Noting that the amended Public Service Act (PSA) was enacted into law as Republic Act No. 11659 nearly a year ago, Senator Grace Poe on Friday urged the National Economic and Development Authority (Neda) to finish the Implementing Rules and Regulations (IRR) of the law.
RA 11659, which updated the 85-year-old Commonwealth Act No. 146, was signed on March 21, 2022, and relaxed restrictions on foreigners to completely own businesses in the country, but “with clear safeguards.”
Poe, who chairs the franchise-granting Public Services Committee, said the provision relaxing old restrictions on foreigners to completely own businesses in the country was a key reform measure.
In a statement, the senator called on concerned Executive agencies to “expedite the release of the Implementing Rules and Regulations of the Public Service Act (PSA) to allow the people to benefit from improved services and goods with more investments.”
The lawmaker lamented that the IRR intended to facilitate the law’s implementation “has yet to be issued close to a year after the PSA became a law.”
Airing her plea to the concerned Executive officials, Poe said, “I would like to appeal to the Executive, particularly the National Economic and Development Authority, to speed up the drafting of the IRR so that the benefits of the Public Service Act will finally be realized.”
She pointed out, “It is in the law that within six months from the effectivity of the measure, the IRR shall be ready.”
Specifically, Poe pointed out that the law “allows full foreign ownership” of businesses in select industries such as telecommunications, airlines and railways.
She, however, added that “some sectors will remain restricted to full foreign equity,” such as public utility vehicles, water, electricity, petroleum pipelines and seaports.
“The final law was a product of years of deliberation and inputs by various stakeholders to ensure its soundness and positive impact on the lives of our people. It’s time we reap its benefits,” Poe said.
At the same time, Poe recalled that the PSA was among the legacy bills passed by the 18th Congress to help shore up economic development.
The other laws include the Foreign Investments Act and the Trade Liberalization Act.
In the Senate session this week, Poe acknowledged fellow Senator Robin Padilla for pointing out that the Filipinos have yet to feel the effects of the PSA without the rules and guidelines in place, adding, “We hope the IRR will be out soon. It is the broken thread to the full implementation of the PSA.”
“We may have an effective law, but we need one with clear guidelines to be implementable,” she said.