Three economic bills up for Senate deliberations — Drilon

At least three economic bills have been lined up for deliberations in the Senate, apparently in response to charges that Congress has come to a standstill over the political crisis hounding President Arroyo, Senate President Franklin Drilon disclosed yesterday.

Senators Miriam Defensor Santiago and Juan Ponce Enrile recently complained that the Senate was not doing any important legislative work because of its preoccupation with political matters.

Instead of working on important legislation, the focus has been on the now-suspended Senate inquiry on illegal gambling in which bribery allegations were raised against Mrs. Arroyo and her family, and the ongoing impeachment proceeding against Mrs. Arroyo in the House of Representatives.

Drilon said he has requested Senate committee on ways and means chairman Ralph Recto to start public hearings on the bills extending the Special Purpose Vehicle Act and amendments to the expanded value-added tax (EVAT) law.

The two measures are intended to "help cushion the impact of the current economic difficulties plaguing the country because of increases in oil prices and the prevailing political crisis on ordinary consumers as well as the power and financial sectors," Drilon said.

He also disclosed that deliberations could start next week on the proposed amendments to the Bangko Sentral ng Pilipinas’ charter, the establishment of a Credit Information Bureau, and amendments to the Rent Control Law.

The proposed strengthening of the BSP charter and the Credit Information Bureau bill were authored by Senate committee on banks, financial institutions and currencies chairman Edgardo Angara.

Angara proposed that the BSP charter be amended in order to provide the central bank greater supervisory powers to make it more flexible in adopting an environment of growth of investments in the financial system as well as to ensure the protection of depositors from possible abuses by banks and financial institutions.

The Credit Information Bureau, on the other hand, has gained the support of the business sector as a central database of valuable credit information that will be made available to all of the participating institutions.

On the amendments to the EVAT law, the proposed bill was signed by 11 senators, including Drilon. The amendments would restore the exemptions from VAT to power generation, transmission, distribution and supply sectors.

The EVAT law was passed by Congress last June but was stopped by the Supreme Court a few hours after it went into effect on July 1 because of a petition from opposition lawmakers questioning its legality.

Critics said a provision was against the Constitution because it granted President Arroyo authority to raise the tax from the current 10 percent to 12 percent under certain conditions. They argue that Congress has the sole power of taxation.