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WHEREAS, it is a declared policy of the government to ensure the development of industries with extensive domestic value-added as the key to a sustained and balanced agri-industrial Philippine economic growth;

WHEREAS, in order to sustain the current economic growth rate of the country leading to attainment of the status of a Newly Industrializing Country by the year 2000, it is imperative that Philippine industries should be globally competitive;

WHEREAS, the government has likewise identified a strong growth in export as the key to national survival;

WHEREAS, a strong export growth can only sustained by the development of industry;

WHEREAS, there is a need for a concerned and collective effort of the government and private sectors to create a favorable business climate that will enhance growth and expansion of the country’s industries.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Industrial Development Council. – There is hereby created an Industrial Development Council hereinafter referred to as the “Council”.

SEC. 2 . Composition. – The Council shall be composed of the following:

a. Secretary of Trade and Industry	Chairman
b. Presidents of Philippine Chamber of Commerce and Industry, Inc. and Federation of Philippine Industries, Inc.	Vice-Chairmen
c. Secretary of Finance	Member
d. Secretary of Agriculture	Member
e. Secretary of Foreign Affairs	Member
f. Secretary of Science and Technology	Member
g. Secretary of Labor and Employment	Member
h. Director General of the National Economic and Development Authority	Member
i. Governor of the Bangko Sentral ng Pilipinas	Member
j. Seven (7) Representatives of the Private Sectors	Member

A permanent representative from the Office of the President shall be present during all council meetings.

The representatives from the private sectors shall be recommended by the accredited organization thru the Secretary of Trade and Industry for appointment by the President. The private sector representatives of the Council shall serve for a period of two (2) years. When a vacancy arises due to the resignation, death or incapacity of a member, a replacement who shall serve for the remainder of the member’s term of office shall be appointed by the President.

Other Heads of the Executive Department and Agencies, private organizations or individuals can be called upon by the Council to resolve issues and problems that concern their respective offices.

SECTION 3. Powers and Functions. -The Council shall:

a. Recommend approval of the Industrial Development Plan of the Philippine (IDPP) which plan shall be congruous and compatible with the Philippine Export Development Plan (PEDP) and its integration into the Medium-Term Philippine Development Plan (MTPDP); coordinate, monitor and assess the implementation thereof, and, when necessary, institute appropriate adjustment thereon in the light of changing conditions in both the domestic and international environment;

b. Periodically review and assess the country’s industries’ performance, problems and prospects;

c. Reduce uncontrolled business costs by identifying the main bottlenecks, problem areas and constraints in all areas, sectors and activities that influence the development of industries, including but not limited to, such matters as policy framework, physical infrastructure, financing, foreign exchange, technology, production, promoting and marketing.

d. Mandate specific departments and agencies to attend to the bottlenecks and problems constraining the development of industries in any of the areas mentioned in paragraph (c) above, and require the concerned Secretaries to deliver a progress report(s) on the actions or initiatives taken to resolve these areas of concern at the next meeting(s);

e. Ensure product quality control by overseeing the formulation and implementation of quality control guidelines by appropriate agencies to make Philippine products at par with world-class products;

f. Impose sanctions on any government agency or officer or employee thereof, or private sector entity that impedes efficient trade of Philippine goods;

g. Recommend to Congress any proposed legislation that would contribute to the development of Philippine products;

h. Formulate policies or recommended measures and draw up a study within ninety (90) days from the approval of this Order, relative to the rationalization of the government’s industries promotion and development functions/activities and programs for the eventual transfer of government industries promotions and development activities to the private sector within a period of two (2) years after the approval of the Act;

i. Formulate policies or recommend measures to promote investments in identified sectors;

j. Formulate the policies for the granting of incentives to industries;

k. Adopt such policies, rules and procedures and administrative systems for the efficient and effective exercise of its powers and functions; and

l. Grant and review the accreditation of Philippine industry associations/organizations.

SEC. 4. Executive Committee. – An executive Committee (ExCom) composed of representatives from DTI as Chairman, NEDA, Finance, BSP, the Office of the President and five (5) from the private sector, two (2) of whom are the respective Presidents of FPI and PCCI as Vice Chairmen, is hereby constituted to assist the Council in the coordination, monitoring and assessment of the implementation of the IDPP.

SEC. 5. Secretariat. – The Council shall be assisted by a Secretariat based in the Department of Trade and Industry, headed by an official designated by the Chairman of the Council, together with personnel from the government agencies and private sectors represented in the ExCom who shall be assigned to the Secretariat, respectively, by the ExCom.

SEC. 6. Meetings. – The Council shall meet at least once a month, and at least once every quarter with the President, provided, that the President may convene the Council whenever he deems it necessary.

SEC. 7. Funding. – Funding of activities and operational expenses of the Council shall be supported by contributions from the government and the private sector. A seed capital in an amount recommended by the Department of Trade and Industry, upon consultation with the Department of Budget and Management and approved by the President, shall be taken from the Contingent Fund of the President. Thereafter, the annual contributions of the government shall be included in the annual General Appropriations Acts after consultations with the Department of Budget and Management.

SEC. 8. Repealing Clause. – All other executive issuances, rules and regulations or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed, amended or modified accordingly.

The Executive Order shall take effect immediately.

DONE in the City of Manila, this 2nd day of December in the year of Our Lord, Nineteen Hundred and Ninety-Six.

(SGD.) FIDEL V. RAMOS
President of the Philippines

By the President:

(SGD.) RUBEN D. TORRES
Executive Secretary