Biz groups to Congress: Consider high Cha-cha costs

MANILA, Philippines — High financial costs and the potential impact on current reforms are some of the points the Senate should consider as it deliberates on whether to support moves to amend the Constitution, according to six of the country’s business groups.

In a joint statement yesterday, the Makati Business Club, Financial Executives Institute of the Philippines, Filipina CEO Circle, Justice Reform Initiative, Philippine Women’s Economic Network and the Women Business Council Philippines listed three points the Senate should consider as the House of Representatives approved earlier this month House Bill 7352, which calls for a constitutional convention (con-con) to amend the 1987 Constitution.

“We respectfully urge the Senate – and the House, if and when the deliberations progress – to consider these and other points raised by our colleagues in various sectors as you decide on this potentially disruptive proposal at a time when the country may be poised to regain its economic momentum,” the statement read in part.

The groups emphasized that with the high financial cost of amending the Charter, the funds would be better spent on pro-people programs. It cited National Economic and Development Authority estimates that a con-con would cost P14 billion to P28 billion.

The groups also noted that HB 7352 proposes 300 delegates who would get P10,000 per day – a total of P3 million per day, or more than P400 million for the seven-month project.

“We believe these funds can be better used on agriculture to address the high inflation, transportation to enable Filipinos to get to work and home in much less time and needed social services like health, education and social security,” the groups said.

They also pointed out that from the low-end estimated cost of P14 billion, the government could already double the spending on farm to market roads, increase by half the spending on irrigation or the national rice program, double the spending on school buildings or almost double the spending on hospitals and health centers.

Aside from these, the six groups fear that a political debate could derail the recent reforms and President Marcos’ efforts to achieve substantial economic gains.

“We have long supported proposals to amend economic provisions of the constitution that impede trade, investment, innovation, competition and economic and job growth. However, recently enacted laws and regulations like amendments to the Public Service Act, Retail Trade Liberalization Act, the Foreign Investment Act, the passage of the Rice Trade Liberalization Act and the Department of Energy circular allowing 100 percent foreign ownership in the renewable energy sector have addressed many of these impediments,” the groups said.

“We believe that these reforms, combined with President Ferdinand Marcos Jr.’s efforts to revive local and foreign investment, can accelerate recovery and job growth at a time when the Philippines and the world face serious economic headwinds,” they added.

The groups pointed out that investors look for stability when making investment decisions.

“The possibly lengthy and fractious process of amending the Constitution may make investors take a wait and see attitude for an extended period of time and thereby derail the impact of the reforms,” they added.

In addition, the business groups also noted that Congress has important work on economic and other legislation as it has yet to pass at least two more tax reform bills and other measures such as the Ease of Paying Taxes bill.

Speaker Martin Romualdez said the House leadership is open to discussing with the Senate the mode of amending the Charter – either by way of a con-con, which the House of Representatives already approved, or by a constituent assembly – “if that will lead to an agreement between the two chambers.”

Meanwhile, Finance Secretary Benjamin Diokno yesterday expressed his belief that allowing foreigners to pour in resources in the local mass media industry would provide better opportunities for the press.

On the sidelines of the launch of Partnerships for Infrastructure yesterday, he maintained his agreement to moves to amend some economic provisions of the 1987 Constitution, which include allowing foreign investments in mass media.

“We opened up many areas through legislation and the Public Service Act (PSA) but there are still so many areas in the Constitution that can be discussed. Mass media, for example, could give you better opportunities, not just locally. And of course, the transfer of technology,” Diokno told reporters.

Signed into law last year, the PSA allowed 100 percent foreign ownership of public services in the country such as power, water, transport and telecommunications, but mass media was not part of it.

Lawmakers in the House such as Rep. Aurelio Gonzales have proposed that 40 percent foreign ownership be allowed in media to improve the industry.

Apart from opening up mass media, lawmakers are also looking at amending other economic provisions of the Constitution including the exploration, development and utilization of natural resources, alienable lands, reserved investments, the grant of franchises, educational institutions and the advertising industry. – Sheila Crisostomo, Louise Maureen Simeon