(NAR) VOL. 18 NO. 1/JANUARY - MARCH 2007
WHEREAS,
the government has committed itself, as embodied in the President’s
Ten-Point Legacy Program, to create six (6) to ten (10) million jobs and
to encourage investments in preferred areas of activity;
WHEREAS,
the Medium Term Philippine Development Plan of 2004-2010 and the
Investment Priorities Plan of 2006 have identified ship building and
ship repair as among the areas where the Philippines has natural and
human resource advantage;
WHEREAS,
Republic Act (RA) No. 9295 encourages the development of a viable ship
building and ship repair sector supportive of the shipping industry;
WHEREAS,
the accelerated and sustained development of the ship building and ship
repair sector requires the joint and active collaboration between the
government and the private sector as shown by even the most developed
countries in the world;
WHEREAS,
RA 8042 provides that the State shall continuously create local
employment opportunities and promote the equitable distribution of
wealth and benefits of development;
WHEREAS,
there is a need to attract and maintain much needed investments for the
development of ship building and ship repair sector in view or its
capacity to contribute to the country’s economic output, its strategic
significance given the archipelagic nature of the Philippine geography,
and its potential to open up vast opportunities for employment and
skills training for Filipinos;
WHEREAS,
Section 3, Article XIII of the Constitution recognizes the right
business enterprises to adopt and enforce such policies necessary to
protect the right to reasonable returns on investments and to expansion
and growth;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. Development of the Philippine Ship Building and Ship Repair Sector.
The growth and development of the Philippines ship building and ship
repair sector shall be a key component of the government’s continuing
industrial development program in accordance with the President’s
Ten-Point Agenda.
The entry and maintenance of foreign and local
investment in the Philippine ship building and ship repair sector shall
enjoy the government’s full support in view of its capability to
generate employment opportunities, modernize the country’s industrial
sector, and improve productivity levels through the use of new
technological and managerial know-how.
SECTION 2. Training, Development ad Employment of Filipinos.
The training, development and continuing employment of Filipino
citizens in duly registered entities engaged in ship building and ship
repair within the country shall form part of the government’s effort to
promote investment in the Filipino towards a world class and competitive
industry.
The
“FILIPINO INVESTING IN THE PHILIPPINES”
Program is hereby launched effective immediately and to last for five
(5) years thereafter, wherein the conduct by duly registered entities
engaged in ship building and ship repair of free skills-training and
development for Filipino citizens in consideration of the latter’s
continued and exclusive employment in the said entities shall be
encouraged and promoted in accordance with existing laws, rules and
regulations. Filipino workers who participated in the free
skills-training and development conducted by duly registered entities
engaged in ship building and ship repair are likewise encouraged to
faithfully adhere to their contractual commitments with the entities
under the program. Accordingly, overseas deployment or changes in
employment in the breach of contract by said Filipino workers shall be
considered acts inimical and greatly prejudicial to the national
interest.
Filipino workers who participated in the free-skills
training and development programs of, and are subsequently employed by,
duly registered entities engaged in ship building and ship repair in the
Philippines, shall be entitled to such incentives as may be provided by
law.
SECTION 3. Right to Guard Trade Secrets, Confidential Programs and Information.
Subject to the provisions of existing laws, the right of duly
registered entities engaged in ship building and ship repair to adopt
reasonable employment policies to effectively guard their respective
trade secrets, manufacturing formulas, strategies and other confidential
programs and information from competitors, both local and foreign, is
hereby recognized.
SECTION 4. Ad Hoc Committee. An
Ad Hoc
Committee is hereby established to immediately formulate a
comprehensive development plan for the ship building and ship repair
sector under such terms and conditions as would stimulate and be
consistent with the progressive development thereof. The Committee shall
be chaired by the Maritime Industry Authority (MARINA) Administrator,
with representatives from the following agencies as members:
National Economic and Development Authority (NEDA)
Department of Finance (DOF)
Department of Justice (DOJ)
Department of Trade and Industry (DTI)
Department of Labor and Employment (DOLE)
Department of Public Works and Highways (DPWH)
Department of Environment and Natural Resources (DENR)
Philippine Economic Zone Authority (PEZA)
Subic Bay Metropolitan Authority (SBMA)
Philippine Coast Guard (PCG)
The Committee shall submit such program within sixty (60) days from effectivity of this Executive Order.
SECTION 5. Institutional Assistance and Support.
To the extent permitted by law, all concerned government agencies,
bureaus, and all instrumentalities shall assist duly registered entities
engaged in ship building and ship repair in the Philippines in availing
of all applicable fiscal and non-fiscal incentives, including
registration as a preferred pioneer industry under the Board of
Investments (BOI).
The NEDA, DOF, DOJ, DTI, DOLE, DPWH, DENR.
MARINA, PEZA, SMBA, PCG, and all other concerned government agencies,
bureaus, and instrumentalities are hereby directed to provide the
necessary cooperation and support, including appropriate administrative
and institutional assistance to duly registered entities engaged in ship
building and ship repair, and their respective Filipino trainees and
employees, to ensure the timely and effective implementation of this
Executive Order.
SECTION 6. Separability Clause.
Any portion or provision of this Executive Order that may be declared
unconstitutional shall not have the effect or nullifying other portions
and provisions of the Order for as long as such remaining portions can
still subsist and be given effect.
SECTION 7.
Repeal. All presidential issuances, administrative rules and regulation
or parts thereof, which are inconsistent with this Executive Order are
hereby revoked or modified accordingly.
SECTION 8. Effectivity. This Executive Order shall take effect immediately.
Done in the City of Manila this 8th day of December, in the year of Our Lord, Two Thousand and Six.
(Sgd.) GLORIA M. ARROYO
President of the Philippines
By the President:
(Sgd.) EDUARDO R. ERMITAExecutive Secretary