The department of trade and industry’s incentive programme has had a major effect on the automotive and clothing and textiles sectors, and should be scaled up to create jobs, the department’s director-general, Lionel October, said on Tuesday.
The budget tabled in parliament last week by finance minister Tito Mboweni included R19bn for the department’s incentive programme over the next three years, with R7.3bn earmarked for 2019/2020.
He noted that a significant amount of the speech dealt with work that the department would have to undertake.
This related specifically to economic recovery, the promotion of export led growth particularly to the African continent, localisation and investment.
This would lead to surplus of energy, the cost of which would be passed on to consumers in Aklan, Antique and Capiz.
“That would be an unconscionable burden to put on Visayan power consumers, who already have to suffer through high power rates during the summer,” said Gatchalian, noting this would result in a total of P178 million in additional charges in the next six months.He stressed the need for a well-resourced industrial policy and for incentives to be scaled up to create jobs in sectors that were struggling such as steel, metals, chemicals etc.In his briefing to parliament's committee on trade and industry, Davies also stated that the department’s industrial policy interventions had had a positive effect on the performance of manufacturing but had not been able to act on scale and counteract all the headwinds facing the sector.Lopez was referring to around P2 billion worth of calamity funds, which, according to presidential spokesperson Harry Roque, the Duterte administration would be using to help the displaced workers on the island.“That [P300 million] is what we’ll need here at DTI to be able to do our part in the rehabilitation.He said around 400 people who sell souvenirs and gifts in Boracay would be given the chance to sell elsewhere, such as here in Manila, among other opportunities. Win Gatchalian said that the closure would not only lead to a loss of jobs, but also weaken the demand for electricity given that businesses in Boracay account for 41 percent of the franchise area of Aklan Electric Cooperative Inc.(Akelco) From a high of 28 megawatts (MW), Boracay’s energy demand will drop to a mere 4 MW during the closure period.This will cover incentives for the automotive sector, clothing and textiles, business process outsourcing, the black industrialist programme, film industry, agroprocessing, special economic zones and industrial parks.October said in an interview ahead of a briefing by trade and industry Minister Rob Davies that the budgetary allocation was more or less stable compared with 2018.This is what we’ll ask for,” he said, noting that the funds would be tapped for various services such as livelihood training and providing market access.But even before the fund is released, Lopez said DTI would tap some funds from the Pondo sa Pagbabago at Pag-asenso (P3), a financing program for micro-, small-, and medium-sized enterprises on the island.