Takeover threat dulls attraction of CNMI to investors

Saipan Chamber of Commerce vice president Lynn Knight said she is confident that the business sector presented a credible and unified stand with the CNMI government on the devastating effects of a federal takeover during the Sept. 16 hearing in the U.S. House Committee on Resources.

Knight, who spoke on behalf of the Chamber, said she discussed the state of business on the island and how the proposed federalization of labor and immigration functions would result in economic disaster.

In her speech, Knight asked the committee headed by Rep. Don Young to help improve the local laws and scrap the federal takeover. A partnership with the federal government in education and training would help the CNMI achieve economic development.

Although the Northern Marianas is a U.S. territory, there is a very big difference with most American jurisdictions, Knight said. She noted that the island still does not have fresh drinking water from every tap and the sewer system is antiquated. Roads are still being improved and the power system has just begun to meet the needs of the residents.

“We can’t attract new investment with the threat of massive changes that a federal takeover would bring — the possibility of doubling our minimum wage, the removal of necessary access to a labor supply,” said Knight.

While the recession is forcing the local government to downsize, the number is still not enough to hire all the 25,000 jobs that are now held by aliens. The foreign workforce has been assimilated into the community as they have become a major consumer of and user of local goods and services.

Since many successful companies in the CNMI have made marketing efforts to encourage foreign workers to buy their products and services, their departure would lead to the closure of many establishments, she said.

She cited that in the area of telecommunications the top destinations for long distance calls are the Philippines and China due to the large number of guest workers from these countries. The volume of calls help ensure competition and reduce the cost for all other destinations.

As a community, Knight said, the CNMI has been carrying out reforms to address the complaints on labor abuse as local leaders from the business and government have been meeting frequently to draw up solutions to the problems.

“Would a takeover of our immigration and minimum wage, the removal of our tariff status meant that there would never again be an OSHA violation, a staff member who wants a higher salary, a disagreement between employee and employer regarding overtime. If such problems can and do exist throughout work sites all across America, they will surely continue in the Northern Marianas, even under the full imposition of American laws,” said Knight. (Lindablue F. Romero)