Businessmen call for more reforms

Amid the economic crisis besetting the Northern Marianas, business groups believe that the CNMI government has been very slow in implementing measures that will improve the island’s investment climate.

Since he assumed power 16 months ago, Gov. Pedro P. Tenorio has been battling the effects of Asia’s financial crisis on the tourism economy, renewed threats of a federal takeover on labor and immigration and the negative publicity in connection with allegations on labor abuses.

“Considering all the problems that he has to hurdle, I think he has done a remarkable job. Improving the economy is something that does not happen overnight,” said Saipan Chamber of Commerce president Kerry M. Deets.

However, she noted that the proposed Free Trade Zone legislation which contain incentives to potential investors and the type of business that can be accommodated is still pending before the House of Representatives.

But the Hotel Association of Northern Mariana Islands believe that creating incentives for new developments are just quick-fix approach to uncertainties.

Ron Sablan, president of HANMI, questioned why the same incentives cannot be offered to existing investors that are carrying out expansion projects in tourism-related businesses and spending huge amounts of money in promoting the CNMI as a destination.

“I feel like we were left behind in planning for recovery. When we ask for tax breaks or incentives, we were told it would hurt the government coffers. We have second thoughts in giving something to companies that have already contributed to the CNMI economy and yet we are willing to give everything to companies that may pack up after a certain period,” said Sablan.

Instead of adopting free market type policies, the CNMI government has become too protectionist in its approach which has had a negative impact on businesses, said Lynn Knight, president of Sunset Advertising.

“Having protective measures which actually hurt business is the last thing that we need right now in this economic downturn,” she said.

Instability of local laws and regulations also contribute to the perception that the Northern Marianas is an unfavorable place to do business. With all these publicities about the sweatshop condition in the Northern Marianas, Sablan raised doubts whether businessmen would still want to invest on an island that has been portrayed as abusive.

Although they may not always agree on a number of issues, the business sector is just too happy with their regular meetings with the governor and the legislature since this gave them the opportunity to exchange views.

According to Sablan, the private sector and the government can avoid misunderstandings on important issues such as the recent controversy on the three-year residency limit on non resident workers by holding public hearings on important legislations affecting businesses.

“The governor is a very caring person but he can only do so much. So many things are happening that’s simply beyond his control. What made his position more difficult is that the federal government is insensitive to the needs of the CNMI,” said Sablan.