For those who forgot their roots

After reading the continuing pessimism and accusations—bordering on insolence—hurled by individuals and special interest groups at the governor’s austerity policies, it’s time someone spoke strongly in his favor.

Our backs are against the wall and our government is facing bankruptcy. And though the governor may not be all you want him to be, he’s the best we got and we have to get behind him for the collectively good of out community.

Why? Performance.

Since his inauguration in 2006, I’ve compiled a list of his spectacular achievements at the bottom of the page. No other former, or those-who-would-be governor, even in his wildest dreams, can make that claim or ever came close.

It is unfortunate that certain individuals, groups and complainers—long accustomed to living off the fat of the hog for too long and for their own personal and selfish reasons—choose to believe otherwise.

I do recognize, however, that these same whiners, preferring to live within their own private box to maintain the status quo, sorely lack the necessary comprehension to reason or to weigh and balance the positive with the negative challenges now facing our community. With nothing left, these same nitpickers will misread the swift but imperative instrumentation of Governor Fitial’s broad-stroke strategy based on a simple premise: you can’t spend what you don’t have.

These same people and pressure groups tend to ignore that not too many years ago jobs were a joke, automobiles were a luxury, streets were poorly lit tunnels of darkness after the sun set, islanders were friendlier and spent more time at home together, and everyone could hear the crashing of waves day and night. In 1984 an executive of Joeten’s organization wrote of a “black hand” hovering over the community’s survival. Back then, mere survival was an all-too-real fact of life for everybody.

Today’s complainers forgot what was only yesterday.

A glimmer of hope did occur and the economy inched forward after the establishment of the garment industry back in the early 1980s. Money began to flow within the community. More jobs became available, more good things in life came. From the previous hand-to-mouth existence, it was enough to bring smiles to faces.

And along with it came the nexus of things to come.

For the rank-and-file-soon-to-be-investors out of Japan, their nation’s “bubble economy” generated excessive monies where once, for them, were none. They had to dump it or lose it. They spent. Beginning in 1985-86 and for nearly a decade later, thousands gravitated to the islands not only because of the benefits offered to investors, or that the islands were once Japanese-owned, but for the mere existence of the viable—garment industry. Indeed, there existed a trickle of tourists but that was it. There is a saying, however, that where the Japanese go, other Asians will sure to follow. In a word, to them the island was “alive” and worth the investment. And that’s what happened. At that point, the once-somnambulant tourism segment took off, along with the arrival of an abundance of other Asian moneyed companies.

Little is known or much remembered but at that critical juncture in island history, then House Speaker Benigno Fitial ramroded that garment law, and personally traveled to Asia to invite various corporations to open shop. Sounds familiar? One of them was Tan Holdings. The islands boomed with the arrival of other Asian and American apparel companies. It all began in the mid-1980s.

That same procedure that Governor Fitial employed and was successful at then is becoming so—now.

It was the solid export growth of the garment industry and the explosion of tourism that brought all the other businesses, big and small, to the islands. Those heady years brought prosperity to even those complainers. And the anomalous, real estate and raw land sales. The islands produced more “millionaires in paradise” per capita in that short period of time, during those very years, than any other U.S. city.

But not without a price.

And all the emotions drained in letters to the editor.

The problems of today began with greed of yesterday.

Beginning with the first elected governor and subsequent administrations, with a government flush with cash, they enthusiastically preached nirvana. With a never-ending “don’t-worry-be-happy” supply on the horizon, city fathers thought not to save for a rainy day. Manna from heaven. In a pinch? No sweat, the U.S. will give us free money, of course. And so it went.

With unrequited gusto, soon-to-be-government-employees, hangers-on and politicos jumped up and down at the picnic tables with abandon. Like a stampede came the scramble for their personal piece of heaven. With much fanfare came the exorbitant pay raises, entitlements and benefits. Laws were unanimously and hastily passed to ensure this largess. Why, their brothers, sisters, uncles, aunties, friends could be sitting next to them in the government agency’s office all having a grand time. Taking up space.

The “deficit” increased.

City fathers went through the required motions of fiscal responsibility. The community got lip service in return. The next election would definitely solve the problem so vote for me. Trust me. Vote party line. But no one really cared because the entitlements and paychecks got fatter with each administration and there was always Uncle Sam to bail them out. Then the deficit shot through the roof.

And the same people wondered, why?

It must be Governor Fitial’s fault.

Today, seventy cents or more of every dollar in the government’s coffers is slated to pay for the bloated wages and salaries first, followed by benefits and whatever could be spent without being exposed in an audit. Board members inflated their worth and their stipends to the tune of millions annually. A fiscal faux pas of irresponsibility unheard of even in a U.S. metropolis of millions. Then there’s the infamous off-island, per diem paid junkets for people whose greatest off-island trip in the olden days was to Guam. If that. But the biggest bandit passed into law during all this merrymaking—and now the crux of the bitterness—is the mother of all revenue sucklers, the Retirement Fund. A cornucopia of monies over the last two decades.

It was a marvelous time, then. And for the persistent grumblers who live in their own little private box of yesterdays, fond memories not to be forgotten soon or willing to surrender, yet.

Our government is broke. The whiners stubbornly refuse to admit it.

That is what Governor Fitial is fixing.

And for those complainers who blatantly choose to ignore Governor Fitial’s single-handed performance since taking office—where all previous administrations could never, ever come close to achieving—here’s a list of potential investors and positive activities, good, bad or indifferent:

TINIAN

Dynasty Casino (upgrading, plus $1M); Cordish Casino ($200M); MRDC Casino ($170M); Bridge Investment Casino ($200M); Tinian MR Casino (negotiations); Tinian Shipping ($1M dry dock); Taga Air ($1M hangar); Municipal Developments (giant shopping mall, WW2 Museum, noni industry); JAL (re-fly to Tinian, only); $140 M Bailout Package ($25.5M, Tinian Harbor).

SAIPAN

Shopping Mall (Henry Sy, Manila); Okura Hotel (Hopwood Junior School); Yamaha Music (Resort, Saipan); Two Floating Hotels (Fisherman’s Market); San Miguel Beer (feasibility study); Pozzolan on Pagan (several bidders); $90,000 (memorial temples, Banzai Cliff); $200,000 (refurbished Korean peace monument); DoCoMo ($71.8M to buy Saipancell, Guamcell and Hafatel); We Manage Calls (plus tax breaks); Petron Corp. (negotiating fuel farm); Fresh Restaurant (part of a $10M package); “Open Sky” (attract more airlines); U.S Estate/Gift Taxes ($60 to $80 M estimated owed the CNMI); 70/30 User Fee (Garment’s appeal); 20,000 Japanese students (trips to the CNMI); CNMI agencies (abolished or fired or replaced the boards of MPLA, CPA, MPLT, CDA, CUC, NMC, MVA); CNMI’s $140 M bailout package; Fitial sued the attorney (who would’ve reaped upwards of $23M for recovery of the Estate/Gift Taxes) hired by former Governor Babauta, for a fee reduction to only $25,000.

One, two, three billion for the CNMI? Smoke and mirrors?

If only half of the two dozen overtures as recorded above pans out over the next several years of development, that’ll bring in sizably more than $2 billion, including all the other peripheral businesses that follow in its wake.

And if the CNMI is so fortunate, through Governor Fitial’s tireless efforts to accommodate a portion of the 8,000 grunts with 11,500 family members of the U.S. Marine troop realignment from Okinawa, we could be talking of another $.4 billion impact on Tinian. More, if greater than the 1,000 Marines already committed for Tinian in 2007. This is not pocket change in anybody’s language and in my book, it marks a herculean performance for any governor in only three months on the job!

Does this make any difference to the whiners and power groups? Nah.

How can the Saipan Chamber of Commerce claim that Governor Fitial’s rebate reduction will scare away investors? The list above proves otherwise. Why? The same investors responded to the business acumen and integrity of the governor, not the cursory acknowledgment of benefits from that rebate law. But then as a group, the SCC is dedicated to protect their own.

And his campaign promise to roll back the CUC surcharge? My goodness, suck it up, there are worse things to worry about. Solve that additional monthly add-on by cutting back on unnecessary luxuries such as smoking a pack a day or driving to the store just down the street or throwing out half-eaten plates of food. And live within your means instead of hurling bitter charges against the governor for a simple chore you could solve on your own.

As for placing members of former Tan Holding employees in key positions of government and autonomous agencies? Bring ‘em on. We need more of these business-oriented movers and shakers to get this government off its butt and it’s dilemma solved. What we don’t want repeated are the decades of political appointees in any capacity, no matter how qualified or intelligent, who bowed to the percepts of the herd mentality, lethargy and self-gratification.

For all the doomsday predictors? Enough of this selfish nitpicking and for once think not only for yourself but collectively and for the benefit of all. And cease trying to set policy, my God. It’s the sworn duty of the governor along with the Legislature. This young and newly minted group on the hill—not the stagnation that soared to unprecedented heights under the old guard—will do the job to solve the money crunch, given a bit more time.

By the end of this year into 2007? Prosperity will come. Today’s squabbles will be a page in history. That’s a guarantee, watch and see. I’ve been here the better part of a quarter-century to know.

And at the end of day, when you still got your job, things have turned the corner for the better and you can finally splurge a bit, be thankful.

And give credit where credit is due.

Holani Smith
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