediately preceding such elections.
"The Compensation and allowance of the Chairman and Commissioners shall
be determined by the Commission, subject to the approval of the
President of the Philippines.
"The Commission shall meet in regular session at least twice a month.
It may be called by the Chairman to a special sessions as the need
arises."
Section 3. Sub-sections (d) and (e) of the first
paragraph of Section 4 of Presidential Decree No. 388, as amended, are
hereby further amended to read as follows:cralaw:red
"Sec. 4. Powers and Functions. — The Commission shall
have the following powers and functions:cralaw:red
xxx
xxx
xxx
"(d) To cause the organization of a single buying and
selling agency for domestic, export and any other class of sugar;
Provided, That domestic sugar shall be allocated by the Commission to
the sugar producers, in accordance with the rules and regulations to be
promulgated by the Commission.
"(e) Subject to the approval of the President of the
Philippines, to determine the composite liquidation price of sugar
which will insure the planters, millers, traders, wholesalers and
retailers a fair return of their investments; Provided, That such
composite price of sugar for any crop year shall be the total
anticipated cost of production per picul of efficient producers as
determined by the Commission, plus a corresponding reasonable margin of
profit set by the Price Stabilization Council which is authorized to
regulate prices of commodities, after taking into consideration the
effects of currency fluctuations, interest rates and other economic
factors affecting production, processing, marketing, transportation and
other related expenses including the minimum wage for agricultural and
industrial workers; Provided, further, That the composite price
established by the Commission shall be adjusted periodically, effective
upon approval by the President of the Philippines, in direct relation
to significant changes in the cost of production as determined by the
Commission, the Consumer's Price Index prepared by the Central Bank of
the Philippines, world market prices for sugar and other relevant
factors."
Section 4. The first paragraph of Section 4 of
Presidential Decree No. 388, as amended, is hereby further amended by
adding new sub-sections after subsection (k), to be numbered (1), (m)
and (n) which shall read as follows:cralaw:red
"(1) To establish production quotas, if necessary,
for both planters and millers and to design the most equitable and
efficient system therefor. For this purpose, the Commission is
authorized to mothball sugar mills under an industry rationalization
program;chanroblesvirtualawlibrary
"(m) To develop a program of crop diversification
compatible with sugar production in order to ensure the viability of
the industry; and
"(n) To adopt all measures to improve productivity of
the sugar of the sugar industry, and to perform such other functions as
may be necessary, proper or incidental to its purposes and
objectives." chanroblesvirtualawlibrary
Section 5. The first paragraph of Section 5 of
Presidential Decree No. 388, as amended, is hereby further amended to
read as follows:cralaw:red
"Sec. 5. Chief Executive Officer. — The Chairman of
the Commission shall be the Chief Executive Officer. The Commission
shall appoint a professional manager to become the Chief Operating
Officer who will have the responsibility of managing the day-to-day
affairs and operations of the Commission, in accordance with policies
established by the Commission."
xxx
xxx
xxx
Section 6. In furtherance of the purposes and
objectives of this Decree, the Commission shall cause the conversion of
the National Sugar Trading Corporation (NASUTRA) into a private
corporation to be called the Philippine Sugar Marketing Corporation
(PHILSUMA) not later than December 31, 1985. PHILSUMA, which will be
the sole marketing agency for the sugar industry, will be owned 100% by
sugar producers (planters and millers) in proportion to their actual
production. chanroblesvirtualawlibrary
Section 7. The Central Bank shall provide the
necessary financing support to the sugar industry to enable to attain
its objectives. All other agencies and instrumentalities of the
Government are hereby enjoined to provide full cooperation to ensure
the successful implementation of the rationalization program herein
envisioned.
Section 8. Pending the election of the six (6)
private sector Commissioners, the incumbent Chairman and Commissioners
together with the ex-officio members of the Commission mentioned in
Section 2 hereof, shall discharge all functions of the Commission to
assure an orderly transition. chanroblesvirtualawlibrary
Section 9. Any provision of law, decree, executive or
administrative order, letter of instructions, rules and regulations,
and other issuances inconsistent with the provisions of this Decree, is
hereby amended, repealed or modified accordingly. All such provisions
not inconsistent with this Decree shall remain in full force and effect.
Section 10. This Decree shall take effect
immediately. chanroblesvirtualawlibrary
DONE in the City of Manila,
this 21st day of February, in the year of Our Lord, nineteen hundred
and eighty-five.
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