Yamsuan eyes establishment of LGU fund to boost growth of cooperatives

 

 

Bicol Saro Partylist Representative Brian Raymund Yamsuan has called for the swift congressional approval of a measure that aims to mandate local government units (LGUs) to allot a portion of their income for projects and programs that will encourage the growth of cooperatives in their respective communities. 

 

Yamsuan said passing this measure as provided under House Bill (HB) 2162 would translate to an unprecedented increase in the number of cooperatives in the country, which,  in turn, would create more jobs, invigorate local economies, and lower poverty incidence. 

 

“Cooperatives can have a significant impact in reducing poverty in our communities. Unlike a  for-profit business where a substantial portion of its earnings go to paying the large salaries of its investors, and only a fraction is re-invested to keep the business going, a cooperative invests the money it earns back to  the coop and the community it serves,” said Yamsuan, who co-authored HB 2162. 

 

“Kapag ginastos ng may-ari ng isang for-profit enterprise ang kanyang kita, malamang ay lalabas ang pera sa komunidad na kung saan siya nagnenegosyo. Pero sa kooperatiba, malaking bahagi ang bumabalik din sa komunidad na pinagsisilbihan nito kaya’t ang mga miyembro ng coop at ang mga komunidad ang nakikinabang,” added Yamsuan. 

 

(If an owner of a for-profit enterprise spends his earnings, he will most likely spend it outside the community where he does business. But for cooperatives, a large part of its profits goes back to the communities they serve. Thus, their members and their communities are the ones who benefit.)

 

Yamsuan said cooperatives can power the  modernization of the agriculture sector in areas like the Bicol Region.  Cooperatives can also thrive in urban centers like Metro Manila where they can fill the needs and service gaps in their communities. 

 

HB 2162 provides for the creation of the Local Cooperatives Development Fund (LCDF) to be managed and administered by the provincial, city and municipal LGUs to support programs, projects and activities for local cooperatives development in their respective jurisdictions. 

 

Under the measure, the  source of the LCDF will come from 2 percent of the funds that LGUs get as their National Tax Allotment (NTA), which represents their share in the taxes collected by the national government. 

 

For  LGUs belonging to the 4th to 6th income classifications, the bill states that they may opt to allocate at least 2 percent of their funds for local development projects as their LCDF. They, however,  should commit to progressively realize the mandate of allotting 2 percent of the NTA for local cooperatives development within the next five years from the time the bill becomes law. 

 

Yamsuan said HB 2162 complements Republic Act 11535, which makes the position of Cooperative Development Officer (CDO) mandatory in the municipal, city and provincial levels. 

 

Under RA 11535, the municipal, city, and provincial levels will all be required to appoint a CDO who will be in charge of assisting groups and sectors in organizing and forming their own cooperatives.

 

CDOs will also bridge regional cooperatives with the CDA and other national government agencies to help them harmonize their goals with the national cooperative movement.

 

“Our proposed measure will empower CDOs to effectively fulfill their duties and responsibilities.  Kahit may CDO ka sa bawat LGU kung wala namang pondo para matulungan ang paglago ng mga coops, hindi rin matutupad ang hangarin ng batas na mapalakas ang cooperative movement sa bansa para ito ay maging isang mabisang instrumento sa pagpapasigla ng ekonomiya at paglikha ng maraming trabaho,” Yamsuan said. 

 

(Even with CDOs in every LGU,  the law’s objective to strengthen the cooperative movement in the country and transform it into a potent  instrument in energizing the economy and creating more jobs cannot be realized if CDOs do not have the funds to support the growth of cooperatives.)

 

Yamsuan said that with the notable increase in the tax base used to compute the NTA of LGUs, provincial, city and municipal governments have now become financially capable in carrying out the bill’s proposed mandate of allotting 2 percent of their funds for local cooperatives development. 

 

For fiscal year 2024, the total NTA allocation of LGUs amounts to P871.3 billion, representing a 6.23 percent hike from their 2023 NTA of P820.2 billion, according to the Department of Budget and Management (DBM). 

 

Data from the Cooperative Development Authority (CDA) as of 2023 show that there are 12.4 million members in the country’s 20,752 cooperatives, which employ about 312,300 people.  The combined total assets of cooperatives as of 2023 amounted to P719.3 billion, with a net surplus of P23.7 billion and savings reaching P294.5 billion, according to CDA data. ###