Concepcion agreed with the observation of Trade and Industry Secretary Manuel Roxas II that the petrochemical industry may not deserve the grant of tariff protection ahead of the setting up of the naphtha cracker plant.
According to Concepcion, Roxas has apparently reached the point where "he now wants to see concrete action on the part of the project proponents in setting up the project."
"Roxas, in the past couple of years, has been willing to extend so many concessions to the petrochem industry just to realize the naphtha cracker project," he said.
After two years, the project is still just a concept and yet the petrochem industry continues to seek tariff protection for something that is not yet there, Concepcion explained.
He acknowledged that having a naphtha cracker plant will make the country self-sufficient in producing the basic raw materials for the plastics industry which, in turn, is heavily needed by the manufacturing sector, packaging and even automobile industry.
"However, any assistance to the naphtha cracker project should take the form of a subsidy, low interest or even an income tax holiday rather than tariff protection," Concepcion said.
The project should be evaluated in light of its competitiveness, especially since there are so many other naphtha cracker plants which are operating below capacity.