LGUs, government firms urged to buy more local goods

Local government units (LGUs) and state offices must switch to buying locally produced items even if they are a bit more expensive in order to further protect the country from the global economic slowdown, the Federation of Philippine Industries (FPI) said.

“There is already a law, Buy Local, Buy Pinoy, but we are still in the process of crafting the implementing rules and regulations (IRR),” FPI president Jesus L. Arranza told The STAR in an interview.

“All government offices must have preference for locally made products,” he added.

Buy Local, Buy Pinoy was created under Administrative Order 227 mandating all government offices to procure local products.

According to Arranza, they are looking at mandating LGUs to source at least 15 percent of their supplies locally even if the imported products, especially those coming from China, are cheaper.

“It is high time that we start patronizing local products. This is a good way of injecting new energy to our local industries thus making it stronger and more immune against external volatility,” he said.

He further explained that patronizing local products can help the country at a time when the export market is experiencing stagnant growth.

Arranza noted the huge trickle-down effect of this law given that bigger demand for domestic products will create more employment as this allows manufacturers to increase the utilization of their plants.

He said LGUs may only be allowed to buy foreign merchandise on four conditions.

First, he said the product is not being made anywhere in the Philippines. “They can get imported products if there is none here.”

Second, if the supply of the good is inadequate. He said if the supply in the Philippines is limited, LGUs have no other choice than to buy imported products especially if the product cannot be replaced by any other local material.

Third, if the quality of the goods produced locally is below par. “If the quality of Filipino made products does not meet the requirements of the LGUs then they may buy overseas.”

Lastly, if the price is unreasonable. Arranza said if the price of local merchandise is very prohibitive, then the LGUs would be better off buying imported goods.