Legislature to consider economic proposals

Legislators will seriously consider a list of recommendations to be adopted from the recently held economic conference to pass legislation aimed at helping the local economy recover from its worst crisis in years.

The recommendations are expected to come out in May after experts and firms hired for the conference have completed their report on the several discussions conducted during the two-day meeting this month.

House Speaker Diego T. Benavente said the legislature has agreed to act on the report to set in motion various proposals offered by business leaders and other economic experts.

One measure the lawmakers expect to consider is the scrapping of the $100,000 security deposit imposed on foreign investments, a requirement that has come under fire due to its deterrent effect in luring businesses into the CNMI.

Although the House has passed a bill easing the requirement, the Senate has yet to act on it and senators they are still in the process of amending the proposal.

“Certainly legislation such as those are going to be necessary in order to push and promote development,” Benavente said in an earlier interview.

House Ways and Means Committee chair Rep. Karl T. Reyes underscored the need to make the recommendations a topmost priority of the administration in efforts to spur the sluggish economy.

He maintained the list may include proposals ranging from tax cuts and other business incentives to a proposed free trade zone and a package of legislation to amend existing laws found unfavorable to the growth of the investment climate in the CNMI.

“It’s up to us how we interpret the recommendations,” Reyes explained. “We could make some attractive policies but we have to weigh everything when we make those policies.”

He also said the findings would be beneficial to the government since a lot of the discussions involved the current market conditions in Asia, the island’s main source of tourism revenues and foreign investments.

The Northern Marianas is reeling from its worst crisis in half a century spawned by the prolonged recession in Asia, prompting CNMI leaders to seek ways to alleviate the worsening situation, including the formation of the Economic Recovery and Revitalization Task Force.

“The best thing we can do is to try to address the situation and try to have the least effect of the crisis (on our economy),” Reyes pointed out.