The pledge was aired the other day by president and CEO Levy P. Laus of Clark Development Corp. after his speech before the joint meeting of 15 Rotary clubs in Pampanga at Ribeye Restaurant here.

The Federation of Philippine Industries (FPI) headed by Jesus Arranza has submitted a position paper to Sen. Ralph Recto and Rep. Herminio Teves, chairmen of the ways and means committees of the Senate and the House of Representatives, respectively.

The position paper stated, "we could not in conscience stop registering our vehement objection to Clark’s becoming a Freeport."

Earlier, the congressional bicameral conference committee approved in principle a reconciled House-Senate bill granting tax incentives and duty-free privileges to special economic zones in the country, similar to those being enjoyed by locators and investors at Subic Bay Freeport as provided for under the Bases Conversion law.

It was recalled that the Clark Investors and Locators Association (CILA) passed recently a resolution "expressing its loss of confidence in immediate CDC past president Tony Ng" for the alleged laxity of the security measures inside the zone.

It was learned later that some duty-free shop operators lost their confidence in Ng and even worked for his replacement because of his strict campaign against smuggling.

In its position paper, FPI stated that intelligence reports submitted to the Cabinet oversight committee on anti-smuggling exposed "countless untaxed goods that passed through Clark."

The same paper stated that CDC "could not even explained the non-liquidation of imports and the so-called constructive exports where goods are categorized and brought out of Clark without payment of duties and taxes."

Arranza said many Clark investors-locators have not liquidated for three to four years now, but they still continue to import tax-free goods despite the violation.

FPI stated that Clark zone should not be converted into a freeport because Clark investors are already enjoying incentives for having been located in a special economic zone.

It was also noted that the volume of goods being shipped to Clark by air is minimal because it has no seaport, "hence converting Clark into a freeport is unjustified."

The Bases Conversion Development Authority (BCDA) has lauded Congress for resolving the tax perks issue which was raised by locators at Clark and other economic zones. It came as a result of a Supreme Court decision in 2003 declaring null and void the tax-free privileges which were granted temporarily through an executive order issued by former President Fidel Ramos.

The bill, which was approved in principle by the bicameral conference committee of the reconciled Senate-House bill granting tax-free privileges in special economic zones, will take effect and implemented only upon its signing into law by President Arroyo, some Clark locators and CDC officials said.

Central Luzon senators and congressmen expressed hope that President Arroyo would sign the tax-incentive bill for the sake of the more than 40,000 persons employed in various duty-free shops and factories in Clark zone alone.

If enacted into law, big-time foreign and local investors would no longer think of transfering their operations to other tax-friendly countries.