Three common sense issues

First, we have privatization. While it may be true that a private company will operate more efficiently than a government bureaucracy, the amounts saved will go to the bottom line profit of the company concerned and there will be no net savings. In fact, expect an increase regardless of what is claimed by the parties involved. Why an increase? Because common sense tells you that, if you add a layer (government plus private company), costs will rise, much as they would if you added a distribution layer to a manufacturer to retail chain. Also take note of the fact that the private company will be forced by contract to maintain the same bloated level of employment as now. Where will the savings come from? Extensive and public hearings should be held prior to privatization. This is no time for behind the closed-door secret meetings.

Next, we should look at electric rates. Electricity, like any other product costs hard money to manufacture. We must pay the cost of that production whether we like it or not. We can decide whether to sell it to ourselves at cost, or to add a profit for a third party company, but we cannot choose to not pay it. No pay, no play—as they say. First you must realize that government produces nothing. It only takes from those who produce and redistributes to those who do not, or to their friends and political cronies. That goes for every government on the planet. The CNMI is not unique in its government…errr…inefficiencies. So to ask the government to pay simply means they will have to tax us to get it. We pay, whether it is hidden or not. Just get used to it. CUC needs to compute the real cost of delivering a kilowatt-hour of electricity and just increase the rate to whatever level is needed to break even, inclusive of repairs, maintenance, fuel, future growth and all other costs. Then to be fair, any party, including government, who doesn’t pay their bill timely should have their power shut off immediately.

Lastly, let’s take a look at water rates. Once again, as above, CUC only needs to get a handle on what its real costs of production and delivery are, then charge the appropriate amount in order to break even. The currently published new water rates are ridiculous. Only a government (or a business trying hard to go out of business) would charge its customers more per unit when the customer buys more of an item. Imagine yourself going to the store to buy a widget. You ask the proprietor the price and he tells you it will cost $1. You ask him, “Hey what if I buy a whole case of them?” If he tell you that you get a special price of only $2 each by the case what would your response be? Obviously whoever is inventing the rate charts down at CUC is…errr…numerically challenged.

Three issues, three easy, common sense answers.

Bruce A. Bateman
Tanapag Village