PBC Approves 11-Point Resolution

MANILA, Philippines — Businessmen have approved an 11-point resolution that identified specific measures ranging from the ASEAN economic integration, anti-smuggling, housing, rice production, energy sufficiency, relocating general aviation operations to nearby Sangley Point or Lipa, expansion of the RORO (roll on-roll off) passage, as among key measures to sustain the domestic economy’s growth momentum. The 38th Philippine Business Conference Resolutions will be presented and approved by the members of the Philippine Chamber of Commerce and Industry before today’s closing of the three-day conference a the Manila Hotel. As a tradition, the resolutions would be presented to the President for appropriate action. Just like previous PBCs, President Aquino is the guest of honor at today’s closing ceremonies. On ASEAN integration, the PBC has urged the Department of Trade and Industry to undertake comprehensive awareness and readiness programs to educate and prepare entrepreneurs on the impact o the ASEAN economic integration by 2015. To maximize rice production, the PBC has urged the Department of Agriculture to intensify the promotion of hybrid rice farming. The DA is also urged to allocate 20 percent of irrigate rice lands to hybrid rice and to increase same by 15 percent annually until an 80 percent coverage is achieved by the fourth quarter. Only around 200,000 hectares of irrigated land have been allocated to hybrid rice when the country needs at least 800,000 hectares to be self-sufficient in rice, and a million hectares to become a rice-exporting country. Strict implementation of the Agri-Agra Law, which requires banks to allot 25 percent of their loanable fund to agriculture and to apply stiffer penalties for non-compliance to ensure a lasting solution to lack of access and financing to farmers. The DA was also asked to step up R & D and to develop the dairy farming industry to fill the dairy requirements of the country. While the PCCI supports the current efforts of the Department of Energy, the businessmen also urged the agency to improve electric power reliability and achieve competitive rate levels by reviewing the implications of tax holidays, duties, including VAT and royalty on fuel, the PBR rate-basis. The DOE was further urged to seriously consider establishing a National Demand and Supply Aggregator agency under the agency in order to create true competition and generation adequacy, induce competitive tariff rates and efficient supply contracting. To protect the environment, most of the measures adopted by the PCCI has called for the local government units and the national government intensify their Impact on Environment Assessment on waste management, amendment of the Clean Air Act for flexibility in the in the management of air control quality as a result of the economic growth and development of new technologies. The establishment of water treatment, storage and disposal facilities for toxic and hazardous waste should be included in the Investment Priorities Plan for incentives purposes and thereby encouraging investors in this area. In the area of housing and construction, the PBC urged Malacanang to certify as priority the passage of the National Land Use Act and the Valuation Reform Act to strengthen property market institutions. The PBC has also proposed the conversion into law Executive Order 278 directing all foreign joint venture projects to avail themselves of the services of Filipino contractors and consultants. The creation of the Department off Information and Communications Technology was also pushed to boost the competitiveness of the country’s IT-BPO sector and for the DILG to direct the LGUs to adopt a uniform policy supportive of the development of the IT-BPO sector in their respective jurisdictions. The resolutions also identified five anti-smuggling measures for the Bureau of Customs to adopt. The PBC has asked Congress to pass the anti-smuggling bill, previously been approved by the House of Representatives. Businessmen was also asked to establish a long term program similar to Malaysia’s economic transformation program and performance management delivery unit which uses public-private joint governance mechanisms. In mining, the government was urged to deepen its commitment in transparency and accountability in the extractive sector by expanding the coverage of the Extractive Industries Transparency Initiative beyond the minerals sector. To support the SMEs, the Department of Science and Technology was asked to establish incubation centers in all state universities and colleges. Amending the Local Government Code was also proposed to empower the Department of Finance to take appropriate measures to ensure that local revenue ordinances are consistent with the pertinent provisions of the code. The DOF was also asked to mandate the BIR to revoke Revenue Memorandum Circulars No. 35-2011 and 57-2011; amend MR no 72-10; and reconsider Revenue Regulations No. 1-2012. In transportation, the Department of Transportation and Communication was urged to make the Ninoy Aquino International Airport into a hub and gateway for domestic air travel and the Diosdado Macapagal International Airport for international air travel. The PBC also urged for the relocation of the generation aviation from NAIA to adjacent airports such as Sangley and or Lipa to enable the expansion of NAIA. The Civil Aviation Authority of the Philippines was enjoined to complete the programs that will make the country compliant with the safety standards of the International Civil Aviation Organization. Passage of the bill repealing the Common Carriers Tax and the Gross Philippine Billings Tax was pushed to entice foreign carriers to operate in the country. Both the DOTC and the Department of Tourism were urged to develop a portion of the Port of Subic into a cruise hub as the country moves into the cruise circuit to cater to the growing market in the ASEAN and Asian region and maximize the potentials of Subic as the tourism gateway to Northern and Central Luzon. Malacanang is also urged to amend the existing roll on, roll off (RORO) nautical highway policy to expand the definition of RORO service to include Chassis-RORO for both domestic and international services and enable the implementation of the RORO projects in the pipeline such as the Philippine-China RORO, the Philippine-Indonesia and the ASEAN RORO. Sourced: mb