Republic of the Philippines
HOUSE OF REPRESENTATIVES
C onstitution Hi1ls, Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSE BILL NO.
Introduced by Agusan del Norle, 2nd District Representative
HON. DALE B. CORVERA
AII ACT
SUBJECTING CONSTRUCTION MATERIALS TO AUTOMATIC PRICE
CONTROL IN AREAS PLACED UNDER STATE OF CALAMITY DUE TO
NATURAL DISASTERS, AMENDING FORTHE PURPOSE REPUBLIC ACT
NO. 9165, AS AMENDED, AND FOR OTHER PURPOSES
EXPLANATORYNOTE
It is a declared 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.
On 27 May 1992, Republic Act No. 7581, otherwise knor.r.n as the "Price Act", was
enacted to establish a mechanism that will readily protect consumers from inadequate supply
and unreasonable price increases on occasions of calamities, emergencies and like occurences,
among others. The law defined "basic necessities" and "prime commodities", as well as listed
the goods that can be classified under them. These lists were expanded through the enactment
ofRepublic Act No. 10623. Under the present classification, construction materials needed for
rehabilitation and repair of houses such as construction nails, hollow blocks, plywood, and
cement are considered prime commodities.
During disasters and natural calamities, the prices of basic necessities and prime
commodities go up as an effect ofthe law of supply and demand. People whose homes have
been damaged by disasters and calamities would naturally seek and purchase materials for the
repair oftheir damaged shelters. However, logistical challenges hamper the delivery ofneeded
supplies, making them scarce in an affected area.
To protect consumers, especially those heavily affected by damaging events, Section 6
of the Price Act mandates automatic price control. Thus, prices of basic necessities in an area
affected by disasters, calamities, and similar events are automatically fiozen al their prevailing
prices, which is effective for the duration of the condition that brought it about, but not for
more than frfteen (15) days. It is noteworthy, however, that automatic price control is
applicable only to the prices of basic necessities and does not apply to prime commodities,
which includes the necessary construction materials and electrical supplies for repair of
November 28, 2023
2:22 pm
9628


damaged structures. This poses a challenge in ensuring that prime commodities are also
available and affordable to those who needed them during and after disasters, calamities and
similar events.
Subsequently, Republic Act No. 10121, otherwise knoum as the "Philippine Disaster
Risk Reduction and Management Act of 2010" was enacted. Section 17 of the law provides for
remedial measures which shall be mandatory upon the declaration of a state.of calamity,
including the immediate imposition of price ceiling on basic necessities and prime commodities
by the President upon the recommendation of the implementing agency as provided for under
RA No. 7581, or the National Price Coordinating Council (NPCC).However, a perusal of
Section 17 ofRA 10121 will reveal that the law pertains to Section 7 ofRA 758i and not to
Section 6 which covers automatic price control. This can also be gleaned from Section 7a of
the National Disaster Risk Reduction and Management Council Memorandum Order No. 60,
series of2019 or the Revised Guidelines for the Declaration of a State of Calamity.
Furthermore, there are challenges in considering opting for the implementation of a
price ceiling. Firstly, it is dependent on the recommendation ofthe implementing agency or the
NPCC. If it determines that there is no need for the imposition of the price ceiling. no
recommendation will be issued. Secondly, even if a recommendation is submitted, the
President may deem the imposition ofa price ceiling inappropriate. Thirdly, during the entire
period - determination by implementing agency or NPCC of the propriety of imposing a price
ceiling,. submission to the President lor consideration, and determination on the part of the
President whether or not to implement a price ceiling - a considerable amount of time may have
already lapsed which could fuilher shoot up the amount of the prevailing price. It is important
to note that prevailing price is computed as the average price at which any basic necessity has
been sold in a given time within a month fiom the declaration of a state of calamity, emergency
and similar events under Section 6 ofRA 9165.
Our experience with Super Typhoon Odette (ST Odette), which struck Caraga Region
last 16 Decemb er 2021, highlighted the inadequacy of the present control and protection
measures in the Price Act. According to United Nations Office for the Coordination of
Humanitarian Affairs, about 1.9 million houses were damaged by ST Odette,427,000 of which
were totally destroyed. We can just imagine the demand for vis-a-vis the supply of construction
materials after ST Odette's onslaught, which drove the prices of construction materials up.
Survivors found it hard to repair and keep their houses safe for living and recuperating, thereby
adding to the agony and trauma experienced by the survivors.
Recently, the World Risk Index 2023 ranks the Philippines as most at-risk country in
the world. The World Risk lndex is a tool that assesses the disaster risk fiom exlreme natural
events and negative climate change impacts for 193 countries in the world. Now more than
ever, there is a strong need for subjecting construction materials
automatic price control in areas placed under state of calamity.
In view ofthe foregoing, approval ofthis bill is
electrical supplies to
e
d
sen
COR
N
, 2nd District


Republic of the Philippines
HOUSE OF REPRX,SENTATIVES
Constitution Hills, Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSE BILL NO.
Introduced by Agusan del Norte, 2nd District Representative
HON. DALE B. CORVERA
AI{ ACT
SUBJECTING CONSTRUCTION MATERIALS TO AUTOMATIC PRICE
CONTROL IN AREAS PLACED UNDER STATE OF CALAMITYDUE TO
NATURAL DISASTERS, AMEA{DING FORTHE PURPOSE REPUBLIC ACT
NO, 9165, AS AMENDED, AAII) FOR OTHER PURPOSES
Be it enacted by lhe Senate and Hou.se of Representatives of the Philippines in Conpyess
assembled:
Section l. Short Title. - This Act shall be known as the "Construction Materials Price
Freeze Act"
Section 2. A new section entitled Section 6-,4 is hereby included to Republic Act No.
7581, otherwise known as the "Price Aot", as amended, to read as follows:
"SECTION 6-A. , LTNLESS OTHERWISE DECLARED BY THE PRESIDENT,
PRICES OF CONSTRUCTION MATERIALS NEEDED FOR REPAIRS AND
REHABILITATION OF DAMAGED HOUSES, INCLUDING, BUT NOT
LIMITED TO, CEMENT, CLINK-ER, GALVANIZED IRON SHEETS,
HOLLOW BLOCKS, PLYWOOD, PLYBOARD, CONSTRUCTION NAILS,
SCREWS, ELECTzuCAL SUPPLIES, LIGHT BULBS, STEEL MRES, SHALL
AUTOMATICALLY BE FROZEN AT THEIR PREVAILING PRICES OR
PLACED UNDER AUTOMATIC PRICE CONTROL IN AREAS PLACED
TINDER A STATE OF CALAMITY DUE TO NATURAL DISASTERS.
IF THE PREVAILING PRICE OF ANY CONSTRUCTION MATERIAL IS
EXCESSIVE OR LINREASONABLE. TIIE IMPLEMENTING AGENCY MAY
9628


RECOMMEND TO THE PRESIDENT THE IMPOSITION OF A PRICE
CEILING FOR THE SALE OF THE CONSTRUCTION MATERIAL AT A
PRICE OTHER THAN ITS PREVAILING PRICE.
L'NLESS SOONER LIFTED BY THE PRESIDENT, PRICE CONTROL OF
CONSTRUCTION MATERIALS UNDER THIS SECTION SHALL REMAIN
EFFECTIVE FOR THE DURATION OF THE STATE OF CALAMITY, BUT
NOT FOR MORE THAN SIXTY (60) DAYS."
Section 3. Separability Clause. - If, for any reason, any section, clause or term of this
Act is held to be illegal, invalid, or unconstitutional, such parts not affected by such declaration
shall remain in full force and effect.
Section 4. Repealing Clause. * All laws, presidential decrees, issuances, executive
orders, letters of instruction, rules and regulations, or parts thereof, inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.
Section 5. Effectivily Clause. This Act shall take effect fifteen (15) days after its
publication inthe Official Gazette or in a newspaper of general circulation.
Approved,