Business leaders press Teno to back business reforms

Business leaders yesterday pressed Gov. Pedro P. Tenorio to support the proposed comprehensive labor and business reform measure saying it will help pull out the Northern Marianas from economic distress.

But in a breakfast meeting with the Saipan Chamber of Commerce, the governor aired his concern over the proposal’s impact on a pending bill in the U.S. Senate which seeks to extend federal immigration and labor laws to the Commonwealth.

“We don’t think it (HB 1239) will have an effect on S1052 since a lot of people in Washington believes that it is a good bill,” said Lynn Knight, Chamber president.

During the meeting, the Chamber pointed out that it has always been consistent with its position to repeal laws which have hampered the entry of foreign investors in the CNMI.

Chamber members have lamented difficulty in getting additional workforce specifically highly-skilled technicians for their businesses as a result of the moratorium law.

The business group was also dismayed to find out that Senate President Paul Manglona was not keen on supporting the proposed bill. “If they don’t like it then the future does not look so bright,” said Ms. Knight. She added the Chamber will submit supplemental testimony to the Senate as soon as it has met with members of the
government relations committee.

With the CNMI government’s projection of a seven percent increase in revenues for Fiscal Year 2001, business leaders raised doubts that this will be realized if the Northern Marianas will continue to have restrictive business laws.

“Without action on this business-friendly bill, it will spell the death for four economy,” said one Chamber member who declined to be identified.

The Chamber members could not believe how the CNMI government arrived at its projected seven percent increase in revenue for the next fiscal year when most businesses are still reeling from the effects of the Asian crisis.

Amid the efforts of the Legislature to improve the investment climate in the CNMI, businesses are still awaiting for the repeal of the $100,000 security deposit which they consider as a big hindrance in enticing investors to the island.

The comprehensive labor and business reform measure was passed by the House of Representatives to repeal laws which they said stunt CNMI’s growth amid the economic crisis confronting the island. Aside from removing the $100,000 security deposit, it will also reduce the minimum investment in aquaculture.