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Finance asked to scrap Customs overtime fees
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Posted on Mar 12 1999
Commonwealth Ports Authority board chairman Roman S. Palacios has asked the Department of Finance to remove overtime charges of the Customs, Immigration and Quarantine offices in the performance of their inspection duties to help the airlines currently servicing the CNMI.
In a letter to Finance Secretary Lucy DLG Nielsen, Palacios noted the importance of supporting the airlines at this time when most businesses are having difficulty to survive Asia’s financial crisis. He added that the practice of charging overtime is not only costly to the airlines but also provides another financial disincentive to the remaining carriers servicing the Northern Marianas.
The ports authority has earlier decided to postpone an increase in landing fees and passenger facility charge until March 1, 2000 to encourage continued and expanded air service to the CNMI.
Various airlines have sought the postponement of the hike in airport fees due to the continuous plunge in tourist arrivals brought about by Asia’s financial crisis.
The Marianas Visitors Authority has likewise expressed concern that efforts to entice more airlines to provide service here may be jeopardized if the fees are immediately increased this year.
Furthermore, the Aviation Task Force has sought a reduction in passenger arrivals fee and departure facility charge as an incentive for carriers that are planning to upgrade its aircraft as well as airlines that would introduce direct service to the Northern Mariana Islands from a market that is currently not being served for a period of not less than one year to offset some of the carrier’s initial start-up costs.
At the same time, CPA has reduced by 10 percent its salary expenses by cutting down working hours from 80 to 72 hours per pay period starting April 1, 1999, giving the ports authority some $550,000 in savings for one year.
The raising of the airport fees was part of the condition imposed by the rating agencies — Fitch IBCA and Standard & Poor’s — before these can provide any ratings to the $53 million bond.
