Asso - of Phil. Coconut Desiccators V PCA II.4
Asso - of Phil. Coconut Desiccators V PCA II.4
Asso - of Phil. Coconut Desiccators V PCA II.4
LLB4101
I.
CASE:
G.R. No. 110526 February 10, 1998, ASSO. OF PHIL. COCONUT DESICCATORS V
PHILIPPINE COCONUT AUTHORITY
II.
FACTS
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.
III.
ISSUES
Whether or not PCA ran in conflict against the very nature of its creation.
IV.
LAWS:
THE
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.
VI.
CONCLUSION