Amendment of franking privilege for gov’t offices sought

Senator Francis Tolentino on Monday asked the Philippine Postal Corporation (PHLPost) to submit draft bills for the agency’s modernization and the amendment of the franking privilege.

“Is there a new proposal coming from your end to amend the franking law? Kasi because of this, the Congress, and the Senate have now transformed into a collecting agent. Kami ang taga-singil para sa inyo,” said Tolentino during the Senate Finance subcommittee hearing on PHLPost's proposed budget for 2024.

(Is there a new proposal coming from your end to amend the franking law? Because of this, the Congress, and the Senate have now transformed into a collecting agent. We collect fees for you.)

The franking privilege allows national agencies including Congress, the Commission on Elections, the Philippine Statistics Office, the Supreme Court, and other judicial offices, among others, to transmit mail without postage.

To make up for the losses, the PHLPost receives a subsidy from the national government.

“Parang mahirap naman 'yan na kami ang taga-kolekta? Kayo ang nag-deliver ng sulat, sila ang hindi nagbayad, kami ang mangongolekta?” Tolentino added.

(It’s difficult if we will always collect this. You delivered the mail, they did not pay, and then we’ll collect?)

PHLPost presented a P4.8-billion revenue proposal for 2024 including over P546 million for subsidy. If the subsidy is not approved, Postmaster General Luis Carlos said, the agency is poised to lose more than P549 million.

“Without this subsidy, it’s going to be a losing proposal for 2024 already. Including the subsidy, we will make P14 million for the year 2024,” he said.

Tolentino proposed to limit the franking privilege to Congress, the Office of the President (OP), and the Office of the Vice President (OVP).

Under the 1992 Postal Service Act, the franking privilege for the judiciary was waived but Carlos said it was reinstated after the Philippine Justices Association filed a petition on the basis of discrimination.

Data from PHLPost showed judiciary offices use their services the most, with more than 5.45 million mails and parcels in 2022. Other offices include the Comelec with 370,715 shipments; Public Attorney’s Office with 173,252; Office of the Solicitor General with 138,188; OP with 59,864; OVP with 6,049; and the Congress with 4,845.

“We expect to have a proposal coming from your end. We will work on this for the last time, kasi ginawa niyo kaming [because you're making us a] collecting agent…It is no longer sound and reasonable,” Tolentino added.

Carlos also appealed for the PHLPost's modernization.

“We have to move to another direction…to modernize the Postal Corporation and makasabay lang po kami sana sa [so we can match with] other postal administrations like the US Postal Service, Japan, and Korean Post and help modernize to attain the sustainability of the corporation,” he added.

For his part, Tolentino raised the possibility of giving the regulatory powers over shipping companies to PHLPost as part of their modernization.

“Can you provide us a draft bill? Parang sa Amerika...pag dumating ang ano, isang bagsakan yun eh. Kahit private ang postal services and post office, may regulatory function…If you could look at ways to modernize the postal service ang daming pwedeng gawin,” the senator said.

(Can you provide us with a draft bill? Like in the US, shipments are subject to the postal services and post office. If you could look at ways to modernize the postal service then there are a lot of ways.)

The Senate body then approved the agency's proposed budget.

PhilSA

Meanwhile, senators also passed the proposed budget of the Philippine Space Agency (PhilSA) for 2024 of P1.652 million.

Of this sum, P1,434,437 will be allocated to maintenance and operating expenses; P112,466 to personnel services, and P105,151 to capital outlay. — BM, GMA Integrated News