Environment and Natural Resources Secretary Lito Atienza the other day (November 26) bared the ongoing policy reforms the Department is undertaking as part of continuing efforts to revitalize the mining industry.

In a forum on responsible mining at the annual assembly of the League of Provincial Board Members of the Philippines, Atienza said the reforms are meant to correct mining practices in the past that resulted in the public’s negative perception of mining and negative impacts on the environment.

He said the policy reforms will also address issues on profit sharing, environmental protection, social responsibility and the Indigenous Peoples (IPs).

According to Atienza, one of the major reforms being initiated by the Department is the immediate implementation of direct remittance of two percent share on excise taxes to the host local government units (LGUs).

Atienza noted the current policy of remitting all taxes to the national government has resulted in substantial delay in the disbursement of the two percent share of the local government units from the mining operation in their area.

“We will not only ensure but guarantee the release of the host LGUs’ share on excise taxes directly to them,” Atienza assured the league.

The DENR chief also assured that the Indigenous People’s right will also be respected and protected under the current reforms and their share in the mining operations located in their ancestral land will be remitted to them through the National Commission on the Indigenous Peoples (NCIP).

“We will make sure that rights of the IPs are respected and definitely included even at the preparation stage of sustainable mining. Their share will be directed to them provided that the NCIP certifies that they are the rightful claimant to the area where the mining operation is located,” Atienza explained.

Another reform is transparency on paid taxes. Atienza said taxes should be paid in the area where mining is being undertaken and not where the head office is located. He explained that payment of taxes in the host municipality will facilitate easy computation of the exact share of the host local government unit.

He said that talks are ongoing with the Bureau of Internal Revenue for the agency to release to the last centavo what is due to the LGUs and IPs.

The Department is also currently working on the inclusion of the president of the Provincial Board Members in the Mineral Development Council.

The DENR chief assures the league that the inclusion of their group in the council will directly address the issues and concerns about mining operations in their area. He said that the inclusion would mean direct involvement in the crafting of new policies relative to the implementation of responsible mining in the country.

“We are now working on your membership at the national level so that all these local concerns are respected and protected,” Atienza said.

Another reform is the strengthened partnership with the LGUs. “We will work closely with the local government units in the implementation of DENR programs and projects particularly in the field of mining.” Atienza said. (DENR-Public Affairs Office)

November 27, 2007