Auctioneers protest plan to ban importation of used cars

The government will only kill the goose that lays the golden egg if it gives in to carmakers’ pressure to completely stop the auction of used heavy equipment, trucks and motor vehicles in Subic.

Members of the Association of Philippine Auctioneers (APA), in a position paper, said the government should look at the big picture in dealing with the auction industry and not simply give in blindly to the caprices of major car manufacturers.

"In less than five years, auction has evolved into a major industry that greatly impacts the country’s economy," said APA president Romulo Armamento. "In our unreserved auctions, we cater to contractors, fish dealers, haulers, farmers, local government units, families and other average income people from all imaginable walks of life. Our auctions allow business to expand and grow in these trying times."

The government, particularly President Arroyo’s Cabinet, is reportedly drafting an executive order for the Chief Executive to sign that would set up a roadblock to the further importation of used equipment, trucks, buses and right-hand drive vehicles in Subic.

A recent newspaper report said Trade Secretary Mar Roxas is the one spearheading the drafting of the order and that he has already obtained the support of the Cabinet’s Cluster E which takes care of economic matters.

Armamento said they received reliable information that the order aims to completely ban auctions so as to appease major carmakers who have threatened to pack up and leave if they don’t get the protection they wanted.

"Giving in blindly to the caprices of these carmakers will be a very bad move on the part of government," he stressed.

The APA president pointed out that contrary to carmakers’ claim, the introduction of imported used vehicles in the country did not affect the sales of new vehicles. The only times that new car sales were down were the times that people were holding on to their money because they were still unsure of the country’s political and economic stability or were simply waiting for the right vehicle to come by.

"Look at their sales figures now. Even with the auctions there, the carmakers are enjoying brisk sales. The demand for new vehicles has not diminished because of the auctions. In fact, the waiting time for the new Honda CR-V now is three to five months while the waiting time for the new Isuzu Crosswind is two to three months," he explained.

Armamento said this only proves that the auctions cater to a totally different market – those who can only afford low-priced but quality used vehicles. "We sell only at prices that buyers are willing to pay. Buyers of new cars don’t go to us, they go to the carmakers. The only ones that go to us are those that are looking for a used vehicle which they cannot find in the local used-car market," he said.

Armamento expressed hopes that the President and her Cabinet would realize the benefits the auction industry is bringing to the country. Employing an estimated 120,000 workers not only in Subic but in Zambales, Bataan and Pampanga, it has given birth to a host of allied industries such as stevedoring, engine reconditioning, retouching, aircon installation and others in as far as Visayas and Mindanao.

"More importantly, the auction industry has contributed billions of pesos in revenues for the government by way of taxes and duties, port charges and rentals to Subic," he said. "At this time that the government is in dire need of revenues, killing our industry will only create more problems than solutions."