CALAMBA FRANCHISE ORDINANCE: Seal of the City's Economic Growth

User Rating: / 1
PoorBest 

Blog Date: 01 Oct 2010

The entry of one of the biggest malls in Asia in our beloved city is most welcome by everyone.  It is a symbol of progress and a door of vast opportunities.  But as the public waits the opening of SM City this 15^th of October, questions and issues are still needed to be answered.  In the city of Calamba, transport terminals, shopping malls and public markets are required to secure a franchise or a permit from the City Council (Sanggunian Panlungsod) before they can operate, but according from sources, SM management refuses to apply for a franchise contending that they have already obtained a permit from the Mayor’s Office and argued that they are not covered by the said ordinance (although SM is a mall and a supermarket).  Several talks have been made but nothing has been resolved yet.  The City Council, particularly the principal author of the Franchise Ordinance Councilor Christian Niño Lajara, is firm with his stand that SM should not be exempted from the law.

The Ordinance

City Ordinance No. 08-414 otherwise known as the Franchise Ordinance is “AN ORDINANCE REQUIRING ALL PERSONS, PARTNERSHIP AND CORPORATIONS OR COOPERATIVE TO SECURE A FRANCHISE/PERMIT FROM THE SANGGUNIAN PANLUNGSOD FOR THE OPERATIONS OF TERMINALS, MARKET, SHOPPING CENTERS AND LIKE ESTABLISHMENTS AND PRESCRIBING GUIDELINES FOR ITS ISSUANCE”.  This ordinance aims to ensure that every public establishment that will be constructed in Calamba is within the acceptable standard of safety and cleanliness, as well as ensuring business interests of local entrepreneurs.  Applicants for franchise of markets, shopping centers and the likes must meet the following conditions before they will be given a franchise:

¨ They should meet the standards set forth in the Building Code of the Philippines

¨ Sufficient parking lots/spaces for cars, delivery trucks and bicycle racks

¨ Public address system facilities and CCTV cameras and monitor.

¨ Concrete pavement and flooring

¨ Information and Customer’s Assistance Center

¨ Sufficient number of Security Personnel

¨ Separate restrooms for male and female and disabled persons...

¨ For Shopping Centers, residence of Calamba City shall be given priority for the hiring of personnel, staff, officers, saleslady and salesmen and for those who want to lease stalls and boutiques

¨ The owners/operators shall comply with other laws, rules and regulations provided by the Revised revenue Code of Calamba in relation to market

¨ Traffic Impact Assessment Report as provided by the Provincial Ordinance No.23478

¨ A franchise tax of five thousand pesos will be collect by the city government

 It was passed into an ordinance in the City Council in year 2008.

Community mall like the Waltermart, which is operating in Calamba for more than 12 years now, has no problem complying with the ordinance.  According to Mr. Jojo de Guzman, VP for business development for Waltermart Corporation, the franchise ordinance is good for the city since it safeguards the interest of local producers.  Being a community mall, Waltermart has been committed to help Calambeños in their livelihood by sourcing their products from local producers.  Mr. de Guzman said that their agricultural products such as vegetables, fruits and livestock like meat, eggs are home-grown.  They said by doing so they are giving back to Calambeños the patronage they have been enjoying for years.

Recently, the Canlubang Terminal Xchange, a transport terminal, has been granted franchise by the City Council after it has conformed to the requirements of the ordinance.  It is expected that other like establishments will follow.

“Local Economy”

The wisdom of the Franchise Ordinance is primarily to maintain local purchasing in the city.  If local products are being bought by Calambeños, cash flows continuously and in effect, economic growth will be felt down to the masses.   Progress like the arrival of SM mall must improve the economy of Calamba not kill the local industries and small businesses.  By obliging malls to engage local producers, particularly the farmers, to be one of their suppliers, we are alleviating the livelihood of many families in the agricultural sector.

Sanggunian Panlungsod vs. Mayor’s Office?

Reportedly, the SM management rejected to comply with the Franchise Ordinance for they have allegedly secured permit coming from the Mayor’s Office.  This maybe true for  apparently, the local executive has been promoting the mall and very supportive indeed in accommodating SM’s recruitment inside the City Hall.  Furthermore, SM management supposedly argue that having them apply for a franchise would be double taxation on their part.  However, Councilor Lajara in his privileged speech during a session in the City Council cited  a similar situation:

In a case between PROGRESSIVE DEVELOPMENT CORPORATION-petitioner vs.  QUEZON CITY-respondent, the court issued a decision favorable to the Quezon City government.  The petitioner, the owner and operator of Farmer’s Market and Shopping Center complained about the license fee imposed by the local government, claiming that such fee is a tax on income and   is illegal based from Republic Act No. 2264.  However, the Supreme Court explained that the imposition of license fee is an exercise of the respondent’s police power and since Farmer’s Market, although it is privately-owned, it is open to the general public.  Therefore the local government must ensure the protection of the public and maintain the sanitary and hygienic condition of the market.  The license fee will cover the probable expenses of such regulation not a tax from income.

Let’s wait and see…

The construction workers are double-timing in finishing that big structure in Crossing, getting ready for the opening day.  And less than ten days from now, there is no sign of any restrain coming from the local government amidst SM’s franchise boycott.  Clearly, the ordinance offers win-win situation for Calambeños and the local government.  It was approved and must be implemented.  And while smaller establishments will be obliged to comply, what makes SM above the law?