ROMAC Group Chairman and Pampanga Chamber of Commerce and Industry (PamCham) Director Rene G. Romero declared “anti-business” the proposed ordinance which calls for the mandatory “hiring and posting” of security guards in establishments in the City of San Fernando, Pampanga.
Romero said that the business groups will oppose the draft ordinance, which is now pending at the CSF Sangguniang Panlungsod, and is also being considered as a prerequisite in the issuance of business permits for all business firms in CSFP with a P3-Million capitalization must not prosper, as it is practically “telling entrepreneurs how to operate our businesses.”
Romero furthered, “Even if they increase the capitalization amount to P10 million, they cannot require each business firm. It cannot be a one-size-fits-all requirement.”
The businessman explained, “Maiintindihan po natin at dapat lang talaga meron security ang mga banko, bahay sanglaan at iba pang high risk na negosyo. Pero paano naman po yung mga nasa palengke, mga nagtitinda ng inumin at pagkain, bigas, gulay, mga simpleng mangangalakal lamang na kung saan ang capital ay umaabot na rin ng P3 million dahil sa taas ng presyo ng supply at materials, gas ngayon at iba pang gamit pang negosyo?”
Romero stressed that, derived from the tax payments of businesses, the protection of business establishments is the prime responsibility of law enforcement.
He expressed concern that the planned imposition of this measure would hurt small and micro enterprises who may not afford hiring and posting of security personnel that cost anywhere from P20,000 to P35,0000 per guard, depending on number of duty hours.
Under the draft ordinance, businesses that will be found to be in violation of the mandatory hiring and posting will be subject to suspension of operations and revocation of business permit.
For reference, Romero furnished a copy of pointers that would bring light to the opposition of the ordinance. They are as follows:
Lack of Data-Driven Justification: The proposed ordinance mentions an increase in criminal incidents involving business establishments in the city but fails to provide concrete data or analysis to support this claim. It is essential to base such a significant regulatory change on empirical evidence to ensure that it is necessary and proportionate to the problem.
One-Size-Fits-All Approach: The proposed ordinance applies uniformly to all business establishments with a capital of Three Million Pesos (PHP 3,000,000) or more, regardless of their specific risk profiles. This one-size-fits-all approach does not take into account the varying levels of risk and security requirements among different types of businesses.
Financial Burden on Businesses: Requiring all eligible businesses to hire licensed, trained, and armed security guard personnel places an additional financial burden on business owners. This burden is particularly challenging for small and medium-sized enterprises (SMEs) operating on tight budgets.
Bureaucratic Complexity: The ordinance introduces a bureaucratic process for businesses to prove compliance, involving appointment letters/ designations, employment contracts, and social insurance contributions. These administrative requirements may be onerous and time-consuming for business owners.
Contradiction with Ease of Doing Business Initiatives: The Philippines has made significant efforts to improve the ease of doing business in the country. This proposed ordinance, with its added regulatory burden, appears to contradict these national initiatives, potentially discouraging investment and economic growth.
Potential for Abuse and Corruption: The mandated hiring of security guards may inadvertently create opportunities for abuse and corruption.
