Country Report Philippines April 2011

The political scene: The administration sets out its legislative priorities

In February the Legislative-Executive Development Advisory Council (LEDAC, a consultative council chaired by the president and comprising high-ranking members of the administration and Congress) met for the first time since Mr Aquino took office in June 2010. It concurred with the administration's list of 23 pieces of legislation to be fast-tracked by Congress. Among the most significant economic policy proposals were: a fiscal responsibility bill that would require the legislature to balance measures that reduce budget revenue with those that increase revenue; a bill to "rationalise" fiscal incentives awarded to investors; and amendments to the procurement law (Republic Act No. 9184) and the build-operate-transfer law (Republic Act No. 6957, as amended by Republic Act No. 7718). None of the proposals are at an advanced stage in Congress, although the proposal to rationalise investment incentives has been under discussion in the legislature since the mid-1990s. As a result, the proposals may not be enacted by the end of the current congressional session in early June. But three other measures could be finalised before then because they have already gone through the committee stage. One proposal is to postpone elections in the Autonomous Region of Muslim Mindanao, due in August, to coincide with congressional and local polls in May 2013. This measure was passed by the House of Representatives on March 22nd but will face strong opposition in the upper house. The other measures that may be passed in the current session of Congress are changes to the labour code to allow night-time working by women and the streamlining of perks at state-owned enterprises (SOEs). Given the obstacle-strewn path that most government proposals encounter in the legislature, the president's list of bills is ambitious. But the fact that the LEDAC has even met is a step forward-the committee had not convened since October 2009.

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