Europe-PH News

Obviously dissatisfied with bureaucratic practices of local governments in dealing with business matters, the European Chamber of Commerce of the Philippines (ECCP) has devised a new system of getting closer to LGUs at the fastest time with the least red tape – and unaccounted expense.

Michael Raeuber said the new ECCP LGU-Business Forum is a series of meetings that will discuss LGU related business. LGUs play a big role in business in the sense that heads of local government units are by law, required to issue permits before a big project can start.

Raeuber said local government and representatives of the private sector will try to craft a collaborative system of solving problems and jointly arrive at win-win solutions to promote sustainable and inclusive growth in provinces, cities and municipalities.

“It is time for the business sector to partner with LGUs. We realize the business sector share common goals with the LGUs. We both want businesses to invest in localities. We both want local residents to have jobs in their localities so they do not have to migrate to urban areas. And we both want people to enjoy steady economic growth that is in pace or faster than the national growth,” Raeuber said.

He noted more business-LGU dialogues are needed to better understand their perspective and make them aware of the business perspective in addressing business issues.

Foreign investors like the ECCP interact with LGUs where their factories or investment sites are located, from provincial, city, or municipal office even up to barangay.

Reports of corruption and red tape are not uncommon and in previous surveys, foreign and local investors have rated corruption and inefficient government bureaucracy as their major concern.

LGUs also have in the past figured prominently in the Tampakan mining project where one LGU’s ordinance that banned open pit mining put the investment on hold.

LGU officials present during the first forum were Oriental Mindoro governor and League of Provinces of the Philippines president Alfonso Umali, Cagayan De Oro City mayor and League of Cities of the Philippines chairman Oscar Moreno, and Sorsogon mayor and League of Municipalities of the Philippines spokesperson Manuel Fortes Jr.

All three LGU organizations were created under Republic Act 7160 or more commonly known as the Local Government Code of 1991. The three leagues are membership organizations that help LGUs adopt best practices, foster linkages with international and local organizations, and at the same time collaborate and supplement national government programs .

One of t he biggest problems is getting local governments to understand the risks an investor takes when he ventures into mining. The proponent is required to get consent or local governments starting from the barranggay level up to the provincial government.

A member of the chamber explained the most competent authority to pass judgment on mining ventures is the bureau of bureau of mines and geosciences.

On the other hand, the Department of Environment and Natural Resources is the state authority that determines whether or not a mining operation – open pit or underground --- harms the environment. No local government has the capacity or competence to substitute is judgement with that of the DENR.

The ECCP has been working closely with the three leagues since January 2014 in the European Union-Konrad Adenauer Stiftung funded project called Integrity for Jobs.

Raeuber highlighted ECCP’s interest to explore areas where the business sector can work together with the leagues towards faster and immediate solutions to key business and LGU concerns.

Among the general LGU concerns that ECCP raised during the forum were the red tape relating to business permits and approvals, integrity issues, unclear policies and regulations, taxes, penalties and fees imposed by LGUs on businesses.

Among the investment areas in localities that ECCP wants to promote are infrastructure, health, water, energy and waste management.

The ECCP was joined in the forum by the League of Corporate Foundations, Management Association of the Philippines, and Philippine Chamber of Commerce and Industry.

Source: Malaya