HE SAID
For the CNMI to recover from the crisis , we need to establish stability.
There has been a lot of talks about the effects of the Asian economic crisis on businesses here, when actually it is just a small factor in our recovery. It maybe no more than 25 percent.
Our recovery depends on us, I would say 50 percent of that. How we go back to a healthy economy is within us. It is not within the federal government nor within the Asian economic recovery.
In establishing stability, we cannot continue passing law and then later on repeal it. How can an investor put his money in that kind of a situation?
Federal takeover is not an issue here. The federal takeover is an issue that’s only relative to the garment industry.
We need to stop this parochial attitude. We need to stop this view that I am in charge because my party is in command and therefore, I can go around and kick somebody or I cannot hire you because you are a Democrat or a Republican.
After every election, we need to forget about politics and concentrate on what is good for the community — what is good for us now, and perhaps what is good for the future. Otherwise, we will continue to suffer.
We should keep in mind that we are competing with Guam which offer more facilities.
We need to go out and do trade mission, not in Asia but in the United States just to let them know that they can establish businesses here.
We need to look at genuine tax breaks, not only in the Free Trade Zone. I would like to work with the government to show them the benefits of a tax break. The inadequacy of the CNMI government, not just this administration, is seen on our fragile tax system. We don’t have property tax here unlike Guam, Hawaii and all the other States because it will be political suicide to do that.
We need to establish a better working relationship with the federal government. We must begin paying a decent wage. We cannot continue paying $3.05 (per hour) whether you are a Filipino, Chinese or Chamorro. Everybody must survive. Paying a minimum wage of $3.05 is not good.
Back when I was president of the Chamber, we argued so much on the minimum wage issue. And then we came to agree to increase it. However, when it came to implementing it, the garment industry stopped it. So the federal government is looking at us as a group of people who cannot be held accountable for what they are supposed to do.
Many people may not agree with my opinion but I really believe that if they were to pay even $4 (per hour), it will not hurt them. What will probably hurt them is that their profit margin will be a little bit smaller. It is better to have a small profit margin and have happy workers who have higher productivity.
The Free Trade Zone is one good idea but I am also being realistic. It may not amount to what we hope it will do because we lack the infrastructure. We are competing with Hawaii and other areas that have a lot more to offer.
Establishing a Free Trade Zone will not guarantee that investors will come. In the first place, we need to make sure that businesses that are here now do not go under.
Investors will not come here blindly. He or she will be looking at how existing businesses are faring and what they are doing to survive. Any sign of instability would scare the investors away.
