President Leonel Fernandez has inaugurated the remodeled Cathedral of San Juan Bautista, two housing projects, three schools, two aqueducts, and several other infrastructural projects in San Juan de la Maguana at a total cost of RD$394 million to the government. The President arrived at the ceremonies five minutes before 11am yesterday. The aqueducts will provide water for 27,000 people. First Lady Margarita Cedeno de Fernandez also opened a computer center with 24 work stations.
The government has announced that this year's Christmas bonuses add up to RD$4.5 billion. The government says it will start paying the bonus this Friday, revving up commerce. The private sector has already begun to pay out its bonuses, adding an estimated RD$6 billion to money in circulation. Most of the money should be in circulation Monday through Wednesday next week, adding to increased traffic jams in the cities as people go Christmas shopping.
The chorus of voices against President Leonel Fernandez's fiscal reform, which aims to secure RD$17 billion to balance the budget, grows louder and louder by the day, and it now appears that his speech to the nation on Monday has not helped calm anyone down. PRD and PRSC legislators have vowed not to vote for the fiscal reform, and Monsignor Agripino Nunez Collado has asked for other sectors in the country to continue speaking out against it. Victor Bisono Haza (PRSC) was quoted in El Caribe newspaper as saying that Fernandez's austerity plan was no more than a "word game." Bisono stated that a true austerity plan would have called for the dismissal of all superfluous government personnel, starting with all the vice consuls employed by the government, as well as all the Presidential assistants and aides. Senator Felix Vasquez Espinal from Sanchez Ramirez province said that although the reform wouldn't have catastrophic effects, the President is trying to push it through without listening to the concerns of various social sectors. The ruling PLD party legislators hold the majority in Congress and will thus have the final word. The PRD has seven senators and the PRSC has four senators of a total of 32 senators. The PRSC and PRD combined have 82 deputies of a total of 178. But with news of internal PLD tensions and opposition to the idea of President Leonel Fernandez running again, it is possible that some PLD senators and deputies could vote against the President's proposed tax increases, so the passing of the reform is not yet a given.
Writing in El Caribe newspaper, lawyer Marisol Vicens Bello says that the austerity plan announced by the President is doubtful at best. Vicens points out that many of the President's proposals contain loopholes that would allow for things to continue as usual, regardless of the situation. Vicens points out that government salaries won't have to be reduced if there is an increase in government revenues next year, vehicles for personal use can be imported without taxes if the President signs off on it, delegations traveling abroad can have more than five members if the President or the delegations say so, and government officials can have police escorts at the President's discretion. Unlimited cell phone use and expense accounts will also be allowed to continue wherever the President deems those perks necessary. Vicens takes us back to the proposed reforms and reductions in government payrolls in 2003, none of which were carried out, and reminds us of one particular case. According to Vicens, Dominican Consuls were to have been paid a standardized salary, instead of receiving 25% of consular fees, potentially reducing the inflated costs of consular services, but that plan has also been left to gather dust. Vicens concludes that most of the points of the President's austerity plan can be evaded through discretionary action and exceptions. The austerity plan doesn't include penalties and reprimands for violations of the plan either, making it likely that no one will comply with it, and according to her, making almost certain that this time next year we will be asked for another fiscal reform.
The cost of owning a car will increase by 15% to 20%, according to the Association for Vehicle Concessionaires (Acofave) due to the proposed "right to circulate" tax included in the new fiscal reform. Acofave executive vice president Enriquez Fernandez says that this added RD$5 tax on fuel would not only affect transportation but foods, goods and services. Fernandez used the example of a Jaguar that costs RD$3 million that will have to pay RD$30,000 under the new tax, which would be the same for a freight truck. Speaking in Diario Libre, Fernandez explains that luxury vehicles and freight vehicles will pay the same tax, but that the increased cost for circulation of a freight truck will be added to consumer products like food, which will then be passed on to the consumer.
Even the free trade zones (FTZ) are expressing opposition to the reform. Business leaders linked with the work at the FTZ say that the fiscal reform, especially the elimination of exemptions contemplated by law 28-01, could have alarming repercussions on FTZ, and that many of the FTZ would not be prepared for such result, forcing many people out of jobs. The incentives allotted to the FTZ will be carried out through the period of the legislation, but business leaders, according to El Caribe newspaper, say that once the legislation expires they will be in danger, considering they have bought land and made investments that they won't be able to recoup. Free trade zones are already hurting under competition from China, increasing cost of electricity and labor in the DR, having to migrate to manufactured skill labor apparel items with increased value added.
PRSC Presidential pre-candidate Eduardo Estrella is asking the government to explain what it has done with the funds resulting from the Petrocaribe agreement signed with Venezuela, calculated at more than US$400 million. As reported in today's Hoy, Estrella said that the government is taking on debt for US$4 to US$5 billion as a result of the credit facilities under PetroCaribe over the next four years. Estrella said that while these are soft loans, the problem is that where the money can be used is not specified, so it is left up to government discretion.
Following the firing of journalist Adolfo Salomon from his job at ColorVision, leading journalists are highlighting the government's apparent lack of tolerance. Rafael Molina Morillo, president of the Inter-American Press Association, (IAPA) criticized the Armed Forces Minister. Molina Morillo, of the editorial director of Hoy, El Nacional and El Dia publications, said that Lieutenant General Ramon Aquino Garcia overreacted by sending the letter reprimanding journalist Adolfo Salomon for his irreverent question on homosexuality at an event held to honor Cardinal Nicolas Lopez Rodriguez. He writes that the letter showed that he does not understand the military's attributions and limits, or the role that the press and journalists have in a democratic society. He also criticized television channel ColorVision, where Salomon worked, saying that they applied self-censorship and acted submissively, a characteristic that no press company should want to be labeled with. Molina said that Salomon's dismissal is not the first and will not be the last, and he stressed the importance of debate on this topic so that it can gradually lead to an awareness of the government's intolerance and inability to accept criticism. Ines Aizpun of Diario Libre also focuses on the intolerance she says is prevalent in the Fernandez administration in her editorial commentary today. She points out the irony of the fact that all this is going on while the government promotes the Declaration of Santo Domingo on Info-ethics in Cyberspace. The real life harassment, she says, would be funny if it were not so alarming. She observes that government officials do not tolerate criticism. "And they have made it clear several times, not tolerating an adverse commentary or an irreverent question. "Now we have moved from public reprimands to private firing," she writes. She comments: "The e-government can be thinking about broadband, but in the real world, a boss fires an employee as a result of pressure from the Army, which does not like the press to ask about the rights of homosexuals," she writes. "The excuses offered by the Presidential Palace are welcome, but come as no consolation," she writes, concluding that, "We used to be getting ahead," a word-play on the governmental campaign slogan, "we are getting ahead."
Foreign Relations Minister Carlos Morales Troncoso, a former sugar cane industry executive, highlighted the fact that the trend is for increased investments in farming mechanization that will eliminate the need for Haitian labor in sugar cane fields. Dominicans reject the hard work of sugar cane cutting, which has led to thousands of Haitians being allowed to migrate to the country to take their place. These Haitians live in settlements called bateyes, many languishing today as the number of jobs declines because farms are being mechanized. Likewise, while Haitians used to start out working in sugar cane fields, nowadays most come to work in construction work, which is better paid. As reported in Hoy, Morales said that this move would make the country less vulnerable to accusations of slavery and abusive living conditions for the Haitians who come to work in the sugar cane fields and live in bateyes. "There are some organizations that live off these claims, but they are people who have problems in their own countries, because the migration problem is not simple," said Morales Troncoso. He mentioned that Spain has problems with immigration from North Africa; Germany too has difficulties with migration, and that the United States has problems with migration from Central America and Mexico.
Doctors at the Dominican Social Security Institute demonstrated in front of the Presidential Palace yesterday, but ended their strike after receiving the news from Presidential Administrative Secretary Luis Manuel Bonetti that the government would concede to their demands tomorrow at the very latest. A total of 121 hospitals and clinics were affected by the strike, though doctors continued to work in emergencies. The work stoppage was scheduled for 48 hours. The doctors were asking the government pay them more than RD$39 million in unpaid incentives and were asking for a 30% increase in salaries. This is the second time that doctors have taken to the streets in order to have their demands heard since November, when there was a 24-hour strike.
Harvard University, Unibe University and Plaza de la Salud have signed an agreement that seeks to strengthen the services provided at the Dominican Republic's emergency rooms. A pilot program at Plaza de la Salud will place Harvard medics at the hospitals' emergency rooms, in order to help Dominican medics treat patients. El Caribe writes that the agreement will last for 10 years. Once the pilot program has been successfully completed it will then be taken to other hospitals around the country. The agreement was signed by Unibe Dean Julio Cesar Castanos, Plaza de la Salud General Director Bienvenido Delgado Billini, International Medicine and Humanitarian Programs at Harvard director Michael Van Rooyen, and Associate Director of Emergency Medicines at Harvard Medical School, Amado Alejandro Baez.
Monsignor Agripino Nunez Collado is asking that journalist Adolfo Salomon be reinstated in his post at Color Vision, saying that Salomon had done nothing wrong. The Monsignor says that he was surprised by the letter written by the Armed Forces Minister, as well as the reaction from Color Vision's owners, which was to fire Salomon, but went on to say that he did not believe that Cardinal Nicolas de Jesus Lopez Rodriguez had called Color Vision to ask for Salomon to be fired simply because he was asked an awkward question. The controversy began last Tuesday 28 November when Salomon asked the Cardinal why he thought people with "obvious sexual deviations" shouldn't be allowed in the military. The Cardinal responded by declaring his opposition to homosexuality because according to him, the presence of homosexuals in the Armed Forces would negate the structure of the chain of command. Seemingly bothered by the question the Cardinal continued by saying that the moment the military allows married homosexuals into their units they will lose out on the fundamental principle of discipline. The Cardinal also chastised Salomon for asking the question, and said that it was neither the time nor the place for such discussions. Salomon was fired from his job at Color Vision just days after asking the Cardinal the question, leading to speculation that the Cardinal had requested his dismissal. Armed Forces Secretary Aquino Garcia did admit to writing a letter to Color Vision censuring the TV station's owners, but denies asking for Salomon to be fired. Garcia says he sent the letter because Salomon had been a nuisance in the celebrations of the event he was covering.
In a press release, the Cerveceria Nacional Dominicana (that produces Presidente beer) says that beer drinkers will be most affected by the fiscal reform, estimating that they will pay more than 36% of RD$ 17.5 billion the government is trying to collect. Currently there is a tax on beer depending on the percentage of alcohol, but the fiscal reform looks to impose a selective tax on beer. Teodoro Hidalgo, Director of Corporate Affairs for Grupo Leon Jimenes, says that this tax increase means that beer in the DR will become one of the most expensive in the hemisphere. Hidalgo continued by saying that once again it is the beer sector that has to carry most of the tax burden, adding that in the last three years there has been a 134% increase in taxes on alcohol, with 98% coming this year. Hidalgo also pointed out that the increased taxation on beer products would mean that alcohol sales wouldn't be at the levels they were last year. He stated that the increase in the price of alcohol weakens the national beer market because Dominican beers won't be able to compete when international brewers enter the market.
A fault in a New World Network CxA underwater telephone cable is causing problems for telecommunications services in the DR and other countries. The Dominican Telecommunications Institute (Indotel) is working to fix the problem and says that once it was notified of the fault it got in touch with New World and asked where the problem on the ARCO-1 cable lay, and how long it would take to fix.
The number of children taken to the Dario Contreras hospital this year because of injuries sustained from stray bullets has decreased by 45%. This year nine youngsters have been taken to the hospital with such injuries, compared to 20 last year. Griselda Martinez, a consultant at the hospital, attributed the decrease in these injuries to the new government security measures restricting the sale of alcohol and the Democratic Security Plan that is in operation in some of the city's most dangerous neighborhoods.
Uruguay and the Dominican Republic are the only countries in the region to have experienced an increase in poverty since 1998, according to the Economic Commission of Latin America and the Caribbean (ECLAC). These statistics come from a study called 'Social Panorama of Latin America 2006." The study compares statistics for the periods 1998-2002 and 2003-2006. However, the study does show that poverty was on the decline between 2004 and 2005. In the case of the DR, Listin Diario writes that poverty increased from 49.9% to 47.5% between 2002 and 2005, and during the same period unemployment increased from 13.9% to 16.5%. The paper writes that the 2003 crisis, increased unemployment and better financial distribution in other countries in the region lead to the low rankings for the DR and Uruguay. Poverty decreased from 44% to 39.8% in the region overall.
Last night the Gigantes continued their winning ways by defeating Licey 5-1. The Gigantes keep their iron grip on first place in the Winter Baseball league pushing the Tigres two games back of first, and the Aguilas one and a half games back of the top spot. Last night's game between Aguilas and Estrellas was rained out and will be played on Monday. Despite losing, Licey managed to classify for the post-season, as did the Aguilas. Though hope is slim for the Escogido they did manage to save face yesterday by beating the Azucareros 4-0 and ending their 16-game losing streak.
Standings
| Team | W-L | Avg. | Games Behind |
| Gigantes | 26 - 13 | .667 | -- |
| Aguilas | 24 - 14 | .632 | 1.5 |
| Licey | 24 - 15 | .615 | 2.0 |
| Estrellas | 18 - 20 | .474 | 7.5 |
| Azucareros | 12 - 27 | .308 | 14.0 |
| Escogido | 12 - 27 | .308 | 14.0 |
* Estadio Quisqueya 7:30
Estrellas vs. Escogido
* Estadio Julian Javier 7:30pm
Gigantes vs. Azucareros
* Estadio Cibao 8:00pm
Licey vs. Aguilas
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