Last night President Leonel Fernandez gave the speech that many have been waiting for since the announcement of the government's third tax reform program was made in Washington, DC last month. In the run up to the speech, speculation about just what the President would say has filled many inches of newsprint, and the speech seemed to calm many nerves.
The President told the nationwide audience that what he called a "tax correction" would affect VAT on "a few more items", but not milk, medicine or agricultural supplies. He did not, however, do anything to allay fears about the new tax hitting coffee, sugar and cooking oils, which was one of the public's main concerns.
Fernandez also mentioned that the tax on "luxury" houses would be increased from 1% to 2%, and that the 5% tax on hotel rooms would be re-established along with taxes on alcohol and tobacco products.
In a move aimed at calming the very vociferous opposition to the new tax program, the President said that the government would "tighten its belt" in order to fulfill the goals set by the International Monetary Fund. The President specified this would entail a substantial reduction of government jobs for temporary personnel, per diems, officials' personal expenses, telecommunications expenses, travel expenses and fuel consumption.
The President said that of the RD$35 billion that the government was looking for, half would come from the new taxes and half would come from government austerity programs.
In general, the opposition parties were not that pleased with the speech. PRD party president Ramon Alburquerque said that with the elimination of the propane and gas subsidies, "what is coming will be very hard." However, an article printed in El Caribe does not mention the removal of these subsidies that cost the government US$650 million for electricity alone. Federico Antun Batlle of the PRSC said that the President "didn't say anything new, and in fact he left the situation rather cloudy."
Members of the Dominican business sector, like Yandra Portela of the Industrial Association, said that her group would be meeting to analyze the speech and would be making its position clear in the near future.
Transport conglomerate leader Ramon Perez Figuereo said that the speech did not meet the people's expectations, since it did not mention the electricity crisis.
For the speech in Spanish, see http://www.presidencia.gov.do/frontend/discursos_amp.php?id=32
According to Diandino Pena, the head of the Office for the Re-organization of Urban Transport (OPRET), his Metro project will receive between ninety and one hundred million dollars next year. Pena said that this money will not affect other government disbursements and will not violate the IMF Stand-by Agreement. The engineer also rejected recent stories about a lack of funds and a marked slow down of the project. He called the critics' comments "no more than wishful thinking from those who do not agree with the project." He called the project the "administration's hallmark."
The Dominican Senate has approved the legislation needed to adapt local laws to the requirements of the DR-CAFTA free trade agreement. The set of bills and law modifications were passed without objections as received from the Chamber of Deputies. Senators also rubber-stamped a piece of budget-related legislation from the Executive Branch. In other actions, the senators rejected the creation of a new province and several new municipalities. They approved the creation of a new Justice of the Peace in the municipality of Guerra, but the Supreme Court and the Executive must now authorize the new tribunal.
The Chamber of Deputies was busy, too, approving the Law on Municipal Participation in their Budgets. This will now go to the Senate for approval. The deputies also approved the designation of 12 November as a Day of Remembrance for the victims of American Airlines flight 587.
The World Bank (WB) has reaffirmed its claim that the Dominican Republic needs to make major changes in some of its institutions. The international financial institution says that the DR must strengthen the financial system in order to limit the opportunities for fraud and collusion provided by barely- transparent supervision. The bank called for the elimination of loans to partner companies as well as government interference at supervisory level. These points were part of the "Economic Memorandum of the Dominican Republic: The basis for Growth and Competitiveness" that was released yesterday during a ceremony at Santo Domingo's PUCMM university. The report also points out that growth in the Dominican GDP did not filter down to the masses. As reported in Listin Diario, the WB points out that there is a vicious circle of growth limited by poverty, and this has to be broken by investing in infrastructure, health and education as well as providing access to credit and eliminating risks. The three greatest obstacles to investment, as seen by the WB, are electricity, corruption and crime. According to Hoy newspaper, most businesses in the Dominican Republic only report about half their sales, and these "inefficiencies in collecting taxes and the poor or inadequate infrastructure create pressure for more taxes, leading to more evasion."
Hundreds of newly graduated doctors are on waiting lists for vacancies for their compulsory one-year apprenticeship service in the nation's public hospitals. The current 1,200 slots are woefully insufficient and another 950 are needed to satisfy demand. Without the apprenticeship service, doctors cannot obtain their license to practice medicine in the Dominican Republic. Generally speaking, these young doctors are assigned to work in primary care units all over the country. In many of the most remote areas they are the only doctors serving the local population.
Cardinal Lopez Rodriguez and two of the country's main business organizations are voicing concerns about the selection process for the Central Electoral Board (JCE) magistrates that will be in charge of the 2008 presidential election. Their focus was on the fact that there had been indications that the new magistrates would come from the major political parties. The Dominican Cardinal was emphatic in saying that "some politicians are no good even for politics, much less for dispensing justice." He added that politicians should not be the ones who organize elections. Speaking for National Private Business Council (CONEP) and Young Entrepreneurs Association (ANJE), the Cardinal said, "We want committed and capable people, who are subject to scrutiny by people who are supposed to be reliable and non-political in meting out justice."
The second part of today's "Que se dice" page two editorial in Hoy newspaper tackles the same subject. Starting off with a Dominican saying that says that "he who shares out, gets the best share," the writer says that civic group Participacion Ciudadana (Citizen Participation) is warning that this is just what the political parties are again trying to do with the selection of the JCE magistrates. The writer affirms that the parties with representation in the PLD-led Senate are trying to share out the magistrates. PC's warning coincides with the impatience that is beginning to invade different sectors in reaction to the inexplicable stuttering by the senators who have had time enough to select the needed magistrates. The delays also allow, according to the editorial, for a whole series of rumors to circulate, some as absurd as to speculate that the current chief magistrate, Luis Arias, and another three judges will return to the JCE. "It's not until next Tuesday that the full Senate will hear the committee report, and when we will find out if the Senate will honor its word by electing magistrates free of political contamination and question marks, or whether it will again make a mockery of democracy that deserves to be something more than a mere characterization".
Both main opposition parties, the PRSC and the PRD have expressed support for the 48-hour national strike called by the Alternative Social Forum for tomorrow and Friday. The political parties say that they will support a peaceful strike. However, in the Chamber of Deputies, Congress leader Julio Cesar Valentin (PLD) said that a strike would not resolve anything and called the strike leaders "reckless". Several cities and towns in the Cibao region are already experiencing protests, mostly against the long blackouts. Leftist leaders Narciso Isa Conde, Fernando Pena and Eleuterio Abud joined forces in saying that, "The Fernandez government deserves a strike, and more than that."
The National Police have announced the arrest of infamous drug dealer Samuel Paula Rosario, alias "Luis Quita Tenis" (sneaker thief). Paula Rosario has 25 previous arrests on his sheet at the police headquarters. He was recently arrested and freed on bail last June. The notorious drug dealer is reportedly operating drug sales points in the Santo Domingo neighborhoods of Villas Agricolas and Capotillo. After an interim magistrate freed him on bail earlier this year, the Chief Justice of the Supreme Court told reporters, "we cannot dispute his independence, but he (the judge) has to explain what led him to make such a decision." When he spotted the arresting officers, Quita Tenis flushed an estimated 15 kilograms of cocaine down the toilet.
Manny Acta, at just 37, is the new manager of the Washington Nationals. He will be the youngest manager in the Major Leagues. Acta began his career as a coach with the Houston Astros when he was 22 years old. He has worked as a coach in the the minor leagues and as manager in the Dominican Winter League. He took the Licey Tigers to a victory in 2003 and served as the Dominican team manager in the 2006 Baseball Classic, when the all-stars team made the semifinals. He has served as a coach for the Montreal Expos and the New York Mets, where he was third base coach. He signed a two-year contract with two club options of a year apiece.
Other Dominican that have worked as managers in the Major Leagues are Osvaldo Virgil (substitute manager with the San Diego Padres), Felipe Alou (Manager of the Year who played with the Montreal Expos and San Francisco Giants), Tony Pena (Kansas City Royals and who is a past American League Manager of the Year.
A Washington Post feature attributes his being chosen on grounds of his "presence."
See http://www.washingtonpost.com/wp-dyn/content/article/2006/11/13/AR2006111301223.html
The Aguilas beat the Toros in La Romana, 5-4 in extra innings. The Gigantes were not good hosts to the Leones de Escogido, winning 7-3. Licey stopped the Estrellas winning streak at five games, winning a close game, 7-6.
Standings
| Team | W-L | Avg. | Games Behind |
| Licey | 16 - 7 | .696 | - |
| Gigantes | 12 - 11 | .522 | 4.0 |
| Aguilas | 12 - 11 | .522 | 4.0 |
| Estrellas | 11 - 12 | .478 | 5.0 |
| Escogido | 11 - 12 | .478 | 5.0 |
| Azucareros | 7 - 16 | .304 | 9.0 |
Tonight's games
* In Santo Domingo, Estadio Quisqueya
Estrellas vs. Escogido
7:30pm
* In Santiago de los Caballeros, Estadio Cibao
Licey vs Aguilas
8pm
* In La Romana, Estadio Francisco Michelli
Gigantes vs. Azucareros
7:30pm
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