By Jovee Marie N. dela Cruz
The leadership of the House of Representatives has assured that all amendments to the 1987 Constitution that will be drafted by the Constitutional Commission (Con-com) will be presented to the public through a “massive” information campaign.
Speaker Pantaleon D. Alvarez assured there will be an active participation in the national debate on constitutional reforms throughout the country.
“After the approval of final draft of the new Constitution, we should explain all the amendments to the people. However, for now, we’ll wait for the Constitutional Commission to do [its] job,” he added.
According to the Speaker, free and open public debates on the issue of constitutional reforms, especially on federalism, must be encouraged before Congress, acting as constituent assembly (Con-ass), focuses its attention on the growing consensus of adopting a federal system.
President Duterte earlier signed Executive Order 10, creating a committee that will review the Constitution. The committee will be composed of 25 different experts from the country.
Moreover, Alvarez said this Con-com will be given six months, starting next year, to start drafting the new Constitution before Congress convenes as Con-ass to debate and finalize the draft of the new Charter made by the commission.
Alvarez said creating a Concom will help Congress, acting as Con-ass, in amending the present Constitution to change the present unitary form of government to a federal system.
Nacionalista Party Rep. Luis Raymund F. Villafuerte Jr. of Camarines Sur, a vice chairman of the House Committee on Appropriations, has expressed optimism that the Executive and Legislative departments could now switch to Charter change (Cha-cha) mode, and the federal switch to overdrive in 2017, following this week’s move by Malacañang to create the 25-member Con-com to help Congress study the proposed reforms to the 1987 Constitution.
“With the creation of the 25-member Con-com that will revisit the 1987 Constitution and come up with proposed amendments for consideration by Congress convening as Con-ass, the Executive and Legislative branches of government could now put the federal switch on the fast lane at the onset of 2017,” Villafuerte said.
One of the lead advocates of federalism in Congress, Villafuerte said “the creation of the Concom, which will have six months to come up with the proposed constitutional reforms, would keep on schedule President Duterte’s goal of facilitating the federal shift on his watch.”
Earlier, Duterte reiterated that he wants the federal system to be put in place within his six year Palace term, and said he had told Alvarez that he hopes it could be done in two to three years’ time.
“With this timetable, the would-be Con-ass can wrap up the proposed amendments by 2018 and the government can hold a plebiscite the following year to seek the people’s approval of the constitutional changes. The plebiscite can piggyback on the 2019 midterm elections to make the exercise more cost effective,” said Villafuerte, also convener of the bloc of first-term legislators in the House.
Villafuerte said this is the best setup possible that would allow Congress to focus on urgent legislative measures without taking too much of its time holding endless debates on proposed amendments to the Constitution.
“Creating a Con-com composed of experts would also ensure that a thorough and authoritative review of the Constitution, devoid of the vested interests of the individual interests of lawmakers, would be done,” Villafuerte stressed.
Amendments
Meanwhile, Majority Leader and PDP-Laban Rep. Rodolfo C. Fariñas of Ilocos Norte said all amendments will be debated and voted upon by three-fourth of all members of the Senate and House of Representatives.
Meanwhile, asked for a comment on Duterte’s recent statement that he will endorse the lifting of restrictions on foreign ownership of public utilities—now a subject of deliberations on the proposed changes in the Constitution in Congress—but would not allow foreigners to own land, Fariñas said, “that matter, as well as all others pertaining to the Constitution, will have be debated and voted upon by the Con-ass.”
“It is premature for anyone to say how the Con-ass will act on a certain matter, especially that a vote of three-fourth of all the members of Congress would be needed for the approval of any proposal,” Fariñas said in a text message to the BusinessMirror.
Last Monday, during a business forum held in Malacañang, Duterte said he is willing to increase the foreign equity in public utilities by as much as 70 percent.
During the recent public consultations of the House Committee on Constitutional Amendments, several organizations have supported, as well as opposed, the proposal lifting an economic provision in the Charter restricting foreign ownership of land.
Management Association of the Philippines (MAP) President Perry Lim Pe told lawmakers that “if we allow them [foreigners] 100-percent ownership, I think Filipino companies can compete. Filipino business groups are prepared to do the competition. We’re prepared to meet them head on.”
He also recommended to the House of Representatives some amendments to the economic provisions of the 1987 Constitution that limit foreign ownership in the country. Pe said businessmen want the lower chamber to amend a provision in the Charter that limits foreign-land ownership in the Philippines.
“Section 7, Article 12, which restricts land ownership, again, we have long-term land-lease agreement that allows up to a maximum of 50 or maybe additional 25 more years, we think that, since land will be here and [to] develop land you need capital, if you open it up, we think that can spur [economic growth], especially countryside development,” Pe added.
The Constitution states that in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.
Also, former Finance Secretary Margarito B. Teves of the Foundation for Economic Freedom (FEF) said some economic policies enshrined in the Constitution are binding constraints to growth, and easing these provisions could bring in much-needed foreign investments.
He said among the provisions the FEF wants amended are those pertaining to foreign ownership of land and exploitation of natural resources, foreign equity in the operation of public utilities, mass media and advertising, and foreign practice of profession.
Teves said the FEF believes these “protectionist” provisions, which limit foreign ownership, do not promote healthy competition in a dynamic global economy. He noted the Philippines is one of only few countries left bearing this kind of restriction in the Constitution.
Bangko Sentral ng Pilipinas (BSP) Managing Director Restituto C. Cruz, likewise, concurred with the proposed amendment of the economic provisions of the Constitution as long as the independence of the BSP will be ensured.
The officials also supported the proposed foreign ownership of land but wanted specific provisions that would retain Filipino ownership of agricultural and industrial lands as these are vital to food production.
Public utilities
However, Dr. Wilfrido Villacorta, a constitutional expert, has urged lawmakers not to lift the provisions in the 1987 Constitution that deals with public utilities and natural resources.
“We should do it [amending the Constitution] with care, particularly the provisions concerning public utility and natural resources because it will not just affect our economy, but also our national security. We should use a strategy in amending our Constitution,” Villacorta, one of the original Con-com members, said in an interview with the BusinessMirror.
“It could be dangerous if we will remove that [two provisions] without the help [of] consultants and experts. They should hire consultants like what we’ve done during the 1986 Constitutional Commission,” he added.
Under Section 11, Article 12 of the Constitution, no franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines, at least 60 percent of whose capital is owned by such citizens; nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than 50 years.
It added the participation of foreign investors in the governing body of any public-utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines.
The Constitution also provides that all lands of the public domain, waters, minerals, coal, petroleum and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands, all other natural resources shall not be alienated. The exploration, development and utilization of natural resources shall be under the full control and supervision of the State.
The State shall protect the nation’s marine wealth in its archipelagic waters, territorial sea and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens, the charter said.
Villacorta, likewise, cited the need to amend the 1987 Constitution to make it attuned to the changing times.
He is, however, against totally revising the Constitution, saying “many constitutional provisions are not properly implemented, so there is [only] a need to clearly define the provisions.”
Villacorta said when they crafted the Constitution, many provisions were overlooked because of the limited time given to them to deliberate and finish their proposals, adding it is wise to consult the final arbiter of the land, the Supreme Court, preferably through two separate petitions from the House and the Senate to shed light on the issue.
In a separate position paper submitted to the lower chamber, Villacorta said “our Constitution was framed in 1986 and was overwhelmingly approved in a national referendum in February 1987. Since then, many changes have occurred: a new security architecture in Asia and the Pacific has evolved; mass poverty, criminality, official corruption, natural disasters and pandemics have worsened. International institution and the global financial system have become even weaker, while nuclear proliferation and international terrorism have increased.”
“The fundamental aspirations of our society addressed in our present Constitution, however, remain the same—a better quality of life, peace among all communities, equitable and inclusive development across our regions, the blessings of independence and democracy, and an independent foreign policy,” he added.
Villacorta said he is hoping that Congress as Con-ass will have more time to deliberate on the costs and benefits of the different forms of foreign equity and entitlements.
“Thirty years have passed since we wrote the fundamental law. The limitations imposed regarding the foreign equity in most investment areas have given our more liberalized Asean neighbors a competitive edge over us,” he said.
“It has posed constraints to fulfilling our commitments under Asean Free Trade Area and the Asean Economic Community. However, under the Foreign Investment Act of 1991, foreign investors may now capitalize in domestic or export enterprises to as much as 100 percent of the capital of these enterprises provided that: these enterprises are not on the Negative List and if the foreign investor is investing in a domestic enterprise, the domestic enterprise must have a paid-in capital equivalent to $200,000,” he said.
Education
Villacorta, former chairman of the Human Resources Committee in the Constitutional Commission, also asked the lawmakers to retain some provisions in the charter that deals with education.
“I sponsored the provisions on education, science and technology, arts, culture and sports [Article XIV of the Constitution], it is an important article because it seeks to significantly improve the quality of our population, especially the young,” he said.
Villacorta added that among the provisions that Congress should retain are Section 1 of Article XIV, which provides that the State shall protect and promote the right of all citizens to quality educations at all levels and shall take appropriate steps to make such education accessible to all; and the State shall assign the highest budgetary priority to education and ensure that teaching will attract and retain its rightful share of the best available talents through adequate remuneration and other means of job satisfaction and fulfillment.
However, Villacorta asked lawmaker to look into the German education system.
“The German system might be worth looking into. Their system of vocational and technical education, is called Duale Berufsausbildung [job education]. Their institutes called Berufsschulen [job schools] deliver such training for three years, in cooperation with the companies where the trainees are employed. The students work in the company for three days, and study at the Berufsschule for two days. It is a much more serious training process that would better equip our youths to face the challenges of technological age,” he said.
Villacorta added that Congress should also retain the provision in the charter on independent foreign policy.
“The Constitution has stipulated an independent foreign policy [Article 11, Section 7] this provisions, which I cosponsored, is different from nonalignment o which a state distances itself from any alliance dominated by a big power. A State with such a policy opens itself to friendly with all powers, big or small. It regards alliances not only as a binding military commitment to prepare oneself for war. An alliance network is not seen as zero-sum game, but as win-win instrument for peace and mutual benefit,” he said.
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