EDITORIAL - Foreign ownership

The new measure amending the Public Service Act has many people feeling nervous.

Last Tuesday, the House of Representatives approved on second reading House Bill 78. The bill makes changes to the 84-year-old Public Service Act and will now let foreign entities fully own companies in the public service sector including the transportation, communication, and power industries, according to a report in Philstar.com.

Before the amendment, foreign ownership in such companies was limited to 40%, as set in the 1987 Constitution.

The same report goes on to say HB 78 defines public service to cover “common carrier, railroad, street railway, subway motor vehicle, ice refrigeration plant, irrigation system, marine railways, wire or wireless communications systems; wire or wireless broadcasting stations; freight or carrier services, steam boats ferries and war craft engaged in the transportation of passengers or freight, gas, electric light, heat and power water supply and power, petroleum and sewerage system, among others.”

As with any measure, there are good and bad things.

On the plus side you can expect improvements that our government may not be able to implement.

We all know the government isn’t exactly wallowing in resources and as a result, even the most-used infrastructures, like Metro Manila’s rail system for one, tends to fall into disrepair.

A foreign company can also bring in expertise and experience the government may not be able to provide.

The competition from a foreign-owned company may also spur local companies to improve their services, and the biggest winner from such a scenario will be the public.

On the minus side, you cannot expect a foreign company to always act in the interest of the country it is supposed to serve. It might even be taking advantage of that country for their own selfish purposes, or that of their own government.

Then there will always be those who cast a suspicious eye on China and its growing influence here. They will say this bill, if it becomes a law, will slowly allow China-based companies to move in and silently take over.

Given what is happening today, can you really blame them for imagining such a scenario?

It seems there is little to stop the bill from becoming a law. Time will tell if our lawmakers made the right decision or the wrong one.