Vol. XXII, No. 131 [ BusinessWorld Online ]
Wednesday, February 4, 2009 | MANILA, PHILIPPINES
THE HOUSE committee on constitutional amendments has approved a resolution scrapping foreign ownership limits on corporations and land as part of the administration-controlled chamber’s initiative to amend the Constitution.
House Resolution 737, authored by Speaker Prospero C. Nograles (Davao City, 1st district) seeks to erase the constitutional provision limiting foreign ownership of a corporation to 40% and disallows foreign acquisition of both public and private land.
Mr. Nograles said his bill pushed the chamber’s aim of luring more investments.
"Enabling foreign corporations and associations to hold, acquire, and in any manner be granted the right to possess and utilize land in the country is a strategic policy that can encourage more long-term foreign investments ... which is important in the overall effort to enhance growth of the national economy," he said in an interview.
Committee chairman Rep. Victor C. Ortega (La Union, 1st district) said the next step for the panel would be determining the mode on how to amend the Constitution.
Under the 1987 Constitution, changes to the Charter can be made through the convening of either a constitutional assembly (amendments to require a three-fourths vote of Congress), a constitutional convention (whose delegates will be elected), and through a people’s initiative where amendments can be proposed by at least 12% of registered voters.
Mr. Ortega said the approval of Mr. Nograles’ resolution was "piecemeal legislation" aimed at pushing the charter change initiative. If approved by the entire chamber, the measure would be forwarded to the Senate for possible adoption.
Robert M. Sears, executive-director of the American Chamber of Commerce of the Philippines, welcomed the move to limit foreign ownership curbs, saying it would "help boost both foreign and local investments".
Henry J. Schumacher, vice-president of the European Chamber of Commerce of the Philippines, declined to comment on the resolution, only saying that "the business community does not want charter change as of the moment".
The House-led charter change initiative has been widely criticized as an attempt to extend term limits for elected officials, particularly that of President Gloria Macapagal Arroyo who is to step down next year. — JFSV