August 14, 2019

MANILA – The National Economic and Development Authority urged government agencies to ensure that policies, regulations, and other interventions promote market efficiency and do not inhibit competition and innovation.

“Businesses and consumers benefit from greater efficiency and market competition. Government processes, rules and regulations, as well as issuances, should not be overly restrictive resulting in undue and unnecessary burden to businesses, consumers, and the public at large. We need to have a regulatory environment that encourages— not stifles— productivity, innovation, and efficiency improvements,” said Socioeconomic Planning Secretary Ernesto M. Pernia.

NEDA issued a statement following Anti-Red Tape Authority’s (ARTA) call for the Land Transportation Franchising and Regulatory Board (LTFRB) to address alleged irregularities in the issuance of Provisional Authority (PA) and the grant of Certificate of Public Convenience to Transport Network Vehicle Services (TNVS) applicants.

ARTA also asked LTFRB to explain its alleged failure to act on applications for the issuance and renewal of PAs within the stamped processing time and the imposition of undue regulatory burden and cost.

LTFRB reportedly requires TNVS applicants to file their application in person as the designation of a representative other than the direct ascendant or descendant of the applicants is prohibited.

On August 13, 2019, ARTA announced that after receiving LTFRB’s response, it will submit a report of their findings and recommendations to President Rodrigo R. Duterte.

They also stated that they will issue an order for LTFRB to automatically approve all applications that have already complied with requirements and are only waiting for a decision.

“The imposition of additional requirements without due cause restricts the entry of market players or businesses in any industry. Our role in government is to simplify and streamline processes to create an enabling environment that would be beneficial to all in the long term,” said Pernia.

The Philippine Development Plan 2017-2022 aims to institutionalize a National Competition Policy that enhances market competition by fostering an environment that facilitates entry of players and supports regulatory reforms.