Abolition of 21 state firms, agencies sought; sole investments body eyed

AANGAT TAYO party-list Rep. Neil Abayon wants to abolish nine state firms and 12 agencies to pave the way for the creation of the Department of Investments Promotion.

The deputy minority leader said the proposed abolition of the state firms and agencies would “further streamline the bureaucracy and generate government savings.”

Under House Bill 7873, Abayon sought to abolish the Clark Development Corporation, John Hay Management Corporation, First Cavite Industrial Estate, Inc.; Poro Point Management Corporation; Duty Free Philippines, Inc; Batangas Land Company, Pinagkaisa Realty Corporation, Kamayan Realty Corporation; and GY Real Estate, Inc.

The 12 agencies to be abolished under HB 7873 are Board of Investments, Philippine Economic Zone Authority, Public-Private Partnerships Center, Bases Conversion and Development Authority, Subic Bay Metropolitan Authority, PHIVIDEC Industrial Authority, Philippine Retirement Authority, Cagayan Economic Zone Authority, Authority of the Freeport Area of Bataan, Aurora Pacific Economic Zone and Freeport Authority, Zamboanga City Special Economic Zone Authority, and Southern Philippines Development Authority.

“Having so many investment promotion and area development agencies has caused confusion in the business community, created more red tape, needlessly enlarged the bureaucracy, resulted in hundreds of millions of pesos in lost revenue, and caused higher administration costs, including the compensation and benefits of a multitude of government officials,” Abayon said.

HB 7873 tasks the Department of Investments Promotion to serve as the lead investment promotion agency of the Philippines and promote both foreign and domestic investments.

The bill also mandates the new department to harmonize, rationalize, and prioritize in a Comprehensive Investment Incentives Program (CIIP), the grant of national tax and non-tax incentives for small, medium, and large scale investors, industries, institutions, and corporations on the basis of criteria that are performancebased, tightly-targeted, time-bound, and transparent.

The CIIP shall be subject to approval of the President of the Philippines, in the form of an executive order, upon the recommendation of the Secretary, following deliberation by the Advisory Board.

Abayon said that in response to current dynamics and to adapt the country to emerging challenges, the bill seeks the creation of the line offices under the Department of Investments Promotion.