Drilon: Laws to address clamor for Charter change

MANILA, Philippines – With the President firm on his stand against changing the Charter, how will the administration make the economy more open to investors?

Incoming Senate President Franklin Drilon said that the government will take the legislative route, focusing on priority economic bills in the 16^th Congress.

In an interview on Rappler’s #TalkThursday on July 18, Drilon said the Senate will work on bills that will address both the concerns of Charter change proponents, and criticism of non-inclusive growth.

“There’s this clamor for Charter change. There are seen to be certain defects, difficulties in the investment environment but we have a political leader who believes we can do it without constitutional amendments that will only divert attention and create instability and therefore, we look at our laws.”

Drilon cited the so-called foreign incentive negative list. “There are certain areas where foreign investment can’t come in although it’s not prohibited in the Constitution.”

The staunch Aquino ally said the new Senate will review and remove these restrictions. 

The following will be part of a legislative agenda that Drilon said is centered on the economy:

• Rationalization of fiscal incentives
• Rationalization of the mining law to address excise tax issues
• Tax Incentive Monitoring and Transparency Act to monitor incentives enjoyed by pioneer or innovative industries, and to check abuses
• Amendments to the Build, Operate and Transfer Law to address criticism on the hindrances to the full implementation of the Public-Private Partnership Programs
• Amendments to the Bangko Sentral ng Pilipinas Act

Incoming Speaker Feliciano Belmonte Jr and various business groups are pushing for Charter change to lift the 40-percent cap on foreign ownership of land, public utilities and other key industries.

President Benigno Aquino III though said he remains unconvinced of the urgency to change the Constitution, whether for economic or political reasons.

Observers, activists, and the opposition United Nationalist Alliance have also pointed out that the economic gains of the administration have yet to trickle down.

To ensure inclusive growth, Drilon said Congress will work on laws to lower the unemployment and underemployment rate.

“The agricultural sector, for example, will have among the largest constituency among the work force yet it’s one of the most underpaid. You see the poverty in the countryside. This is the challenge we must face in the Senate. We must craft policies that will create jobs.”

‘We support peace process but…’

Besides the economic bills, Drilon said the 16^th Congress will prioritize amending the Autonomous Region in Muslim Mindanao Organic Act to conform to whatever peace agreement the government would enter into with the Moro Islamic Liberation Front.

Yet he said Congress must be more involved in the process. He said he was not briefed on the wealth-sharing annex signed by the government and the Moro Islamic Liberation Front (MILF).

“My suggestion is the executive branch should engage Congress because Congress will have to pass the law which will amend the Organic Act and if there is a divergence of opinion, we’ll have problems in the legislature. But we can assure our people in Mindanao that once it is completed, we will do our share.”

Other priority bills Drilon identified are the amendments to the Sandiganbayan Law and the Judiciary Act. He said reforming the judiciary will also benefit the economy.

“There are 2,600 or so cases pending in the Sandiganbayan. It takes years so this creates the perception that there are two kinds of justice in the country: one for the rich, one for the poor which is bad for democracy, bad for investment climate.”

Drilon said the 16^th Congress will have to work double-time to “solidify the gains” in the first half of the Aquino administration.

“We should not miss the opportunity of having a final peace agreement in Mindanao. It’s difficult to bring this back to this environment,” he said.

The stalwart of the ruling Liberal Party (LP) said he is all too aware that politicians already have the 2016 polls in mind.

“Starting one year before 2016, I don’t think much will be achieved in policy reforms. I want to seize this opportunity with the strong leadership of the President to institutionalize the reforms he started so after he is gone, whoever comes in even with a different agenda, we already institutionalized what should be there.”

‘Admin coalition will hold’

Drilon will lead the Senate majority composed of the administration coalition. This consists of the LP and former Sen Manny Villar’s Nacionalista Party, former rivals in the 2010 polls.

News reports have named the LP’s Sen Ralph Recto as the next Senate President Pro-Tempore and the NP’s Sen Alan Cayetano as Majority Leader but Drilon has refused to comment on the reorganization.

Asked if the coalition will hold and pursue Aquino’s legislative agenda, Drilon said the President’s leadership binds the group.

“We are a responsible lot. Notwithstanding our differences, we will consider national interest to be our primordial job.”

Villar though has said that like a marriage, the coalition may not last long. 

Drilon said Aquino’s leadership already helped secure the passage of contentious measures.

“The sin tax and the Reproductive Health law were the most difficult reforms undertaken in recent memory. I should know because I was there. The pressure groups, the lobby were so tremendous that a leader of a lesser belief or strength would have caved in. I have seen that in the past,” he said. – Rappler.com