Senate OKs bill relaxing foreign ownership of public services on 2nd reading

The Senate on Tuesday approved on second reading the measure allowing foreign ownership over public services.

During the hybrid Senate session, the legislators approved Senate Bill No. 2094, which seeks to amend the Commonwealth Act No. 46 or Public Service Act.

Senator Grace Poe, sponsor of the measure, said opening up public services to foreign investors will allow  “modern, more accessible and affordable” services.

“We need to be forward-looking and not be hampered by some of our mistrust and fears,” she said in a statement.

It also seeks to clear ambiguity surrounding the used terms of  “public utility” and “public service.”

The proposed measure limits public utility to three services: the distribution of electricity, transmission of electricity, and water pipeline distribution and sewerage pipeline systems.

Also, Poe said one of the amendments being pushed for is the increase of P200 penalty per day of violation of service providers to P2 million.

The bill also indicates that foreigners may only own more than 40% of the public services identified as critical infrastructure if their country accords a reciprocal right to Filipinos by law, treaty or international agreement.

The bill also seeks to limit foreign employment to less than 25% of the total employees of any given corporation.

Opposition Senator Risa Hontiveros warned against the passage of the measure, saying China could use it as leverage against the Philippines in the maritime dispute in the West Philippine Sea. 

In March 2020, the House of Representatives approved on third reading their version to amend the Public Service Act. 

The House Bill 78 seeks to remove 40% foreign ownership limit in the following public services:

• sewerage systems;
• telecommunications systems;
• wire/wireless communications systems;
• petroleum;
• gas, electric light, heat, and power;
• irrigation systems;
• water supply;
• marine repair shops;
• wharf or dock;
• canal; and
• public markets.

— BM, GMA News

Senate OKs bill relaxing foreign ownership of public services on 2nd reading
Source: Pinoy Hub News