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MVA backs scrap of overtime fees
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Posted on Mar 16 1999
Marianas Visitors Authority board chairman Dave M. Sablan yesterday said he is supporting the call for the removal of overtime charges of the Customs, Immigration and Quarantine offices in the performance of their inspection duties to help the airlines currently servicing the CNMI.
However, he reiterated his request for the Commonwealth Ports Authority to reduce by 50 percent the landing fee for new and existing carriers that would introduce direct service to the Northern Marianas from a market that is currently not being served.
Earlier, ports authority board chairman Roman S. Palacios sent a letter to Finance Secretary Lucy DLG Nielsen seeking her assistance at this time when most businesses are having difficulty to survive Asia’s financial crisis.
Palacios added that the practice of charging overtime is not only costly to the airlines but also provides another financial disincentive to the remaining carries servicing the CNMI.
The ports authority, Palacios noted, had earlier decided to postpone implementing the increase in landing fees and passenger facility charge until March 1, 2000 to encourage continued and expanded air service to the CNMI despite the need to raise funds to pay for its financial obligations.
Various airlines have sought the postponement of the hike in airport fees due to the continuous plunge in tourist arrivals brought about by Asia’s financial crisis.
MVA had likewise expressed concern that efforts to entice more airlines to provide service here may be jeopardized if the fees are immediately raised this year.
To be able to raise the amount needed to meet debt service for the $53 million bond, the ports authority reduced by 10 percent its salary expenses by cutting down working hours from 80 to 72 hours per pay period starting April 1, 1999 giving the ports authority some $550,00 in savings for one year.
The raising of the airport fees was part of the condition imposed by the rating agencies — Fitch/IBCA and Standard & Poor’s — before these can provide any ratings to the $53 million bond, a requirement that will help enhance the image of the ports authority in the financial community.
