Govt hires a new lobbyist for $25K

The Fitial administration has hired a new firm to lobby for the Commonwealth’s request for a $15-million federal aid.

The local government says it needs the $15 million to cope with the expected impact of federally mandated minimum wage hikes.

The administration said the new firm, Fleishman-Hillard, was hired last month for $25,000. The amount will cover work for a period of six months.

The Commonwealth was previously represented by the law firm of Oldaker, Biden & Belair at a cost of $15,000 per month for at least one year. The local government had hired the law firm to block minimum wage hikes and immigration federalization. Both measures have been passed by the U.S. Congress.

Press secretary Charles P. Reyes Jr. said in a statement that Fleishman-Hillard is expected to help the local government secure at least $15 million in congressional appropriations “to help a devastated CNMI economy cope with further economic losses once all CNMI garment factories shut down and other CNMI businesses close down from the impact of federal minimum wage hikes.”

He said the firm had helped the governor in drafting the letters he sent to U.S. senators and representatives recently. The letters asked for the lawmakers’ support for money to offset the impact of the wage increases.

In a telephone interview, Reyes said the administration was “compelled” to hire the lobbyist because congressional members and staffers know too little, if at all, about the Northern Marianas’ location, history, and needs.

“A paid lobbyist would not have been necessary if we had someone representing us in D.C. whose positions on issues are aligned with the administration’s,” Reyes said.

His remark echoed the governor’s State of the Commonwealth Address, where Fitial blamed Washington representative Pete A. Tenorio for allegedly failing to communicate the CNMI’s concerns with government leaders in the nation’s capital.

The Saipan Tribune tried to get comments from Tenorio but he has not called back as of press time.

While the administration has opposed any increase to the CNMI’s minimum wage, Tenorio has taken the position that the wage level should be capped at $4.05 per hour. That rate is the wage expected after the second 50-cent increase is implemented on May 25, 2008.

Tenorio has also called for resources to help the CNMI and U.S. Department of Labor determine whether the economy could sustain further hikes, and to cushion the impact of higher wages on local businesses.

Fitial and American Samoa Rep. Eni Faleomavaega have asked Congress to grant a $30-million financial assistance to be shared by the CNMI and American Samoa. They proposed that the funding provision be included in the emergency supplemental appropriation bill now being drafted in both houses of Congress.

Fitial and Faleomavaega said the money would be spent on “investments in critical areas that have the potential to bring multiplying economic benefits.”

They identified the areas where the money could be spent: transportation projects, measures to bring down the cost of fuel and stabilize shipping, job retraining, emergency financial relief to affected employers, efficiency studies for local governments, and funding for essential public services.

In the CNMI, temporary support could also be given to the visitor industry to help bring new money into the islands.

“Inclusion of this language in the Emergency Supplemental this year and every year thereafter will give American Samoa and the CNMI an opportunity to provide an essential bridge to sustainability that our communities need in the coming years until such time as Congress reviews the economic impact of further increases in minimum wage,” said Fitial and Faleomavaega.

The Fitial administration had initially lobbied Congress to pass a law suspending the second minimum wage hike, supposed to take effect on May 25 this year. It is now widely believed that Congress won’t be able to take this action in time, hence the backup plan to get the $15 million funding to cushion the wage hike’s impact.

The CNMI’s current minimum wage is $3.55 per hour.