Solon seeks cancellation of ship firm's franchise

Speaker Prospero Nograles urged the government to cancel the franchise of Sulpicio Lines, according to the Philippine Star.

Nograles proposed that Sulpicio Lines should be banned from operating in Philippine seas.

“It’s really unthinkable that after all these years we have not learned a lesson from the Doña Paz tragedy. Strike three, even in baseball or softball, means you are out. Three or more sea disasters of the same shipping company is no longer a coincidence,” he said.

He said the Princess of the Stars tragedy off Sibuyan Island in Romblon is the fourth maritime disaster involving Sulpicio-owned vessels.

Government shipping regulators like the Philippine Coast Guard, the MARINA and the DOTC are duty bound to oversee the safety of our shipping industry, Nograles said.

Parañaque Rep. Eduardo Zialcita called yesterday for the resignation of Philippine Coast Guard chief Vice Admiral Tamayo over the sinking of the Princess of the Stars at the height of typhoon Frank.

“Vice Admiral Tamayo should be held responsible for the unimaginable loss of lives for allowing the ferry to depart from the port of Manila despite the onslaught of the typhoon,” he said.

Parañaque Rep. Roilo Golez sought yesterday an independent investigation into the sinking of Princess of the Stars.

“The Coast Guard should constitute a board of marine inquiry, per standard operating procedure, consisting of independent merchant marine experts,” he said.

Senate Minority Leader Aquilino Pimentel Jr. said the Coast Guard should implement stricter rules on passenger vessels when there is a typhoon.

Pimentel had filed a bill seeking to give the Coast Guard the primary responsibility of overseeing the safety of life and property at sea.

Sen. Chiz Escudero also filed a bill to reorganize the Coast Guard and clarify the agency’s policies and responsibilities.

Even this early, lawmakers are riding on the bandwagon of condemning the shipping company Sulpicio Lines for the sinking of it ship Mv Princess of the Star off the coast of Sibuyan Island. When everyone should be focused on search and rescue, our lawmakers could not wait for an official investigation before pinpointing on human culprits.

In an archipelago like the Philippines, the domestic shipping industry plays a very important role in the economy, facilitating the movement of goods from island to island. The shipping industry’s invaluable contribution to the economy has led the government to spearhead reforms to establish a more market-oriented, competitive and responsive shipping industry. It is in this light that I find Speaker Nograles' suggestion to cancel the firm's franchise as hastily thought of. Aside from laying blame prematurely, the lawmaker seems to have undermined the years of service of shipping firms like Sulpicio Lines to our economy just because of this tragic incident.

CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

On a related legal point, our rule states that unless otherwise exempt, no public service shall operate without having been issued a certificate of public convenience (no franchise) or certificate of public convenience and necessity (a prior franchise is required). "Public Service" includes every person who may own, operate, manage, or control in the Philippines for hire or compensation, with general or limited clientele, whether permanent, occasional or accidental, and done for general business purposes, any common carrier (e.i. shipping firm), railroad, street railway, traction railway, subway motor vehicle, steamboat, or steamship line, ferries, and water craft, shipyard, ice-plant, electric light, heat and power or any other public utility. (Commonwealth Act 146, as amended)

The Public Service Commission (now the Maritime Industry Authority for shipping lines) has the power to discipline public service operators. It may suspend or revoke the certificate of public convenience issued, for cause and with proper hearing. But in case of serious or irreparable damage or inconvenience to the public or private interests, the certificate may be suspended even without prior notice. (Soriano vs. Medina, 35 SCRA 335)

Tags: Commercial Law, Current events