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ANOTHER proadministration legislator has joined his colleagues in the Malacañang-controlled House of Representatives in pushing for the immediate approval of a resolution seeking to amend the economic provisions of the Constitution.
In supporting House Concurrent Resolution 10 calling for a Constituent Assembly for the purpose of amending the Constitution, Liberal Party Rep. Ben Evardone of Eastern Samar said if the economic provisions in the Constitution are amended, it will attract more foreign investors and will help hasten the government’s public-private partnerships.
At the same time, Evardone said he hopes that Charter Change would be tackled in the Legislative-Executive Development Advisory Council meeting.
“One of the reasons why foreign investors are reluctant in investing in the Philippines is the restrictive provisions of our Constitution.”
Evardone said the decision of the leadership in the House and the Senate to focus on economic provisions will send a positive signal to foreign businessmen.
“We should take advantage of our strong economic fundamentals, high trust rating of President Aquino and robust economic activities in Asia. All these factors plus the Cha-cha on economic provisions will send a positive signal that we are open for business,” said Evardone.
During the hearing at the Committee on Constitutional Amendments, Evardone’s party-mate, Misamis Occidental Rep. Loreto Ocampos defended the resolution saying that while the Constitution limit foreign ownership of major industries and exploration of natural resources to not more than 40 percent, the limited access of Filipinos to large and long-term financing for crops, especially timber trees, have left many land to be underutilized.
Also, he said the constitutional limit on long-term lease on land have discouraged foreigners from investing in large-scale tree crop development.
“We have to remove the restrictions in the economic provisions in our Constitution,” said Ocampos.
He noted that the direct foreign investment in the country of only $2.9 billion in 2007 is the lowest in the region.
During his presentation, Ocampos bared Malaysia got $8.4 billion; Thailand $9.5 billion; Indonesia $6.9 billion; Singapore $24.1 billion; Vietnam $6.7 billion; and China $83.5 billion.
Specifically, the resolution proposed the removal of the 60-40 percent equity limitations, removal of control and management exclusively by Filipinos in companies with foreign equity, expansion of the role of foreign investors in the exploration, development and utilization of natural resources, allow foreign ownership of industrial lands, liberalize media by allowing foreign investments in it, liberalize the practice of profession by allowing foreigners to practice their profession in accordance with the principle of reciprocity, liberalize investments in educational institutions by allowing foreign investment in tertiary education and extend the 25+25 land lease agreement.
But Gabriela Party-list Rep. Luzviminda Ilagan said the proposal is tantamount to a total sell out of the country’s economy.
“Removing nationalist economic provisions in the 1987 Constitution will result to the unhampered plunder of resources and the unregulated extraction and repatriation of profits.”
Ilagan said legislators would do well to study and learn from our experience with Malampaya contractors who have yet to pay P53 billion in unpaid taxes from 2003 to 2009, while extracting natural gas from our territory and sending home billions of profits.
“Furthermore, mining companies responsible for the wanton rampage of our mineral resources have remitted a meager P2 billion in paid up investments as of 2007. For several decades now, even with these restrictions in place, foreign investors and multinationals repatriated billions of dollars in profit without any real and substantial contribution to the domestic economic and social development,” said Ilagan.
The militant legislator said there is no need for a Charter Change to achieve economic development.
“Addressing the country’s stunted economic growth, unemployment and poverty need not rely on foreign investments. Instead, let us strengthen the domestic economy by giving agriculture and local industries much needed support,” she said.
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By: Fernan Marasigan
Source: Business Mirror, Aug. 14, 2011
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