President Leonel Fernandez instructed the National Competitiveness Council to continue work under its leadership in the tourism industry and come forth in early 2006 with the Competitiveness and Development Plan for the tourism sector. The plan is to have a focus on sustainability, social inclusion and the adoption of new trends and technologies. The National Competitiveness Council supports the tourism clusters program that seeks to empower local destinations and communities to foster sustainable tourism and competitiveness. President Fernandez sat in for six hours on Saturday at the International Forum for Tourism Competitiveness held at the Punta Cana Resort. The President listened to presentations made by Tourism Minister Felix Jimenez, Enrique de Marchena, president of the National Hotel Association, Vincent Vanderpool-Wallace, secretary general of the Caribbean Tourism Organization, Peter Yesawich, chairman of Yesawich, Pepperdine, Brown and Russell, former minister of tourism of Ireland Matt McNulty and Mexican competitiveness expert Rene Villareal. Also speaking at the conference were Augusto Huescar, head of market intelligence at the World Tourism Organization, Ruben Dario Rodriguez, on the Riviera Maya experience; and German Porras, former minister of tourism of Spain. DR1 will be providing links to the presentations latter this week as they become available.
Dominican President Leonel Fernandez travels to Haiti today, against a backdrop of recent tensions between Dominican and Haitians. He will meet with Haitian leader Boniface Alexandre, and other authorities, to discuss the issues surrounding the frontier, the repatriation of illegal immigrants and the alleged human rights violations against Haitian citizens in the Dominican Republic. This is the Dominican President's second visit to Haiti, the first since 1998. Besides the very serious issues on the table, the President will meet with 30 of the 34 candidates currently campaigning for the Haitian presidency.
The new taxes set forth in the latest legislation will go into effect in 20 days time, but the removal of import and other tariffs won't happen until the DR-CAFTA accords begin to take effect. The Free Trade Agreement (FTA) has 3,025 items due for tax breaks under the DR-CAFTA agreement. This situation will allow the government to receive tax money from the internal VAT taxes without having to reduce the import taxes or the exchange commission tax on imports. El Caribe cites a "source within the government's economic team" as saying that Article 24 of the legislation passed by the Senate last week provides for the gradual removal of import taxes on a whole series of articles, including sardines, salted fish, cement, and fencing wire. The government had submitted a tax plan that would provide the revenues lost from the exchange commission taxes (RD$22.0 billion), the duty free items of DR-CAFTA (RD$3.5 billion) and distorted taxes (RD$6.5 billion). However, the legislature passed a bill that will provide just RD$26 billion in revenue. Also on the horizon is the very real possibility that the DR-CAFTA agreement will not go into effect until April or June, because, out of the Central American signatory countries, only El Salvador has been certified to have completed the needed legislation.
At the same time the government was announcing that it would look "elsewhere" for the additional funds it says it needs for the 2006 budget, the National Council of Private Business said that it would oppose any attempt by the government to increase tax revenue through administrative measures. CONEP spokesperson, Elena Viyella de Paliza has told reporters that the government could solve the problem with less than a 5% reduction in spending. She pointed out that the changes made to the legislation would present huge distortions and injustices for the majority of the population. Meanwhile, the government is reporting a windfall 20% increase in sales tax collections.
Viyella de Paliza was referring to statements made by the Presidential Minister for Technical Affairs, Temistocles Montas, who indicated that the government would resort to Presidential Decrees in order to produce the required income. Because of the differences of opinion between the government and the legislature, the minister said that the proposed meeting of the National Development Council had been postponed until the executive could identify the needed sources of income for the 2006 budget. Montas said that there were no other alternatives that would allow the government to fulfill the goals set forth under the IMF Stand-by agreement while maintaining macro-economic stability at the same time. Montas gave his statement to the press after a meeting attended by the President, the economic team headed by Danilo Medina, Juan Hernandez and Miguel Cocco. President Fernandez announced that he would sign the legislation as it came from the Congress.
Economist Bernardo Vega points out that President Fernandez had two options with the current tax situation: Plan A or Plan B. Vega says that Plan A would be to veto the legislation and thus save the IMF Stand-by accord at the expense of the DR-CAFTA agreement. However, Vega points out that in any event, most of Central America is not ready for the DR-CAFTA agreement, and that Congress would have a difficult time getting the needed two-thirds majority to override the Presidential veto. With the recent agreement between the US and China, the local textile manufacturers could probably come out okay, if not fine. On the other hand, Vega presents Plan B, which is the Presidential approval of the legislation as passed, and which is what has been announced is going to happen. This will be a big help to the pro-DR-CAFTA movement, although Congress still has to pass some important legislation regarding judicial elements of intellectual property rights. This in turn, means that DR-CAFTA won't go into effect on 1 January as planned. Then Vega points out that in order for the IMF agreement to work, the government will have to make some drastic cuts in public spending, mostly in the area of public works projects. On the other hand, the government could eliminate the subsidies on electricity and fuel, but this would increase the inflation rate, which, in turn, would affect the poor. Vega makes it clear that to him, the tax reform legislation is, at heart, a struggle to see who wins next May's elections at the municipal and congressional levels. Under Plan A, the PLD would have done a little better, but the President opted to save DR-CAFTA, even if its start up is not so imminent. This will depend on a decision of the US government. President Fernandez, in Vega's opinion, acted like a statesman more than a politician searching for votes. He'll have to negotiate with the IMF again and see how he can reduce expenditures, a very costly business during election times. And, says Vega, we still have to see how much money will be collected in comparison to what the government wanted.
Three different newspapers took three different looks as just what the proposed PRD-PRSC political alliance would do in the upcoming months. Diario Libre says that the alliance will propose Constitutional reform that would change the famous (or "infamous" as some would say) Article 55 of the Constitution that grants the President huge discretionary powers. The proposal would also change the way in which members of the General Accounting Office and the Central Electoral Board are chosen, as well as changes in the way Supreme Court justices are selected. According to the general secretary of the PRSC Victor Gomez Casanova, his party is suggesting a mechanism similar to the National Magistrates Council, which would be responsible for selecting the judges. Many points on just how to go about all of this are still in the air.
Orlando Jorge Mera, the general secretary of the PRD told Listin Diario reporters that the alliance could well include a boycott of the financing of the Metro Project, and he criticized the government for starting the works using funds destined for the feasibility studies. Jorge Mera also talked about including environmental issues that are not currently within the Constitutional framework. Hoy newspaper talks about how the PRD and the PRSC will join together to avoid the government's abuse of tax powers to the disadvantage of the ordinary citizens, as well as place more attention to public health and education issues.
CONEP's Elena Viyella de Paliza, along with PRSC party leader Federico Antun and former JCE chief magistrate Ramon Morel Cerda expressed their support for the proposal put forward by Cardinal Nicolas de Jesus Lopez Rodriguez that would oblige government, political parties and the different economic sectors to provide follow through and continuity to the Dominican state. Lopez Rodriguez proposed the creation of a national project to define the Dominican Republic, to provide selfless supervision and follow through of the government, and to take into consideration the needs of the masses. PRSC leader Federico Antun said that the Cardinal would be the ideal coordinator for such a project and offered his support. The former chief magistrate of the Central Electoral Board, Morel Cerda, told reporters that a social pact of the kind being proposed by the Cardinal was a much needed and appropriate instrument of development.
Renewed Police efforts to keep the death toll down over the Christmas holidays include increased patrols along the Las Americas highway and along the busy Duarte Avenue in downtown Santo Domingo. The National Emergency Committee has announced a campaign beginning on 23 December and ending on 26 December, and repeating the program over the New Year's weekend beginning 30 December and ending on 2 January 2006, to reduce the highway death toll. The program, according to spokespersons contacted by Listin Diario, will consist of emergency lanes set up by the AMET transit authority that will allow ambulance access to accident sites. Four helicopters will be on call over the holiday weekend, and 300 ambulances will be stationed around the country to attend to accident victims. As is usual during the Easter Week festivities, heavy transport vehicle traffic will be restricted, leaving the roads free for passenger vehicles and public transportation. According to the CNE, as many as 100,000 people will be working towards keeping the holidays safe. As an example of the expansion of the volunteer brigades as well as service personnel, the CNE cited the post at Kilometer 9 of the Duarte Highway, which is usually staffed by 15 or so personnel. This year's end there will be personnel from the Red Cross, the Fire Department and the Police in addition to the usual orange shirted CNE people, bringing the total to over 50.
A rural judge ("alcalde pedaneo") was arrested in connection with the kidnapping of Benjamin Gonzalez Reyes. According to Police, Gerardo Montilla Geronimo was one of the people who were guarding the kidnapped New York merchant. Two other men, identified in identity parades have also been arrested. Gonzalez Reyes spent two weeks in captivity as the kidnappers asked for US$3 million in ransom. He was rescued at a remote campsite in the hills near Azua, in an area called La Meseta, in Hato Nuevo. So far the police have arrested Andres Montas Jimenez, Luis Ney Ramirez del Rosario and Porfirio Antonio Baez in relation to the case. They are looking for Cecilio Diaz, Ramon Polanco Mejia and two more, known only as Luisin "El Gago" and Ramon. Both the police Anti-Kidnapping and SWAT teams took part in the successful location and rescue of the victim.
President Leonel Fernandez visited the Cave of Wonders (La Cueva de las Maravillas) near San Pedro de Macoris, on Saturday and was hosted by Alejandro Grullon, president of the foundation that manages this incredible natural resource. Fernandez acknowledged the work being done by Grullon and his team and at the same time announced a partnership between the government and the foundation to develop the area as a tourist and cultural destination. The venture will allow the foundation to complete the development of the area and create an international tourist destination. President Fernandez has instructed his Minister of Public Works, Freddy Perez, to begin construction of a protective front fence for the installation and the asphalting of the area's paths. The alliance will also provide seats for the ministers of environment, tourism and culture on the foundation's board of directors. Fernandez called the caves a "national treasure".
Friday night's action saw the Aguilas Cibaenas defeat the Leones de Escogido, 7 - 1 and raised their performance at home to just above the .500 level. Willy Mo Pena was once again the hero for the Aguilas, hitting his sixth homerun of the season. In Santo Domingo the Tigres de Licey extended their winning streak to three games, defeating the Azucareros of La Romana 8 - 1 in the Quisqueya Baseball Stadium. The victory keeps Licey in first place, one game ahead of the Aguilas.
In San Pedro de Macoris, the Estrellas Orientales defeated the Gigantes de San Francisco de Macoris 6 - 1.
| Team | Games | Won - Lost | Games behind |
| Licey | 40 | 24 - 16 | -0- |
| Aguilas | 40 | 23 - 17 | 1.0 |
| Azucareros | 40 | 21 - 19 | 3.0 |
| Escogido | 40 | 21 - 19 | 3.0 |
| Estrellas | 40 | 17 - 23 | 7.0 |
| Gigantes | 40 | 14 - 26 | 10.0 |
In spite of on and off rains, the third Inter League All-Star Game took place yesterday in the Hiram Bithorn Stadium in Santurce, Puerto Rico. For the Dominican team this was almost like a "home game" with thousands of cheering fans in the stadium waving the tricolor Dominican flag and playing 'merengues'. While Puerto Rico jumped to a 2 -0 lead in the second inning, the Dominican All-Stars came back with three runs in the top half of the third and were never headed after that. Luis Polonia, the "Atomic Ant" was the hero of the game and came away with the Most Valued Player award as well. The day before, the Aguilas' Willie Mo Pena won the Home Run Derby as well. Baseball Hall of Famer Juan Marichal joined Puerto Rican Orlando "Peruchin" Cepeda in throwing out the first ball. Marichal also provided colorful commentary for the television and radio broadcasts of the game.
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