Robin Committee Report Cites Merits Of 7 Economic Amendments To Charter Via Con-Ass

Robin Committee Report Cites Merits of 7 Economic Amendments to Charter via Con-Ass

Our long-suffering economy and people will benefit greatly with amendments to at least seven economic provisions in the 1987 Constitution, which will be ratified via a constituent assembly (Con-ass).

This was the gist of the committee report and proposed resolution of Both Houses prepared by the Senate Committee on Constitutional Amendments and Revision of Codes chaired by Sen. Robinhood "Robin" C. Padilla, and which was disseminated to senators for their signature.

Padilla's committee report is the result of eight committee hearings, including three in Davao, Baguio and Cebu Cities.

"Whereas, to accelerate economic growth and fulfill its international commitment, the Philippines must amend its Constitution by removing restrictive economic provisions to allow foreign businesses to directly invest in a more conducive landscape," Padilla said in his committee report.

He added it would be more cost-efficient for the Philippines to amend the Constitution via Con-ass, citing data from the National Economic and Development Authority (NEDA) that this would entail P46 million if held simultaneously with the Barangay/SK Elections this October.

In contrast, an election of delegates for the Constitutional Convention would amount to P14.7 billion if the election is held simultaneously with the Barangay/SK Elections; and P28.5 billion if held separately from the Barangay Elections. This is aside from an added P28.5 billion for the plebiscite of the amendments proposed by the Constitutional Convention.

Padilla also said he hopes the senators would read the report during the break, even as he is prepared to defend it in plenary.

He is also looking forward to work with counterparts in the House of Representatives to iron out the differences. "Ang mahalaga ay ang ekonomiya at taumbayan natin ang makikinabang (What is important is that the economy and the people will benefit)," he said.

Under the committee report, Padilla pushed for amendments to the following provisions of the Charter:

1. Section 2 of Article XII (National Economy and Patrimony), is amended to read as follows: "... The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State (which) may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens, UNLESS OTHERWISE PROVIDED BY LAW. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law."

2. Section 3 of Article XII (National Economy and Patrimony), is amended to read as follows:

"... Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area, UNLESS OTHERWISE PROVIDED BY LAW. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof by purchase, homestead, or grant."

3. Section 7 of Article XII (National Economy and Patrimony), is amended to read as follows: "Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain, UNLESS OTHERWISE PROVIDED BY LAW."

"THE CONGRESS MAY, BY LAW, SOLELY FOR THE PURPOSE OF FOREIGN DIRECT INVESTMENT, ALLOW: 1. ALIENS TO ACQUIRE PRIVATE LANDS NOT EXCEEDING ONE THOUSAND SQUARE METERS IN AREA; AND, 2. FOREIGN-OWNED CORPORATIONS TO ACQUIRE RURAL PRIVATE LANDS NOT EXCEEDING FIVE HECTARES IN AREA."

4. Section IO of Article XII (National Economy and Patrimony), is amended to read as follows: "Sec. 1O. The Congress shall, upon recommendation of the economic and planning agency, AND when the national interest dictates, reserve CERTAIN AREAS OF INVESTMENT to citizens of the Philippines or, UNLESS OTHERWISE PROVIDED BY LAW, to corporations or associations at least sixty per centum of whose capital is owned by such citizens. The Congress Shall enact measures that will encourage the formation and operation of enterprises whose capital is wholly owned by Filipinos."

5. Section 11 of Article XII (National Economy and Patrimony), is amended to read as follows: "No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens, UNLESS OTHERWISE PROVIDED BY LAW; nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years..."

"... The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and UNLESS OTHERWISE

PROVIDED BY LAW, all the executive and managing officers of such corporation or association must be citizens of the Philippines."

6. Section 4(2) Of Article XIV (Education, Science and Technology, Arts, Culture and Sports), is amended to read as follows: "Educational institutions, other than those established by religious groups and mission boards, shall be owned solely by citizens of the Philippines or corporations or associations at least sixty per centum of the capital of which is owned by such citizens, UNLESS OTHERWISE PROVIDED BY LAW. The Congress may, however, require increased Filipino equity participation in all educational institutions... The control and administration of educational institutions shall be vested in citizens of the Philippines, UNLESS OTHERWISE PROVIDED BY LAW."

7. Section 11(1) and (2) of Article XVI (General Provisions), is amended to read as follows: "The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens, UNLESS OTHERWISE PROVIDED BY LAW..."

"... Only Filipino citizens or corporations or associations at least seventy per centum of the capital of which is owned by such citizens shall be allowed to engage in the advertising industry, UNLESS OTHERWISE PROVIDED BY LAW."

"... The participation of foreign investors in the governing body of entities in such industry shall be limited to their proportionate share in the capital thereof, and all the executive and managing officers of such entities must be citizens of the Philippines, UNLESS OTHERWISE

PROVIDED BY LAW."

Under the committee report, all provisions of existing laws, rules, and regulations imposing protectionist or nationality prohibitions on the exploration, development, and utilization of natural resources; ownership of private lands; grant of congressional franchises; ownership, and operation of public utilities; ownership of educational institutions; and ownership and management of mass media and advertising, "shall remain in full force and effect, until their enabling laws take effect."

In seeking the economic amendments, Padilla noted the Philippines ranks 13th out of 14 economies in the Asia-Pacific in Foreign Direct Investment (FDI) attractiveness due to its poor infrastructure and competitiveness rankings according to a study conducted by United Kingdom-based Oxford Economics in 2021.

The Philippines ranks third, after Libya and Palestine, in FDI restrictiveness, according to the 2020 Organization for Economic Cooperation and Development Foreign Direct Investment Regulatory Restrictiveness, he added.

On the other hand, he said Chief Presidential Legal Counsel Juan Ponce Enrile noted "Congress is supposed to be the guardian of the economy, of the progress of the country [and] its political stability" and that Congress should be given the flexibility by adding unless otherwise provided by law" in the economic provisions. This transfers the power to determine the advisability or non-advisability in the participation of foreign capital in the development of the country to the Congress instead of shackling the people permanently to a restrictive constitutional provision.

Baguio City Mayor Benjamin Magalong impressed upon us the need to change certain economic provisions which he considered obsolete and outdated, among which are the ownership of land of foreign nationals, exploitation of resources and ownership of public utilities, Padilla added. He noted Magalong committed to get the support of the people of Baguio in pushing for the amendment to the economic provisions of the Constitution.

Also, he said Cebu City Mayor Michael Rama expressed his support for the constitutional amendment stating that the people should not live in the worries of the past.

Committee Report ni Robin, Iginiit ang Merito ng 7 Economic Amendments sa Saligang Batas

Ekonomiya ng Pilipinas at ang pangkaraniwang Pilipino ang makikinabang sa pag-amyenda ng pitong economic provisions sa 1987 Constitution, at kung naratipika ito sa pamamagitan ng constituent assembly (Con-ass).

Ito ang buod ng committee report at panukalang Resolution of Both Houses na inihanda ng Senate Committee on Constitutional Amendments and Revision of Codes sa pamumuno ni Sen. Robinhood "Robin" C. Padilla, at naihain sa mga senador para sa kanilang lagda.

Ang committee report ay bunga ng walong committee hearings, kasama ang tatlo sa mga lungsod ng Davao, Baguio at Cebu.

"Whereas, to accelerate economic growth and fulfill its international commitment, the Philippines must amend its Constitution by removing restrictive economic provisions to allow foreign businesses to directly invest in a more conducive landscape," ani Padilla sa kanyang committee report.

Dagdag niya, mas sulit kung idadaan ito sa pamamagitan ng Con-ass. Ayon sa datos ng National Economic and Development Authority (NEDA), P46 milyon lang ang gagastusin kung isasabay ito sa Barangay/SK Elections sa Oktubre.

Aniya, kung hahalal pa ng delegado para sa Constitutional Convention, gagastos ng P14.7 bilyon kung isasabay ito sa BKSE; at P28.5 bilyon kung hiwalay. Bukod dito, P28.5 bilyon pa ang gagastusin para sa plebisito para sa panukalang amyenda ng Constitutional Convention.

Umaasa si Padilla na babasahin ng mga senador ang committee report ngayong may break, at handa siyang makipagdebate sa plenaryo para depensahan ito. "Ang mahalaga ay ang ekonomiya at taumbayan natin ang makikinabang," aniya.

Sa committee report, iginiit ni Padilla ang pag-amyenda sa mga sumusunod na probisyon ng Saligang Batas:

1. Section 2 of Article XII (National Economy and Patrimony): "... The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State (which) may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens, UNLESS OTHERWISE PROVIDED BY LAW. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law."

2. Section 3 of Article XII (National Economy and Patrimony): "... Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area, UNLESS OTHERWISE PROVIDED BY LAW. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof by purchase, homestead, or grant."

3. Section 7 of Article XII (National Economy and Patrimony): "Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain, UNLESS OTHERWISE PROVIDED BY LAW."

"THE CONGRESS MAY, BY LAW, SOLELY FOR THE PURPOSE OF FOREIGN DIRECT INVESTMENT, ALLOW: 1. ALIENS TO ACQUIRE PRIVATE LANDS NOT EXCEEDING ONE THOUSAND SQUARE METERS IN AREA; AND, 2. FOREIGN-OWNED CORPORATIONS TO ACQUIRE RURAL PRIVATE LANDS NOT EXCEEDING FIVE HECTARES IN AREA."

4. Section IO of Article XII (National Economy and Patrimony): "Sec. 1O. The Congress shall, upon recommendation of the economic and planning agency, AND when the national interest dictates, reserve CERTAIN AREAS OF INVESTMENT to citizens of the Philippines or, UNLESS OTHERWISE PROVIDED BY LAW, to corporations or associations at least sixty per centum of whose capital is owned by such citizens. The Congress Shall enact measures that will encourage the formation and operation of enterprises whose capital is wholly owned by Filipinos."

5. Section 11 of Article XII (National Economy and Patrimony): "No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens, UNLESS OTHERWISE PROVIDED BY LAW; nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years..."

"... The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and UNLESS OTHERWISE

PROVIDED BY LAW, all the executive and managing officers of such corporation or association must be citizens of the Philippines."

6. Section 4(2) Of Article XIV (Education, Science and Technology, Arts, Culture and Sports): "Educational institutions, other than those established by religious groups and mission boards, shall be owned solely by citizens of the Philippines or corporations or associations at least sixty per centum of the capital of which is owned by such citizens, UNLESS OTHERWISE PROVIDED BY LAW. The Congress may, however, require increased Filipino equity participation in all educational institutions... The control and administration of educational institutions shall be vested in citizens of the Philippines, UNLESS OTHERWISE PROVIDED BY LAW."

7. Section 11(1) and (2) of Article XVI (General Provisions): "The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens, UNLESS OTHERWISE PROVIDED BY LAW..."

"... Only Filipino citizens or corporations or associations at least seventy per centum of the capital of which is owned by such citizens shall be allowed to engage in the advertising industry, UNLESS OTHERWISE PROVIDED BY LAW."

"... The participation of foreign investors in the governing body of entities in such industry shall be limited to their proportionate share in the capital thereof, and all the executive and managing officers of such entities must be citizens of the Philippines, UNLESS OTHERWISE

PROVIDED BY LAW."

Sa committee report, lahat na batas na may "protectionist or nationality prohibitions" sa pagtuklas at paggamit ng likas na yaman; pagmamay-ari ng pribadong lupa; congressional franchises; pagmamay-ari at pag-operate ng public utilities; pagmamay-ari ng educational institutions; at pagmamay-ari at pangangasiwa ng mass media at advertising, ay mananatili at hindi babaguhin habang wala pang enabling laws para rito.

Ayon kay Padilla, ang Pilipinas ay ika-13 sa 14 ekonomiya sa Asia-Pacific pagdating sa Foreign Direct Investment (FDI) attractiveness dahil sa kalidad ng imprastraktura at competitiveness rankings, ayon sa pag-aaral ng Oxford Economics ng United Kingdom noong 2021.

Pangatlo naman ang Pilipinas, sunod sa Libya and Palestine, sa FDI restrictiveness, ayon sa 2020 Organization for Economic Cooperation and Development Foreign Direct Investment Regulatory Restrictiveness.

Ipinunto rin ni Padilla na ayon kay Chief Presidential Legal Counsel Juan Ponce Enrile, ang Kongreso ang "guardian of the economy, of the progress of the country [and] its political stability" at dapat ito bigyan ng flexibility sa pamamagitan ng "unless otherwise provided by law" sa economic provisions. Ito ay para pag-aralan at payagan ng Kongreso ang pagpasok ng FDI para sa kaunlaran, sa halip na ikulong ang bansa sa "restrictive constitutional provision."

Sa mga pagdinig, iginiit din ni Baguio City Mayor Benjamin Magalong na paso na ang ilang economic provisions tulad ng pagmamay-ari ng dayuhan ng lupa, ang paggamit ng likas na yaman at pagmamay-ari ng public utilities. Nangako si Magalong na tiyakin ang suporta ng taga-Baguio para amyendahan ang economic provisions ng Saligang Batas.

Ayon naman kay Cebu City Mayor Michael Rama na todo suporta rin sa pag-amyenda sa economic provisions ng Saligang Batas, hindi na dapat makulong ang taumbayan sa nakaraan.

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