Poe reports on the Latest Bicameral Conference Committee meeting

In her most recent Public Service Act, Senator Grace Poe reported the proposed amendments to the bill of the Bicameral Conference Committee. Poe stated that there were several conflicting provisions between Senate Bill No. 2094 and House Bill No. 78. However, she notes that through the efforts of Senators Zubiri, Revilla Gatchalian, and co-sponsor, Senate Minority Leader Drilon, as Senate conferees, and that of Representatives Garin, Quimbo, Garcia, Romualdo, and Singson these differences have been reconciled.

Poe reportedly notes that the committee agreed to use both the Houses’ version as the working draft and from there the common provisions were assimilated.

According to the senator, the panel settled the parameters identifying public utilities and services and the industries that belong to these classifications. Included in Public Utilities are industries regarding distribution and transmission of electricity, petroleum and petroleum products pipeline transmission systems, water pipeline distribution systems, and wastewater pipeline systems, including sewerage pipeline systems, Seaports, and Public utility vehicles.

The committee also agreed that any industry not included in the list will remain as public services and will be liberalized. This, therefore, eases the foreign equity restrictions in such industries. According to Poe, the decision gives confidence to the committee for the future economic structure of the country as more jobs will be created for Filipinos.

Additionally, Poe notes that the liberalization of industries is not to be misunderstood as an invitation for hostile countries to take advantage of the Philippines’ resources. She emphasizes that adequate safeguards and security provisions ought to be put in place to protect the independence and sovereignty of the nation. To achieve this she states that the President may suspend or prohibit any proposed merger or acquisition transaction or any investment in public service that results in a company being controlled by a foreigner or a foreign company. Furthermore, foreign state-owned enterprises are barred from owning capital in any public service classified as a public utility or critical infrastructure. Lastly, foreign nationals may not own over 50% of the capital of entities engaged in the operation and management of critical infrastructure unless their country accords reciprocity to Philippine nationals.

To ensure compliance with the terms of this bill the committee has included penal provisions with flexible amounts should there be future developments. The panel has made their intentions clear by placing the provision stating that “nothing in the bill shall be interpreted as a requirement for a legislative franchise where the law does not require any. Moreover, no person shall be deemed a public utility unless otherwise subsequently provided by law.”

Poe then goes on to state that “Mr. President, as I’ve mentioned before, our 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.”