Use of local products urged for infrastructure projects financed by stimulus fund

MANILA, Philippines - The government should require all infrastructure projects to be funded by the P330-billion stimulus package to use locally made products even if it means increasing the project cost by at least 25 percent, the Federation of Philippine Industries (FPI) said yesterday.

In an interview, FPI president Jesus L. Arranza said lawmakers are hesitant to include the Buy Pinoy Buy Local in the economic stimulus package because it might send the wrong signal to other nations that the Philippines is advocating protectionism.

“I talked to Malacañang and several congressmen and senators about this but they said we cannot do this because we are advocates of free trade,” Arranza said. “They are worried that there might be a backlash if we make buying local products a requirement.”

He said the government is worried about the repercussions given because requiring firms to purchase local products would diminish the demand for imported products and would adversely affect income of nations exporting to the country.

However, the staunchest support of free trade and globalization, the United States, have inserted a similar provision to their economic stimulus package, Arranza disclosed.

Arranza said it is time to protect our own industries given the global economic crisis. He said the impact on the local economy would be greater if domestic goods and service providers will be prioritized over overseas products and contractors.

 In the past, the government has used international contractors to build various infrastructure projects like the train systems and several road projects.

Arranza said local contractors are capable of doing good roads and bridges. “We have the technology here. It’s just a matter of tapping them.”

The Buy Pinoy Buy Local law is not yet in effect because the government still has not come up with the implementing rules and regulations (IRR).

“I don’t know why they are delaying the IRR on such an important matter. It has been signed by the President since last year and yet there are no guidelines,” Arranza noted.

According to Arranza, the private sector is eager for the law to be implemented because it will help them cope with the current economic crunch.

Arranza said the government should partner with the private sector in launching a massive campaign that would urge consumers, state agencies and businesses to prioritize Philippine made products.