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Monday, September 20, 2004
Mandaue traders urged: Tell truth on difficulties
GTZ, a German con-sultancy firm tapped by the German government to work with the Philippine government, is urging the private sector to speak up on the ability of their local government units (LGU) to provide a good business environment.
“We want to find out from the business sector the critical issues (affecting their business), before we can do something to help them and the province in general,” said Martina Vahlhaus, program manager of the Small and Medium Enterprise Development for Sustainable Employment Program (Smedsep), on the sidelines of Smedsep’s consultation with Mandaue businessmen at Holiday Plaza Hotel last Thursday.
Vahlhaus got the feeling the participants to the consultation, who had agreed that conditions in Mandaue in general were conducive to business, were hesitant to reveal all their business concerns.
An initial survey, based on random interviews conducted by the Asian Institute of Management, revealed that Mandaue is the only city in Cebu that requires new business establishments to reapply for a mayor’s business permit every quarter during their first year of operations.
The city says it serves as a “trial period” for establishments.
“Yet perhaps, this (requirement) needs to be further studied if this is an unnecessary burden for an establishment or whether it actually promotes the growth of the enterprise. Moreover, it could be adding to the already burdensome paperwork of staff in the Mayor’s office,” according to a document from GTZ-Smedsep.
Vahlhaus said LGUs should facilitate the process and minimize the cost of getting business permits if they want the informal sector to come out.
“Why should they come out (and pay taxes) if it’s very costly for them to do so?” she said.
Smedsep, a program funded by the Federal Republic of Germany, has allocated four to five million euros to establish favorable business conditions in the Visayas regions for micro, small and medium-sized enterprises (MSME).
The eight-year program is jointly implemented by GTZ, Department of Trade and Industry, and Technical Education and Skills Development Authority.
The components of the program include enhancement of SME policies, laws and regulations, market development for services relevant to MSMEs, improvement of access to financial credit, and market development for demand-driven technical vocational education and training programs.
During the consultation, Mandaue businessmen urged the Mandaue LGU to conduct regular consultations with them.
Smedsep will also hold consultations with government officials from Cebu and Lapu-Lapu cities. JBN
(September 20, 2004 issue)
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