Press Release - Poe: Economic Cha-cha may open a can of worms

Sen. Grace Poe said proponents should tread carefully in tinkering with the 1987 Constitution to amend its economic provisions, warning it could instead open a can of worms.

Poe said treading the path of constitutional reforms should be done in careful and measured ways as it could open a can of worms.

"Kailangan nga ba natin ng Cha-Cha para sabihin that we're open for business? Sabi nila, sarado ang ating ekonomiya. Pero ang totoo, bukas naman talaga tayo sa foreign investors," Poe said in her opening statement at the hearing of Resolution of Both Houses No. 6 seeking Charter change (Cha-cha).

"Would amending the public utilities provisions in our Constitution open the economy or open a can of worms?" the chairperson of the Senate committee on public services added.

Poe said the country has made great strides in the past years "liberalizing the economy without compromising national security or leaving behind Filipino businesses."

Poe said Republic Act No. 11659 or amended Public Service Act (PSA), which she authored, encouraged new players in the airports, railways, expressways and telecommunications sectors "without changing the Constitution."

"Guided by the long line of cases decided by the Supreme Court as to what 'public utilities' really are, we carved out public utilities which will remain covered by the 60% Filipino ownership requirement from public services that were opened up by the PSA to full foreign investments," she explained.

These public utilities include the distribution and transmission of electricity; petroleum and petroleum products pipeline transmission systems; water pipeline distribution systems, including sewerage pipeline systems; seaports; and, public utility vehicles.

"Because of the nature of these natural monopolies, we needed to ensure the security and supply of these essential utilities. Siniguro natin na Pilipino pa rin ang may kontrol sa mga ito at kailanman ay hindi makokontrol ng mga dayuhan," Poe said.

The senator said that as it stands now, RBH 6

proposes opening, through legislation, all public utilities to foreign ownership, investments, and management without the Constitutional protection grounded on national security and