The government on Wednesday announced the proposed deactivation of the North Luzon Railways Corp. (NLRC), citing the need to rightsize the operations of a number of government-owned or -controlled corporations (GOCCs), including the one operating the Manila-to-Clark rail line.
Budget Secretary Benjamin E. Diokno said he recommended the deactivation as part of efforts to abolish GOCCs with overlapping functions and to generate savings.
“We have a lot of recommendations for the abolishment, merger, or deactivation of agencies. For example, the North Rail,” Diokno told financial reporters.
The NLRC is an attached agency of the Department of Transportation (DOTr) and a subsidiary of the Bases Conversion and Development Authority (BCDA).
Executive Order (EO) 232, issued by then-President Gloria Macapagal-Arroyo, transferred the oversight of the NLRC to the DOTC.
“In order for the DOTr to effectively oversee and monitor the implementation of the North Rail Project, there is a need to transfer administrative supervision over North Rail from the Office of the President to the DOTr and to reorganize the respective Governing Boards of North Rail and the PNR [Philippine National Railways] to include the DOTr secretary as ex-officio cochairman thereof,” the EO said.
He said agencies that have eight employees and 11 board members should just be done away with to save on office space, equipment and supplies cost to the government.
But Diokno pointed out that rightsizing doesn’t necessarily mean reducing, he explained that the government is looking into merging existing agencies or GOCCs to create one centralized agency to cater to a specific sector or industry.
“But rightsizing does not really mean reduction. In fact, we are thinking of a Department of Housing and Urban Development so housing bodies will be merged. That is doable. It’s honest to goodness rightsizing. It does not necessarily mean reduction,” he added.
Diokno also said the Governance Commission for GOCCs (GCG) also moved for the consolidation of agencies, starting with guarantee firms consisting of around five agencies.
“Those are also economies of scale, and as a matter of policy, government agencies should not be lending directly. It has to be through a bank,” he said.
Diokno said only deactivation, and not abolition, was recommended for the NLRC. An outright abolition requires an act of Congress.
“I think you need a law to repeal it. Deactivation means you will not be given a budget, you cannot operate, not abolished,” he said.
The government is pursuing an ambitious infrastructure build-up program to enhance the country’s roads, bridges and transport system. Some 75 flagship projects are under that
buildup program.
An estimated P8 trillion is needed for the buildup program over the next five years.
Budget Secretary Benjamin E. Diokno said he recommended the deactivation as part of efforts to abolish GOCCs with overlapping functions and to generate savings.
“We have a lot of recommendations for the abolishment, merger, or deactivation of agencies. For example, the North Rail,” Diokno told financial reporters.
The NLRC is an attached agency of the Department of Transportation (DOTr) and a subsidiary of the Bases Conversion and Development Authority (BCDA).
Executive Order (EO) 232, issued by then-President Gloria Macapagal-Arroyo, transferred the oversight of the NLRC to the DOTC.
“In order for the DOTr to effectively oversee and monitor the implementation of the North Rail Project, there is a need to transfer administrative supervision over North Rail from the Office of the President to the DOTr and to reorganize the respective Governing Boards of North Rail and the PNR [Philippine National Railways] to include the DOTr secretary as ex-officio cochairman thereof,” the EO said.
He said agencies that have eight employees and 11 board members should just be done away with to save on office space, equipment and supplies cost to the government.
But Diokno pointed out that rightsizing doesn’t necessarily mean reducing, he explained that the government is looking into merging existing agencies or GOCCs to create one centralized agency to cater to a specific sector or industry.
“But rightsizing does not really mean reduction. In fact, we are thinking of a Department of Housing and Urban Development so housing bodies will be merged. That is doable. It’s honest to goodness rightsizing. It does not necessarily mean reduction,” he added.
Diokno also said the Governance Commission for GOCCs (GCG) also moved for the consolidation of agencies, starting with guarantee firms consisting of around five agencies.
“Those are also economies of scale, and as a matter of policy, government agencies should not be lending directly. It has to be through a bank,” he said.
Diokno said only deactivation, and not abolition, was recommended for the NLRC. An outright abolition requires an act of Congress.
“I think you need a law to repeal it. Deactivation means you will not be given a budget, you cannot operate, not abolished,” he said.
The government is pursuing an ambitious infrastructure build-up program to enhance the country’s roads, bridges and transport system. Some 75 flagship projects are under that
buildup program.
An estimated P8 trillion is needed for the buildup program over the next five years.
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