Delayed release of ESF grant worries exporters

CEBU, Philippines – The export industry is hoping for sustainable support from the new government as the industry continues to struggle against the lingering effects of the global economic recession.

The Cebu export industry is in fact worried about the delay in the releasing of the P30 million grant from the Export Support Fund (ESF) program that was approved during the Arroyo administration.

PhilExport-Cebu executive director Fred Escalona told The Freeman yesterday that the beneficiaries of the P30 million ESF budget for Cebu exporters, such as the Cebu Furniture Industries Foundation Inc. (CFIF), Fashion Accessories Manufacturers and Exporters (FAME-Cebu), Gifts Toys and Houseware Exporters Association in Cebu (GTH-Cebu, and PhilExport-Cebu are still waiting for the release of the budget.

Based on the informal discussion with the Export Development Council (EDC), Escalona was told that the ESF program is still there but the approval of the releasing of the approved financial support is still pending.

Escalona said the export sector in Cebu hopes that the transition of people in the higher government offices will not create problems on this matter, as the export industry direly needs even this small government support.

“We are told that there is still a big chance to get the P30 million EDF for Cebu export sector. But, we are worried,” Escalona said.

GTH-Cebu former president Jenifer Cruz also said that the export players are hoping that the Aquino administration will still support the export sector, if not continue the programs created during the Arroyo administration.

“We are hoping that the new set of government officials will still look at us [exporters] as one of the important sectors in the Philippines,” said Cruz.

For his part, European Chamber of Commerce in the Philippines (ECCP) executive vice president Henry Schumacher suggested that the NoyNoy Aquino III government should continue the programs of the past administration for the exporters.

Schumacher said the budget allocation through the Export Support Fund provided for by the Arroyo administration for the exporters should be continued in order for the export industry to get back on its feet, while it is still “hurting”.

“The question now is, will the new government continue the programs for the export sector?” Schumacher said.

In late 2008, after the collapse of the US financial system that led to the global economic crisis, President Arroyo approved a P1 Billion ESF as the entire export sector reeled from cancelled orders and bleak prospects ahead.

The fund was established to help exporters to promote their products and build capacity in order for them to be competitive in the global markets that have shrunk considerably. (THE FREEMAN)