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Daily News - 21 February 2001
Higher electricity bills coming soon
The administrator of the Dominican Electricity Corporation, Cesar Sanchez told the press that the government subsidy to increases in petrol costs, inflation and devaluation of the peso will no longer be absorbed by the government, as reported in El Siglo newspaper. This adds up to about RD$300 million a month. He said that instead the government will implement a plan to directly subsidize consumers in poor barrios that traditionally have not paid for the service. The power distributors have been unable to get these consumers to pay, so far. Sanchez said that in a month's time, consumers that pay will get a notice on their bill with a breakdown of the amount that the government is subsidizing. In two or three months, the distributors will be charged this subsidy. Since privatization, those that pay electricity bills in the DR have seen their bills constantly go up.
The administrator of the CDE says the new plan is to relieve the distributors of the losses they report due to the large number of consumers that do not pay for the service. He announced, as a result of the agreement, the distributors will begin to make payments on a debt of RD $1,700 million with the generators that will reduce the blackouts.
Seemingly in contradiction, President Hipolito Mejia said yesterday that everyone would have to pay for power consumed, regardless of social condition or place of residence.
President Mejia also urged that Congress pass the general electricity bill that has been sitting in Congress through three different governments, burdened by special interests.
The director of the CDE, Cesar Sanchez announced an investment of RD$127 million in the construction of a 138-megawatt transmission line linking Hainamosa, Boca Chica and Juan Dolio in San Pedro de Macoris.
Presidential assistants abound
El Siglo newspaper recalls how during his presidential campaign days, today President Mejia spoke out against giving government jobs to people who would not carry out any specific work. The newspaper points out that President Mejia has appointed so far 800 civil assistants and inspectors. Of these 500 are honorary. The wage receiving civil assistants receive wages of RD$20,000 and the inspectors RD$15,000. Their duties are unknown. Ninety-three percent of the government appointees reside in the provinces.
Government collects more taxes than it expected
The Listin Diario reports the announcement of the Direccion General de Impuestos Internos, the tax department, as to a 26% increase in taxes in January 2001 over January 2000. The department reports collections of RD$2,266.0 million, up RD$469.93 million over January 2000. This is 14% or RD$277 million more than budgeted. Income tax collections were up 60%, increasing from RD$516.76 million to RD$830.70 million.
ITBIS tax collections (transfer of goods and services) were up 28%, from RD$505.13 million in 2000 to RD$643.80 million in January 2001.
Petrol spillage suspect of killing Hatillo fish
According to the Ministry of Environment, a spillage or dump of fuel residuals caused the death of thousands of fish in Hatillo Dam. The source is unknown. Cecilio Carela, Deputy Minister of Coastal Marine Resources told El Siglo newspaper that studies of the Physics and Microbiology labs of the Universidad Autonoma de Santo Domingo point to this cause. He said an analysis carried out by the Dominican Institute of Technology (INDOTEC) lab discards the possibility of a presence of heavy metal in the waters. Carela explained the fish probably died from asphyxiation. The Ministry says they are investigating two asphalt plants that are located along the Yuna River. He said probably the dump or spillage was accidental. The substance is no longer affecting the fish in the artificial lake. He said that in an outing he caught 64 species, including bass, goldfish and sardines. The bass were the species most affected because it feeds from surface waters. He said fishing is back to normal at the dam.
Changes in the Jarabacoa Dam project
The Dominican Electricity Corporation administrator, Cesar Sanchez said that there would be changes in the design of the Manabao-Bejucal-Tavera dam to guarantee the minimum flow of Yaque River water of three cubic meters, such as is present in the river 95% of the time. He said that the project's generation capacity would be reduced to 85 megawatts, down from 105 megawatts, to assure the community of Jarabacoa that the river flow would not be affected. The changes respond to the protest of environmental businessmen in the area.
Businessmen say modified security bill is non-viable
Hoy newspaper economic section report says that if the 18 modifications sought by the Dominican Medical Association (AMD) are incorporated into the social security bill, the cost of the services will be so high it will be non-viable from the start.
The newspaper cites informed sources saying that the project as approved by congressmen, employers, employees and government was already burdensome, but the modifications make it practically impossible to implement.
Former president of the National Council of Businessmen, Celso Marranzini said, "And really, the sectors that topple gates, that go on strikes and insult, those have defeated the sectors that pay and that want a decent social security system." "It is a shame that after so many years of negotiations one has succumbed to pressure, to blackmail and constant strike threats on behalf of the AMD that have changed completely the bill," he said.
He explained the modifications create two health systems, one public and another private. The first will be handled by the AMD, the second by the private sector, but the AMD will set the prices and work conditions. As originally proposed, people of all income brackets would have been able to choose the better service providers, which would force all sectors to compete, with an overall benefit for the consumer.
Antonio Espin, president of the Herrera Industrial Association said that businesses and labor would have to discuss the modifications negotiated by the AMD and the government. He said that if Congress passes them without the consent of these two sectors, then employers should just not participate in the plan.
El Caribe newspaper points out that one of the major losers will be public employees. At present, most government institutions offer their employees private sector health plans, despite their members being affiliated to the governmental social security institute. The newspaper says that as per the modifications, all public sector employees will be tied to the public sector health social security plans.
Meanwhile, the president of the Chamber of Deputies said that she does not envision the modified bill being approved by her house until March.
Dollars versus pesos in the DR economy
The Center for Economic Investigation of the Antilles (Cenantillas), the department of economic research of the Pontificia Universidad Catolica Madre y Maestra, is proposing opening discussions for the economy to adopt the United States dollar as official currency. El Caribe newspaper reports that Pedro Silverio, director of the center, advocates that the country has much more to gain than to lose. In Latin America, the US dollar is already the currency in Panama, Ecuador and El Salvador.
Speaking out for the dollar, Silverio said that interest rates would dramatically decrease as a result of an increase in competition in the financial system, and a forcing of reduction in bank profit margins. This would stimulate investment. The elimination of the exchange risk would also facilitate long term planning in the economy.
He said the country would lose the right to implement its own monetary policy, but on the plus side the Central Bank would no longer be able to print money to resolve fiscal deficits. The government would have to instate greater fiscal discipline aware that overspending in the public sector will have to be financed by increased taxes or private indebtedness, he explained. He says that switching to US dollars will bring greater macroeconomic stability in regards to inflation, devaluation, fiscal deficits and monetary restrictions.
He says the DR economy would increase its dependence on the US, but explains that the effect of this would hardly be felt as at present 70% of the country's trade is already with the US.
20 hotels close in Sosua
The executive director of the Association of Hotels & Restaurants of Sosua and Cabarete, Cecilio Mercedes confirmed that 20 of 73 hotels in that north coast beach area have closed in recent years.
Sosua businessman Jose Miguel Pimentel earlier had told the newspaper that 15 hotels in the area have closed. He attributed this to the takeover of Sosua Beach by 400 vendors. He attributed this to the takeover of Sosua Beach by 400 vendors and lamented that a destination that had such an attractive town and such a lovely beach had not fared better.
Pimentel highlighted that Puerto Plata grew as a tourist destination thanks to the side excursions made by tourists to Sosua Beach.
Mercedes said that Sosua is undergoing its worst crisis ever. He said that in addition to the conditions of the vendors on the beach, the area has been affected by potholes in the streets, and high operating costs, such as increased cost of electricity. Hotels that have closed are: Aida del Mar (44 rooms), Auberge du Village (12), Colina, Sol y Mar (72), Coral Beach (54), Coralillo (48), Paraiso (14), Fun Tropicales (78), Horizon Club (202), Hotel Sosua (38), Neptuno Hotel (50), Nino Hotel (28), Palm Royal (28), Palm Village (52), Sosua Fun Club (64), Sosua Paradise 28), Sosua Sun Bay (78), Villas Carolina (73, Villas Chesea (32), Vista Mar (52) and Vista Norte (70). This represents a quarter of the 4,500 rooms in the 73 hotels in the area.
"Tourism is a long-term project, thus when problems are not resolved today, they are felt two or three years later," he said. "What we are harvesting is the fruit of years of negligence," he said. He explained the situation reflects the slack of the authorities and the lack of vision of the owners of businesses that did not know how to unite in time to face reality.
Angelita de la Mar makes it to Puerto Rico after all
Faustina Mercedes Mauricio, nicknamed Angelita de la Mar, finally made it to Puerto Rico. She became famous for having saved 15 fellow shipwrecked companions on a clandestine boat trip to Puerto Rico by breastfeeding these. She flew to Puerto Rico for an hour in transit on route to Madrid, Spain, where she would be the star of a variety show.
Angelita del Mar is a celebrity, with her story being told in variety shows all around Iberoamerica. She has traveled as far as Argentina to tell details of her heroic feat that helped her companions survive 12 days lost at sea.
In Madrid, Angelita del Mar appeared on the Sabor a Ti, show, the highest rating in Madrid. When she appeared in Argentina, she complained that while the trips were great, they were not contributing to her financial situation.
During her presentation at the Spanish TV show, the Clinica Independencia of Santo Domingo called to grant her a permanent medical insurance for her and her family. Likewise, a bank account was opened to which several Spanish who were moved by her story contributed.
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