The House of Representatives on Tuesday abandoned a bill that would have reopened ABS-CBN sooner rather than later, opting instead to take the longer route of committee deliberations, which could keep the broadcast network off the air much longer.
The decision, hammered out during an afternoon majority caucus, was a complete departure from Speaker Alan Peter Cayetano’s proposed provisional franchise, which was already passed on second reading last week.
Instead of tackling a temporary franchise bill until October this year, congressmen decided to take up the network’s long-pending application of a new 25-year operating franchise.
“I, together with the House of Representatives’ leadership, have decided to forego with the provisional franchise and immediately proceed with the hearings on the full 25-year renewal application of the ABS-CBN franchise,” Cayetano said during the plenary session.
Cayetano promised to “immediately proceed” with hearings by the Committee on Legislative Franchises, which did not prioritize the ABS-CBN franchise renewal bills until it expired last May 4.
Cagayan De Oro Rep. Rufus Rodriguez, who backed the interim franchise bill, said both chambers of Congress were not likely to finish the approval process for a regular franchise, given only 8 session days before they go on sine die break on June 6.
“I’m afraid of the lack of material time,” he told ABS-CBN News. “Kung di matapos by June 3, mahihirapan talaga. Mas matagal nakasara.”
Congress will resume session on July 27 for President Duterte's 5th State of the Nation Address.
INORDINATE DELAY
Prior to the majority caucus, minority Rep. Edcel Lagman warned Cayetano that abandoning the provisional franchise “would gravely compound the inordinate delay in the renewal of ABS-CBN’s franchise.”
The House dropped the temporary franchise bill following heated debates on Monday when several congressmen cited complaints over ABS-CBN’s alleged violations of its old franchises.
Some congressmen complained about the swift pace with which the House was pushing the approval of ABS-CBN’s temporary franchise.
Others sought deliberations on a regular 25-year franchise, instead of a provisional one, which was tackled by the House constituted as a Committee of the Whole.
Following Tuesday’s caucus, the majority agreed that issues raised against the network were “quite credible and quite important” and should be “best ventilated and threshed out” before the legislative franchises committee, said Majority Leader Ferdinand Martin Romualdez.
Cayetano laid down “non-negotiable ground rules” before the committee would tackle ABS-CBN’s franchise, citing the need to focus on defeating the coronavirus pandemic.
Congressmen, he said, would “multi-task” and should vote on the franchise bill in accordance with their conscience and not their politics.”
Cayetano also insisted that committee hearings would be “fair, impartial, comprehensive, and thorough."
SHORT-LIVED
The short-lived provisional franchise proposal was recalled on Monday following concerns that its one-day approval on first and second reading last week violated the constitution, which requires separate days.
But instead of going through the formalities of another second reading, going through a period of debates and individual amendments, the chamber suspended deliberations in the evening.
At a Senate hearing the following day, ABS-CBN president and CEO Carlo Katigbak said the network’s objective was “hopefully to secure a 25-year franchise.”
“But if securing a short-term franchise is the fastest way to go back on air, then we have no objection to that,” he said.
Katigbak also warned that the company might consider laying off employees by August if it failed to resume its free TV and radio broadcast. At risk are over 11,000 jobs.
"We continue to lose a substantial amount of money every month and I'm afraid that if we cannot get back on air soon, by August we may already have to consider beginning a retrenchment process," he said.
https://news.abs-cbn.com/news/05/19/20/abs-cbn-reopening-delay-seen-with-new-house-tack
Tuesday, May 19, 2020
House drops ABS-CBN's provisional franchise, to tackle bills for 25-year license
The House of Representatives on Tuesday decided to stop deliberations on a provisional franchise for ABS-CBN Corp, opting instead to hear bills for a 25-year franchise.
Speaking to the plenary, House Speaker Alan Peter Cayetano said they have decided to forego the provisional franchise- a proposal he led giving ABS-CBN license until October 2020- citing the divisiveness it has brought to the chamber.
"Because of all this divisiveness and after consulting with the members of the House, the political parties, and the regional groups… I, together with the House of Representatives leadership have decided to forego with the provisional franchise, and immediately proceed with the hearings for the full 25-year renewal application of the ABS-CBN franchise," he said.
The proposed provisional franchise was passed on first and second reading on the same day last week, but the House opted to reopen the period of debates and amendments Monday to avoid possible legal questions.
Cayetano said the bills for the ABS-CBN franchise renewal will be tackled by the House Committee on Legislative Franchises.
He said the panel should "immediately and continuously hold hearings until everyone is heard." The chamber is set to go on break on June 5 and will come back when session reopens in the fourth week of July, when the President delivers his State of the Nation Address.
"And after everyone is heard, then we can decide," he said.
In his proposal last week, Cayetano said granting ABS-CBN provisional franchise would allow Congress to focus on response to the coronavirus pandemic and time to thoroughly discuss issues against ABS-CBN.
On Monday, lawmakers raised charges ABS-CBN has already answered in a Senate hearing in February, including tax and labor issues of which government officials have themselves cleared the network.
ABS-CBN's broadcast operations were halted on May 5 on orders of the National Telecommunications Commission, which issued a cease and desist order after the network's franchise lapsed on May 4.
Bills for the renewal of ABS-CBN's broadcast license have been pending for years. Its shutdown puts at risk some 11,000 jobs, with the network's President and CEO Carlo Katigbak telling a Senate hearing earlier Tuesday that it may consider layoffs by August if it remains off the air.
More details to follow.
- report from Rose Carmelle Lacuata, ABS-CBN News
https://news.abs-cbn.com/news/05/19/20/house-drops-abs-cbns-provisional-franchise-to-tackle-bills-for-25-year-license
Speaking to the plenary, House Speaker Alan Peter Cayetano said they have decided to forego the provisional franchise- a proposal he led giving ABS-CBN license until October 2020- citing the divisiveness it has brought to the chamber.
"Because of all this divisiveness and after consulting with the members of the House, the political parties, and the regional groups… I, together with the House of Representatives leadership have decided to forego with the provisional franchise, and immediately proceed with the hearings for the full 25-year renewal application of the ABS-CBN franchise," he said.
The proposed provisional franchise was passed on first and second reading on the same day last week, but the House opted to reopen the period of debates and amendments Monday to avoid possible legal questions.
Cayetano said the bills for the ABS-CBN franchise renewal will be tackled by the House Committee on Legislative Franchises.
He said the panel should "immediately and continuously hold hearings until everyone is heard." The chamber is set to go on break on June 5 and will come back when session reopens in the fourth week of July, when the President delivers his State of the Nation Address.
"And after everyone is heard, then we can decide," he said.
In his proposal last week, Cayetano said granting ABS-CBN provisional franchise would allow Congress to focus on response to the coronavirus pandemic and time to thoroughly discuss issues against ABS-CBN.
On Monday, lawmakers raised charges ABS-CBN has already answered in a Senate hearing in February, including tax and labor issues of which government officials have themselves cleared the network.
ABS-CBN's broadcast operations were halted on May 5 on orders of the National Telecommunications Commission, which issued a cease and desist order after the network's franchise lapsed on May 4.
Bills for the renewal of ABS-CBN's broadcast license have been pending for years. Its shutdown puts at risk some 11,000 jobs, with the network's President and CEO Carlo Katigbak telling a Senate hearing earlier Tuesday that it may consider layoffs by August if it remains off the air.
More details to follow.
- report from Rose Carmelle Lacuata, ABS-CBN News
https://news.abs-cbn.com/news/05/19/20/house-drops-abs-cbns-provisional-franchise-to-tackle-bills-for-25-year-license
Enrile: Why can’t Congress grant 25-year franchise to ABS-CBN?
Former Senate President Juan Ponce Enrile warned Tuesday that Congress would risk “emasculating” the constitution should it go for a temporary franchise allowing broadcast network ABS-CBN to resume its free TV and radio operations.
Enrile said the legislature should instead tackle a 25-year franchise for the shuttered network, saying there should be “permanence” in the legislative grant.
“Why can you not give a permanent franchise to ABS-CBN right away, conduct a day-and-night hearing… instead of playing with the constitution by granting a temporary franchise? he told a Senate inquiry.
“If Congress can grant a temporary franchise, what is the compelling reason for Congress not to grant a permanent franchise with a reasonable period of 25 years?”
Minority Leader Franklin Drilon said Congress could decide on the length of the franchise using its “plenary powers” so long the period would not exceed the 50-year limit in the constitution.
A number of senators expressed reservations on the Senate hearing on ABS-CBN’s franchise since the House of Representatives has yet to approve its version. Under the Constitution, private bills such as the network’s franchise application must emanate from the House.
“This hearing might be premature,” said Sen. Francis Tolentino.
But Sen. Sherwin Gatchalian, who presided over the inquiry as the committee’s vice chairman, said the hearing was “anticipatory.”
Enrile acknowledged Sen. Panfilo Lacson’s concern that senators might face a “constitutional challenge” in case they agreed to the House proposal of a provisional franchise for ABS-CBN.
But amending the period to cover a full 25-year franchise will be “perfectly okay,” Enrile said.
Enrile said Congress should also consider the pending case against ABS-CBN before the Supreme Court, warning it “complicates” its deliberations on franchise renewal bills.
“If the Supreme Court will decide adversely against ABS-CBN, what will happen to the legislative action of Congress granting a new franchise to ABS-CBN?” he said.
https://news.abs-cbn.com/business/05/19/20/enrile-why-cant-congress-grant-25-year-franchise-to-abs-cbn
Enrile said the legislature should instead tackle a 25-year franchise for the shuttered network, saying there should be “permanence” in the legislative grant.
“Why can you not give a permanent franchise to ABS-CBN right away, conduct a day-and-night hearing… instead of playing with the constitution by granting a temporary franchise? he told a Senate inquiry.
“If Congress can grant a temporary franchise, what is the compelling reason for Congress not to grant a permanent franchise with a reasonable period of 25 years?”
Minority Leader Franklin Drilon said Congress could decide on the length of the franchise using its “plenary powers” so long the period would not exceed the 50-year limit in the constitution.
A number of senators expressed reservations on the Senate hearing on ABS-CBN’s franchise since the House of Representatives has yet to approve its version. Under the Constitution, private bills such as the network’s franchise application must emanate from the House.
“This hearing might be premature,” said Sen. Francis Tolentino.
But Sen. Sherwin Gatchalian, who presided over the inquiry as the committee’s vice chairman, said the hearing was “anticipatory.”
Enrile acknowledged Sen. Panfilo Lacson’s concern that senators might face a “constitutional challenge” in case they agreed to the House proposal of a provisional franchise for ABS-CBN.
But amending the period to cover a full 25-year franchise will be “perfectly okay,” Enrile said.
Enrile said Congress should also consider the pending case against ABS-CBN before the Supreme Court, warning it “complicates” its deliberations on franchise renewal bills.
“If the Supreme Court will decide adversely against ABS-CBN, what will happen to the legislative action of Congress granting a new franchise to ABS-CBN?” he said.
https://news.abs-cbn.com/business/05/19/20/enrile-why-cant-congress-grant-25-year-franchise-to-abs-cbn
ABS-CBN may 'consider' retrenchment by August if it fails to resume airing: CEO
(2nd UPDATE) - ABS-CBN Corp may "consider" retrenching workers by August if it fails to resume broadcast soon, President and CEO Carlo Katigbak told a franchise hearing at the Senate Tuesday.
"We continue to lose a substantial amount of money every month and I'm afraid that if we cannot get back on air soon, by August, we may already have to consider beginning a retrenchment process," ABS-CBN CEO and President Carlo Katigbak told senators.
The broadcaster earlier told employees that it "would not take away any jobs for 3 months" following its May 5 shutdown, given "the difficult economic situation" that the coronavirus pandemic spawned, he said.
"We felt it would be very, very painful to put our employees out on the street without them having an idea as to how they can continue earning a living and continue to feed their families," Katigbak said.
"But unfortunately, we cannot make that commitment open-ended because we are also limited by financial constraints," he added.
ABS-CBN has been losing P30-35 million in advertising revenues daily since regulators forced it off air.
If this "severe financial hemorrhage" continues, ABS-CBN told the Supreme Court in an urgent motion Monday that it "may be constrained to eventually let go of workers, reduce salaries and benefits, and substantially cut down on costs and expenses."
QUICKEST WAY BACK ON AIR
The National Telecommunications Commission, under oath, told lawmakers in March that it would let the country's top broadcaster operate provisionally beyond the May 4 expiration of its license, while bills for its franchise renewal stalled in Congress.
But days after Solicitor General Jose Calida warned NTC officials that they could face graft charges if they gave ABS-CBN a provisional permit, the regulator ordered the 65-year-old media outfit to stop its broadcast operations due to its expired license.
A bill giving ABS-CBN a provisional franchise until Oct. 31 is scheduled for second reading at the House of Representatives on Tuesday.
Senators said they would pass the bill before Congress goes on break in June, after which it would go to the Office of the President for signing.
"It is critical from a financial standpoint and from an employee welfare standpoint that we go back on air as quickly as possible," said ABS-CBN's Katigbak.
"If a provisional franchise until October is the quickest way to get us back on air, then we accept, with the hopes of course that we continue hearings to grant us the 25-year franchise," he said.
EMPLOYEE WELFARE
ABS-CBN gives its workers "pay and benefits that are above what the government has mandated and above what the industry is paying," Katigbak said.
"We commit that we will continue doing whatever we can to take care of employees to continuously better their compensation as the business improves," he said.
"It’s just that very difficult for us to have that discussion today…given the fact that we’re facing 2 very significant business challenges. As soon as we get back on air and as soon as business normalizes it would be easier for us to have those discussions at that point in time," he added.
The outfit's broadcast halt this month was the first since it was forced to sign off when martial law was declared in 1972.
The network has since asked the Supreme Court to block the NTC's cease-and-desist order.
news.abs-cbn.com is the official news website of ABS-CBN Corp.
https://news.abs-cbn.com/business/05/19/20/abs-cbn-may-consider-retrenchment-by-august-if-it-fails-to-resume-airing-ceo
"We continue to lose a substantial amount of money every month and I'm afraid that if we cannot get back on air soon, by August, we may already have to consider beginning a retrenchment process," ABS-CBN CEO and President Carlo Katigbak told senators.
The broadcaster earlier told employees that it "would not take away any jobs for 3 months" following its May 5 shutdown, given "the difficult economic situation" that the coronavirus pandemic spawned, he said.
"We felt it would be very, very painful to put our employees out on the street without them having an idea as to how they can continue earning a living and continue to feed their families," Katigbak said.
"But unfortunately, we cannot make that commitment open-ended because we are also limited by financial constraints," he added.
ABS-CBN has been losing P30-35 million in advertising revenues daily since regulators forced it off air.
If this "severe financial hemorrhage" continues, ABS-CBN told the Supreme Court in an urgent motion Monday that it "may be constrained to eventually let go of workers, reduce salaries and benefits, and substantially cut down on costs and expenses."
QUICKEST WAY BACK ON AIR
The National Telecommunications Commission, under oath, told lawmakers in March that it would let the country's top broadcaster operate provisionally beyond the May 4 expiration of its license, while bills for its franchise renewal stalled in Congress.
But days after Solicitor General Jose Calida warned NTC officials that they could face graft charges if they gave ABS-CBN a provisional permit, the regulator ordered the 65-year-old media outfit to stop its broadcast operations due to its expired license.
A bill giving ABS-CBN a provisional franchise until Oct. 31 is scheduled for second reading at the House of Representatives on Tuesday.
Senators said they would pass the bill before Congress goes on break in June, after which it would go to the Office of the President for signing.
"It is critical from a financial standpoint and from an employee welfare standpoint that we go back on air as quickly as possible," said ABS-CBN's Katigbak.
"If a provisional franchise until October is the quickest way to get us back on air, then we accept, with the hopes of course that we continue hearings to grant us the 25-year franchise," he said.
EMPLOYEE WELFARE
ABS-CBN gives its workers "pay and benefits that are above what the government has mandated and above what the industry is paying," Katigbak said.
"We commit that we will continue doing whatever we can to take care of employees to continuously better their compensation as the business improves," he said.
"It’s just that very difficult for us to have that discussion today…given the fact that we’re facing 2 very significant business challenges. As soon as we get back on air and as soon as business normalizes it would be easier for us to have those discussions at that point in time," he added.
The outfit's broadcast halt this month was the first since it was forced to sign off when martial law was declared in 1972.
The network has since asked the Supreme Court to block the NTC's cease-and-desist order.
news.abs-cbn.com is the official news website of ABS-CBN Corp.
https://news.abs-cbn.com/business/05/19/20/abs-cbn-may-consider-retrenchment-by-august-if-it-fails-to-resume-airing-ceo
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