Economic Cha-cha doable this year

MANILA, Philippines - Work on easing the restrictive economic provisions of the Constitution is now officially among the top priorities of the 16th Congress, with Speaker Feliciano Belmonte Jr. expecting to see everything completed within the first half of the year.

Belmonte, Senate President Franklin Drilon and other congressional leaders met for over three hours yesterday at the Crowne Plaza hotel in Quezon City to set Congress’ legislative agenda for the year. The Senate is awaiting the passage of the House of Representatives’ version of the Charter reform measure.

Belmonte told reporters that there is now a consensus among Cha-cha advocates in the House of Representatives that they would focus on introducing only a simple amendment to the Constitution’s economic provisions.

“What has been happening is, first, quite a number of members have agreed to co-sponsor Resolution No. 1 (on economic Cha-cha, of which Belmonte is the principal author),” he said.

“So those who filed a separate resolution to call for a con-con (constitutional convention) have withdrawn it in favor of what is obviously doable, which is writing a simple amendment saying, ‘unless otherwise provided by law.’ That I believe has a very good chance of getting passed during this current session,” he said.

The current session of Congress ends on June 13. The next session will open on July 28, when President Aquino delivers his State of the Nation Address.

Belmonte was referring to the group of Cagayan de Oro City Rep. Rufus Rodriguez, president of Centrist Democratic Party of the Philippines.

Rodriguez said they have withdrawn their resolution calling for a con-con that would propose sweeping Charter changes that could affect even the Constitution’s political provisions, including those on the form of government and term limits for elective officials.

“We are supporting the resolution of Speaker Belmonte,” he said.

He said he recently met with Aquino to discuss economic Cha-cha. “He actually is open to the idea.”

“I told him, Mr. President, your administration achieved 7.7-percent economic growth. If we have more foreign investments by opening up certain businesses to full foreign ownership, we can attain at least 10 percent. He was intently listening,” he said.

He added that he informed the President that under the Cha-cha proposal of the House, he would have veto power over any Congress-approved bill that seeks foreign ownership of land or to open up a certain sector of the economy.

“The bill would be sent to him for his signature. If he does not like it, if he does not want foreigners to own land or to open up a certain business, all he has to do is to veto the bill. And with his political following in Congress, the legislature will surely not overturn his veto,” he stressed.

Under Resolution No. 1, Belmonte and his colleagues are seeking the amendment of the economic provisions of the Constitution by inserting the phrase, “unless otherwise provided by law” in every provision.

This means that the present restrictions would remain unless Congress lifts them. A bill would have to be approved for every restriction that would be scrapped.

Belmonte said there are only a few provisions that would be affected: those on land ownership, public utilities, mass media, educational institutions, and advertising.

He said if lawmakers were given the power to lift restrictions in these areas, Congress and the President would be able to act when necessary to promote the country’s competitiveness and to expand growth.

He has asked the committee on constitutional amendments, chaired by Davao City Rep. Mylene Garcia-Albano, to start public hearings on it.

After its approval by the House, Resolution No. 1 goes to the Senate.

If the Senate approves it, it is then submitted to the people through a plebiscite for ratification.

On Wednesday, the Foundation for Economic Freedom called on Aquino to keep an open mind on economic Cha-cha.

“The millions of poor and unemployed are looking up to his government to live up to his promise of inclusive growth,” the group said in a statement.

“We believe that vesting in Congress, rather than the Constitution, the power to determine the restrictions in foreign ownership will send a strong signal to foreign investors that the government will level the playing field by opening up the economy as conditions permit,” it said.

Several other groups composed of local and foreign businessmen have expressed support for the economic Cha-cha push of the House.

Open minded Senate

Drilon said he and his colleagues in the Senate have opted to wait for the House to come up with its Cha-cha proposal before taking their next step.

“We in the Senate are open-minded on Charter change, especially when the House is going to open discussions on the economic aspects,” Drilon told reporters after the meeting.

He said he concurs with the proposal of the House to just include the phrase “unless otherwise provided by law” in certain economic provisions to allow Congress and the President to make the Constitution responsive to local and global developments.

“We’re not saying that there will be changes or change the provisions on foreign equity (on local companies). This only means we can discuss provisions that restrict our economy,” he said.

Senate Pro Tempore Ralph Recto described Belmonte’s resolution as “a very good proposal so that the economic provisions won’t be a straight-jacket but flexible.”

The Speaker called the amendment a “key” that would open the doors to good investments and more jobs.

“It’s (amending Constitutions) is pretty much what’s going on in Asia where the legislature decide. In the House, we don’t even like to call it Charter change. When you talk about Charter change, you’re talking about all sorts of things, but here were just talking economic provisions,” Belmonte said.