NEWSFLASH

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FORD BACK WITH P6-B PLANT, SEEKS INCENTIVES

Manila, Feb. 20, 1998 - Ford Motor Co. awaits approval by the Philippine Economic Zone Authority (PEZA) of incentives for its P6.18 billion assembly and manufacturing plant.

Ford's plant will be located within the 50-hectare industrial estate being built by the group of businessman Jose Yao Campos in Sta. Rosa, Laguna. The P372.4-million industrial estate, approved by the PEZA, is called the Laguna Automotive Park.

The project would mark the return of Ford which pulled out of the Philippines at the height of the currency problem in 1983 following the death of Senator Benigno Aquino. Its operations in the Philippines since then have been limited to the sale of completely built-up units.

PEZA director-general Lilia de Lima said that as a matter of practice, the PEZA limits its incentives to export-oriented enterprises, although the law makes no distinction between domestic and export firms in eligibility for perks.

De Lima expressed concern on the implication of this policy decision, raising questions of government discrimination against domestic enterprises outside ecozones.

The Department of Trade had called for a review of the incentive policies to compensate for the dwindling perks offered by the Board of Investments. PEZA-registered enterprises pay only 5% gross income tax and are allowed tax and duty-free importation of raw materials and capital equipment.

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