ABS-CBN shutdown a blow to economic diversity, investor confidence

MANILA, Philippines — The non-renewal of the franchise of local media giant ABS-CBN may get in the way of pursuing diversity in the economy and affect investor confidence in the country, said Socioeconomic Planning Secretary Ernesto Pernia.

Sought for comment on threats to the renewal of the legislative franchise of the Lopez-led network, Pernia cited the wide-reaching public benefit from the operations of the network.

“A lot of people are benefitting. Congressmen and senators are benefiting from it, and even the masses,” Pernia told reporters, referring to the thousands of jobs created by the network as well as the role it plays in public discourse.

“So, yes, it’s a difficult thing. But it’s a political issue,” he added.

From an economic point of view, Pernia said that stopping the operations of the network by not renewing its franchise would get in the way of promoting diversity in the economy and fostering competition.

“The economist will always favor more diversity, more openness, progressive ideas,” said Pernia.

This will also have a negative effect on investor confidence as it is a direct government interference on a company that produces services desired by the public.

“I guess so (that it will affect investor confidence). Because investors realize that it’s very popular, it’s wanted by so many people,” he said.

As of last week, the House Committee on Legislative Franchises has still not scheduled hearings on the bills for the renewal of the network’s franchise.

Labor groups have called on Congress to renew the network’s franchise to save 11,000 jobs.

Media organizations, meanwhile, have denounced the threat of non-renewal as an attack on press freedom.