Inos wary about increasing port, airport fees

Acting governor Eloy S. Inos has vowed to fully review a proposal to increase airport and seaport charges but said the move may not be a good idea in this time of economic uncertainties.

House Bill 17-199, authored by Rep. Ray Yumul, wants to impose a fee of up to $25 on passengers landing in CNMI airports and seaports to generate more than $3 million that will be used to restore the timely payroll and 80 work hours of government employees.

The bill authorizes CPA to impose and collect a $6.50 charge on each airline passenger, a $5 document charge for those with cargo, and $25 on consignees for “consolidated consignments” of cargo. Interest for late payees is also being proposed, among others.

Saipan Tribune learned that CPA last increased seaport rates and charges in February 2009; airport fees were adjusted in 2008.

Inos said the administration has yet to be fully informed about the specifics of the bill, but he promised that the administration will do a comprehensive assessment to determine if the measure will positively impact the islands.

“I am not yet privy to the specifics of the bill, but I certainly would like to look at it. We would like to see the rationale behind the legislation. We have to understand that the Commonwealth Ports Authority has some bond issues that it has to follow through by way of revenue to service these bonds,” Inos told Saipan Tribune Monday night.

Inos said it is important to see if the recommended charges are reasonable enough and would not add to the burden of businesses and residents. At the same time, the position of the ports authority and its board is vital in making a final decision on the matter, he added.

“It’s on the table now and the right thing to do would be to deliberate on it and we would like to see that the ports authority is heavily involved in all the discussions as well as other stakeholders,” said Inos.

In an interview with CPA comptroller Derek Sasamoto, he expressed the agency’s strong opposition to any rate hike proposal for both airport and seaport charges, saying the idea will not only create grave impact to the entire economy but would also conflict with the agency’s regulations and policies.

CPA regulations and bylaws dictate that all revenue generated by the ports authority must solely be used by the agency. Yumul’s bill proposes to divert CPA revenue to the general fund.

Despite the financial problem of CPA, its board opted to implement cost-cutting measures such as conserving energy and freezing hiring and travels just so it could maintain the 80-hour work schedule of its 198 employees. CPA also enforced an aggressive collection effort to generate needed funds for its operation.