(2005) 24 AMPLJ International 5 Financial benefits for foreigners In relation to the potential for foreigners to benefit financially from FTAAs, the Court observed that `[t]he Constitution has never prohibited foreign corporations from acquiring and enjoying beneficial interests in the development of Philippines' natural resources'. In addition, it recognised that where the Government undertakes EDU activities in tandem with companies with at least 60 per cent Filipino ownership `the 40 per cent individual and/or corporate non-Filipino stakeholders obviously participate in the beneficial interest derived from the development and utilisation of ... [the] natural resources'. Importantly, the Court confirmed that the foreign component `may have a say in the decisions of the board of directors, since they are entitled to representation therein to the extent of their equity participation' (which under the Constitution is up to 40 per cent). Conclusion The recent reconsideration by the Supreme Court of its decision in La Bugal ­ B'laan Tribal Association, et al v Secretary Ramos, et al has confirmed the legal validity of the basis for foreign companies to own 100 per cent of mining projects in the Philippines under an FTAA. In doing so, the strength with which the Court delivered its judgement has also allayed significant concerns that had arisen for foreign investors in the oil and gas and cement sectors (see AMPLA Journal Volume 23, Number 1, April 2004), as well as the heightened negative perception of Philippines sovereign risk that arose from the Court's original decision. The recent decision, together with an increase in support for the mining industry from the re-elected President Macapagal-Arroyo, and coinciding with increased commodity prices and buoyant capital markets, has revitalised activity in the Philippines mining sector to a level not seen since the passage of the new Mining Act in 1994. COMMONWEALTH STRENGTHENING OFFSHORE MARITIME SECURITY IN RELATION TO AUSTRALIA'S OFFSHORE OIL AND GAS FACILITIES* On 15 December 2004, the Prime Minister announced initiatives, to be implemented progressively through 2005, that build on previously announced maritime security initiatives, and focus in particular on the protection of Australia's offshore oil and gas facilities, and on ensuring that any terrorist to Australia's maritime assets can be quickly detected. · * The Australian Defence Force will take responsibility for offshore counter-terrorism prevention, interdiction and response capabilities and activities, including the protection of offshore oil and gas facilities and offshore interdiction of ships. Responsibility for civil Pat Brazil, Special Counsel, Phillips Fox, Canberra. 6 Recent Developments (2005) 24 ARELJ · · · · · · maritime surveillance and regulatory roles currently undertaken will remain with the Australian Customs Service including its Coastwatch Division. To ensure an integrated approach that can draw, as necessary, on the full range of Australian Defence Force and Customs capabilities and make the best use of available resources, a Joint Offshore Protection Command, will be established by March 2005. The Joint Command will be responsible for the implementation, coordination and management of off-shore maritime security. This new single Command will link the Defence Force responsibility with that undertaken by the Coastwatch Division of the Australian Customs Service. The Command will have a joint accountability structure, being responsible to the Chief of the Defence Force for its military functions and to the Chief Executive Officer of Customs for its civil functions. The DirectorGeneral of Coastwatch, Rear Admiral Russ Crane, will also be the Commander of the Joint Offshore Protection Command. Additional funding of $5.6m over four years will be allocated for the establishment of the Joint Command. Based on cooperative international arrangements, including with neighbouring countries, the Australian Government also intends to establish a Maritime Identification Zone. This will extend up to 1,000 nautical miles from Australia's coastline. On entering this Zone vessels proposing to enter Australian ports will be required to provide comprehensive information such as ship identity, crew, cargo, location, course, speed and intended port of arrival. Within Australia's 200 nautical mile exclusive economic zone, the aim will be to identify all vessels, other than day recreational boats. A programme of augmented security patrols of Australia's oil and gas fields in the Timor Sea and on the North West Shelf is to be implemented as a matter of priority. The introduction of these additional patrols takes into account the threat assessments prepared by the Australian Security Intelligence Organisation, and the economic value of these facilities. Some of the oil and gas facilities in the Timor Sea are in areas where Australia shares jurisdiction with Indonesia or East Timor. The Minister for Foreign Affairs will be writing to his counterparts to advise of Australia's intentions to work with those countries in introducing these mutually-beneficial enhanced counter-terrorism security measures. The direct protection of each offshore platform through the provision of appropriate on-site security measures is an industry responsibility. It represented the final element in the Government's integrated approach to enhanced offshore maritime security. To assist industry, the Maritime Transport Security Act 2003 will be extended to apply to offshore oil and gas facilities to provide the necessary advice and oversight in the implementation of any necessary additional security measures. This task is being coordinated by the Department of Transport and Regional Services and is to be completed for formal implementation by 30 September 2005.