Crisis panel report short on specifics

Senators have offered broad recommendations aimed to help tackle the worsening economic crisis in the Northern Marianas, including measures that will ease doing business on the island in light of the decline in foreign investments.

In a report of the special Senate committee on economic crisis, the panel urged for legislation to amend the foreign investment criteria as well as to simplify business licensing and permitting process.

While it did not provide specific details, the recommendation is part of the efforts by the legislature to address concerns of local businessmen over laws considered counterproductive to the growth of the economy.

The panel, co-chaired by Senators Pete P. Reyes and Juan P. Tenorio, was formed last month by Senate President Paul A. Manglona in response to the current economic difficulties besetting the island.

Tasked to undertake a study of the crisis and to outline recommendations for possible legislation, the committee has come out with the report after a month of review and discussion.

Although it has listed down several proposals, the recommendations did not provide specific actions needed to push forward wide-ranging program that will stir the local economy.

The Northern Marianas is reeling from its worst crisis in years spawned by the year-long financial turmoil in Asia, its main source of tourists and investors.

Tenorio has implemented austerity measures to reduce public spending in view of the projected drop in revenue collections brought about by closure of more than 1,000 businesses and the steep decline in tourist arrivals.

To help meet the financial obligations of the government, the Senate panel has prodded passage of a bill that will offset its liabilities against taxes due to a business establishment.

It also called on strict monitoring of official overseas travels to curb spending on non-essential services. “Off-island travel should be all curtailed and training programs are simply a luxury which the Commonwealth cannot afford presently,” the report said.

“The committee further recommends that immediate review processes are undertaken to insure an even handed fair application of the austerity measures,” it added.

Administration officials are also expected to present a new package of proposals in the next few weeks aimed at further paring down government expenditures to prevent huge shortfall in the budget.