Wednesday, January 16, 2008 Cheaper for companies to pay fine than heed environmental laws
ENVIRONMENTAL laws, even if enforced and monitored, have no strong impact on industries because the penalties are so light that it would cost the companies less to pay the fines, rather than comply.
A study by the University of San Carlos (USC) Department of Economics revealed that penalties for violations of anti-pollution regulations are too low.
The study “Policing Pollution Control in Central Visayas” attempted to “investigate the impact of monitoring and enforcement on the environmental behavior of major polluting firms in Central Visayas.” It was conducted by professors Lourdes Montenegro, Margaret Calderon and Elizabeth Remedio.
Food, beverage
In Central Visayas, much of the industrial and water pollution comes from food and beverage manufacturing companies, or roughly 34 percent.
Chemicals and chemical products manufacturing accounts for about eight percent of all water pollution sources, the study said. So do manufacturers of precision and optical instruments.
Ninety percent of these companies are located in the province of Cebu.
Concentration
The study reported about seven million kilograms of biology oxygen demand (BOD) load and five million kilograms of total suspended solids (TSS) load annually, coming from industries and commercial companies.
BOD and TSS, explained Montenegro, are measures of concentration of conventional wastes. The heavier it is, the worse the situation.
The BOD load usually comes from electricity generation, food products and beverage, and electronics. The top TSS load comes from electricity generation, food products and beverage and real estate.
The researchers presented the results of their study before members of the academe, non-government organizations (NGOs), private companies and some representatives of local government units and government agencies.
Ted Locson, representing the Cebu Chamber of Commerce and Industry (CCCI) noted that for as long as penalties are much lower than compliance cost, companies might not be compelled to comply.
Alfredo Domingo of the Ramon Aboitiz Foundation Inc. (Rafi) also asked if strict compliance with the regulations would result in additional costs of doing business in Central Visayas.
Montenegro, however, explained that competitiveness in business and environmental performance usually go together. International trade partners can, for example, set minimum standards for environmentally safe practices before agreeing to do business.
There are two laws that serve as the bases in monitoring industries: the Clean Air Act of 1999 and Clean Water Act of 2004. (JGA)
