No security breach seen from public utility bill
Credit to Author: Tyrone Jasper C. Piad| Date: Fri, 28 Feb 2020 17:09:17 +0000
ALBAY Second District Rep. Jose Maria Clemente “Joey” Salceda assured the public that the country’s security would not be compromised despite the expected easing of restrictions on foreign ownership of certain businesses, including those in telecommunications and transportation, should his bill amending the 84-year-old Public Service Act (PSA) is enacted.
On the sidelines of The Manila Times TV’s “Congress Diaries” program on Friday, Salceda said all foreign companies looking to completely own local businesses would be evaluated first.
“The President can vet [them through] the National Security Council,” he said.
He acknowledged persistent worries about Chinese companies taking over such businesses if the proposed easing of restrictions on foreign firms is implemented, saying “the biggest fear is fear of China.”
Approved on second reading at the House of Representatives on February 18, Salceda’s House Bill 78 seeks to limit the definition of “public utility” to power distribution and transmission, and water pipeline distribution or sewerage pipeline system.
Businesses under public utility remain subject to the 60-percent Filipino, 40-percent foreign ownership rule set by the 1987 Constitution.
The measure also seeks to reclassify telecommunications and transportation businesses, among others, under “public services,” which are open to full foreign ownership.
Albay First District Rep. Edcel Lagman had criticized HB 78 as violating the Constitution, while Kabataan Party-list Rep. Sarah Jane Elago said the bill posed problems to the country’s privacy and security.
The House will tackle the measure on its third and final reading on Monday, according to Salceda.
If approved, the bill would be sent to the Senate for further deliberations.
During the program, Salceda reiterated that HB 78 would boost competition in oligarch-run industries, saying the country’s public utilities were being run by only a few corporate giants.
Easing [the entry of foreign businesses] could encourage further investments, he added.
“There should be a reasonable threat of [foreign] entry… to make the incumbents behave [as] reasonably competitive,” he said.
“Sinosolo tayo ng mga Ayala [at] Gokongwei (the Ayalas and Gokongweis run the majority of the country’s businesses)… So kailangan po talaga ng kompetisyon (we really need competition),” the legislator said, referring to the families behind major conglomerates Ayala Corp. and JG Summit Holdings Inc.
Salceda also said that while the bill would ease the entry of foreign firms, he stressed countries investing in the Philippines should also allow the latter to do business in theirs.
He also called for a unified body for disaster preparedness, response and rehabilitation to lessen the impact of natural calamities and other disasters.
A centralized department could manage the calamity funds to efficiently respond to disaster-stricken areas, Salceda said.