In this period when the competitiveness of the Philippines to attract investors has sunk to low levels, we now have another uncertainty: the Spot-Zoning practice of LGUs as upheld by the Supreme Court in the case involving Social Justice Society (SJS) and Cabigao against Shell, Petron, and Chevron and ordering the enforcement of Ordinance No. 8027 which reclassified the area of the Pandacan terminals from industrial to commercial.
We respect the ruling of the High Court in the aforementioned case. We are worried, however, about its implications to investor confidence and the economy as a whole in the long run. We believe that giving a blanket, absolute, and unfettered affirmation of the local government unit’s power to declare zoning may be too injurious to the competitiveness of the Philippines in attracting investors to the country. While cities have the power to reclassify land, we believe that this must be consistent with an integrated and comprehensive land use plan and must not be discriminatory.
Arbitrary spot-zoning ordinances should not be allowed, as this will make the business environment unpredictable and unattractive to investors. If we allow local governments to spot-zone everywhere, industries will not be ensured with continuous tenure in the areas in which they operate, and this will be a serious disincentive to investments.
Industries will not spend millions of pesos in a particular city or province if a local government unit can effectively kick them out anytime by re-classifying the area where their office, factory, or establishment is located.
Given this, we hope that the National Government and concerned stakeholders will consider taking a second look into this matter of critical importance due to its dire, long-term economic consequences.
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