PROTECT CONSUMERS FIRST, NOGRALES
URGES
SQUABBLE
The raging squabble between cement manufacturers and importers should be won by the group who could offer the cheapest to the public, preferably not higher than P100 to P105 per bag.
According to Davao City Rep. Prospero Nograles, the government should act to resolve the issues raised by the two groups without prejudicing public welfare. He stressed that cement is a very important construction commodity, which should remain affordable even to ordinary folks.
“ It really doesn’t matter if cement manufacturers would have to close shop because of the entry of cheaper cement. At the end of the day, the bottom line would be which among the two squabbling parties can give us high-quality and cheaper cement products,” stressed Nograles, chairman of the House Committee on Housing and Urban Development.
“ If the importers can assure us they will sell their cement at no more than P100 to P105 per bag, then the government should support them. Why they should be punished for providing our people with a more affordable alternative?” he added.
Nograles said that instead of imposing high tariff rate for imported cement, local manufacturers should work to lower their prices as he pointed out that he still cannot see any logic why imported cement should be cheaper than locally manufactured ones.
He said that if local manufacturers can offer prices lower than the imported ones, he would welcome the imposition of the 20.6 tariff for every bag of imported cement even on a permanent basis.
“ If we talk about cost of production and other expenses related to the manufacturing of cement such as transportation and packaging cost, locally manufactured cement certainly has the advantage over their imported counterpart. That’s the reason why I find it queer that locally manufactured cement would cost higher than the imported cement without the 20.6 tariff per bag of imported cement,” Nograles said.
He added local cement factory workers are among the most underpaid labor force in the country and this makes it even more difficult to comprehend why local cement manufacturers could not be more competitive than the cement importers.
Nograles said the main reason why local cement manufacturers are raising a howl in the entry of foreign imports is the cartelized character of industry. He said that with the entry of cheaper but high-quality imported cement, cement cartels are in danger of losing control over the cement industry.
“ Our local cement manufacturers should show the public some goodwill so that we can support their cause. We do not want to drive them out of business but if they continue unreasonably jack up their prices, then we’d rather support foreign imports,” Nograles said as he underscored the need for cheap but high-quality cement to spur infrastructure development, particularly in the effort to address the country’s massive housing backlog.
april 03 2002