Oppositions solons slam approval of House bill allowing foreign ownership of public utilities

Opposition lawmakers from the House of Representatives have expressed their objection to the measure which supposedly allows full foreign ownership of public utilities in the country which the chamber recently approved on second reading.

In a statement on Thursday, Albay Representative Edcel Lagman said House Bill 78 or the proposed New Public Service Act is "fatally violative" of the 1987 Constitution as it provides that ownership, operation, control and management of public utilities is reserved to Filipino citizens or to corporations at least 60% of whose capital is owned by Filipinos.

House Bill 78 seeks to limit the definition of public utilities to electricity distribution and transmission, water and sewerage pipelines, air transportation, ports and airports.

The measure also allows the National Economic and Development Authority secretariat in consultation with the Philippine Competition Commission to recommend to Congress the classification of a public service as a public utility if:

• The person regular regularly supplies and directly transmits and distributes to the public through a network a commodity or service of public consequence;
• The commodity or service is necessary to the public and a natural monopoly that needs to be regulated when the common good so requires;
• The commodity or service is necessary for the maintenance of life and occupation of residents; and
• The commodity or service is obligated to provide adequate service to the public on demand

But Lagman said there is no distinction between "public utility" and "public service" as the Supreme Court itself stated in a 2003 ruling that "public utility is engaged in public service" that provides "basic commodities and services indispensable to the interest of the general public."

"It is well-settled that public service is an indispensable attribute or element of a public utility, and the two are synonymous and interchangeable, so much so that there is no sound reason for making a distinction to justify defiance of the Constitution by allowing the non-compliance of 'public service' enterprises with the requirement of Filipino citizenship," he added.

For his part, Bayan Muna party-list Representative Carlos Zarate said he finds it "tragically ironic" that the Duterte administration is questioning the Philippine depository receipt of embattled broadcast giant ABS-CBN when its allies in Congress are pushing for House Bill 78.

"If these amendments get through we would see our public services turned into super-profit generating, 100% foreign-owned enterprises. We would be fully at their mercy," Zarate said.

"In the end we would all suffer from the complete sellout of our sovereign rights and resources that this amendment would allow. It's completely unacceptable, and should be opposed," he added.

Meanwhile, Gabriela Women's Party Representative Arlene Brosas said House Bill 78 only sets the stage for total foreign control on vital services in the country like the media, railways, transport systems, telecommunication systems, among others.

"Sinasagad ng rehimeng Duterte ang pagbebenta sa halos lahat ng serbisyo publiko sa malalaking dayuhang negosyante sa ilalim nitong amyenda sa Public Service Act. Kulang na lang ay tahasang ipamigay nya ang mga lupain at lahat ng serbisyong dapat ay nasa kontrol ng gobyerno," she said.

"So much for Duterte's talk of sovereignty and patrimony and against foreign ownership. This measure, if passed, would lead to foreign takeover of public transport systems, internet services, media and other sectors at the expense of ordinary consumers who will pay costlier services," she added. — RSJ, GMA News