The Association of Philippine Coconut Desiccators filed a petition against the Philippine Coconut Authority regarding Board Resolution No. 018-93, which no longer required licenses for coconut processing businesses. This caused overcompetition in congested areas and declines in the coconut industry. The issue was whether the PCA violated its purpose of promoting coconut farmers by deregulating the industry. The court held that while free enterprise is a policy, the constitution allows government intervention to promote public welfare. As the PCA was established to ensure farmer participation, deregulation conflicted with its purpose.
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Association of Philippine Coconut Desiccators vs Philippine Coconut Authority
The Association of Philippine Coconut Desiccators filed a petition against the Philippine Coconut Authority regarding Board Resolution No. 018-93, which no longer required licenses for coconut processing businesses. This caused overcompetition in congested areas and declines in the coconut industry. The issue was whether the PCA violated its purpose of promoting coconut farmers by deregulating the industry. The court held that while free enterprise is a policy, the constitution allows government intervention to promote public welfare. As the PCA was established to ensure farmer participation, deregulation conflicted with its purpose.
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The Association of Philippine Coconut Desiccators filed a petition against the Philippine Coconut Authority regarding Board Resolution No. 018-93, which no longer required licenses for coconut processing businesses. This caused overcompetition in congested areas and declines in the coconut industry. The issue was whether the PCA violated its purpose of promoting coconut farmers by deregulating the industry. The court held that while free enterprise is a policy, the constitution allows government intervention to promote public welfare. As the PCA was established to ensure farmer participation, deregulation conflicted with its purpose.
Direitos autorais:
Attribution Non-Commercial (BY-NC)
Formatos disponíveis
Baixe no formato DOCX, PDF, TXT ou leia online no Scribd
Association of Philippine Coconut Desiccators vs Philippine Coconut Authority
on December 6, 2011
Political Law Free Enterprise
PCA was created by PD 232 as independent public corporation to promote the rapid integrated development and growth of the coconut and other palm oil industry in all its aspects and to ensure that coconut farmers become direct participants in, and beneficiaries of, such development and growth through a regulatory scheme set up by law. PCA is also in charge of the issuing of licenses to would-be coconut plant operators. On 24 March 1993, however, PCA issued Board Resolution No. 018-93 which no longer require those wishing to engage in coconut processing to apply for licenses as a condition for engaging in such business. The purpose of which is to promote free enterprise unhampered by protective regulations and unnecessary bureaucratic red tapes. But this caused cut-throat competition among operators specifically in congested areas, underselling, smuggling, and the decline of coconut-based commodities. The APCD then filed a petition for mandamus to compel PCA to revoke BR No. 018-93. ISSUE: Whether or not PCA ran in conflict against the very nature of its creation. HELD: Our Constitutions, beginning with the 1935 document, have repudiated laissez-faire as an economic principle. Although the present Constitution enshrines free enterprise as a policy, it nonetheless reserves to the government the power to intervene whenever necessary to promote the general welfare. As such, free enterprise does not call for the removal of protective regulations for the benefit of the general public. This is so because under Art 12, Sec 6 and 9, it is very clear that the government reserves the power to intervene whenever necessary to promote the general welfare and when the public interest so requires.