In an effort to ease economic restrictions, the lower chamber is eager in pushing for a constitutional convention to amend the 1987 Constitution.

 

On February 20, the House of Representatives Committee on Constitutional Amendments held a public hearing to discuss sectors’ stances on the proposed changes in the constitution.  Former Chief Justice Reynato Puno, argued that it is high time to update the 35-year old charter to keep up with the changing times.  He recommended a hybrid constitutional convention (CON-CON) composed of elected delegates and already elected officials.

 

PCCI President, Mr. George T. Barcelon was also present in the hearing.  He expressed his support to lift foreign equity caps on key sectors of the economy that are currently restricted to the 60%-40% provision under the 1987 Constitution.  He explained that this will enhance the country’s competitive position globally.

 

“The Philippines is behind the curve among ASEAN countries including Vietnam, Cambodia, Laos, and Myanmar which have all overtaken us in terms of FDIs. I hope that the economic issues can be addressed by the constitutional amendments.” he said.

 

Barcelon added that charter change may not be needed to open key sectors of the economy to 100% foreign investments.  He cited public utilities, retail trade, domestic enterprises, and renewable energy, and power generation where cap on foreign equity have been lifted through amendments to existing laws – the Amendments to the Public Service Act, Retail Trade Liberalization Act and Foreign Investment Act – and the Renewable Energy Act and the Electric Power Industry Reform Act (EPIRA).

 

Atty. Perry Pe of the Management Association of the Philippines (MAP) cited specific economic provisions of the 1987 Constitution that need to be amended.  These are the following:

• Article 2, Section 19 – “The State shall develop a self-reliant and independent national economy effectively controlled by Filipinos”.

• Article 12, Section 10, paragraph 2 – “In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos”.

• Article 12, Section 2 – “Acts which circumvent or negate any of the provisions of this Article shall be considered inimical to the national interest and subject to criminal and civil sanctions, as may be provided by law.”

 

Other government agencies also echoed their support to amend restrictive economic provisions enshrined in the charter.

 

The Committee approved a resolution of both houses calling for a constitutional convention to propose amendments to the Constitution. Committee chairperson Representative Rufus Rodriguez clarified that the resolution approved is a 'general statement' of the panel and that congress will still have to pass an accompanying bill that includes the composition, procedure, and budget among others. Avery del Mundo