SINGAPORE – Despite the lifting of price control on basic goods and oil products on Monday, the Arroyo government will keep the state of calamity in Luzon until rehabilitation works are finished, according to the country’s trade chief.

Trade Secretary Peter Favila said keeping the state of calamity in Luzon would assist local government units in their “emergency purchases” needed to recover from the tragedy left by killer typhoons last month.

Favila sought to clarify the duration of the calamity declaration in Luzon after President Arroyo announced plans to drop price control on food items and oil goods on Monday. The state of calamity was the basis of such relief measure.

“The state of calamity will have to stay put as suggested by (Defense) Secretary (Gilbert) Teodoro because there are still are still areas, our local government units continue to undertake rehabilitation effort,” he told reporters on the eve of the annual economic summit here.

“Under a state of calamity, local government units are allowed to undertake emergency purchases. If we lift that, they would again be caught up in the web of bureaucratic difficulties that will somehow slow down rehabilitation efforts,” said Favila, a member of the President’s lean delegation here.

Areas still in need of massive rehabilitation are Regions 1, 4, Cordillera Administrative Region, and some parts of National Capital Region.

A week later, the state of calamity declaration was lifted in Visayas and Mindanao. Luzon, which was badly affected by the typhoons, remained in a calamity situation.

Favila denied that the government was pressured by business sectors into approving the “conditional” lifting of price caps on basic goods and commodities. He said government critics should instead present “alternatives” to consumer products rather than criticize the administration.

Favila, likewise, explained that he recommended to the President to lift the price ceiling upon seeing “normalcy and discipline” in the market after the onslaught of typhoons. Such action had three conditions from the government, namely adequate supply of goods, reasonable pricing, and sustained market decision.

With the state of calamity still hoisted up in Luzon, Favila said he is prepared to recommend the return of the price control on certain food items if the market players violate these conditions.

“I told the manufacturers that I would them to instill discipline with their own distributors and retailers. If I cannot see these conditions taking place in the coming days which may become detrimental to the public's interest, I would not hesitate to re-impose the price control again,” he said.

For now, he advised oil companies and manufacturers to make “staggered” increases of their products depending on the movement of the world market. This was meant to protect consumers from hefty price hikes once the price cap is lifted on Monday.

“It is clear that many people are still in need of help since the calamity struck,” he said.  (Genalyn Kabiling)