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Jones: 20 U.S. companies want to invest in CNMI
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Posted on Nov 29 2000
Twenty U.S. companies are eyeing investments of “millions of dollars” in the CNMI that will tap local workers with pay at prevailing federal minimum wage, according to Rep. Dino M. Jones.
He said he met with prospective investors during his visit last week in Portland, Oregon that was a follow-up to an earlier meeting with the group in Las Vegas.
Management representatives of the companies are expected to visit Saipan next month in an investment mission to meet with government officials and conduct site inspections here, said the lawmaker.
Mr. Jones declined to name the companies, saying only that they are involved in food manufacturing, communications, transportation and tourism business.
“I am very optimistic [of their investments on the islands],” he told reporters in an interview.
He claimed these investors are willing to pay “applicable” federal minimum wage to the workers who are CNMI residents as well as to train them for the jobs.
At present, the Commonwealth’s minimum wage is pegged at $3.05 per hour while the federal level is at $5.15 with proposal to increase it by a dollar over the next two years.
They have also assured protection of the environment, infusion of U.S. dollars with few remittances of profits to the mainland, and long-term investment plans, said Mr. Jones.
“Their interest is in our tax structure and they also want to see the availability of the land and the sea, including the Northern Islands,” he said, stressing infrastructure development is one of the key factors for them to decide to invest here.
The Saipan representative disclosed he has already asked the Attorney General’s Office to inquire with the U.S. Internal Revenue Service whether these companies will be required to pay both local and federal taxes if they push with their plans.
He noted, however, that as far as he knows, income earned by American companies here do not have to pay federal taxes in the mainland.
The news about these potential investments came as lawmakers approved legislation that will grant tax breaks to new as well as existing businesses in an effort to boost the flagging economy.
