ROXAS SEEKS CREATION OF MINDANAO ECONOMIC ZONE
GOV'T ASKED TO FOCUS ON IMPROVING JOBS, INCOME IN MINDANAO

Liberal President Senator Mar Roxas sought today the conversion of Mindanao into a free port and special economic zone to promote the island's development and provide jobs and income for the people there.

In filing Senate Bill No. 2580, seeking the creation of the Mindanao Special Economic Zone and Freeport, Roxas said it was the best socio-economic response to the ongoing conflict between the government and Islamic separatists.

"The conflict and uncertainty in Mindanao, such as that brought by the botched GRP-MILF MoA, requires a government response that will encourage continued investments and ensure the security of the livelihood of millions," he said.

"A lot of the problems we are now dealing with in Mindanao are a result of years of neglect of the needs of our countrymen in the South. Providing a sound environment and giving our citizens greater economic stability will go a long way in reducing conflict and eventually attaining peace in Mindanao," he said.

Roxas added that the controversial MoA was "a political means of dealing with an otherwise economic problem. As policymakers, we have to look at things squarely and find the appropriate solution to raise the quality of living conditions in the area."

The proposed Mindanao free port will encompass 27 provinces in the six regions in Mindanao: Zamboanga Peninsula, Northern Mindanao, Davao Region, SOCCSKSARGEN, Caraga and the Autonomous Region in Muslim Mindanao. It will be managed by a Mindanao Special Economic Zone and Freeport Authority, which will be 60%-funded by the national government.

Among the incentives provided to enterprises and locators in the proposed eco-zone are: income tax holiday, net operating loss carryover, and a 5% gross income tax in lieu of all other taxes except for real estate taxes. These perks and others are currently enjoyed by businesses in other Philippine eco-zones such as Subic and Clark.

The explanatory note of the bill states: "By supporting Mindanaoans to achieve their own vision for Mindanao, this bill will complement initiatives on the political and education sector fronts which likewise try to address the conditions of deprivation that enable armed conflict."

"Its urgency cannot be understated particularly in the light of recent events which drive home the fact that status quo counterinsurgency and anti-poverty strategies have failed to resolve the conflict in the South."