While other liberalization measures may yet be enacted by the 18th Congress, Speaker Lord Allan Velasco on Thursday ruled out further Charter change (Cha-cha) discussions, particularly the lifting of the economic restrictions, during the term of this Congress.
During the 9th Arangkada Philippines Forum 2020 titled Foreign Investment in the Post-Pandemic Philippines, Velasco told Joint Foreign Chambers and Philippines business groups that all the moves to amend the 1987 Constitution will now be in the hands of the next Congress.
While he supports the relaxation of the restrictive provisions in the 33-year-old Constitution, Velasco said the House will focus on the passage of the national budget and government’s Covid-19 pandemic response.
Several moves in the 18th Congress are geared at liberalizing the economic provisions of the 1987 Constitution. Under Article XII of the 1987 Constitution, foreign investors are prohibited to own more than 40 percent on certain industries, and they are totally restricted from exploiting natural resources, public utilities and owning any company in the media industry.
“I am open to amendments towards relaxing the very restrictive provisions of our Constitution on foreign capital, [however] maybe we don’t have enough time anymore this 18th Congress, as there are many other equally important matters that we need to attend to,” Velasco told foreign and local business chambers.
“Notwithstanding, this overdue constitutional amendments should be tackled and be addressed with finality in the next Congress to attract investment and subsequently improve the quality of employment in our country. We have to address the bottleneck that hinder the efficient operations of our industries and the flow of capital and resources to the sectors that need them the most,” he added.
Liberalization agenda
Meanwhile, Velasco said the lower chamber will continue to push for the final passage of the New Public Service Act (House Bill 78), Foreign Investments Act (House Bill 300), and Retail Trade Liberalization Act (House Bill 59), the Corporate Recovery and Tax Incentives for Enterprises Act and National Land Use Act. All these measures are now in advanced stage in Congress.
In the same forum, the cochairman of the Economic Stimulus Response Package Cluster of the Defeat Covid-19 Ad Hoc Committee and AAMBIS-OWA Rep. Sharon Garin said these bills, which have been approved by the House and pend in the Senate, will spur economic activity post Covid-19 pandemic.
“[Once approved] these measures will boost business and consumer confidence,” she said.
Garin also told business groups that lawmakers are working on the passage of the Bayanihan 3 proposal, which include health, regulatory and fiscal interventions that can help the country’s overall recovery from the economic devastation wrought by the pandemic.
“With the primary goal of enabling the procurement of Covid-19 drugs and vaccine and making it accessible to Filipinos from all walks of life, the bill further aims to recondition the economy and extend government support to various sectors such as banking, business [particularly micro, small and medium enterprises] and most notably, agriculture,” she said.
House Bill 8059 is the third “Bayanihan” package crafted by lawmakers to cushion the adverse socioeconomic impact of Covid-19, and Garin is optimistic the bill will soon hurdle Congress.
Marikina Rep. Stella Luz Quimbo, who also cochairs the House Economic Cluster, said these measures will make the business environment more competitive and regulations reasonable and predictable.
“But the most important legislation that will attract foreign investment are those measures that will control the spread of Covid-19, will foster the growth of small and micro business and provide built-in mechanisms that make economy more resilient,” she said.
Quimbo is also pushing for the passage of her own version of Bayanihan 3 or the P400-billion Bayanihan to Arise as One Act.
In House Bill 8031, Quimbo’s third Bayanihan Act will give additional funding and strengthen government response to the ongoing public health crisis complicated by three successive typhoons that battered most parts of Luzon.
According to Quimbo, the P400 billion in spending package seeks to ensure help is available under the state’s social amelioration program, rehabilitate areas damaged by natural calamities, sustain delivery of basic goods and services, implement high-impact infrastructure projects, assist businesses to keep them afloat, and bring the economy on the right track.