Fitial moves to rid ‘anti-business’ laws

House Speaker Benigno R. Fitial yesterday urged the various committees to fast-track review of key measures that he said are necessary to get rid of “anti-business” laws affecting investment climate in the CNMI.

He made the appeal at the last day of their regular session before members go into a long recess, except for few special sessions he expects to call in the next few weeks.

Among the pending bills he wants address immediately are the flat tax proposal, the fair labor standards act, and the lifting of three-year stay limit on nonresident workers.

According to Mr. Fitial, these measures are important to get enacted as soon as possible to avoid situation where government agencies and the private sector come up to the Legislature to beg for exemption or removal of existing statutes.

He cited for instance the three-year stay limit which was imposed in March 1999 by the previous Legislature and the Tenorio administration in an effort to address concerns by Washington D.C. over nonresidents who stay on the islands for far too long.

By 2002, the House leader said, many business will face a serious dilemma in which most of their workers, including their trusted hands, will have to leave the CNMI.

“I don’t want to expect people to go to the Legislature to ask for exemption. That’s bad,” Mr. Fitial told his colleagues.

He added that while the CNMI anticipates increase in investments following passage of a bill granting tax incentives to new and existing businesses, the three-year stay limit as well as the hiring moratorium could harm these efforts since companies could not hire the staff required.

His flat tax bill, under review by the House Ways and Means Committee, will boost further the plan by the island government to rejuvenate the local economy, Mr. Fitial said.

“Let’s get it on with this bill. This will be a tremendous relief for taxpayers,” he pointed out.

On the overhaul of local labor laws, he said the proposed fair labor standards act will respond to issues like the inequity between compensation of residents and foreign workers.

The law requiring fair compensation for local workers is very difficult to be implemented, and this pending bill could help resolve the problem, added Mr. Fitial.

“You are mixing apple and oranges [in the Fair Resident Workers Compensation Act],” he explained.”[And] we’ve been very lax as far as enforcement of our laws is concerned.”

Rep. Heinz S. Hofschneider echoed his sentiment, but noted the need to give equal job opportunities for the local people and to reduce the size of the government.

He said the Legislature must look into improving educational system on the islands, which could help the CNMI fight off federal takeover attempts since many residents will be trained to work in jobs presently occupied by guest workers.