Monday, April 25, 2011

JFC PBG Meeting with Speaker Belmonte to Discuss Legislative Priorities


The Joint Foreign Chambers and Philippine Business Groups held a high level exchange on priority legislation February 2, 2011 with the House of Representatives leadership at the Batasan. It was agreed that these meetings would be continued on a quarterly basis.

Speaker Belmonte was joined by his deputies and 15 committee chairmen. In his prepared remarks, he stated 25 priority measures have been identified to be reported out of committee before March 25 and another 40 priority measures will reported before the end of the first year's session June 9, 2011. The 283-member House expects to take up 90 priority measures by the end of 2011, which he explained is the "minimum number of bills of national significance we are committing to bring to the floor for plenary discussion."

After noting that SWS recently showed the House having its highest net satisfaction rating in 25 years, he gave assurances the House will focus on "reforms that enhance productivity and competition" and listed the following, most of which were on the JFC/PBG list of 41 measures sent to the Speaker in October 2010 (1) review and amend the (BOT) law, (2) water sector reforms, (3) review EPIRA, (4) Competition Policy Framework, (5) Pocket Open Skies, (6) Maritime Authority Charter amendments, (7) Philippine Ports Authority amendments, (8) Cybercrime Act,  (9) Data Privacy Act, (10) Department of Information and Technology, (11) amend BSP Charter, (12) amend Anti-Money Laundering Law, (13) Anti-Smuggling; (14) Customs and Tariffs Modernization Act; (15) Common Carriers Tax, (16) Gross Philippine Billings, (17) Rationalization of Fiscal Incentives, (18) Fiscal Responsibility Act, (19) Procurement Act amendments, (20) Automatic Retention of LGU shares of National Taxes, (21) Corporate Farming, (22) Farmland as Collateral, (23) Land Administration Reform Bill.

In his response ECCP President d'Aboville described Speaker Belmonte as "Mr. Arangkada" for his commitment to accelerated reform. He called on his colleagues to describe each of the ten measures from the list of 41 that had been prioritized for the February 2 meeting. After each was discussed, Deputy Speaker Tanada called on respective committee chairmen to comment on the status of the proposed laws.

1)  Data Privacy, DICT - BPAP President Sanez encouraged early passage of these two measures. Rep. Tinga, ICT Committee chair, reported that the reports for both bills are being signed. "A DICT must be created for this potential $20 billion industry."

2)  Foreign Professionals Omnibus Amendment and Retail Trade Act. AmCham External Affairs Director Sears explained these two proposals. Rep. Salvacion, Civil Service and Professional Regulation Committee Chair and Rep. Garcia, Trade Committee chair reported there are no bills introduced. Mr. Sears gave the Speaker draft bills with explanatory statements.

3)  BOT Law Amendments - Atty. Santos of SGV discussed concerns with HB 759. Our support for the bill  of Rep. Daza (HB 3763) in the 14th Congress was explained. (Note: We will also wait to review the BOT amendments that are on the President's Priority Legislation List.) Committee on Government Enterprise is the primary committee and Trade Committee is secondary.

4)  Clean Air Act amendment - Mr. Fuji, VP of JCCPI, spoke. Rep. Abaya commented DENR Sec Paje had told him current law allows high tech incineration. Mr. Fuji explained investors are not confident and it would be better to amend the law to correct the oversight made when it was passed.

5) Mining amendments. Both Anzcham and Cancham spoke to mining issues. HWMC Chairman Mandanas invited the JFCs to attend a forthcoming hearing. Local Government Committee chair Rep. Arnaiz explained the national government is 2-3 years late in paying LGUs their shares of mining royalties.

6) CCT/GPB - BAR 1st Vice-chair Crowdey explained foreign air capacity to the PH is not growing while it has double digit growth elsewhere in Asia, and there are many unused rights. Other Asian countries give foreign airlines incentives for service but the PH gives disincentives. HWMC Chairman Rep. Mandanas reported he has filed a bill which is expected to pass by the end of February.

7)  Anti-trust. ECCP VP Schumacher explained to Trade Committee Chairman Garcia that the business groups have a few comments to present on the consolidated bill. Chairman Garcia replied he is open to comments on the consolidated bill. The issue was first proposed almost two decades ago. He expects to report out a bill before the March 25 recess.

8)  CTMA - SGV Atty Tamayo urged passage of the CTMA. HWMC Chair Mandanas replied that the measure would be reported out by the March 25 recess. (Note. Mandanas was referring to the Anti-Smuggling Bill)

9)  Rationalization of Fiscal Incentives - Amcham Senior Advisor Forbes urged this Congress to pass a law on this issues which has been before Congress since 1995. HWMC Chairman Mandanas replied that end of May is the target for a committee report.

10)  Tax Sector Neutrality Act - CMDC ED Bhagwani explained the proposed bill, which HWMC Chairman welcomed, so long as taxes will not be increased by it.

The meeting concluded exactly on time. In the concluding remarks Mr. D'Aboville proposed meeting 3-4 times a year, to which speaker Belmonte proposed quarterly meetings.

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