House set to approve FTZ amendments

The House of Representatives is ready to approve changes made by the Senate to the legislation creating free trade zones in the Northern Marianas, which may be tackled in today’s scheduled session if there are 14 members attending.

Speaker Diego T. Benavente said yesterday he was assured by senators that the changes will not substantially alter the initial proposal drawn up by lawmakers, administration officials and private sector representatives.

“I’m hoping that we will be able to accept the Senate amendments which I’ve been assured will only add provisions with regards to making public lands available for the free trade zones,” he said in an interview.

Since the administration-backed measure that Mr. Benavente introduced in the House includes a tax component, there may be a need to meet the required three-fourths votes from the 18-seat chamber as provided for the lameduck Legislature.

Even though they will be acting only on the Senate amendments that do not touch on the tax incentives proposed in the bill, Mr. Benavente said at least 14 representatives need to be present to expedite its passage.

House Bill 11-389 was passed only by the Senate last week after months of sitting in its calendar due to concerns brought up by Senate Vice President Thomas P. Villagomez, who wanted further review on its provisions, particularly the tax breaks to be offered to FTZ investors.

But because of the pressure from the administration and the business sector, seven senators finally gave their blessings to the proposal only after amending minor provisions pertaining to use of public lands on Rota and Tinian.

Mr. Villagomez was off-island for personal reasons when the nine-member chamber voted on the legislation which had been pending with the upper house for nearly three months.

Tinian Sen. Joaquin G. Adriano had proposed the amendments, such as restrictions on the use of public lands for each of the proposed special economic zones on Rota and Tinian, with the latter forbidding encroachment into the House of Taga Historical Site to protect the area.

Rota also sought to limit per zone to 15 hectares to be designated by the island municipality’s mayor, on condition that it does not cover the public lands owned by the Commonwealth Ports Authority which shall then determine the size, availability and specific location of the area.

Both Rota and Tinian mayors will also be granted powers to enter into an agreement with public lands officials and other government agencies for assistance in the administration of the designated lands.

In addition, rental amount for use of public lands for the FTZ can be lowered up to 30 percent from that stipulated by authorities through determination by the mayor based on the economic or other public benefit of the project. This can be further reduced with the concurrence of the governor.

The free trade zone is touted to be a centerpiece of Gov. Pedro P. Tenorio’s administration which has been confronted by the two-year economic crisis spawned by the Asian currency crunch that began in 1997.

Meanwhile, Mr. Benavente said they may also tackle the much-delayed FY 2000 budget package and other appropriation measures if they have the necessary quorum.

Several important legislation, including the $50.8 million capital improvement projects, had derailed in the lower house for the past few weeks due to absence of some members.