Speaker Feliciano Belmonte. INQUIRER FILE PHOTO
MANILA, Philippines — The uphill battle for “charter change” or constitutional amendments has begun, with Speaker Feliciano Belmonte once again leading the salvo with his filing of a resolution, amending the “restrictive” economic provisions of the constitution.
Belmonte’s resolution, filed on Monday, would pave the way for the passage of new laws that would allow foreign investors to develop the country’s natural resources, own lands or mass media companies, and get franchises to operate public utilities.
The resolution would not amend the constitution to expressly allow foreign ownership of lands and businesses. Instead, it would insert the phrase “unless otherwise provided by law” after the charter’s economic provisions that limit foreign investors’ participation in economic activities.
This means that Congress would still have to pass laws that would specifically allow foreign investors to engage in certain businesses and own lands.
Belmonte, who is the President Aquino’s choice to once again be the House speaker, said the amendments would entice more foreign investments to come in and to allow the country’s growth to be more inclusive.
Belmonte filed the measure despite the President’s aversion to the move, earlier saying he did not think the Constitution was hampering the entry of foreign investors. The chief executive’s position, though, seems not to have dampened charter change advocates’ enthusiasm for the move, although there are also vocal opponents to it, particularly leftist lawmakers who have always favored state control of national resources and protection for local industries.
Earlier efforts to amend the charter have been controversial and also engendered suspicion that politicians would use it to extend their terms of office.
Belmonte’s resolution to propose amendments to the Constitution must be approved by three-fourths of all members of the House of Representatives and the Senate, voting separately.
Belmonte said the resolution would be passed like an ordinary bill, with a counterpart measure in the Senate as well, and if approved, would be subject to a plebiscite.
As to why he was pushing it despite the President’s aversion, he told reporters that this would be the “simplest” form of charter change he could imagine.
“We are also trying to avoid extensive cost to cha cha. It’s a simple addition of a phrase– “unless otherwise provided by law” in several provisions – and our intention is to pass it as an ordinary bill and hopefully a very similar bill will be passed in the senate as an ordinary bill,” he said.
“I think it’s the simplest way of doing it,” he added.
He also noted that the President earlier told him and then Senate President Juan Ponce Enrile that he would have a group from his Cabinet study the proposal. Belmonte said he has not heard from this group.
He further said the constitution’s economic provisions have been among the reasons why the Philippines has lagged behind its neighbors in terms of foreign direct investments.
He is hoping to convince the President not to oppose charter change, and said something like this could be undertaken during the Aquino administration since it has been considered strong and the chief executive has been perceived as having no ambition of staying in power. Many also recognize the need for more economic activities by getting foreign capital to come in.
“I’m still hopeful this simple change can be something that he can accept,” he said.
He acknowledged that many people fear that amending the economic provisions would open the floodgates for more changes, but he continues to hope that lawmakers will be convinced to tackle only economic matters.
“Definitely, anybody can make any recommendation he wants, but that’s the freedom of any member to do. But hopefully, instead of us not being able to do anything because of a long list of amendments, perhaps with this very simple one which is recognized by many, particularly the business sector both foreign and local to be of good use to us, we may be able to persuade them to let’s just stick to this one,” he said.
He also wants that the plebiscite for the measure coincide with the next elections so that the administration could get credit for it.
In his resolution, Belmonte noted that the country’s economic growth has not trickled down to the people.
“Statistics show that despite the economic growth, poverty incidence remained constant for the past six years, thus, we need to urgently address the issue,” he said.
Allowing more foreign investors to come in would help spread the wealth, he indicated.
“In order to realize the full benefit of inclusive growth, the restrictive economic provisions in the Philippine Constitution which hamper the flow of foreign capital investments must be lifted,” he said.
Belmonte’s bill seeks to amend a constitutional provision, stating that the state may directly undertake the exploration, development and utilization of natural resources, or enter into co-production, joint venture, or production sharing agreements with Filipinos or corporations that are 60 percent owned by Filipinos. The phrase “unless otherwise provided by law” would be added to it.
Other provisions to be amended to add the phrase “unless otherwise provided by the law” are the ones saying that private corporations or associations may not hold alienable lands of the public domain unless by lease; that congress shall reserve to Filipino citizens or corporations that are at least 60 percent Filipino owned, certain areas of investment; that only Filipino citizens or Filipino-owned corporation shall be granted a franchise or any other authority to operate public utilities; that only Filipino citizens or companies wholly owned by Filipinos could own and manage the mass media; and that only Filipino citizens or companies at least 70 percent owned by Filipinos can engage in the advertising industry.
Belmonte also proposed adding a transitory provision stating that once the amendments are in effect, all provisions of existing laws and regulations imposing nationality prohibitions or restrictions on the acquisition and ownership of private lands classified as commercial or industrial, the grant of congressional franchises, the ownership and operation of public utilities, mass media, advertising, and the exploration, development and utlization of natural resources, are repealed unless otherwise later provided by law.
Meanwhile, Anakpawis Representative Fernando Hicap said he and fellow lawmakers from the progressive bloc would oppose the charter change resolution.
Hicap also called on President Aquino to direct his allies to drop any attempt to amend the constitution.
He said the lifting of the economic restrictions in the country would not augur well for Filipinos.
“Such amendments will remove the restrictive provisions of the Constitution and will allow full the ownership and control of foreign companies on vital industries of national interest. This is exactly what foreign businesses want – for the government to remove all restrictions and allow them to plunder our lands and natural resources for profit,” he said in a statement.