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Wednesday, November 9, 2011

Pierluisi Discusses Important Role of Puerto Rico Food Industry in Island’s Economic Development

San Juan, Puerto Rico- Resident Commissioner Pedro Pierluisi participated today as the keynote speaker at the Sixth Annual Assembly of the Puerto Rico Restaurant Association (ASORE, for its Spanish-language acronym). In his address, Pierluisi discussed the important role the food industry currently plays, and the even greater role it could play, in the Island’s economic development.

“The prepared food industry in Puerto Rico makes a major contribution to our economic development, creates many jobs on the Island, supports our agricultural sector, and promotes our cultural gastronomy. ASORE represents over 4,000 eating establishments, supports over 55,000 jobs, and generates over $3 billion in annual sales. There is no question that you are an important component of Puerto Rico’s economy,” said Pierluisi told the audience.

The Resident Commissioner expressed optimism regarding the potential growth of the industry. He spoke about the challenges that the economic crisis have posed in Puerto Rico and throughout the world, and described how the Island is beginning to see the fruits of the fiscal stabilization measures that have been taken by the administration of Governor Luis Fortuño.

“As our economy continues to stabilize and begins to grow as anticipated, your industry, like many other industries, will experience growth,” explained Pierluisi.

In addition, the Resident Commissioner discussed his role with respect to the roughly $2 billion deficit reduction plan that the federal government is in the process of crafting.

“It is within this context that we must focus on the future. In Washington, I am closely monitoring the Super Committee’s deliberations in order to assess what impact any proposed federal program cuts could have on Puerto Rico. If the Super Committee is not able to reach an agreement, the automatic cuts that would be triggered would not include cuts to Medicaid, Social Security, and the Nutritional Assistance Program (PAN, for its Spanish-language acronym), but would include cuts to other important federal programs. Rest assured that I will fight for every dollar for Puerto Rico and will demand that the Island be treated equally with the 50 states,” said Pierluisi.

Among the various programs that the Resident Commissioner is fighting to protect from cuts by the Super Committee is PAN. PAN is an annual block grant that Puerto Rico receives in lieu of the Supplemental Nutrition Assistance Program (SNAP), in which the 50 states participate. According to a study recently completed by the Food and Nutrition Service (FNS) within the U.S. Department of Agriculture, if Puerto Rico were to be included in SNAP and given state-like treatment, the Island would receive about $400 million a year more in federal funding. Accordingly, Puerto Rico is already at a disadvantage vis-à-vis the states with respect to this food nutrition assistance program, and cuts to the Island’s block grant could exacerbate the inequality.

The Resident Commissioner also spoke in detail about the “Buen Provecho” pilot program that the Puerto Rico Department of the Family has developed for certain categories of PAN beneficiaries in several municipalities in the San Juan metropolitan area. He emphasized the importance of taking measures to prevent abuse, to ensure that the program is effectively administered, and to make certain that participating food establishments are treating beneficiaries appropriately. Pierluisi noted that reports about the pilot program, prepared by ASORE and the Department of the Family and transmitted to FNS, have been positive and there have not been major complaints or incidents that place the pilot program in danger. He indicated that he would not oppose a gradual expansion of the Buen Provecho program in order to give more food options to vulnerable beneficiaries if FNS were to endorse such a gradual expansion.

In addition, the Resident Commissioner discussed the Food and Drug Administration (FDA) Food Safety Modernization Act, which President Obama signed into law in January 2011 and which is applicable to the food industry in Puerto Rico. This law seeks to prevent food safety problems and to increase the regulatory powers of the FDA for this purpose. The law also enhances FDA’s ability to detect, respond to, and contain problems when they do occur, so as to safeguard the health of the public. Nevertheless, Pierluisi acknowledged that the law’s requirements have caused problems for many Puerto Rico companies, primarily due to the lack of information and technical assistance that has been provided to date.

“The White House Task Force was emphatic in recognizing that federal agencies ought to be more proactive in Puerto Rico to help our businesses comply with federal laws and to avoid punitive action that could adversely affect the Island. My office will be in communication with the FDA to make certain that the agency is offering all necessary technical assistance so that the industry can take the action necessary to ensure food safety and protect the public,” said Pierluisi.

At the close of his remarks, the Resident Commissioner pledged to continue fighting for just treatment for Puerto Rico in all legislation and administrative regulations, including in all economic assistance programs and all programs designed to encourage job-creating investment. He urged the members of the prepared food industry to continue interacting with their counterparts at the national level so they remain informed, and he urged them to advocate for their interests and to work together to promote the economic and social development of Puerto Rico.