Philippines to survive food, fuel challenges

MANILA, July 28 (Xinhua) -- In her eighth state of the nation address, Philippine President Gloria Macapagal-Arroyo on Monday told the Filipinos to have confidence in the government that the country would survive the global challenges of high food and energy prices.

Standing before the joint session of Congress and clad in a traditional red Filipino dress, Arroyo said the situation the Philippines faces is the worst since the end of World War II.

Arroyo said "because tough choices were made, the global crisis did not catch us helpless and unprepared."

"As your president, I care too much about this nation. I will let no one, and no one's political plans, get in the way of the well-being of the people." She said. "I will let no one hinder our people's progress and prosperity. I will let no one threaten our nation's survival. This is my commitment."

Arroyo stressed food self-sufficiency, less energy dependence, and greater self-reliance to tackle the issue.

As with fiscal and food challenges, the global energy crunch demands better and more focused resource mobilization, conservation and management, Arroyo said.

She also defended the administration's policy to maintain the 12 percent value-added tax.

She said the consumption tax was an important weapon since it "shores up fiscal independence," funds the infrastructure needs and the government can spend on a series of pro-poor programs, infrastructure and social welfare projects.

The Philippines introduced the 12-percent value-added tax on oil since 2005 and it had contributed significantly to the government's revenue. However, groups have called for the cancellation of the policy as the oil prices surged to record highs in the recent two months.

Arroyo said her administration has persevered and has been "without flip-flops" despite the "much criticized but necessary policies" on oil tax and oil deregulation.

The president devoted a substantial part of her speech to defend the oil tax despite the fact that the policy has partly caused her approval rating to dip to a record low, making her the least popular president since February 1989.

As she has done in the past, Arroyo said she would continue to bear her dipping popularity for making "tough choices" that would "save the nation".

"I will let no one, and no one's political plans, to threaten our nation's survival. Our country and our people have never failed to be there for us. We must be there for them now," she said.