Senator Grace Poe hailed the ratification of the proposed amendments to the Public Service Act (PSA), saying she hopes this would be “start of the era of inclusive economic gains and development” in the country.
“Our overarching goal is to enhance competition, provide better quality services and create jobs,” said Poe, the chairperson of the Senate committee on public services and sponsor of the bill.
“The country’s top economic and legal experts have thrown their weight behind this bill.”
“The country’s top economic and legal experts have thrown their weight behind this bill. The data will bear us out. Not only will the passage of this measure speed up the country’s economic recovery from the devastating effects of the pandemic, but it will also make our country competitive when it comes to attracting foreign direct investments which we sorely lack and need,” the veteran legislator stressed.
The Senate gave the nod to the bicameral conference committee report recently, which harmonized the conflicting provisions between Senate Bill No. 2094 and House Bill. No. 78 proposing changes to the over 85-year-old PSA to make it more responsive to the needs of the times.
The ratified measure will go to Malacañang for the President’s signature.
The measure identified public utilities as follows: (1) distribution and transmission of electricity; (2) petroleum and petroleum products pipeline transmission systems; (3) water pipeline distribution systems and wastewater pipeline systems, including sewerage pipeline systems; (4) seaports; and (5) public utility vehicles.
Any industry not included in the list will remain as public services and will be liberalized, the measure said.
“More jobs will be created for our kababayans.”
“By easing the foreign equity restrictions in such industries, we are confident that our economy, which is lagging even behind our ASEAN neighbors, will thrive and grow, and that more jobs will be created for our kababayans,” the seasoned lawmaker said.
The lady senator pointed out that liberalizing some industries is not an invitation for foreign countries to take advantage of the country’s resources.
“Adequate safeguards and security provisions are in place, including giving authority to the President to suspend or prohibit any proposed merger or acquisition transaction, or any investment in a public service that will grant control to a foreigner or a foreign corporation,” she said.
Poe emphasized the presence of a provision prohibiting foreign state-owned enterprises from owning capital in any public service classified as public utility or critical infrastructure.
Foreign nationals are also not allowed to own more than 50 percent of the capital of entities engaged in the operation and management of critical infrastructure, unless his or her country accords reciprocity to Philippine nationals.
“The ratified measure made its intentions clear and unequivocal by adding a provision that says that ‘nothing in the bill shall be interpreted as a requirement for legislative franchise where the law does not require any’,” she said.
The measure also said that “no person shall be deemed a public utility unless otherwise subsequently provided by law”.
The proposed measure has also instituted penal provisions for violations.
