MANILA, Philippines – The National Economic and Development Authority (NEDA) has rejected the proposal of the Department of Agrarian Reform (DAR) to impose a two-year moratorium on the conversion of agricultural lands as this would worsen the prevailing housing backlog.
DAR wants to impose the moratorium – for which a draft executive order has already been prepared – to prevent the conversion of agricultural lands into subdivisions. If implemented, this would be applied to land awarded under RA 6657, PD 27 and other agrarian reform laws.
Socioeconomic Planning Secretary Ernesto Pernia said NEDA has already circulated among economic managers a position paper opposing the moratorium.
In the paper, NEDA argued that despite its intention to contribute to poverty alleviation, the ban on land conversion is actually “anti-poor” as it would prevent the government and the private sector from addressing the 5.5 million backlog in housing units especially those providing for shelter needs of the poor.
“The problem here is the ban on land conversion will have an adverse impact on housing because many areas are not really suited for agriculture but they are better suited for housing. We have a 5.5-million deficit in housing (units), we need more lands for construction. Most of this backlog is for the poor. It’s actually going to be anti-poor, this two- year ban,” Pernia told reporters Friday.
The proposed ban would also delay, and to some extent, prevent the construction of vital infrastructure for which right-of-way have to be secured.
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“There would also be a problem with infrastructure projects because right-of-way will be a problem. Many infrastructure projects would need right of way and if there is no land conversion, roads cannot we widened, or new roads cannot be constructed, railways cannot be constructed because inevitably, these projects can infringe on certain housing areas,” Pernia said.
He said NEDA’s position paper has already been circulated to the departments of Finance, Trade, and Budget and Management.
“The purpose of that is to get them to sign so that there would be gravitas as far as the position paper is concerned. And so it would carry more for the rest of the Cabinet to sign it. I think there is already a draft EO for the ban and I think it is being held in abeyance now and that will give us time to get this position paper read by the other members of the Cabinet,” Pernia said.
The Finance and Budget departments, he said, have already expressed support for NEDA’s position.
Among the other proposals contained in the position paper is the stronger enforcement of the land use policy and the taxation of idle lands to force owners to put it into productive use.
“So what we propose instead is enforcing our land use policy. Also also taxing the idle lands so the owners will be forced to put them to appropriate use,” Pernia said.
