Press Release
March 4, 2007

Cutting red tape is best red carpet treatment for investors - Recto

The best red carpet treatment for foreign investors is to cut red tape, Sen. Ralph Recto said following a US business chamber leaders teaser that American investments in the country could go up to $9 billion this year if bureaucratic kinks are ironed out.

But the simplification of rules should not be meant for foreign businesses only but for local entrepreneurs as well, Recto, who authored most of the economic bills American businessmen credited as having spurred investors confidence in the Philippines , said.

Rules must not only be consistent but cohesive as well. But this is not to say that they must not be changed if the result is a streamlined and seamless way of transacting with the government, Recto said.

On the overall, business facilitation is an effective come-on. Investors go for simplified rules . They want those who implement the rules given less discretion in interpreting these guidelines as these could be a cause of added cost , he said.

To cut red tape, Recto urged the government to tap its P2.1 billion budget for cyberservices this year in creating more portals for e-governance, including electronic procurement .

This must include an easy- to-access system for electronic payment of fees for permits and licenses issued by the government . For those who would like to supply materials, government should open a virtual store where one can view goods to be procured or supplied , he said.

Recto also batted for express lanes and one-stop shops dedicated for businessmen, traders and entrepreneurs who would like to get information and documents from the government.

He also asked the Government Policy Procurement Board to further shorten the timetable for government procurement without circumventing transparency and accountability rules.

American Chamber of Commerce in the Philippines executive director Robert Sears said on Friday that potential US investments in the country this year could climb to $9 billion, from the assured $3 billion, if red tape issues are resolved.

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