Speech by President Felipe Calderón Hinojosa

Thank you, thank you. You are very kind.

Mr. Mario Marín Torres, Governor of the State of Puebla.

Ms. Blanca Alcalá Ruiz, Municipal President of this capital city.

Representative José Othón Bailleres Carriles, Great Commission Chairman of the State Congress.

Magistrate León Dumit Espinal, President of the State’s Supreme Court of Justice.

Representative Joel Ayala Almeida, union leader of the Federation of State Workers Unions.

Professor José Mendívil Zazueta, Housing Secretary of the SNTE (National Teachers Union).

Distinguished members of the presidium, Commander of the XXV Military Zone.

Dear special guests, senators, ladies and gentlemen representatives, federal and local Puebla representatives.

Beneficiaries, builders, all our friends:

The Federal Government works with one main goal: to ensure that every day more Mexican women and men, more families may live better.

And we have set out to open those service opportunities, those public services and housing opportunities, such as the event that has brought us together today.

That is why I am very pleased to be here with you, with several purposes in mind.

Number one. To announce here in Puebla the FOVISSSTE Credit Program; this sole FOVISSSTE Credit Program will, in 2009, benefit one hundred thousand families with housing-related actions: a record figure for this institution.

Also, of course, to be with those families that are today receiving their title deeds and the keys to their new homes, thanks to this Fund’s credits, the Social Security and Services Institute for State Workers’ Housing Fund, FOVISSSTE.

These houses are a reward; I am very grateful to the doctor for his words and I believe that they are a reward of the effort, of the savings made by women and men, by people who work at the service of all Mexicans; workers who belong mostly to the Federal Government and who probably have dedicated their whole lives to giving to others through public service.

I am very pleased to have given keys or title deeds to teachers; some of them having told that they have accumulated more than 34, 35 years of service; to doctors, to workers in the fields of Education, Communication and Transportation, workers of the Judiciary Branch of Government, from the Judiciary Council: I can’t mention them all.

I am very pleased that now with FOVISSSTE we are now stepping up the pace in order to overcome the enormous backlog we had regarding housing for public service workers; these workers mostly serve the Federal Government and, in many cases, as determined by coordination, the States’ governments.

Pay attention to this fact: until the time before my Government, of all retired workers; that is, from all workers who had dedicated practically their whole lives to serving the Government, only seven percent, only seven in 100, less than one in 10, had been able to obtain a FOVISSSTE credit. This, in practice, implies the cancellation of a right, of a benefit to which they should have a legitimate right.

Today, we are carrying out an enormous effort, as I shall comment further one, in order to overcome this backlog, to amplify the credit actions for State workers, to enlarge the amount of the credits, as we are doing today also; we are increasing these credits by 25 percent, an action that allows many to buy houses that are truly very pretty, such as the one that the doctor received today; if you have the time after the event to visit some of these houses, you will find that they are three-bedroom houses, with bedrooms that are quite large and comfortable; each of them has their own bathroom; I could go on.

These are truly actions that are setting us on the road that leads to our goal to make sure that at least 45 percent and, if possible, half of all State workers may gain access to a housing credit.

And let me tell you, my friends, that none of this would have been possible without the reform to the ISSSTE Act. For this reason, I would like to acknowledge especially those legislators that today are with us, those that are not and one in particular who, as a legislator, as a Mexican, and as someone committed to the country and to represent the workers, made this possible.

With these reforms not only were we able to avoid ISSSTE from bankruptcy and to rescue its financial feasibility, but we also became able to massively increase, as it was our goal, the support funds channeled through FOVISSSTE for the purpose of multiplying the number of houses for the benefit of workers; I would like to acknowledge Joel Ayala, who is here with us today, whose efforts made possible this important change.

Today, we are delivering 230 title deeds; it is only a gesture, a symbolic event, but a very significant one; 230 title deeds to Pueblan families who shall have full legal certitude regarding their patrimony.

I was also very pleased because in this kind of events, I normally give the keys or some other document, a certificate, a receipt; today, I was pleased to be able to also give the title deeds, already duly registered before the Notary Public; these are the real thing, not that the usual documents are not, since they are, of course, but this time it is the formal document, the title deed, the one all families consider to be the most valuable, the ones we put away very carefully in that special place in our house only we know of.

Besides, I am also pleased that with all housing actions we are promoting the domestic economy, even in difficult times such as the ones the world is going through.

If its speed slows down or if the external engine of the Mexican economy goes out altogether such as is, for example, the United States economy, we are decided to turn on the internal engines of domestic economy.

What engine are these? Infrastructure: highways, schools, hospitals and another, which is very, very important: housing. And we are going to promote this through the programs we have put together and with even more programs.

For example, this development, which this housing project, this horizontal condominium is a part of, implies the construction of almost 11 thousand houses; it will also have several phases; building this development meant three thousand direct jobs and probably three indirect jobs for every direct one; that is, more than 10 thousand jobs for Pueblan families.

And through this we are promoting and will continue to promote the economy for the purpose of generating employment and economic activity and, through them, allowing families to live better.

Let me tell you that just in 2008 we will generate almost 90 thousand credits that, as the FOVISSSTE Director said, are more than twice as many credits as were granted as a mean per year in the previous Administration and that is considering the fact that the previous administration really increased credit in a significant manner.

And, for 2009, what I am now announcing in this city, the capital of the State of Puebla, is that we are setting out, despite the adverse economic environment and I would like to say that it is precisely because of that adverse economic environment, to attain the figure of one hundred thousand credits granted to State workers during 2009.

This represents a 43 thousand million-peso investment, which is 30 percent larger than the figure for this year; it should be a very successful year and the benefits from the program not only benefit more workers next year.

As I have already said, we have changed the rules not only for the purpose of simplifying FOVISSSTE credits, but to make sure that every credit will allow a teacher, a doctor, a clerk or a secretary to truly have a better house.

Why?

Because we are authorizing a 25 percent increase in the value of credit which, undoubtedly, will allow workers access to a better home.

This, dear friends, is a clear demonstration that: the reform to the ISSSTE Act brings concrete, clear, specific and tangible benefits, such as a new house for its workers to the benefit, I insist, of those who work for the country.

Besides, I have instructed the Directors of ISSSTE and FOVISSSTE, both of which are here with us, so that, in order to be able to complete these 100 thousand credits and not only for this purpose, but also to aid in sustaining the country’s economic activity, they have to do whatever it takes to ensure that between now and December all paperwork must be readied. What for? So that on the very January 1^st., at the start of next year, we may start granting those credits, so that economic activity does not halt; it shouldn’t stop because of the new year, as it sometimes happen.

Besides strengthening FOVISSSTE, friends from Puebla, the Federal Government is working on several fronts. In the first place, as I was saying, one of the engines of the domestic economy that we are starting up —well, not really starting up, because it was already on—, one of the engines that we are stepping up is the engine of housing.

Housing generates jobs, work, economic activity. And we are carrying out one of the biggest efforts in the country’s history in the area of housing.

In the time that has elapsed under this Administration, if we take together all the actions performed by all housing agencies, more than one million 600 thousand credits to buy a house have been granted: one million 600 thousand.

Let me tell you, for example, that INFONAVIT took almost 20 years or perhaps a bit more than that in granting its first million houses.

We hope —and the INFONAVIT Director already has instructions regarding this— to close 2008 with another million houses, which will have been granted in just the first two years of this Administration. An additional million houses in a little bit less than two years at INFONAVIT.

This represents, friends, one million 600 thousand housing actions, credits specifically for housing, a figure equivalent to 78 percent over the previous Administration’s first two years.

In second place. We are strengthening the Program “This is Your House”. What does this program consist of?

We became aware —and we celebrated together on the Day of the Holy Cross, if I am not mistaken— when talking with construction workers, with masons, in the words of one of them: “well, I have already built many houses, really many; but the truth is that none of us has ever had a chance, not even in our dreams, to ever have one of our own.”

And what we set out to do with the “This is Your House” Program is to consider those Mexican workers that earn three times the minimum wage —perhaps four, but maybe even less—; perhaps they could be eligible to some credit program, but putting together the 30 thousand, 40 thousand, 50 thousand pesos required as a down payment on any house, not even in dreams, as the worker said.

So, what did we do?

We made a specific program with this Government; its name is “This is Your House”, which gives those workers earning less than three, four minimum wages: masons, but also waiters, menial chore maids, etc., the down payment to their home; an advance subsidy, let’s say, we help them with their house down payment through 30, 40, 50 thousand peso loans for this sector.

We get them their credit and for the first time we have lent support to a sector of the population that had no possibility of ever having access to the formal housing market.

I am convinced that those with less resources, these people, are precisely the ones who should receive this kind of support.

This is a program that ran very well last year and this year; the money earmarked for “This is Your House” even ran out around mid-year and what the Federal Government decided was to enlarge the budget in 2008 by one thousand million pesos, in order to be able to finish many programs that were already under way.

This has allowed, for example, to help 200 thousand families earning less than four minimum wages to buy their home this year. That is, there’s been a positive impact on people with low incomes and also a positive impulse to the economy.

In the first two years of this Administration, 614 thousand subsidies for families with low income have been subsidized through the “This is Your House” Program.

Thirdly, my friends, for 2009 I proposed in the Federation’s Budget, which I submitted to Congress last month, in September, that the “This is Your House” Program should go on with more or less four thousand million pesos more.

Now that I have presented the Program to Promote Growth and Job Creation, given the economic conditions we are facing, I am proposing to Congress to earmark an additional thousand million pesos for the “This is Your House” Program.

If approved, my friends, this means that in two years we will be lending support to families with a low income using 10 thousand million pesos only for down payments; that is, without considering the whole value of the credit.

This will ensure that in Mexico we will attain in these two years the greatest number of houses for low income families in the country’s history, built houses —generally new houses— or houses that those families will only be able to afford like this.

The Federal Government, I would like to tell you, my friends but also some developers that are here with us, would like to ensure that the subsidy given by the “This is Your House” Program continues; but we are going to orient it, as soon as the programs are ready, measured and adjusted, specifically to supporting housing with an energy-saving component; that is, houses that save resources, because of the materials they are built with, for example, an isolating material or because they have water-saving devices, such as I think these houses have; or because they have power-saving features, such as an alternative system to heating water through the use of gas.

We Mexicans are some of the few who first open the hot water tab; we heat it up first and then we make it colder, lukewarm. A solar-operated heater can be installed, in order to avoid gas consumption.

What does this generate?

First. The user gets to save, because he/she is going to pay less in power, water and gas.

And, secondly. It helps us, the Government, save, too.

Why?

Because the Government pays for 60 percent of every light bulb turned on and more than 50 percent of the gas burned; so energy-saving features translates into significant savings also for the Government.

It also benefits the environment, because we emit less pollutants; I believe that if the program is going to use resources, it should also focus on this kind of benefits.

We are trimming it and making it ready, but this is very probably the route to follow.

Friends, why are we promoting housing?

Because within the Program to Promote Growth and Job Creation, the Government’s strategy is not allowing the Mexican economy to grind to a halt, not allowing a slowing down of economic activity, not allowing the country’s productive facilities to be harmed, not allowing the loss of jobs.

With all the problems we have had this year, we have still been able to generate almost 380 thousand new jobs; by way of comparison, during the 2001 crisis, after September 11^th., which was a much smaller economic crisis to the one we are currently facing, several tens of thousands of jobs were lost.

Today, despite circumstances, we are still generating new jobs and we are going to continue generating new jobs.

In its first two years the Administration that was in power 12 years ago lost almost half a million jobs; in the first two years of the previous Administration, because of what I have already mentioned, jobs were also lost; perhaps less than in the previous case, but they were lost, nonetheless.

In this Administration, in these first two years, even considering the economic problems the world is going through, we are generating more than 800 thousand new jobs; not just informal, but also formal ones; jobs that are registered before Social Security and contribute to this institution.

As I was saying, dear friends, as part of the program we have also set out to enlarge the Federal Government’s infrastructure expenditure. We have strongly supported infrastructure.

Off the top of my head, here in the State of Puebla there are three —well, there are several projects but, at least there are three— important highway works.

There is a highway that has taken a long time to plan, to define it, I would say, to begin doing; it started in earnest in the previous Administration, but we are going to finish it; it is the Mexico-Tuxpan highway, which will go through the Northern Range of Puebla, with a significant advantage.

Once it is finished, it will offer the smaller distance between Mexico City and the sea; it will take less than three hours to go from Mexico City to Tuxpan.

We are building Mexico City’s Northern Arch, which will go from the highway leading to Querétaro from Mexico City all the way to San Martín Texmelucan, helping to generate another important economic development pole.

Another highway that is about to be finished is the Amozoc-Perote one which, supplemented by the Perote loop and the Jalapa loop which will be built, will significantly shorten the time between this capital and the capital of the State of Veracruz. What I have just mentioned are just some among other infrastructure projects that we have in store.

One that is especially important to me, which is still being developed is rehabilitate the riverine zone, specifically the Valsequillo dam, which is near here, in order to harmonize it with the environment and turn it into a source not of pollution, but of better living for people.

To touch upon the House of Representatives, I would like to thank the legislators that are here today with us; Congress is doing many positive things for the country; it has passed legal changes that will allow us, in 2009, not only to have additional resources to promote infrastructure, but also the capacity to earmark funds for infrastructure works much more rapidly.

 Sometimes, we get snagged in bureaucracy: for example, it sometimes happens that requirements set out that a certain company has to carry out a project and it turns out it no longer is able to carry out the fundamental part of the work, etc.

We are doing several things and if these legal changes are ratified by the Senate of the Republic, they will allow us to enlarge the Federal Government’s investment in more than 53 thousand million pesos for next year.

If we add these resources to the 531 thousand million of public and private investment, which are already ready for next year, we will be speaking of more than 580 thousand million pesos of investment.

Just so that you gain an idea: the construction of the Panama canal, which is the most notable infrastructure work in Latin America; it will take several years to enlarge the canal; they are going to literally build another canal, let’s say another lane; it will take many years, I insist and will cost the equivalent of those 520 thousand, 530 thousand million pesos.

In Mexico, next year we are going to spend 580 thousand million pesos in just one year; that is, more than what is going to be invested in the Panama Canal in infrastructure works for the country.

This is what is being sought out by the Federal Government, my friends.

We want to direct those resources towards public works that generate jobs that get economic activity moving and give the country a better competitive position.

The infrastructure works I have been talking about for Puebla are going to give producers from Puebla a better competitive position.

And just to speak of housing, as I was saying, we are proposing a one thousand million peso enlargement of the “This is Your House” Program, so that we attain a total of five thousand 500 million pesos.

We are also proposing, speaking of State workers and in the presence of the Director of ISSSTE here, we are proposing an investment of four thousand 500 million pesos more for hospitals and health clinics.

This will allow us, for example, to specifically spend one thousand million pesos of those four thousand 500 additional million, in the construction of two more ISSSTE general hospital, so that we can continue to improve the quality of service the institution provides.

Well, my dear friends, I have nothing left to do but to wish you that you will enjoy your homes, which you deserve, which you have obtained through your work, your efforts; I truly congratulate you for the houses you are now receiving.

I am very pleased, also, to give keys to many women, which is a sign that the houses are going to be in good hands; I say this without meaning to be derogatory to gentlemen, to our SCT friend.

Finally, we know the world is going through difficult moments in economic matters; it is being said that this is the worst economic crisis the world has ever lived; at least the worst in the most recent 80 years; nevertheless, be sure, my friends, that with actions such as this, with the support given to infrastructure, the support given to housing, the order we have kept in public finances and which cost us Mexicans so much, with the discipline, the savings efforts, etc., the problems we went through in the past, etc.; actions such as this one will allow us not just to survive the crisis, but to come out ahead.

We have difficult months ahead of us, that’s true. But be sure that once the crisis ends or this circumstance, which is, after all, temporary, Mexico will have a stronger economy, will generate more jobs and will be able to advance more quickly.

I invite you to double our efforts, to continue working with passion, with generosity, with responsibility; for our families, for our country; I invite you to continue our strong efforts to build, even under adverse circumstances, the fairer and more prosperous Mexico we all desire, a strong, generous country where everybody, without exception, every Mexican will be able to live better.

Congratulations!

And thank you very much!

Last Update: November 28th., 2008.