Favila slams LGU officials
Trade Secretary Peter Favila slammed local government officials for making it difficult for investors to do business in the country.
“It is important that [local government units] are in synch with the national government in putting in place an environment that is conducive to investments. Problems at the local government unit level also hamper investor inflow,” said Favila in an interview.
He cited the case of Korea’s Hanjin Heavy Industries Construction Inc., which had to pull out workers from its proposed training center in the Phividec Industrial Estate in Misamis Oriental because of an issue raised by the mayor of Tagoloan town.
“At the national level, these are huge investments that are coming in. We invite them in, come up with an attractive incentive package only to end up with parochial issues raised by LGUs,” said Favila.
Hanjin is investing around $2 billion for a shipbuilding complex in the Phividec compound. It is its second facility in the Philippines after the one in Redondo Peninsula in Subic Bay, Zambales province.
The Korean company is constructing a building where it could train workers from surrounding municipalities. Hanjin needs highly-skilled workers like welders for the shipbuilding facility.
Hanjin temporarily suspended preliminary construction work on the facility after the local government issued a stop-order pending approval of certain environmental and business permits.
“We need local officials to be more pro-business. How can you invite investors to come in if they would only encounter problems like this at the local government level,” asked Favila.
Hanjin’s problem is not unique. Foreign business chambers earlier warned that the penchant for reclassifying land on a whim was a serious deterrent to investments.
The group raised the concern over the spot zoning the Manila city government did in Pandacan, where Petron Corp., Pilipinas Shell and Chevron Corp. (formerly Caltex) jointly operate an oil depot.
The Supreme Court ordered the oil companies, which invested billions of pesos in the depot, to vacate the property after the city government reclassified the area from industrial to commercial land.
Some businessmen expressed concerns that spot zoning ordinances would harm investments in areas classified under the original zone.
Favila said these investments generate the number of jobs needed to improve the quality of life, especially in the countryside.
Hanjin’s project in Phividec straddles the towns of Tagoloan and Villanueva in Misamis Oriental.
“If these investors lose the appetite, it would be their [LGUs] undoing. We’re dead meat. LGUs should get their act together, do they want the investment or not?” asked Favila.
He said some local governments that have responded positively to the call of the national government for a more business-friendly environment were now enjoying the inflow of new investments. By Elaine Ruzul S. Ramos - Manila Standard Today
“It is important that [local government units] are in synch with the national government in putting in place an environment that is conducive to investments. Problems at the local government unit level also hamper investor inflow,” said Favila in an interview.
He cited the case of Korea’s Hanjin Heavy Industries Construction Inc., which had to pull out workers from its proposed training center in the Phividec Industrial Estate in Misamis Oriental because of an issue raised by the mayor of Tagoloan town.
“At the national level, these are huge investments that are coming in. We invite them in, come up with an attractive incentive package only to end up with parochial issues raised by LGUs,” said Favila.
Hanjin is investing around $2 billion for a shipbuilding complex in the Phividec compound. It is its second facility in the Philippines after the one in Redondo Peninsula in Subic Bay, Zambales province.
The Korean company is constructing a building where it could train workers from surrounding municipalities. Hanjin needs highly-skilled workers like welders for the shipbuilding facility.
Hanjin temporarily suspended preliminary construction work on the facility after the local government issued a stop-order pending approval of certain environmental and business permits.
“We need local officials to be more pro-business. How can you invite investors to come in if they would only encounter problems like this at the local government level,” asked Favila.
Hanjin’s problem is not unique. Foreign business chambers earlier warned that the penchant for reclassifying land on a whim was a serious deterrent to investments.
The group raised the concern over the spot zoning the Manila city government did in Pandacan, where Petron Corp., Pilipinas Shell and Chevron Corp. (formerly Caltex) jointly operate an oil depot.
The Supreme Court ordered the oil companies, which invested billions of pesos in the depot, to vacate the property after the city government reclassified the area from industrial to commercial land.
Some businessmen expressed concerns that spot zoning ordinances would harm investments in areas classified under the original zone.
Favila said these investments generate the number of jobs needed to improve the quality of life, especially in the countryside.
Hanjin’s project in Phividec straddles the towns of Tagoloan and Villanueva in Misamis Oriental.
“If these investors lose the appetite, it would be their [LGUs] undoing. We’re dead meat. LGUs should get their act together, do they want the investment or not?” asked Favila.
He said some local governments that have responded positively to the call of the national government for a more business-friendly environment were now enjoying the inflow of new investments. By Elaine Ruzul S. Ramos - Manila Standard Today
Labels: hanjin, misamis oriental, shipbuilding
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