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  • Foreign biz: Spot zoning a damper

    CAN potential hazards to communities be tolerated for business concerns? The question has been raised with a statement Thursday by the Foreign Chambers of the Philippines (FCP) that spot zoning such as that of Pandacan in Manila, which resulted in a court order to transfer the huge stockpile of highly flammable fuels there, is a “serious disincentive to investment.”

    The group warned that the ruling of the Supreme Court upholding the Manila ordinance effectively removing the Pandacan fuel terminals may have a negative impact on the supply and pricing of petroleum products.

    The FCP said in a letter to Chief Justice Reynato Puno that, “If local governments spot-zone everywhere, industries will not be assured of continuous tenure in the areas in which they operate.”

    The oil companies affected have been able to stave off the transfer until the recent SC decision and are now preparing to relocate; at the same time they have filed an appeal that is now pending at the High Tribunal.

    The oil companies were given 90 days to draw up their depot relocation blueprint by the Court after their motion for reconsideration was rejected. The FCP kept arguing, however, that it already is and will be much difficult to invest anywhere for any facility amid fears of being rezoned anytime; and the Pandacan case could be a “dangerous precedent.”

    But they did not distinguish what are hazardous products and what are not and whether hazardous products could justifiably be placed in crowded communities just to satisfy the bottom lines of companies.

    The FCP further said, “In recent years, we have seen many abuses where mayors, town counselors, and local government offices have dishonored decisions of the predecessors, have withdrawn commitments made before factories, hotels and resorts were built, and have made ridiculous tax claims—these instances have scared existing and potential investors away.” 

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