By Jovee Marie N. dela Cruz
The House of Representatives on Wednesday approved on second reading the proposed amendments to the economic provisions of the 1987 Constitution, one of the measures being strongly pushed by local and foreign business chambers.
Speaker Feliciano Belmonte Jr. said the lower chamber will pass the bill on final reading next week, or before sine die adjournment of Congress on June 12.
“This is the first time it ever reached this point, and I’m very happy. However, the biggest hurdle is still to come, three-fourths vote [on final reading] of everybody, including those who are absent,” he said.
Belmonte said the so-called economic Charter change (Cha-cha) will be a larger contributor to economic growth, as foreign direct investments (FDI) are seen to increase once ownership of estates and corporations—one of the issues raised by investors for not investing in the country—is relaxed.
According to Belmonte, “his best effort” is needed to pass his economic Cha-cha in the House of Representatives, as well as in the Senate.
Belmonte said at least three-fourths of House members need to vote for Resolution of Both Houses (RBH) 1 to pass the final reading at the lower chamber.
“I will convince them [senators] about the benefits of this measure until its final passage in the Senate,” he said. The measure also needs three-fourths of senators’ votes.
According to the Speaker, the lower chamber is still the main proponent of the economic Cha-cha, and senators would still wait for the House version once it passes the third reading before the Upper House could tackle it.
The resolution, filed by Belmonte and Sen. Ralph Recto, is eyeing to amend economic provisions on the 60-40 rule that limits foreign ownership of certain activities in the Philippines.
The resolution will include the phrase “unless provided by law” in the foreign-ownership provision of the Constitution, particularly land ownership, public utilities, natural resources, media and advertising industries.
Under Article XII of the Constitution, which was ratified during the term of the President’s mother, then-President Corazon Aquino, foreign investors are prohibited to own more than 40 percent of real properties and businesses, while they are totally restricted to exploit natural resources and own any company in the media industry.
Moreover, after Congress’s approval, RBH 1 will be submitted to the Commission on Elections for the plebiscite process.
Belmonte said the government may hold the plebiscite for Cha-cha alongside the 2016 national elections, instead of spending in a separate election, which needs at least P7 billion.
“We might have a difficult time to get these several billions necessary for the plebiscite. The plebiscite is the crucial thing for economic Cha-cha,” Belmonte said.
He also said many Filipino voters participate during presidential elections.
Earlier, the Joint Foreign Chambers and Philippine business groups expressed support for the passage of the economic Cha-cha.
Businessman Manuel V. Pangilinan said that to promote inclusive growth in the country, Congress should pass the resolution amending the economic provisions of the 1987 Constitution.
Makati Business Club Chairman Ramon del Rosario Jr. also threw his support for the amendments of the Constitution, particularly the economic provisions to attract FDI, as the unemployment rate in the country is increasing.
But the House of Representatives minority bloc expressed fear on the moves amending economically or politically the 1987 Constitution, saying any form of Cha-cha now, whether it be economic or political, is dangerous because it will open the floodgates for any or wholesale amendments to the Constitution.
“This is very dangerous and would further open up our economy to foreign exploitation. We would still try to block this in the third reading and we will exhaust all legal means to stop this sellout of our patrimony,” Deputy Minority Leader Neri Colmenares of BayanMuna said.