Congress of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5289

House Bill No.

Introduced by: Representative Manuel Jose M. Dalipe

EXPLANATORY NOTE

This bill aims to establish a Seaweed Development Authority that will coordinate the promotion,
development, protection, and growth of the seaweed industry. Through the said authority, research and
development devoted to improve the quality of seaweed, especially in the face of climate and environmental
changes shall be institutionalized. Such will make the industry more globally competitive while maintaining
sustainable growth.

Seaweed is one of the most important aquaculture commodities in the Philippines. In 2016, the
Philippines ranked 8th among the top fish producing countries in the world with its total production of 4.2
million metric tons of fish, crustaceans, mollusks, and aquatic plants (including seaweeds). The production
constitutes 2.1% of the total world production of 202.2 million metric tons. Similarly, the Philippines is the
world’s 3rd largest producer of aquatic plants (including seaweeds) having produced a total of 1.4 million
metric tons or nearly 4.7% of the total world production of 30.14 million metric tons.

At the regional level, the Autonomous Region for Muslim Mindanao (ARMM) registered the highest
production among all regions with its 20.9% or 899,374 metric tons share to the total fisheries production,
where seaweed was the major commodity produced. In 2018, seaweed came 2nd on export value which went
up from USS 174 million (19%) in 2017 to USS 207 million in 2018, which translates to 13% share to the total
export earings for that year'.

Since 1971, seaweed farming has been a reliable source of income for more than 100,000 families in
the Philippines’. For instance, in Puerto Princesa City, Palawan, wives of fishermen eam from farming
seaweeds. For years, seaweed farming has provided them a path out of hunger and poverty°,

Despite its abundant contributions to the Philippine economy, the seaweed industry has been
overlooked for many years. With this in mind, itis high time that we create a Seaweed Development Authority
in order to regulate and harness the seaweed industry and reach its full potential of being a major producer in
the world market. This will bring greater income for the country, more work for seaweed farmers, and better
‘economy in establishing a sustainable and competitive seaweed industry.

In view of the foregoing justifications, the passage of this bill is eamestly sought.

MANUEL JOSE J. DALIPE

+ Philippine Fisheries Profile, (2018). Retrieved from: https://www.bfar.da.gov.ph/publication

2 Valderrama, D. (2012). Social and Economic Dimensions of Seaweed Farming: A Global Review.

» Enano, J. (2019). Fishers’ wives earn at seaweed farms. Retrieved from https://newsinfo.inquirer.net/1126027/fishers-wives-earn-
at-seaweed-farms


Republic of the Philippines
Congress of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 5289

Introduced by: Representative Manuel Jose M. Dalipe

AN ACT

CREATING THE PHILIPPINE SEAWEED DEVELOPMENT AUTHORITY

AND DEFINING ITS OBJECTIVES, POWERS AND FUNCTIONS

Be it enacted by the Senate and the House of Representatives of the Philippines in the Congress

assembled:

SECTION 1. Short Title. This Act shall be known as the “Philippine Seaweed Development Authority

Act”.

SEC. 2, Declaration of Policy. It is hereby declared to be the policy of the State to promote the rapid,
integrated development and growth of the seaweed industry in all its aspects and to ensure that the seaweed
farmers become direct participants in, and beneficiaries of, such development and growth.

Consonant to this policy, the State shall ensure the development of the seaweed industry in
accordance with the following principles:

a.

Protection from Unfair Competition, ~ The State shall protect small farmers from unfair
‘competition such as monopolistic and oligopolistic practices by promoting a policy
environment that provides them priority access to credit and strengthened cooperative-
based marketing system. Any joint venture with foreign investors shall be consistent with
the constitutional provision that at least sixty per centum of the investment shall be owned
by Filipinos.

Global Competitiveness.- The State shall enhance the competitiveness of the seaweed
industry sector in both domestic and foreign markets.

Sustainable Development. - The State shall promote development that is compatible with
the conservation of the ecosystems in areas where seaweed production activities are
carried out. Judicious use of the country’s natural resources shall be exercised in order to
attain long-term sustainability.

Poverty Alleviation and Social Equity. - The State shall ensure that the poor sectors of
society have equitable access to resources, income opportunities, basic and support

services and infrastructure, especially in areas where productivity is low, as a means of
improving their quality of life.

Rational Use of Resources. - The State shall adopt a rational approach in the allocation of
public investments in the seaweed industry in order to ensure efficiency and effectiveness
in the use of scarce resources and thus obtain optimal returns on its investments.


f. People Empowerment. - The State shall promote people empowerment by enabling all
citizens through direct participation or through their duly elected, chosen or designated
representatives, the opportunity to participate in policy formulation and decision-making
by establishing the appropriate mechanisms and by giving them access to information.

SEC. 3. Creation of the Philippine Seaweed Development Authority. - To implement and attain the
declared state policy and consistent with the principles enumerated above, there is hereby created the
Philippines Seaweed Development Authority, hereinafter referred to as Authority, under the Department of

Agriculture.

SEC. 4. Principal Office. - The Authority shall maintain its administrative principal office in
Zamboanga City and establish its main research and development center in the Province of Sulu. It may
establish branches and other research or marketing centers in other parts of the country as may be necessary
for the proper conduct of its operations.

SEC. 5.- Statement of Objectives. - The Authority shall have the following objectives:

Fy

To enhance profits and incomes in the seaweed farming, by ensuring equitable access to assets,
resources and services, and promoting value-added processing;

To encourage and promote people empowerment by strengthening people’s organizations,
cooperatives and non-government organizations of seaweed farmers and by establishing and
improving mechanisms and resources for their participation in government decision-making
and implementation;

To pursue a market-driven approach to enhance the comparative advantage of our seaweed
industry in the world market;

To encourage the seaweed farming sector to continuously develop new value-added or
processed seaweed products in order to minimize the marketing of raw, unfinished or
unprocessed products; and

To provide social and economic adjustment measures that increase productivity and improve
market efficiency while ensuring the protection and preservation of the environment and
equity for small farmers and fisherfolk.

SEC. 6. Power and Functions. - To carry out its objectives, the authority shall have the following
powers and functions:

a

b.

Prescribe, repeal and amend its own by-laws;

Formulate and adopt a Seaweed Industry Development Masterplan covering a five (5)-year
term at a time, subject to yearly monitoring, evaluation and review;

Establish, operate and maintain one central seaweed industrial processing plant and other
support services within the premises of its main research and development center. Whenever
necessary and practicable, it shall establish seaweed industrial processing plants in other major
producing provinces geared toward the development of the seaweed industry. Furthermore,
farmers shall be encouraged to partly own the processing plant in order to encourage them to
increase seaweed production;

Encourage and promote the exportation of seaweed and its value-added products by
establishing and undertaking measures to enforce standards for domestic trade and export of
seaweed and seaweed products within globally acceptable practices and market price;


e

Review, revise, align and thereafter, integrate into the Seaweed Industry Development
Masterplan, the existing policies, projects and activities of all other government agencies
contributing to the attainment of the objectives of the Authority.

Institutionalize seaweed research and development devoted to improvement of the quality of
seaweed, its adaptation to climate and environmental changes, and its various applications, by
designating/establishing seaweed research and experiment stations, and sub-stations in
strategic locations nationwide, as deemed necessary.

The Authority shall ensure that sufficient budgetary allocation is available for the operations of
the seaweed research and experimental stations and sub-stations enabling them to conduct all
researches, tests and experiments needed for the development of the industry;

g.
h.

Ensure that seaweed farmers’ organizations have direct access to markets;

Facilitate the access of farmers to credit by encouraging private lending institutions to provide
loans at affordable interest rate;

Receive grants from any source, domestic or foreign, public or private, in accordance with
existing laws;

Adopt and use a corporate seal;
Sue and be sued;
Have continuous succession until dissolved by law;

Exercise all the general powers conferred by law upon corporation as are incidental or
conducive to the attainment of the purposes of this Act.

SEC. 7. Board of Directors of the Authority. - The corporate powers of the Authority shall be vested
in and exercised by a Board of Directors, hereinafter referred to as the Board, to be composed of the following:

b.

Secretary of the Department of Agriculture as Chairperson;
Secretary of the Department of Trade & Industry as Vice-Chairperson;

Director, University of the Philippines-Diliman Marine Science Institute as Member;
National President, League of Cities as Member;

National President, League of Municipalities as Member;

President, Land Bank of the Philippines (and/or other government financing institution/s as
Members/s;

Three (3) representatives of seaweed farmers’ organization/s — one (1) representing Luzon;
‘one (1), Visayas; and one (1) representing Mindanao, as Members;

Two (2) representatives of the national organization of the seaweed processing and exporting
sector as Members.

‘The representatives of the private sector shall be appointed by the President of the Philippines, upon
recommendation of the sector they represent, and shall serve for a term of four (4) years.

Only citizens of the Philippines shall be appointed Board Members of the Authority. In case of
vacancy, the appointed successor shall serve only the unexpired portion of the term of his predecessor.


The Board of Directors that belong to the government sector may appoint their respective regular
representatives to the Board provided these representatives belong to the top three ranks in their respective
agencies.

The Board shall meet regularly at least once every quarter or as often as it deems necessary. At least
six (6) members shall constitute a quorum. The Board may be convoked by the Chairperson or Vice
Chairperson. The Board of Directors shall each receive a per diem of Ten Thousand Pesos (P10,000.00) for
every session attended, but in no case shall the total thereof exceed Twenty Thousand Pesos (P20,000.00) per
month,

SEC. 8. Powers and Duties of the Board.- The Board shall have the following powers and duties:

a. Formulate and adopt policies, plans and programs and prescribe or promulgate such rules and
regulations as may be necessary to implement the intent and provisions of this Act;

b. Enter into, make and execute contracts of any kind as may be necessary or incidental to the
attainment of the purposes of this Act;

c. Approve the budget of the Authority and to determine the reasonable compensation of its
personnel consistent with the provisions of Republic Act No. 6758 or “The Salary Standardization
Law”;

4d, Establish policies and guidelines for employment on the basis of merit, technical competence and
moral character, and approve a staffing pattem of personnel defining their powers and duties
subject to Civil Service laws, rules and regulations;

¢. Review and approve the appointment of personnel of the Authority from the rank of division chief
or higher;

f. Exercise final authority on administrative cases involving personnel of the Authority where the

penalty imposed is suspension of thirty (30) days or more;

SEC. 9. Management.- The management of the Authority and the general conduct of its operations
shall be vested in the General Manager who shall serve as the Chief Executive Officer. The General Manager
shall be natural-born Filipino citizen, at least thirty (30) years old, and a person of known integrity and
competence in technical and administrative fields related to the purposes of this Act.

He shall be appointed by the President of the Republic for a term of four (4) years and may be re-
appointed once for another term.

He shall receive a salary to be determined by the Board in accordance with the Salary Standardization
Law.

He shall have the following powers and duties:

a) Execute the administers the policies, plans, programs and rules and regulations approved and/or
promulgated by the Board;

b) Submit for the consideration of the Board such policies, plans, and programs as he/she deems
necessary to carry out this act;

¢) Direct and supervise the operation and internal administration of the Authority, including
imposition of disciplinary actions among the Authority's personnel;

4) Appoint or promote employees of the Authority subject to the confirmation of the Board;


©) Transfer, assign, re-assign employees of the Authority as the exigencies of the service may require
and approve penalties in administrative cases involving suspension for less than (30) days and
lighter penalties;

f) Recommend to the Board the appointment or promotion of personnel from the rank of division
chief or higher and submit for decision by the Board administrative cases where the penalty
imposed is suspension for thirty (30) days or more, demotion or separation from the services;

8) Administer and manage the budgetary appropriations and financial disbursements of the
Authority;

h) Exercise such other powers and perform such other duties as may be directed by the Board.

SEC. 10. Assistance from the Other Government Entities.- The local Government Units (LGU), the
Department of Environment and Natural Resources (DENR), the bureau of Fisheries and Aquatic Resources
(BFAR) and all other government agencies concemed shall extend the necessary assistance and support to the
Authority, particularly by including the development of the seaweed industry in their coastal resource
‘management plans and programs;

SEC. 11. Rules and Regulations — The Department of Agriculture shall, within ninety (90) days from
the approval of this Act, formulate the necessary rules and regulations for the implementation of this Act.

SEC. 12. Separability Clause ~ If any part of provision of this Act shall be held invalid or
unconstitutional, the remaining parts or provisions not affected thereby shall remain in full force and effect.

SEC. 13, Repealing Clause. — Alll laws, decrees, executive orders, proclamations, rules and regulations,
and other issuances, or parts thereof which are inconsistent with the provisions of this Act are hereby repealed
or modified accordingly.

SEC. 14. Effectivity ~ This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in at least two (2) national newspapers of general circulation.

Approved,