Should we open up the economy to foreigners?

The House of Representatives appears likely to approve a resolution that seeks to amend the so-called 60-40 rule in the 1987 Constitution limiting foreign ownership of certain industries. 

Speaker Feliciano Belmonte has been spearheading the economic Cha-cha move in the House, while Sen. Ralph Recto is doing the same thing in the Upper Chamber.

But a little clarification here is needed: what is not being proposed is not to actually amend the restrictive proviso in the fundamental law, but to change the manner in which the amendment could be carried out in the future.

This is going to be done by adding the phrase, "in a manner provided by law" or similar language that allows for flexibility on the part of government in amending certain provisions in the Constitution.

Under Article 12 of the 1987 Constitution, foreign investors are prohibited from owning more than 40 percent of real properties and businesses.

Foreigners are also prohibited from exploiting the country’s natural resources and from investing in the media industry.         

Some sectors, particularly those identified with militant groups, stoutly oppose the idea of opening up the economy to foreigners. They claim that the economy is already under the control of foreign interests, particularly the Americans.

But changed circumstances, such as our rapidly growing population now composed of over 100 million Filipinos, leave us no option but to stimulate economic growth through more investments and more jobs.

By enticing more foreign capital to come in, we should be able to  substantially reduce the ranks of the poor and the very poor.

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Fair competition: An idea whose time has come

What businessmen have been saying all along is that they want a level playing field.

But what does this really mean?

It means there should be no price fixing, price manipulation, monopolies and other practices that allow one business to enjoy undue advantage over another.

That's the intent of the Fair Competition Act passed recently by the House of Representatives on third and final reading.

What's significant about this is that it took so long—over two decades—to get it past the legislative mill. The original bill was proposed way back during the Cory Aquino presidency, during the Eight Congress. We're now in the 16th Congress, if you must know.

House Speaker Feliciano R. Belmonte, Jr. has been quoted in news reports as saying that "this is a piece of legislation that is very much needed."      We agree.

The Senate approved its version of the measure on December 15 last year, and it’s now up to a bicameral conference committee to reconcile the two bills.

We're glad that local and foreign business groups pushed for the passage of the bill. We really need to have a level playing field for business.

Once the consolidated bill is signed into law, a Philippine Competition Commission would be established and vested with the power to investigate possible violations of the law, such as price fixing.

We certainly hope that the Competition Commission, once it is set up and  operational, would be able to do its work properly and implement the law without fear or favor.

A perfectly level playing field may be a utopian dream, but at least we should be able to protect the interests of consumers, and the public as  a whole, from businessmen thinking only of amassing profits and laughing all the way to the bank.

             

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Abad’s chosen many

Budget Secretary Butch Abad has the ignominious record of having nine relatives in government, including his wife, daughter, three nieces and four nephews. Never mind Abad’s wife Henedina who got herself elected in Congress.

But what about Abad’s daughter Julia, who heads the Presidential Management Staff? How about Abad’s other relatives who got appointive posts in this administration? Would all of them be employed by government had they not been relatives of Butch Abad?

That’s the overriding question even if we assume that all of them are qualified for their posts. While nepotism may not technically apply since it was not Abad himself who appointed his relatives to their posts, how about the simple lack of delicadeza they have shown?

Do they have a monopoly of the skills, experience and patriotic fervor to be “serving” in government? Mind you, two of Abad’s nieces are directors in, lo and behold, Abad’s own turf at the Department of Budget and Management (DBM), and in the appointments office of  Malacañang.

Those directorships surely carried fat paychecks and perks that should have gone to career civil service workers as some kind of a reward for serving government for decades, before being doled out to political appointees like Abad’s relatives.

No matter how one looks at this, this is petty corruption, this is patronage politics that insults the intelligence of Filipinos. And it’s not an aberration or something exclusive to the Abads because Agriculture Secretary Proceso Alcala and Environment Secretary Ramon Paje also have eight relatives apiece “serving” in government.

Sila lang ba ang mga anak ng Diyos?                                                       

END

Is the PCSO going bankrupt?

Well, yes and no.

Philippine Charity Sweepstakes Office Chairman Erineo "Ayong" Maliksi disclosed recently that the revenue-generating agency is running out of funds intended to provide financial assistance to indigent Filipinos.

Did that mean that he inherited a bankrupt agency?

Not really.

It seems that at least 13 laws mandate the PCSO to provide mandatory contribution to different government agencies. Reports indicate that just recently, the  PCSO released P100 million to the Commission on Higher Education as its mandatory contribution to that agency.

The basic mission of the PCSO, however, is to generate funds for health programs and national charities through sweepstakes, races, lotteries and other fund-raising schemes.

Thus, for the PCSO give part of its funds for other government programs and projects is really to abandon its core function of helping the poor and the needy.

Albay Gov. Joey Salceda is one public official who's aghast at Maliksi's shocking revelation.      

“The PCSO is overburdened and overloaded with mandatory obligations from all sorts of laws. The true PCSO mandate is individual medical assistance—it does not state there (in its charter) sports assistance and even traffic assistance,” he fumed.

What the PCSO chairman should probably do is to go to Congress and urge lawmakers to repeal the laws earmarking PCSO funds to other government offices.

This would put the PCSO recover from financial hemorrhage that now prevent it from extending financial assistance to poor and low-income Filipinos who are sick and need urgent medical attention.

The PCSO earns millions from sweepstakes, lotto, small-town lottery and other games of chance. But this money should go exclusively to helping the poor, not to putting up basketball courts or paying the salaries of traffic aides. 

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Image by PCSO

Why can’t Canada take back its garbage?

                                           

Not too long ago, the Bureau of Customs discovered 50 containers of trash from Canada.  Just recently, another 48 more containers of trash turned up at the Manila International Container Port, coming from the same Canadian company and imported by the same local company. 

Customs officials said the second batch of containers was misdeclared as recycled plastics instead of household waste. They warned that the Canadian trash poses health and environmental risks.

Not surpisingly, several environmental groups have expressed utter disgust over this big stink from far-away Canada.

EcoWaste Coalition says it expects "nothing less than an open and transparent investigation on this matter, the prosecution of the offenders and the immediate return of the botched garbage consignments to Canada."

Greenpeace echoed this demand, saying that "Canada must do the right thing and take back all of these illegal shipments immediately."

Yet another environmental watchdog, BAN Toxics, lamented that the garbage shipment shows "Canada's callous disregard for international law."        

The Basel Convention signed by both Canada and the Philippines provides  that household waste should be strictly controlled and cannot be exported to any country without prior notification and consent.

Given this, Canada should take back the waste and file criminal charges against the exporter.

What’s strange is that even as Canada was roundly condemned for its export of garbage to the Philippines during the 12th Conference of the Parties of the Basel Convention in Geneva just recently, it insists it is under no obligation to take it back as it is a private matter between the exporter and the importer, or a prvate transaction over which it cannot intervene.

But one thing is is clear: The Canadian government is openly violating an international treaty which it signed. Now what are we going to do about it?

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