Legislators likely to OK just two more priority bills

MANILA, Philippines - Legislators are expected to pass only two bills on the government’s priority list — a proposed tax-free retirement savings scheme and a renewable energy measure — before the current legislative session ends tomorrow. Other priority bills such as the five-year extension of the agrarian reform program, amendments to the Electric Power Industry Reform Act (EPIRA) that are supposed to reduce electricity costs, the streamlining of tax perks for investors, and the Philippines’ free trade deal with Japan will have to wait until the next session starts late July. Bicameral deliberations on the Personal Equity Retirement Account or PERA Bill are expected to wrap up tomorrow, Senator Edgardo J. Angara told BusinessWorld. The Renewable Energy Bill, which will grant tax and other economic incentives to investors in clean energy, will also likely be passed before adjournment, House Speaker Prospero C. Nograles said. The energy measure, which will also create a trust fund to finance the research, development and promotion of renewable energy projects, is up for third reading in the House of Representatives and second reading in the Senate. Priority bills outlined by the Legislative-Executive Advisory Development Council (LEDAC) can be approved on second and third reading on the same day, bypassing a customary three-day gap. Up for third reading in both houses, but not on the priority list, is the Right of Reply bill, under which persons claiming to have been unfairly criticized or inaccurately portrayed in media reports can compel newspapers or broadcast outlets to publish or air their side of the story. The bill has been criticized by the Philippine Press Institute as an abridgement of press freedom. Congress’ performance Alberto A. Lim, executive director of the Makati Business Club (MBC), said the overall performance of Congress can so far be described as "commendable," although he noted that there were measures that lawmakers had promised to pass but were "left behind." "We were a bit disappointed but I guess [the performance of the 14th Congress] is not bad compared to the previous Congresses. They are more productive now," he said in a telephone interview. Philippine Chamber of Commerce and Industry President Samie L. Lim said all bills in the LEDAC list should be approved. "If they (legislators) cannot approve the bills before session adjourns, [pending measures] should be given the greatest priority in the next regular session," Mr. Lim told BusinessWorld. Malacañang last August listed a total of 28 measures aimed at "promoting economic progress, advancing social justice and maintaining peace and order" as priority. This was trimmed to 13 in December. Congress had vowed to act on pending legislation before last year’s Christmas break but approved only five bills: the P1.227-trillion 2008 budget, the extension of the Agricultural Competitiveness Enhancement Fund to 2015, the Civil Aviation Authority bill, amendments to the University of the Philippines charter, and amendments to the Magna Carta for Micro, Small and Medium Scale Enterprises. In April, the Palace tagged nine more measures as priority, bringing the list of measures to be rushed to 17. Of these bills, only two — the Quality Affordable Medicines Act which allows parallel importation to lower drug prices and higher tax exemptions for wage-earners — have been approved as promised. In sum, lawmakers have approved seven priority measures since the 14th Congress opened in July last year. Approval awaited Still pending are: * proposed amendments to the EPIRA that include lowering the privatization requirement for state-owned power plants to fast-track "open access" to electricity and retail competition; * extension of the Comprehensive Agrarian Reform Program set to expire on June 15; * National Tourism Policy Act; * a bill allowing the Ombudsman to use private prosecutors; * Anti-Smuggling Act; * a bill imposing stiffer penalties on illegal explosives trade; * Magna Carta for Women; * a bill establishing a Witness Protection Program under Congress; * modernization of the Fire Code; * concurrence with President Gloria Macapagal-Arroyo’s Proclamation No. 1377 granting amnesty to rebels; * the Credit Information System Act that seeks to improve the lending system; and * amendments to the Customs Brokers Act which bars corporations from engaging in customs brokerage or from hiring the services of an in-house broker. In the Senate, up for third reading is the proposal for free legal assistance to poor people and the National Tourism Act, Senate Majority Leader Francis N. Pangilinan said. Senators will also tackle proposed amendments to the EPIRA, an anti-child pornography measure, a bill requiring graphic warnings be placed on cigarette packs, and a joint resolution creating a congressional body on national territory. The United Nations (UN) has required archipelagic nations to pass a bill delineating the scope of territorial boundaries before the May 2009 deadline under the UN Convention on the Law of the Seas. Senator Aquilino Q. Pimentel, Jr. said Senators Manuel A. Roxas II, Panfilo M. Lacson, Rodolfo G. Biazon and Ma. Ana Consuelo "Jamby" A. S. Madrigal are scheduled to ask questions regarding EPIRA amendments. The counterpart measure in the House is still pending at the committee level. "We hope to pass [the EPIRA amendments] but realistically speaking, many senators have many issues to raise, including me. I suggested a caucus last week to discuss the issues but it didn’t take place. That’s why I doubt if it would be passed," said Mr. Pimentel, who is proposing amendments to the power sector reform law. In the House, the agenda includes the agrarian reform extension and the expansion of the Court of Tax Appeals, Mr. Nograles said. House Majority Floor Leader Rep. Arthur D. Defensor said a resolution granting amnesty to rebels and a measure giving state subsidies to political parties are also up for approval. The MBC’s Mr. Lim said businessmen want the approval of a bill providing free access to documents and information on matters of public concern and the fiscal incentives rationalization bill, but added "I think it still has a long way to go." Languishing Meanwhile, Malacañang’s "wish list" in December to pass the Japan-Philippines Economic Partnership Agreement (JPEPA), Optional Protocol against Torture, United Nations Convention on Disability, Philippines-Australia Visiting Forces Agreement, and a treaty with New Zealand barring double taxation continues to languish in the Senate. The Senate foreign relations committee has deferred the approval of the JPEPA, saying the government should renegotiate questionable provisions with Japan. The JPEPA, the country’s first bilateral trade deal, has been criticized for provisions that will allow Japan to export waste to the Philippines. The JPEPA assures zero duties for almost 95% of Philippine exports to Japan. The deal also requires the elimination of tariffs by both Japan and the Philippines on almost all industrial goods within 10 years from the date of implementation.