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PIA Press Release
2008/07/08

Davao eyes cost-cutting schemes

by Prix D Banzon

Davao City (8 July) -- With the high cost of fuel, oil and lubricants, the city government of Davao has devised a scheme in order to implement doable projects towards the end of 2008 to cut operating cost.

Davao City administrator Atty. Wendel Avisado at the Kapehan sa Dabaw at SM City on Monday said they are into clustering of activities that is why the departments can not implement their projects by themselves and it has to be clustered.

This is because when they prepared for their specific budget cost of fuel per liter was only P36 but now it has gone up to over P60. The increases have gone sky high in a span of one month, he said.

He said they divided the departments into clusters namely economic, social, financial, development.

Right now Avisado said the department heads are asked to review and assess the remaining projects that they need to implement and if the program is non-negotiable and has to be implemented they do it with the cluster.

Avisado also said that part of the measure is the non-holding of trainings and employees are no longer allowed to attend any kind of conferences outside of the city.

Davao City's budget this year is at P3.2 billion with an estimated remaining balance of cash on hand and on bank estimated at P1.3 billion, he said.

The department heads he said during their Monday conference recommended for the implementation of the four-day work week.

But this is still a recommendation Avisado said although looking at the positive side with three days off given to the workers they could find some employment to augment their income.

He said the four days work also would mean cutting cost of expense on the part of the city government although Avisado did not give figures on much they could save on power.

He however said that for four years now they had been implementing austerity measures by putting off the lights and airconditioning units on noon break. "We were able to saving 10 percent on this," he said.

Avisado meanwhile said that there are other needs that they have to comply like the across the board increase of employees costing the city P30 million for the increase even as he said that they still have to upgrade the salaries of job orders and services.

He said the four-day work week is possible and they will implement it when everything has been considered. (PIA) [top]

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