Republic of the Philippines

House of Representatives
Batasan Wills, Queson City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. pais

Introduced by Representatives Florencio Gabriel “Bem” G. Noel

EXPLANATORY NOTE

This bill seeks to impose an automatic price control on prices of
construction materials during certain situations, amending for the purpose
Republic Act (RA) No. 7581, otherwise known as the “Price Act,” as
amended.

Under RA 7581, as amended by RA 10623, it is the policy of the
State to ensure the availability of basic necessities and prime
commodities at reasonable prices at all times without denying legitimate
business a fair return on investment. Thus, the Price Act has established a
mechanism which includes imposing price control on basic necessities
that readily protects consumers from inadequate supply and unreasonable
price increase on occasions of calamities, emergencies and like
‘occurrences.

The extent of devastation wrought by the man-made calamity as the
Zamboanga assault of rebel forces, and natural calamities like the Bohol
earthquake and the strongest typhoon ever to hit the earth which was
Yolanda, had struck the deepest chord of sympathy and widespread show
of generosity not only from Filipinos but from foreigners the world over.
It is a phenomenon that drove all people to extend short-term aid known
by free food distribution and long-term assistance seen in building houses
and helping the survivors regain their livelihood.

In terms of housing reconstruction, however, it is surprising that the
Price Act had overlooked the case of overpricing or price manipulation of
construction materials. In fact, Section 6 of the Price Act, as amended
allows only a freeze on the prices of basic necessities as defined under


Section 3 (1) of the Act and not of primes commodities which include
construction materials as defined under Section 3 (8) of the same Act. As
a long-term solution, price freeze on construction materials should be
extended for a longer period than that of basic necessities. Thus, the
shorter period of 60 days for basic necessities and the extended period of
150 days for construction materials is provided for in this bill.

In view of the foregoing, approval of this bill is urgently requested.

“Neo

FLORENCIO GABRIEL “BEM” G. NOEL


Republic of the Philippines ;
House of Representatives
Batasan Hills, Queson City

Eighteenth Congress
First Regular Session

5176
HOUSE BILL NO.

Introduced by Representative Florencio Gabriel G. Noel

AN ACT
IMPOSING AN AUTOMATIC PRICE CONTROL ON PRICES OF
CONSTRUCTION MATERIALS DURING CERTAIN SITUATIONS,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7581,
OTHERWISE KNOWN AS THE “PRICE ACT,” AS AMENDED

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. SECTION 3(8) of Republic Act No. 7581, as
amended, is hereby further amended to read as follows:

“SEC. 3. Definition of Terms. For purposes of this Act, the
term:

(1) xxx
XXX XXX XXX

(8) “Prime Commodities” are goods not considered as
basic necessities but are essential to consumers in times of any of the cases
provided under Section 7 of this Act such as, but not limited to, flour, dries,
processed or canned pork, beef and poultry meat; dairy products not falling
under basic necessities; onions, garlic, vinegar, patis, soy sauce; toilet
soap; fertilizer, pesticides and herbicides; poultry, livestock and fishery
feeds and veterinary products; paepr; school supplies; CONSTRUCTION
MATERAILS SUCH AS nipa shingles[;], sawali{;], cement{;], clinker[:],
GI sheets{;], hollow blocks[;], plywood[;], plyboard[;], construction
nails[;], batteries; electrical supplies; light bulbs; steel wire, AND all drugs


not classified as essential drugs by the Department of Health and such
other goods as may be included under Section 4 of this Act.”

SEC. 2. Section 6 of the same Act is hereby further amended to read
as follows:

“SEC. 6, Automatic Price Control. Unless otherwise declared
by the President, prices of basic necessities AND CONSTRUCTION
MATERIALS in an area shall automatically be frozen at their prevailing
prices or placed under automatic price control whenever:

(1)That area is proclaimed or declared a disaster area or
under a state of calamity;

(2) That area is declared under emergency;

(3) The privilege of the habeas corpus is suspended in that
area;

(4) That area is declared to be in state of rebellion; or

(5) A state of war is declared in that area.

If the prevailing price of any basic necessity OR
CONSTRUCTION MATERAL is excessive or unreasonable, the
implementing agency may recommend to the President the imposition of
a price ceiling for the sale of basic necessity OR CONSTRUCTION
MATERIAL at a price other than its prevailing price.

Unless sooner lifted by the President, price control of basic
necessities AND CONSTRUCTION MATERIALS under this section
shall remain effective for the duration of the condition that brought it
about, but not limited to, household LPG and kerosene, price control
thereon shall remain effective for a period of not more than fifteen (15)
days, taking into consideration the current inventory or supply levels
thereof.

The terms “disaster” and “calamity” shall include those brought
about by natural or man-made causes, whether local or foreign.”

SEC. 3. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.

Approved,