Business losses, damage from flooding P5B — PCCI

10/13/2009

Damage among local businesses from the two typhoons are estimated to have reached P5 billion but the country’s biggest trade group said the prospects for growth in the economy by the end of the year remain.

Philippine Chamber of Commerce and Industry (PCCI) president Edgardo Lacson said the business sector, nevertheless, is still assessing the extent of the damage on businesses wrought by typhoons “Ondoy” and “Pepeng.”

“Our estimates point to P5 billion worth of businesses being damaged,” Lacson said. The business damaged by Ondoy was placed at the damge wrought by Ondoy but Pepeng was higher at P3 billion.

Lacson said the damage include factories and company operations that have been submerged by flood, lost materials and lost business opportunities.

“Some of our members are affected in the Northern Luzon,” Lacson said.

Lacson, however, said the business damage would have no impact on the local economic growth this year.

In fact, there could be higher growth this year because of increased economic activities for the reconstruction.

On the government calamity fund, Lacson said the government has to realign its budget because it will take time if if it waits for Congress to act on it.

“The P10-billion calamity fund can be taken from the road users tax,” he said.

In the case of the PCCI, they will be extending financial assistance to the micro and small businesses affected by the typhoons.

For instance, PCCI will be extending financial assistance to some 2,000 shoe manufacturers in Marikina whose factories have been flooded.

“They need some equipment and overhauling of the submerged machines,” he said.

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