Republic of the Philippines.
House of Representatives
‘Quezon City

Fifteenth Congress
Second Regular Session

House BiLLNo, 5221

Introduced by RAYMOND DEMOCRITO C, MENDOZA

EXPLANATORY NOTE

The most promising agriculture-based industry that has a great potential to boost
tural development, particularly in Mindanao, where the poverty rate is high is the
export banana industry. Since its inception 44 years ago, and up until now, the
Philippine export banana industry continues to provide livelihood to three hundred
twenty thousand (320,000) workers and their families. The industry pays an average
of P30 billion per year for workers’ salaries and wages excluding benefits.

The industry pays an estimated total of PhP1.78 Billion in local taxes per year. This
is in addition to the estimated PhP1.2 Billion in annual tax payments of industry
contractors and suppliers.

Because of the banana industry the peace and order situation has improved and
better governance became possible where people's livelihood is sustainable.

Presently, only 80,000 hectares of croplands in Mindanao are being utilized for
export bananas. This is only 0.8% of Mindanao’s total land area of 10,204,300
hectares, Yet, the export banana industry is the country's’ second biggest dollar-
earning agricultural enterprise next to the coconut industry which uses 4.5 million
hectares. Annually, the industry's average foreign exchange earnings is US$720
million.

Moreover, the export banana industry also provides huge income opportunities for
some 30,000 agrarian reform beneficiaries. The Government's Comprehensive
Agrarian Reform Program has nowhere found a more progressive and hospitable
ally than the export banana industry.

Needless to say, the industry has become a potent instrument of development and
empowerment for almost two million residents of Mindanao who depend on it. They
were able to improve the quality of their lives with the help of the industry. Truly, the
export banana industry is a great blessing to many people in Mindanao.


Now, it is ironic that the strategic value of the industry was built with little or no
assistance from Government. The industry's global competitiveness must be
strengthened with the assistance from the Government in the area of research and
development. This is what the small growers need most.

Funds must be allotted for the research and development programs of the industry.
‘A National Research, Development and Extension Center for Banana (NRDECB)
can be created to assist the industry for more advanced and scientific farm
operations in such areas such as land preparation, plant breeding, planting, crop-
protection, harvesting and processing,

Most importantly, a banana research institute is necessary in addressing banana
pests and diseases that threatens the viability of Philippine bananas. Black sigatoka,
banana bunchy top or bugtok and the most dreaded notorious infection called
Fusarium wilt or Panama Disease are just some of the diseases that could cripple
both the small growers and corporate farms.

There is, we feel, an urgent need for research and development facilities, scientific
and environment-friendly interventions, to enable the banana industry to cope with
global standards for productivity and food safety without sacrificing people’s health
and the environment.

In view of the foregoing, approval hereof is highly recommended

RAYMOND DEMOCRITO C, MENDOZA


Republic of the Philippines
House of Representatives
Quezon City

Fifteenth Congress
Second Regular Session

522i

HOUSE BILL NO.

Introduced by RAYMOND DEMOCRITO C. MENDOZA

AN ACT TO ESTABLISH THE NATIONAL RESEARCH, DEVELOPMENT AND
EXTENSION CENTER FOR BANANA, AUTHORIZING THE APPROPRIATIONS
OF FUNDS THEREFORE, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines on
Congress assembled:

Section 1. The National Research, Development and Extension Center for Banana
(hereinafter referred to as the Center) which shall be based in the University of
Southeastern Philippines (USEP) in Davao City, is hereby established.

Section 2. The Center shall have the following general powers and functions in line
with the research, development and extension programs of the Department of
Agriculture- Bureau of Agricultural Research (DA-BAR), Department of Science and
Technology (DOST), National Economic and Development Authority (NEDA) and the
USEP:

a. To undertake basic and strategic research for developing technologies to
enhance the productivity and utilization of banana;

b. Educate and train all stakeholders of the banana industry;

©. To serve as national repository of germplasm and information related to
banana and plantain and also disseminate the knowledge for production and
productivity;

d. To provide leadership and coordinate the network research for generating
location specific varieties, production and postharvest technologies and for
solving specific constraints in banana production; and

e. To collaborate with relevant national and international agencies in achieving
the above objectives.

Section 3. The Center shall have the specific powers and functions:
a. Develop improved cultivars through traditional and biotechnological methods;

b. Develop productive, high yielding, good quality varieties of banana;
©. Develop efficient, economic and productive banana production technologies;


d. Develop effective and sound banana processing technologies for outstanding
banana varieties;

. Develop effective and efficient production systems for all banana varieties;
Establish and maintain germplasm collection and gene bank for banana;
Assist in the development of effective and efficient marketing systems for
banana;

Evolve productive banana-based farming systems;

Develop and implement appropriate and suitable technology packages and
effective technology transfer schemes, especially the conduct of training
programs,

j. Upgrade the skills of development facilitators, extension workers and farmers
through trainings, seminars and workshops on banana production and
postharvest handling and processing;

k. Establish national and international linkages for banana research,
development, extension and production activities; and

|. Coordinate with other government’ non-government agencies involved in the
development of the banana industry,

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Section 4, The Center shall be headed by an Executive Director who shall be
responsible for the planning, implementation, and supervision of the Center's
program of activities. The Executive Director:

a, Must have completed substantial and relevant education and experience on
banana research and development; and

b. Must be of good moral character and has not been involved in a legal case
involving moral turpitude.

c. All other officers and employees of the Center shall be appointed by the
Executive Director consistent with the provisions of the Civil Service laws,
rules and regulations.

Section 5. The plans and programs of the Center shall be reviewed annually by the
Advisory Board which shall be composed of:

a. The Secretary of the Department of Agriculture as Chairman;
b. The Secretary of the Department of Science and Technology as Vice
Chairman;
c. The Secretary of the Department of Trade and Industry as Member,
d. The Secretary of the Department of Environment and Natural Resources as
Member;
e. The University President of the University of Southeastern Philippines as
Member;
f. One (1) representative from a non-governmental organization (NGO) working
‘on banana production, research and development and processing;
One (1) representative from the industry group of the banana exporters; and
. One (1) representative from the labor unions or cooperatives present in the
industry.

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Section 6. The presence of at least five (5) members of the Advisory Board at the
time of the meeting shall constitute a quorum: Provided however, that in case of the
absence of the Chairman, the Vice Chairman shall preside the meeting.


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Section 7. The Center is hereby authorized to plan, construct, develop, improve,
acquire or lease buildings, farms, fields, and other facilities, to purchase
machineries, equipment, materials and supplies locally or abroad as may be
necessary to carry out its functions and objectives. Moreover, the Center shall enjoy
exemption from taxes and other duties in the importation of machineries,
development and extension programs, subject to the provisions of Section 105(s) of
the Tariff and Customs Code, Section 103(f) of the National Internal Revenue Code
and to the provisions on Automatic Appropriations under the General Appropriations
Act.

Section 8. The main offices, experimental area and nursery of the Center shall be
located at the University of Southeastern Philippines in Davao City. The Center may
hereafter establish similar such facilities in its other service areas in order to promote
the development of the banana industry in the country.

Section 9. To carry out the provisions of this Act, the amount of THREE HUNDRED
MILLION PESOS (Php300,000,000.00) is hereby appropriated from the funds of the
National Treasury. Thereafter, such sums as may be necessary to maintain the
operations of the Center shall be included in the General Appropriations Act.

Section 10. Any and all savings and income of the Center shall constitute a
revolving fund which shall not be reverted to the General Fund and which shall be
used by the Center in the furtherance of its goals and objectives.

Section 11. Implementing Rules and Regulations. The Advisory Board shall
promulgate rules and regulations to implement the provisions of this Act.

Section 12. Repealing Clause. All laws, decrees, orders, rules and regulations
inconsistent with or contrary to the provisions of this Act are hereby amended or
repealed accordingly.

Section 13. Effectivity Clause. This Act shall take effect fifteen (15) days following
its complete publication in the National Gazette or in at least two (2) newspapers of
general circulation, whichever comes earlier.

Approved,