2-year job contract for aliens proposed

If the government is really serious about creating a business-friendly environment in the CNMI, it should begin with implementing an amended policy on the employment contracts of nonresident workers.

Rota Mayor Benjamin T. Manglona is proposing that the government refine existing policies that relate to the employment contracts of nonresident workers to make it applicable for a two-year period, instead of the current one-year coverage.

“Nonresident worker contracts should be renewed every two years not annually, said Mr. Manglona in a written testimony on the proposed legislative measure that seeks to reform existing government regulations.

The mayor also offered suggestions that would calm fears of possible decline in government revenues should the annual renewal of nonresident workers’ employment contract is eliminated and replaced with a two-year coverage.

“Keep fees the same if we must so there is no revenue loss, but ease up on our business by cutting down on the paper work,” he told Rep. Dino Jones, who chairs the House Committee on Judiciary and Governmental Operations which is reviewing the proposed measure.

Mr. Manglona added that the CNMI government should start allowing declarations in place of notarization on the labor papers, adding that this simple reform would help business in great and significant ways.

He pointed out that policies and regulations should be crafted in a way that these respond to the needs of the business community, instead of them being implemented to burden the islands’ already ailing industries.

“We must listen to our crucial industries and make adjustments by statute, not just by regulation. We must actually pass laws and take away some of the regulatory discretion of the agencies,” said Mr. Manglona.

The mayor believes there is a need to eliminate some laws to make it easier and more efficient to do business in the Northern Marianas, thereby, enticing more local and foreign investments. “I’m afraid that many of our own policies are hurting economic recovery.”

The Department of Commerce earlier called for an expedited legislative action on the proposed changes in the existing foreign investment law in order to clear the road for a Northern Marianas business climate that is conducive to growth and progress.

Current local regulations that govern foreign investments have been viewed restrictive and prohibitive which practically discourage investors from coming in to the Northern Marianas.

In the last three years, foreign investors pumped close to $3.5 million in fresh capital to the Northern Marianas economy in three years through a variety of new business activities.

Between February 1997 and March 2000, Northern Marianas witnessed the entry of only 10 new foreign companies engaged in real estate, construction, computer consulting, wholesale, retail, furniture production and garment embroidery.

Business analysts blame the economic downturn in Asia and CNMI’s restrictive local investment policy requiring investors to put up a $100,000 security deposit to the dramatic decline in the number of foreign investors coming into the islands.

Providing flexibility on the security deposit, which have turned off potential investors, is being eyed by both the Tenorio Administration and the Legislature in order to lure foreign businessmen into the CNMI.

Northern Marianas, due to its restrictive foreign investment laws, has been losing potential foreign businessmen to the neighboring island of Guam where investors can get a greencard and American citizenship in five years for a minimum of $250,000 in total investments.