Wednesday, January 30, 2008

Another Day, Another Revelation

During a public hearing this morning, I found out that some people are taking advantage of an old provincial government imposition to the detriment of the capitol.

The rent at the Ilocano Heroes Hall.

This is a government building owned and operated by the Provincial Government of Ilocos Norte. It is a 4 storey structure housing offices of government agencies, cooperatives and other businesses. DOT, COMELEC, Bureau of Treasury, INEC, DILG, NCIP are a few of the government offices leasing office space there.

The rent is low. In the 1st floor, rent is at PhP100/sq.m. In the 2nd floor, it is at Php75/sq.m. Maliit lang. Pero okay lang to. This is not the controversy.

In the middle, there is an auditorium. Imagine the Atrium building in Makati. Those corp lawyers based in Makati would know this since andun yung BIR. Anyway, parang ganun yung design sa building namin dito sa Laoag.

Now we rent out that space. For concerts, graduations and other programs. We charge them mga PhP1,500/day. Mura to considering its around 800 sq.m.

In the old revenue code, we allow its use for commercial purposes. and we charge just PhP3,000/day. That's PhP3.75/sq.m.

You know how people take advantage?

They rent it out at 3,000. Then they organize a tiangge wherein they could fit around 100 concessionaires. And they charge them PhP500/day.

PhP500 x 100 = PhP50,000!

They make a 47,000 profit per day!

And they rent out the auditorium for one month. So they earn a gross of 1.5 Million.

The province gets a measly 90,000.

yung 3,000/day na yun, kasama na yung electricity at paggamit nila ng restrooms ha.

SOBRANG LUGI ng Capitol.

HINDI NA TO PWEDE. Not on my watch.

I proposed to change the rate. instead of flat out 3,000/day for the whole 800 sq. m., I am suggesting we impose a rental of 100/sq.m. So, a 2x2 stall would pay 400 a day to the capitol.

PhP400 x 100 locators = PhP40,000 TO THE CAPITOL!

The Tiangge organizer can still make a profit. sa 500 na fee niya, minus 400 that goes to us, may 100 pa siya.

PhP100 x 100 locators = PhP10,000 to the organizer per day. Okay na yun, no!

Anyhoo, the important thing is that the Capitol earns income. This way we can provide better services to the general public.

That's why yung mga assets namin, dapat kumita. hindi malugi.

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