We all know that Speaker Prospero Nograles’ proposal to lift
the constitutional restriction on land ownership is a Trojan horse. The real aim
is to shift to a parliamentary system so Gloria Arroyo can stay power beyond
2010 as prime minister.
But perhaps it is worthwhile to grapple with Nograles’
concern so as to determine whether there is such a pressing need to change
restrictive economic provisions that he and other Gloria Arroyo lapdogs would
risk a public uprising.
In all surveys of foreign investors, land ownership has never
been cited as among their top worries. Why should it be? Foreigners are allowed
to lease land up to 50 years, renewable for another 25 years. Seventy-five years
is for all purposes an eternity when it comes to business planning, except
perhaps when one is venturing into commercial tree plantation where the
planting-to-harvest cycle is at least 30 years.
And why limit the proposed amendments to land? A better case
can be made for the lifting of restrictions on the extraction of natural
resources and public utilities.
Easing restrictions on utilities, of course, is an
impossibility as local owners wield considerable political influence. Easing
entry into extractive industries should be welcome but then again foreign
investors are already comfortable doing business under laws specifically aimed
at blunting the restrictive constitutional prohibitions.
There is the foreign and technical assistance agreement
scheme which allows wholly foreign-owned companies to engage in mining. For the
60 percent Filipino ownership which qualifies a company for treatment as a
Filipino national, the FTAA scheme substitutes the 60 percent government share
from operating income.
The biggest example is the $5 billion Malampaya natural gas
production facility. Ninety percent of the company is owned by Shell and
Chevron, with the Philippine National Oil Co. holding the remainder. The 60
percent share of the government from operating income is also considered as
sufficient compliance with the 60:40 requirements.
Lest we be understood, we do not favor the constitutional
restrictions. In fact, if a constitutional convention is called after Gloria
steps down in 2010, we surely will be in the forefront of a campaign to fully
open up all business activities to foreigners.
But that stand comes from conviction, not from unbridled greed for power that
motivates Nograles’ proposed amendments.
