The chairman of the House Committee on Ways and Means on Sunday said the Joint Foreign Chambers (JFC) and Philippine business groups are asking the lower chamber to prioritize the passage of several economic bills in the remaining months of the Aquino administration.

House Committee on Ways and Means Chairman and Liberal Party Rep. Romero S. Quimbo of Marikina, who is set to meet the JFC and local chambers on Monday, said busines groups have been pushing—since the15th Congress in 2010 -- for the passage of several economic bills.

"I am meeting them, in fact, tomorrow [Monday]," said Quimbo, adding, "They’ve always been pushing from the first day of the 15th Congress for economic measures, as well as transparency ones."

According to Quimbo, the JFC and the Philippine business groups are pushing for the passage of the proposed amendments to Customs Modernization and Tariff Act (CMTA), proposed amendments to the cabotage law, as well as the new version of fiscal incentives rationalization bill and measure lowering income and corporate taxes.

The CMTA, which had been approved last November by the House Committee on Ways and Means, is now ready for the plenary debate this month, while the House has recently approved on second reading the proposed amendments to the cabotage law seeking to liberalize the entry of foreign vessels between ports in the country.

On the other hand, the fiscal incentives rationalization bill and the measure lowering income and corporate taxes are currently under committee deliberations and are set to be passed in December.

Quimbo also said the business groups are backing the passage of Resolution of Both Houses (RBH) 1, or the economic Charter change of Speaker
Feliciano Belmonte Jr.

The RBH 1, 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, currently under plenary deliberations, 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, 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.

Quimbo said the leadership of the House is regularly conducting meetings with foreign and local business groups for consultative discussions on economic bills.

“Speaker Belmonte and all concerned [House committee] chairmen regularly meet them [to discuss] priority measures,” the lawmaker said.

The JFC is comprised of the American, Australian-New Zealand, Canadian, European, Japanese and Korean Chambers of Commerce in the Philippines, as well as Philippine Association of Multinational Companies Regional Headquarters Inc.

The Philippine business groups they are meeting include the Export Development Council; Foundation of Economic Freedom; IT and Business Process Association of the Philippines; Management Association of the Philippines, Makati Business Club (MBC); Philippine Chamber of Commerce and Industry (PCCI); Philippine Exporters Confederation; Semiconductor and Electronics Industries in the Philippines; and Tax Management Association of the Philippines.

Economic bills

Earlier, Peter Perfecto, MBC executive director, indicated his group’s support for the constitutional amendments, particularly the economic provisions to attract foreign direct investments (FDI).

“Revising the restrictive economic provisions of the 1987 Constitution to enable the passage of specific laws easing restrictions on natural resources, agricultural lands, institutions and mass media,” he said.

Perfecto also said that the passage of Freedom of Information bill will address the corruption in the bureaucracy by making government transactions transparent to the public and holding public officials accountable for their actions.

Rhicke Jennings, AmCham president, urged Congress to pass the Customs Modernization and Tariff Act.

He said the passage of CMTA will take into account the country’s international obligation to comply with the provisions of the Revised Kyoto Convention.

AmCham Senior Adviser John Forbes, meanwhile, asked Congress to amend the Foreign Investment Act, Retail Trade Act, Government Procurement law and Public Services Act.

Forbes also asked Congress to repeal Republic Act (RA) 3018, which restricts foreign participation in the country’s rice and corn trade.

PCCI’s Donald Dee said the passage of Philippine Fair Competition Act will prohibit anticompetitive agreements and abuses of dominant positions that distort, manipulate or constrict the operations of market in the Philippines in support of the growth of small and medium enterprises and in fulfilling the country’s commitment under the Asean Economic Community Blueprint that calls for the implementation of national competition laws in all Asean member-states.

Also, Alfredo Yao, PCCI president, said Congress should consider the proposed Philippine Fair Competition law.

“There should be a level playing field for businesses to provide better services and products,” he said.

The proposed Philippine Fair Competition law is now under plenary deliberations. The bill heavily penalizes monopoly, anticompetitive mergers and other unfair trade practices.

For Julian Payne, president of the Canadian Chamber of Commerce of the Philippines, removing the Department of Justice, Office of the Ombudsman, Court of Appeals, Sandiganbayan and Supreme Court from the coverage of the Government Salary Standardization will make the salaries of prosecutors and members of the judiciary more competitive.

Payne added that the passage of a Whistleblowers Protection Act and a Witness Protection, Security and Benefits Act will provide effective legal protection and rewards system to whistle-blowers and state witness to embolden them to come forward and support the prosecution of corrupt public officials.

Meanwhile, on his part, Calixto Chikiamco, president of Foundation of Economic Freedom, supported the proposal that creates the Bangsamoro region.

“The Bangsamoro basic law that will be submitted by the Bangsamoro Transition Commission should be swiftly passed in order to complete the comprehensive peace agreement on the Bangsamoro and to pave the way for peace prosperity in the region,” he said.

Forbes also called for the removal of investment restrictions.

“Investment restrictions in specific laws cited in the FINL [Foreign Investment Negative List] should be removed,” Forbes said.

He also said that the Foreign Investment Act and the Retail Trade law should be amended.

Michael Raeuber, president of the European Chamber of Commerce of the Philippines, said the cost of domestic maritime transportation will be lowered through the cabotage law amendment.

To support infrastructure development,
Raeuber said the build-operate-transfer law needs to be amended.

He also said RA 8947, or “An Act to Facilitate the Acquisition of Right of Way, Site or Location for National Government Projects and for Other Purposes,” should be amended, while a Department of Information and Communications Technology should be created.

Belmonte has said the priority list of legislative measures drawn up by the business groups and the House of Representatives are almost the same.

"I do not think that we are here to argue or preach to one another, but to map out directions and strengthen our collaboration for the passage of legislations that would uplift the lives of the people," he said.

"We want to encourage them to invest more in our country. We have seen the major vehicle of their growth was their big FDI. So we make it a point to have a dialogue with them so we know what they want," Belmonte said.