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Wednesday, May 31, 2006
Inclusion of Clark in Arroyo's agenda reaps fruits
CLARK ECOZONE -- Since President Gloria Macapagal-Arroyo has included the development of Clark as part of her 10-point agenda, the economic zone employment record zoomed to an all-time high with more than 41,000 workers, according to an update released by the Customer Service Department (CSD) of Clark Development Corporation.
The CSD has yet to record the employment generated by the opening of SM City Clark on May 12, and the thousands of jeepney drivers and operators, including other small businesses outside Clark, that benefited from the 408 investment projects inside the economic zone.
CDC president Antonio Ng said investors are becoming more comfortable and confident on the government's policy since Clark was included in President Arroyo's agenda to wheel off the economic cog of the country.
Last year, Ng said Clark was able to get more than P7 billion in investment commitments from 87 new projects signed, and the expansion programs of several top companies inside the economic zone.
The investment projects in Clark are also contributing more than P4 billion to P5 billion in annual salaries, which are plowed back to the local economy.
Clark has also registered a 15-percent export growth with a P54 billion annual income, including the remittance of P1.2 billion in taxes to the national treasury.
More than P35 billion worth of investments have also been poured in Clark since the creation of the economic zone in 1993.
But these may all go down the drain if no immediate legislative measures are undertaken to amend Republic Act (RA) 7227 which would explicitly provide tax incentive and duty free privileges for Clark investors, other economic zones which are all reverted baselands similar to the incentives being enjoyed by Subic Bay Special Economic Freeport Zone.
The legislative measures would also restore the real intent of RA 7227 to accelerate the conversion of all former US bases in the country so as to provide livelihood to the thousands of former base workers by transforming the US military facilities into special economic zones, not only Subic Naval Base.
Now that the economic zones, especially in Clark, are about to take off, many investors threatened to pull out their investments if the government would not honor its commitment.
This could result in another catastrophe as the more than 41,000 direct workers will lose their jobs, not to mention the other thousands who are indirectly benefiting from the economic activities being generated inside Clark.
Clark Investors and Locators Association (Cila) president Francisco Villanueva said investors in Clark are wary and may soon relocate to other countries if no legislative measures would be passed to correct the recent Supreme Court's (SC) decision, which nullifies the granting of tax and duty free privileges to economic zones.
The House Bills (HBs) 5064 and 4900 being sponsored by Tarlac Representative Jesli Lapus, who chairs the House committee on ways and means and main author of HBs 4900 and 4901(which is now HB 5064), will at least resolve the impasse.
Villanueva also said the recent SC decision relating the incentives and benefits of locators of Clark has severely prejudiced their interests and impaired their competitiveness in the global arena, undermined their continued operations inside the zone, shaken their confidence in doing business in the country, and badly damaged the credibility of the government."
The passage of the two bills would address apprehensions of investors' pull out that would dislocate thousands of workers, not only from Clark economic zone, but also in John Hay Economic Zone in Baguio City, Poro Point Economic Zone in La Union, and Morong Economic Zone in Bataan.
He said the multi-billion dollars that the investors poured in various economic zones -- especially in Clark -- are vital in buoying the country's economy.
Meanwhile, Arroyo has issued Proclamation 1035 which declares the 33,000 hectares in Angeles City, Mabalacat, Porac in Pampanga and Capas,
(May 31, 2006 issue)
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