House approves institutionalizing industry cluster-based programs and
projects thru inter-local cooperation among LGUs
The House of Representatives has approved on third and final reading a measure that will institutionalize nationwide industry cluster-based programs and projects thru inter-local cooperation and peoples participation. House Bill !"#$ also %nown as &eoples &articipation in 'ndustry (luster-Based &rograms and &rojects )ct$ was sponsored by the House (ommittee on &eoples &articipation chaired by Rep. Benjamin )silo *+ st ,istrict$ -anila.. The measure$ which substituted House Bill #+/ authored by Rep. (inchona (ruz-0onzales *&arty 1ist$ ('B)(.$ aims to institutionalize the industry cluster approach as a means of pursuing the local economic development through the inter-local cooperation *'1(. among 1ocal 0overnment 2nits *102s.. (ruz-0onzales said 'nter-1ocal (ooperation *'1(. refers to an alliance of 102s that are geographically adjacent to each other within a province or two adjacent provinces to integrate local production forces li%e manpower$ materials$ money$ machine$ and methods to create a concerted effort to push their development and jointly provide programs$ projects$ and services. 34hile industry cluster refers to geographic concentration of competing but collaborating and independent businesses within a value chain of a broadly defined industry from suppliers to end products$ including support services and specialized infrastructure and facilities$ industry cluster-based programs and projects are those that promote convergence$ job generation$ and investment promotion through production of competitive products and services to achieve inclusive growth$5 (ruz-0onzales said. 3The measure shall provide an effective mechanism to strengthen the participation of the people in community development through institutionalized industry cluster-based programs and projects$5 (ruz-0onzales said. The bill will also promote unity among the people of the member 102s by encouraging them to wor% together in pursuing industry cluster-based programs and projects$ (ruz-0onzales added. 2nder the measure$ the '1( on industry cluster-based programs and projects is institutionalized under the supervision of the ,epartment of the 'nterior and 1ocal 0overnment *,'10. and the ,epartment of Trade and 'ndustry *,T'.. The ,T'$ in consultation with the local sanggunian$ shall accredit civil society and business organizations upon their compliance of re6uired documents such as$ )rticles of 'ncorporation and bylaws and certificate of registration with a government registering agency$ among others. The civil society and business organization shall provide the appropriate e7pertise$ facilities and financial support to ensure the success of industry cluster-based programs and projects. The 102s shall provide a mechanism that will encourage and facilitate the participation of accredited civil society and business organizations in all aspects of development wor% in industry cluster-based programs and projects to enliven the sense of community acceptance and ownership of products$ and to ensure the responsiveness of these programs to the needs of the community. The 102s shall be organized into clusters based on adjacent or contiguous location$ commonality in interests$ needs and development re6uirements$ agreement in the identification of products and services that shall be developed$ willingness to commit and share local resources$ facilities and services for local development$ and economic viability. NR # 3515 JULY 2, 2014 8ach industry cluster$ to be composed of two or more 102s$ shall create an 'ndustry (luster -anagement Board *'(-B.$ which shall be the primary body that will prepare$ integrate$ coordinate$ supervise and control industry cluster-based plans$ programs$ projects and activities of the cluster. )n 'ndustry (luster -anagement 9ffice *'(-9. in each cluster shall be established to house the &roject and -anagement ,evelopment :taff *&-,:. that will be determined by the '(-B. The '(-B shall be headed by a chairperson who shall be one of the 1(8s of the member-102s$ elected annually by a majority of the '(-B members. The '(-B shall present its formulated industry plan to the respective local sanggunians$ for an approved resolution$ which will be implemented within si7ty days after its adoption. 8very industry cluster shall create a (luster )dvisory (ommittee *()(.$ which shall be the primary body to give advice$ technical assistance and policy guidance to the '(-B especially in the formulation of cluster plans and programs and in enterprise and livelihood development. The committee shall be composed of representatives from the ,epartment of )griculture *,).$ the ,epartment of 1abor and 8mployment-Technical 8ducation and :%ills ,evelopment )uthority *,918-T8:,).$ the ,epartment of :cience and Technology *,9:T.$ the ,epartment of Tourism *,9T.$ the ;ational 8conomic and ,evelopment )uthority *;8,).$ financing institutions and other concerned agencies as identified by the ()($ including representatives from accredited civil society and business organizations as members. The measure also provides incentives to industry cluster entrepreneurs in terms of preferential access to low-interest government credit and priority in government-initiated product mar%eting and promotion programs as well as ta7 e7emptions. 8ach industry cluster shall establish a (luster (ommon <und$ which shall comprise of the amount of contribution agreed upon by the members of the industry cluster through cluster resolution and any local or foreign donation obtained by the '(-B to finance industry cluster-based programs and projects. The '(-B shall be authorized to directly utilize a portion of the income generated from fees and other collections in the performance of its functions to defray operating e7penses. 'n carrying out its functions$ the '(-B shall consult$ coordinate and wor% closely with the 102s$ the ,)$ the ,'10$ the ,918-T8:,)$ the ,T'$ the ,9:T$ the ,9T$ the ;8,)$ the (ommission on Higher 8ducation *(H8,.$ and accredited civil society and business organizations operating within the cluster. The respective offices of the :ecretaries of the ,T' and the ,'10$ in coordination with the regional offices and accredited civil society and business organizations$ shall monitor and evaluate the implementation of industry cluster-based programs and projects and recommend necessary measures to support cluster-related activities. The :ecretary of Trade and 'ndustry$ in coordination with the :ecretary of the 'nterior and 1ocal 0overnment$ shall issue the rules and regulations necessary for the effective implementation of the )ct. )side from (ruz-0onzales and )silo$ other authors are Reps. ;oel =illanueva *" rd ,istrict$ Tarlac.$ -aria 1eonor 0erona-Robredo *" rd ,istrict$ (amarines :ur.$ 8lisa >ho *# nd ,istrict$ -asbate.$ (resente &aez *&arty 1ist$ (99& ;)T((9.$ and (atalina 1eonen-&izarro *&arty 1ist$ )B:.$ -a. 1ourdes )costa-)lba *+ st ,istrict$ Bu%idnon.$ :amuel &agdilao *&arty 1ist$ )(T-(':.$ 8mmi ,e ?esus *&arty 1ist$ 0abriela.$ 4inston (astelo *# nd ,istrict$ @uezon (ity. and 1ani -ercado-Revilla *# nd ,istrict$ (avite.. (ruz-0onzales and other co-authors are confident that the measure shall be given priority at the :enate. *"!. jc