Poe, Hontiveros worried over relaxation of foreign ownership

Senator Grace Poe and Senate Deputy Minority Leader Risa Hontiveros on Monday expressed concern over the proposals to relax foreign ownership in the 1987 Constitution.

The lawmakers expressed their views during the Senate Subcommittee on Constitutional Amendments and Revisions of Codes hearing on Resolution of Both Houses No. 6, which seeks to lift the 40% restriction on foreign ownership in advertising, education, and public utilities.

In her opening statement, Poe underscored that the Philippines had been open to foreign investments and there were recent efforts to liberalize the economy without risking the country's national security or Filipino businesses.

"Kailangan nga ba natin ng Cha-cha para sabihin that we're open for business? Sabi nila, sarado ang ating ekonomiya. Pero ang totoo, bukas naman talaga tayo sa foreign investors. We have made great strides in the past years liberalizing our economy without compromising our national security or leaving behind Filipino businesses," Poe said.

"Would amending the public utilities provisions in our Constitution open the economy or open a can of worms?" she asked.

Poe mentioned the recently passed law that amended the Public Services Act (PSA), which already allowed 100% foreign ownership of public services such as telecommunications, railways, airlines, and logistical facilities as public services.

"With PSA, we protected the essentials while opening up others to much needed investments... Kaya ‘yung sinasabi nila kailangan nating buksan ang ating ekonomiya, sana pag-aralan muna nila itong naipasa na ating batas," she said.

"While new investors are coming in, we have yet to see the full benefits of these laws. Samakatwid, bukas na ang ating ekonomiya. We have done so, as said by our esteemed statesman former Senator Frank Drilon, without violating or amending the Constitution. Hindi natin kinailangang mag-con-con, con-ass, o pekeng initiative," she went on.

Poe warned against the effects of opening all public utilities to all foreign ownership, investment, and even management, without a constitutional protection grounded on national security and domestic interest.

"Hindi lang ito usapin ng pagpasok ng foreign capital at businesses. Tingnan din natin ang magiging epekto: pwedeng tanggalin sa mga Pilipino ang kontrol sa lahat ng sektor na nagbibigay serbisyo sa publiko. Pwedeng makontrol ng ibang bansa ang tubig, kuryente, seaports, gasolina, at public utility jeeps natin. Handa ba tayo dito? Kaya ba nating makipagkumptensya sa kanila?" she asked.

"Makakasabay ba ang mga Pilipino at local businesses sa pagpasok ng foreign competition sa lahat ng industriya? Makakasiguro ba tayong sa pagpasok ng foreign investors uunlad ang ating bayan? These are the questions that need to be answered," she said.

'Give away' critical utilities

For her part, Hontiveros noted that the PSA already allowed future Congresses to "give away" even critical utilities, even to state-owned foreign companies which pose grave national security risks.

As an example, the Senate deputy minority leader cited the National Grid Corporation of the Philippines (NGCP), which is 40 percent owned by the State Grid Corporation of China.

"Hindi ba't nagalit tayo noon, noong lumabas na ang mga manual ng NGCP - na may hawak sa ating state grid ay nakasulat sa Mandarin, at hindi mabasa ng ating Pilipinong inhinyero?" she said.

Further, Hontiveros raised the need to determine if the "chronic failure to address anti-competitive monopolistic behavior" is the problem behind the lack of foreign investments.

"Imbes na basagin ng Charter change ang monopolyo ng mga dominant domestic companies, papalitan lang ba sila ng mga dayuhang kompanya? Ganun din, baka mas malala pa," she said.

Similarly, retired Supreme Court Senior Associate Justice Antonio Carpio, testifying before the subcommittee, said there seemed to be a lack understanding among national leaders on the laws on foreign ownership in the Philippines, arguing that the Philippines had one of the most liberal foreign investment laws in the ASEAN and in Asia.

He also criticized the individuals behind the current people's initiative, who blamed the restrictive economic provisions of the constitution for the economic situation of the Philippines. — DVM, GMA Integrated News