Palace: Cha-cha not needed for Phl growth

MANILA, Philippines - Despite renewed appeals from top business groups and lawmaker friends, President Aquino is still firmly against Charter change or Cha-cha, saying the country can keep its growth momentum “without constitutional tinkering.”

“Our position is that economic development can happen without necessarily amending the Constitution,” presidential spokesman Edwin Lacierda said yesterday, citing the recent robust growth of 7.8 percent in gross domestic product in the first quarter.  

His pronouncement came a day after 13 business groups including the Joint Foreign Chambers of Commerce, the Philippine Chamber of Commerce and Industry, the Makati Business Club and the Employers Confederation of the Philippines made public their call for Aquino to consider amending restrictive economic provisions of the Constitution.

Lacierda stressed that what businessmen need is a level playing field where rules are simple and corrupt practices do not thrive.

Earlier, the President said amending the Constitution – even only its economic provisions – is not a priority under his administration, now halfway through its term.

“What business really wants is a predictable environment, an environment where rules and regulations do not change midstream, and that is more important to business rather than constitutional change,” Lacierda pointed out.

Nevertheless, Aquino’s spokesman thanked the 13 business groups “for their abiding trust in the President and his administration.” 

Speaker Feliciano Belmonte Jr., an administration ally, earlier aired his intention to lead a Charter change initiative in the House of Representatives.

In May, Aquino also made clear his position, especially on a constitutional provision restricting foreign ownership of lands and business interests in the country.

“I don’t think they are a necessary detriment to getting foreign investors in this country,” he told Palace reporters in a chance interview in Cavite, referring to the restrictions.

“I think my stand has been public for the longest time,” he told reporters then.

He cited as an example China, whose economy has rapidly grown even if foreigners are allowed only to lease lands.

“That, I think, is empirical evidence that suggests that that (land ownership) is not a main determinant,” he pointed out.

He said business chambers in the country, based on studies, are more concerned about “bureaucratic red tape, peace and order and lack of infrastructure.”

The renewed calls for Charter change come as the 16th Congress prepares to convene on July 22 and listen to Aquino deliver his fourth State of the Nation Address.

“We are witnessing rapid and radical developments in digital and information technology. We cannot afford to lag far behind,” Belmonte said. “Dramatic economic, political, and social upheavals all over the world have altered and redefined territorial boundaries and diplomatic relations.”

He said that as soon as the new Congress convenes, he intends to file a resolution calling on the House and the Senate to convene into a constituent assembly to draft amendments that would be later presented to the people in a plebiscite.

The Speaker stressed that under his proposal, the House and the Senate would be voting separately.

Efforts to amend the Constitution under the current administration are seen to encounter less opposition, unlike during the previous Arroyo administration. Allies of the former president were suspected of trying to amend the Constitution to keep her in power.

Caucus for Cha-cha

Unperturbed by the President’s latest rebuff of Charter amendments, a senior administration lawmaker is pushing for a caucus among members of the majority bloc in the House of Representatives to discuss moves to introduce changes in the 1987 Constitution.

“Since there is a growing groundswell of support for Charter change, I think the majority coalition should hold a caucus and come up with a consensus on the issue,” Eastern Samar Rep. Ben Evardone said yesterday.

Many of his colleagues in the majority bloc believe that limitations on foreign ownership in the present Constitution have left the country lagging behind its neighbors in terms of direct foreign investments. Cagayan de Oro Rep. Rufus Rodriguez and Buhay party-list Rep. Lito Atienza, in separate statements Thursday, had also voiced support for amendments to the Constitution.

Atienza cited a United Nations Conference on Trade and Development (UNCTAD) report ranking the Philippines third to the last along with Myanmar and Cambodia among countries in Southeast Asia with the least foreign direct investments.

The other business groups calling for Charter change are the Alyansa Agrikultura, Philippine Exporters Confederation, Management Association of the Philippines, American Chamber of Commerce, Australian New Zealand Chamber of Commerce, Canadian Chamber of Commerce, European Chamber of Commerce, Japanese Chamber of Commerce, Korean Chamber of Commerce and Philippine Association of Multinational Companies Regional Headquarters Inc.

Aside from pushing for constitutional amendments, the groups are also batting for quicker implementation of strategic infrastructure projects, especially those under the public-private partnership (PPP) program.

Furthermore, the business groups said the country should have stronger anti-trust law and competition law in preparation for the Association of Southeast Asian Nations (ASEAN) integration in 2015.

“There are several laws and issuances which do not address the complexities of the current market conditions, and as well result in overlapping jurisdictions and conflicts. Thus, we see the need for a single comprehensive law,” the business groups said in a letter to President Aquino.

Also being proposed by the business groups is a revamp in the Bureau of Customs, citing difficulties being encountered by the government in raising revenues and creating jobs due to rampant smuggling.

“Through these measures, the business community is of the firm conviction that the Philippines will continue to be among Asia’s fast rising economies, while ensuring that such economic and governance gains benefit the majority of our people that are in need the most,” the groups said.

In addition, they said the government should also rationalize the existing incentive-giving laws by subjecting them to periodic reviews.

They are also pushing for a system of coordination, reporting and monitoring for investment agencies.

With the country’s abundant mineral resources, the groups said the government should retain the existing Philippine Mining Act. They also said the government should ensure “conformity of local ordinances to national policies, as well as respect for vested rights under existing agreements.”  â€“  Paolo Romero