Senate President Franklin M. Drilon(left) and Speaker Feliciano R. Belmonte Jr.: Economic reforms. FILE PHOTO
MANILA, Philippines—The leaders of both Houses of Congress on Monday gave the business community their firm commitment to pursue critical economic reforms and policy interventions aimed at attracting foreign investments, boosting the country’s competitiveness, creating new jobs and reducing poverty.
Speaking before the Makati Business Club (MBC) membership meeting, Senate President Franklin M. Drilon and Speaker Feliciano R. Belmonte Jr. outlined their respective priority measures, including the Freedom of Information (FOI) bill, which would give the public access to government records.
Both lawmakers also committed to push for amendments to economic provisions of the Constitution.
Inclusive growth
“We will push for policies that will boost investments in agriculture, tourism, manufacturing, construction and services. We will allocate funds to upgrade facilities and improve infrastructure and public services,” Drilon said, adding that the Senate would do its share “to achieve and accelerate sustainable and inclusive growth.”
Belmonte, for his part, said the House of Representatives would focus on making the country a more conducive place for business to further attract foreign investments.
“We will push for reforms that will improve the state of infrastructure in the country…(and address) the high costs and inadequacy of power and water supply,” he added.
FOI bill
Drilon and Belmonte committed to pass during the term of President Aquino the FOI bill, which the Senate President described as “an important measure to drive the governance reform agenda as it adopts an international policy of full disclosure of government spending.”
The two officials also underscored the need to rationalize the granting of fiscal incentives as there are at least 186 laws that grant such overlapping subsidies to investors.
“We will reassess and harmonize these laws to avoid redundant and overlapping incentives and to cap unnecessary revenue loss. We intend to level the playing field by granting incentives to industries that need them,” Drilon said.
“Revenue losses due to redundant incentives can be as high as one percent of the country’s gross domestic product,” added Belmonte.
The Speaker also identified as a priority bill the rationalization of the mining fiscal regime to ensure a more equitable share of revenues for the government.
Open up industries
He added that lawmakers were also keen on revisiting the investment restrictions provided under the foreign investment negative list (FINL) to open up more industries to foreign investors.
In line with this, amendments may be necessary to the Foreign Investments Act, the Condominium Law, the Public Service Act and the Retail Trade Act, Belmonte said.
The two officials also cited the need to amend the Cabotage Law to open up the shipping industry, foster greater competition and lower the cost of transportation for the agriculture sector and other enterprises.
Amendments to the charter of the Bangko Sentral ng Pilipinas (BSP) could also strengthen its regulatory and supervisory powers, they added.
Among those identified as priority bills in the House of Representatives are the establishment of a national transportation policy; the review of the Electric Power Industry Reform Act; the modernization of the customs bureau; the legislation of the National Land Use Policy; and the amendment of the Government Procurement Act.
Strong possibility
MBC executive director Peter Angelo V. Perfecto said the business group was “happy” that the economic reforms considered as priorities by both lawmakers were those attuned to the issues that had been raised by business groups over the last two years.
“MBC is very happy that both of them mentioned the possibility of passing the FOI. This is the first time we got a firm commitment from the Lower House and it looks like there’s a very strong possibility in this Congress that we will have the FOI bill,” Perfecto said.