A disruptive initiative
As in previous efforts to amend the Constitution, the latest initiative as pushed by the House of Representatives supposedly aims to scrap the restrictive economic provisions and make the country more attractive for job-generating investments.
Business groups, however, have come out to warn against the high cost of Charter change particularly through the mode approved by the House – a constitutional convention. Under this Cha-cha proposal, 300 elected con-con delegates will get a per diem of P10,000 each, or a total of P3 million a day.
In a joint statement last week, the Makati Business Club, Financial Executives Institute of the Philippines, Filipina CEO Circle, Justice Reform Initiative, Philippine Women’s Economic Network and the Women Business Council Philippines warned that Charter change through con-con is “potentially disruptive… at a time when the country may be poised to regain its economic momentum.” Lengthy and fractious debates, they noted, could prompt potential investors to adopt a waitand-see attitude.
The groups cited estimates by the National Economic and Development Authority that a con-con would cost from P14 billion to P28 billion – public funds that can be better used “on agriculture to address the high inflation, transportation to enable Filipinos to get to work and home in much less time, and needed social services like health, education and social security.”
Cagayan de Oro Rep. Rufus Rodriguez, who chairs the House committee on constitutional amendments, has admitted that a con-con could include political changes. The business groups noted that this could trigger contentious political debates that could derail reform efforts.
Similar views were expressed earlier this month by leaders of the country’s biggest business group, the Philippine Chamber of Commerce and Industry as well as the Philippine Exporters Confederation Inc.
The business groups pointed out that several laws and rules have been enacted to ease investment restrictions without the need for Cha-cha. These are the Public Service Act, Retail Trade Liberalization Act and Foreign Investment Act. Earlier, there was also the Rice Trade Liberalization Act and a Department of Energy circular allowing 100 percent foreign ownership in the renewable energy sector.
Congress, the businessmen pointed out, can instead focus on the passage of more pieces of legislation to ease investment restrictions, including those on additional tax reforms and easing the payment of taxes.
Senators have been cool to the con-con proposal, and President Marcos himself has said he sees no need for Cha-cha to make the country more investmentfriendly. Unless he is merely playing a charade and he is in fact supporting the House super majority in the Cha-cha push, he should send a stronger message to his allies to avoid divisive distractions and instead focus on his legislative agenda.