Senate ratifies final version of proposed Self-Reliant Defense Posture Act | ABS-CBN

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Senate ratifies final version of proposed Self-Reliant Defense Posture Act

Senate ratifies final version of proposed Self-Reliant Defense Posture Act

RG Cruz,

ABS-CBN News

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MANILA — The Senate has ratified the bicameral conference committee report on Senate Bill 2455 and House Bill 9713 or the Self Reliant Defense Posture Revitalization Act.

Senate President Pro Tempore Jinggoy Estrada, who led the Senate panel, explained the highlights of the report on the bill which he said aims to revive the SRDP program which was implemented during the 1970s, and envisioned domestic manufacturing and local sourcing of weapons, ammunition, equipment and related defense materiel. 

"Layon po ng ating panukala na maging gawang Pinoy, gawang ‘Pinas at sariling atin ang mga sandata, sasakyan, at iba pang kagamitan ng ating mga sundalo, pulis at mga tagapagpatupad ng batas. Bukod sa matutugunan ng mas palalakasing local defense industry ang mga pangangailangan ng ating sandatahang lakas at tanggulang pambansa, inaasahan nating makakapagbigay ito ng trabaho sa ating mga mamamayan, magtutulak ng innovation o pagbabago, at mapapababa ang foreign exchange outflow," Estrada said.

Estrada explained that the Senate version was the working draft of the bill but they accepted provisions from the House.

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"We adopted Section 5 of the House Bill which provides guiding principles on the development of the National Defense Industry; as well as Section 12 of the counterpart measure which proposes the development of programs and projects on emerging and evolving technologies," Estrada said.

Estrada explained they also welcomed additional incentives from the House panel which we hope could attract more investors and innovators into the local defense industry. 

Estrada said they amended Section 15 of the Senate version to adjust the ceiling of the approved budget for the contract (ABC) subject to the approval of the head of the agency in accordance with Department of Budget and Management  rules.

Estrada added that they merged key provisions from both versions to craft an enhanced set of guidelines with respect to rationalizing defense acquisition while ensuring preferential terms for local players and only turning to foreign suppliers when the needed materiel cannot be produced domestically. 

Let the whole text of the Joint Explanatory Statement of the Conference Committee be entered into the records and form part of my sponsorship remarks. 

Former Senate President Juan Miguel Zubiri said that developing a robust and strong local defense industry will strengthen the country's defense posture tenfold and ultimately minimize its reliance on procuring foreign military equipment. 

“We, of course, want to keep good defense partnerships with other countries, especially when it comes to new technologies in defense,” Zubiri said in a press release.

“But its unwise to depend on them entirely. If they suddenly cannot supply us with the military vessels, equipment and ammunitions that we need, we will be left to our own devices. We have to be able to defend ourselves, and this is what we aim to accomplish with the SRDP Act.”

Zubiri's press release explained that the measure mandates the Department of National Defense (DND) to develop an SRDP Program, under which the government is directed to prioritize the purchase of locally made materiel.

It said that under the SRDP Act, in-country defense enterprises will enjoy exemption from national internal revenue taxes, value-added tax, and customs duties on imports of capital equipment, raw materials, and other such supplies necessary in local production—granted that these supplies are not locally available.

It also said that in-country defense enterprises selling products to the DND or other government agencies are also going to be exempt from the Single Largest Completed Contract requirement, and the requirement that a product be used by at least two foreign militaries before the Philippines can procure it.

“With the bill, we want to give the local defense industry a fighting chance at growing into a robust industry. We want to help local producers accelerate their growth and their ability to come out with competitively priced quality materiel for our own use,” Zubiri said.

“This is aligned with all our efforts to support local, to support Tatak Pinoy,” he said. “There is just the added dimension of also needing to build a credible self-defense posture. Let us build our own vessels and equipment, tailored exactly to the realities of our air, land, and waters.”

Once ratified by the House of Representatives, the measure will be submitted to Malacañang for presidential approval.

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