Chamber leader chides Legislature

The Saipan Chamber of Commerce yesterday expressed disappointment over the failure of the Legislature to pass several important measures which would have helped revitalize the ailing business community.

Speaking before Legislative leaders during the Chamber’s monthly meeting with members of the Senate and the House, Chamber president Lynn Knight said the Legislature has been moving very slow in getting the CNMI economy back on track.

Many businessmen have held back their expansion plans and even discouraging potential investors to come here because they feel the economic climate on the island is too unstable and anti-business.

Among the measures which need immediate action because these would help revitalize the economy include SB 12-13 which seeks to remove the $100,000 cash deposit requirement for foreign investors, HB 12-39 or the Omnibus Labor Reform Act, and HB 12-199 or the Tourism Development Act
Business leaders have testified a week ago in support of HB 12-199 which is projected to help bring in millions in new investment to the CNMI. While many investors are waiting for the approval of this bill, government officials have testified against the measure saying they are not willing to give up any potential taxes in the future.

“We’re talking about jump-starting new development with multiplier effects, not taking away any existing taxes. Other countries have done this with much success,” Ms. Knight said.

The Chamber head said the business people are still willing to work with the Legislature to pass HB 12-39 or the Omnibus Labor Reform Act, which would help repeal restrictive laws on labor and investment.

“This has been the single most important piece of legislation this year and we fought hard to keep it intact, but had no choice but to compromise when we saw a stalemate coming. Even the watered-down bill would bring significant benefits to businesses and that’s we thought it was worth supporting even in its amended form,” Ms. Knight said.

In protecting the CNMI against the smear campaigns and potentially damaging “federal-takeover” legislation, the Chamber pushed for the hiring of a lobbying firm that will help the Northern Marianas carry out its fight in Washington.
Ms. Knight noted the invaluable support of Preston Gates in assisting the CNMI officials present the real situation of the island in the U.S. Congress. “We need to ask what is our government doing to protect our Covenant privileges? Are we presenting a united front against federal takeover legislation?” asked Ms. Knight.
Despite all the work done to make it a reality, the Free Trade Zone bill is still pending in the Legislature. Until now, the CNMI has no Board of Accountancy, limited liability corporations or partnerships, or an updated version of the Universal Commercial Code.

Several Chamber members seeking public land leases to expand their operations have not gotten approval despite government’s pronouncement that it is encouraging new investment.

To help maintain land values and ensure quality development, the Northern Marianas has yet to establish zoning or any mechanism. Phosphate detergents and overflowing sewers continue to pollute Saipan lagoon.

As the Commonwealth Utilities Corp. cannot fulfill the island’s water needs, the costs of operating private wells have skyrocketed due to new testing requirements aside from a proposed measure that will tax the business sector on the water pumped out of the ground.

The Division of Environmental Quality is set to release the results of the water testing conducted for one type of chemical on various water wells.
Businesses are keeping a close watch at the report that will be published by DEQ especially its effect on the tourism industry.

Some Chamber members have asked for lower power rates for commercial users, but such requests have fallen on deaf ears, Ms. Knight said. “In the meantime, the new power plant for Saipan is moving forward at a snail’s pace – despite your efforts,” she added.

Amid the blatant prostitution in Garapan which has been damaging the CNMI’s image as a tourist destination, Ms. Knight asked legislators for their recommendations on how to clean up and revitalize the island’s main commercial area.

At a time when the CNMI needs additional air service, the Chamber noted that port fees have been increased which led Japan Airlines to warn the island about the possibility of JAL rerouting more flights to Guam or other destinations.