8th National Congress, Philippine Councilors League, SMX Convention Center, Mall of Asia, Pasay City (March 10, 2011)

            I would like to thank the Philippine Councilors League most sincerely for making me part of this gathering. I always welcome opportunities like this to share my views and insights to a distinguished group of officials who play a crucial role in nation-building.
            As a former mayor, I recognize that yours is a pivotal role in the success of a local government unit (LGU). I am thus glad to know that you aim to continue learning and innovating, as reflected by your theme for this year’s conference. This signifies your commitment to provide better service to the people and your community.
            I have always been an advocate of strong local government units. I believe that the solutions to many of our national problems can be found at the local level. From experience, you and I know that many of the best practices in the field of public management, social services, and economic empowerment are best practices of local governments.
            But we have yet to see the full potentials of our LGUs. And you, as local legislators, must step up to ensure that our local governments will succeed in realizing those potentials.
            The national government has set the pace. President Benigno Aquino III has instigated various programs in line with his daang matuwid paradigm.
            Likewise, President Aquino enjoys the optimism and support of the public. Eight months into office, his administration still enjoys high trust ratings brought about by the people’s confidence in the vision of the current leaders, and their capability and commitment to deliver on their mandates.
            As a staunch believer in the capacity of the local government units, I think it would be a shame if our local officials were to remain idle and unmoving in light of the active and purposeful governance of President Aquino.
            As you know, the President has appointed me as the chairman of the Housing And Urban Development Coordinating Council (HUDCC). I have instructed the key shelter agencies to come up with programs that will further push forward the Aquino administration’s thrusts.
            I expect that you, as local legislators, will be instrumental in assisting the national government in attaining the goals it has set to bring genuine change to our nation.
            At this point, allow me to share with you suggestions as to how you, as legislators and local government officials, can help in providing one of the most basic needs of our constituents – shelter.

1.  For local governments like provinces and cities which can afford, they can float local government bonds for housing;

2.  To respond to the requirements of the poorest of the poor in many localities in the country, local governments can also provide two alternatives:

a.  Est​ablish a matching fund for residents that will require support in the construction of simplistic, affordable housing units; and

b.  Start a pur​ely self-help program using the most affordable materials. The local governments in this regard can provide construction and material guidelines.

            As of now, we are facing 3.6 million housing need that is steadily rising. All our efforts must be geared towards the reduction of the housing gap, and giving priority to the problem of the homeless poor. I am confident we can address the gap only if all concerned stakeholders, especially you in the LGUs, would contribute to the attainment of this goal.
            It is in this light that I recommend that you seriously consider these suggestions. 
            What we need at the level of local government are councils which are anticipative and participative rather than merely reactive.
            The national government resources for housing are simply not enough. Over the last ten years, the average budget allocation for the entire housing sector only accounts for 0.19% to 1.4% of the government’s total annual budget. 
            But this should not stop us from doing our job of reducing the gap. We need to be more creative in developing strategies and reforms that will respond to the huge need.  We need to put every conceivable idea of resource mobilization into effective use to spur housing production. We need to partner with various sectors to generate more units.
            Last January 19, we convened members of the housing council to inform them of our vision for the sector. Our strategic framework does not lie in simply constructing housing units. We want to build harmonious and sustainable communities. We invited some legislators and some private sector representatives whose thrusts are similar to ours and whose support we cannot do without. Together we adopted policy directions and programs that are pro-active and innovative to attain our goals for housing and urban development.
            One of our thrusts is to build a strong partnership with local government units to accelerate housing production, reduce cost and make houses more affordable. We believe in the principle of subsidiarity or what I call closer-to-the-people principle. We are convinced that any government function is best performed by the subsidiary of government that is most competent and closest to the people. And these are precisely the local governments.
            Thus pro-actively we are trying to heighten LGUs’ awareness of their role as key actors in ensuring sustainable housing and urban development, and strengthen their capability to deliver housing services.  
            Just last month, we launched our Pabahay Caravan in Cebu City and last week, we held another in Baguio. The caravan is our way of cascading the national housing programs and services to the local level.
            So far, we are very much encouraged by the caravans.  We have generated the interest of the local governments and more importantly, we have secured their commitment to work with us in solving their housing needs.
            Already, a caravan in Mindanao is in the offing.
            It may be worth mentioning that right now we are also pushing for the strengthening of the institutional framework for housing and urban development through the creation of the Department of Housing and Urban Development. 
            The Department shall be the primary national government entity responsible for the management of housing and urban development. It shall be the main planning and policy-making, program coordination, and performance monitoring entity for all housing and urban development concerns.

            The Department shall effect and oversee a  single regulatory system that shall govern all activities relative to the planning, production, marketing, and maintenance of residential and commercial development projects, and encourage observance of all sectors including local government units, of housing and urban development laws, standards and guidelines.
            It is a one stop shop for addressing housing concerns nationwide. We want to make things easier and simpler for everybody.
            Further to cascading the national housing program to the local level, we are pushing for the enactment of a law on the creation of local housing boards in every city or municipality. These boards will create a close working relationship between the national key shelter agencies and the LGUs to fast-track housing delivery, as well as the disposition of underutilized assets of the national and local governments for housing purposes.
            Also in the first council meeting, the private sector representative mentioned that one of the incentives for them is reducing red tape in the processing of housing loans and housing permits.
            Let me assure you at once that we are working towards that—further streamlining our procedures to fast-track processing. In the same manner, I call upon all LGUs to do their share, your share, by simplifying your work processes in the issuance of development permits and other licenses related to housing.
            Likewise, you must use your resources to deliver the necessary services to your people. You are in the best position to know the status of your LGUs in line with meeting the goals set by your localities.
            I have always maintained that government must be managed like a private corporation. I am sure that as councilors, you will also see and appreciate the logic behind this idea.
            By being business entities, LGUs can explore more opportunities to increase revenues without increasing local taxes excessively. The income derived from these business undertakings can be used to fund new programs or supplement the funding for high-impact programs.
            Local government corporations should not be afraid of competition. In fact, they should engage in competition of some sort with the private sector, but at the same time excel in the performance of their mandate—which is to provide public services.

            But I must emphasize that these LGU corporations must be run like private companies, for if we run them like government, with its inflexible rules and miles of red tape, malulugi ang negosyo at magsasara kaagad ang tindahan.
            Private sector management, I believe, provides the tools for efficiency. But I think a more important aspect of private sector management which we need to embrace as part of government culture is the way we should treat the public. 
            It is a sad truism that while the public pays the taxes which pay for the salaries of all government officials and workers, it is the private sector that treats them better. We should change this.
            Eventually I would like to see local officials elected not only on the basis of their political strength but in their management expertise. I am confident that with the help of able and competent councilors like you, your respective localities are on their way to becoming the autonomous and self-reliant LGUs we all aspire for.

            Good evening. Mabuhay tayong lahat.