PHILIPPINES
Photo: Manila Bulletin
A measure before the Philippines Senate is aimed at amending an 82-year-old law to open up competition in the provision of public services.
The Committee on Public Services has endorsed amending the Public Service Act 1936, which governs areas such as water and power utilities, transportation, telecommunication, and mass media.
Chair of the Committee, Senator Grace Poe (pictured) moved the amendments, saying they sought to improve the quality and costs of goods and services provided to the public.
She said at the heart of the measures was splitting of the definition of “public utility” from “public services”.
“The distinction between the two carries with it some huge ramifications in terms of Constitutional restrictions such as foreign equity and meaningful competition,” Senator Poe said.
“The new definition will result in the freedom of industries not listed as public utilities from Constitutional restrictions on foreign ownership, equity and operation, and thus pave the way for more competition.”
She said the entry of a third player in the telecommunication industry would be more viable with the proposed amendments.
“Meaningful competition will allow more players, domestic and foreign, to slug it out to win the satisfaction of the consuming Filipino people,” Senator Poe said.
She said this way they would have to compete in providing quality services and goods at the lowest cost.
“We are expecting to erase the ‘take it or leave it’ attitude of companies that have enjoyed monopoly for decades,” Senator Poe said.
She said the proposed law would also set higher penalties for providers that failed to comply with the terms and conditions of their contracts.
At present violators were fined only PHP200 (A$5) per day until they complied.
The new law would impose a penalty of up to PHP5 million (A$120,000) a day, plus “disgorgement of profits” and “treble damages”.
Manila, 31 March 2018
