Economist: Cebu-wide ecozone thrust possible

Economist Cayetano W. Paderanga said the private sector's aim to transform the entire Cebu into an economic zone is possible, however it needs a determined and proactive push from Cebuanos.

"It's a possible plan, but it requires [major] discussions, and lobbying with the policy makers," Paderanga said.

Making Cebu province into an ecozone is one of the flagship projects to be initiated by the Cebu Chamber of Commerce and Industry (CCCI) starting this year, under the leadership of its new president Francis O. Monera.

Monera said although this is an ambitious project, the private sector in Cebu will lead this major transformation, in order to push tremendous province-wide economic growth.

Paderanga said powerful advocacies, and closer coordination with the Department of Finance (DoF), policy makers, and the local government units, must be started to present this idea.

He added that the private sector must be ready to present counterpart reasons when LGUs will express apprehensions over revenue collection, as this concept is expected to decline revenue collections of cities and towns in Cebu, as companies are bound to enjoy fiscal incentives from the government.

During one of the recent visits of President Gloria Macapagal Arroyo in Cebu, Monera personally presented this concept to the President, and the idea got the approval from Arroyo, although she said that CCCI will have to partner with the LGUs in this plan, because it deals with sensitive issues like revenue collection.

According to Paderanga, if Cebu will be successful in this plan, economic growth is further expected in the province.

However, he warned that Cebu must consider addressing the major problems affecting the attractiveness of Cebu, such as roads, and water supply.

"Clearly there is a question in [your] water supply here," Paderanga emphasized.

CCCI, on the other hand, is going to start an extensive feasibility study on the possibility of transforming the entire province to an economic zone, wherein all companies are bound to enjoy tax holidays from the government, like those enjoyed by firms operating in the specified economic zones around the country.

Aware that this concept will steer negative impression from the government executives especially the LGUs, Monera said assurance of long-term economic growth, and sound revenue collection by the LGUs in other forms of taxes will be presented.

While supporting this idea of province-wide economic zone in Cebu, major ICT (Information Communication Technology) players also urged the government to implement company-based incentives, not location based.

Lexmark Research and Development Corporation (LRDC) president Stan Combs, together with call center People Support president Bong Borja called the government to review its rules and regulations in extending perks to companies it should not depend on the location, but based on the company's potential.