MSMEs fret about required sustainability plans

Thursday, December 1, 2011

MICRO, small and medium enterprises (MSMEs) in Cebu expressed worries on the implementation of the Cebu City Ordinance 2243, saying the additional requirement of an Environment Sustainability Action Plan (Esap) when securing or renewing business
permits in 2013 would only stretch delays caused by red tape.

MSME representatives said they also fear the additional requirement would create a burden, especially on those who lack personnel and resources.

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In a recent phone interview, Filipino-Cebuano Business Club Inc. (FCBI) president Rey Calooy said the initiative is good for Cebu, but the implementation of the ordinance might cause additional burdens to MSMEs and might delay business permit processing.

“We support programs for the environment. In fact, our members are already conducting environmental programs as part of our corporate social responsibility. However, we can’t help but think of its effects on business operations,” Calooy said.

Streamlining?

He said there are about 28, 000 establishments in Cebu and the additional requirement in getting a business permit might open opportunities for red tape.

“Adding a requirement somehow defeats the purpose of streamlining the business permit processing,” he said.

But Calooy also said they are willing to sit down with the proponents of the ordinance, considering there was no information campaign done yet among MSME players.

“It will be an additional burden for sure but the threats are inevitable that’s why it is important that everyone should be guided and informed accordingly. There has to be a gradual implementation of such, but overall, global warming issues are threats that are too imminent to ignore,” said Philippine Retailers’ Association Cebu chairman Jay Aldeguer, president of The Islands Group.

Last year, Cebu City passed Ordinance 2243, which requires all persons doing or operating business within the territorial jurisdiction of Cebu City to submit an Environment Sustainability Action Plan (ESAP) upon securing or renewing business and/or mayor’s permit.

The City Government, with the assistance of Kaabag sa Sugbo and other local partners, also crafted a guidebook to help businesses in developing and complying with the Esap.

Former councilor Nestor Archival, one of the authors of the ordinance, said the Sustainability Development Ordinance of Cebu City is the first of its kind in the Philippines. He said that many local officials in the country wanted to replicate the ordinance in their own areas.

“This ordinance calls for unity among public and private stakeholders. This is about boosting the local economy of Cebu without compromising its environment,” Archival said, stressing it is high time everyone responded to the global warming issue by adopting sustainable measures.

The action plan requires businesses to have programs that will “address the issues concerning the land, air, water, waste and waste management, energy and energy conservation and an information and education campaign.”

Archival said businesses may adopt sustainability measures like waste segregation, tree planting, wise use of electricity, and composting, among others. The ordinance said failure to comply with the Esap requirement will cause the non-issuance of business permits.

Cebu City Councilor Nida Cabrera, meanwhile, assured her office would provide support to all business operators in the formulation and implementation of their Esap.

The Eduardo Aboitiz Development Studies Center of the Ramon Aboitiz Foundation Inc. recently held a forum that tackled the development of and compliance with Esap. The event was in partnership with the Kaabag sa Sugbo and the Cebu City Government, and attended by local business owners, civil society groups, and local government officials.