Legislative leaders defend business laws

Legislative leaders have pledged to listen to the pulse of the business sector battered by the worsening economic conditions in the Northern Marianas in a bid to address their concerns on stringent laws detrimental to the local investment climate.

Underscoring a proposed free trade area that will offer several business incentives, they said the island government is expected to step up efforts to spur the economy out of the deepening crisis.

But House Speaker Diego T. Benavente dismissed criticism that the legislature has been passing laws restrictive to the growth of the economy, saying that the measures were put in place to check uncontrolled growth.

“We have been very cooperative with the business community,” he told in an interview, “but certainly we are not going to repeal all these laws because they have been in place for very good reason — that is to place controls.”

Senate President Paul A. Manglona echoed his concern, saying that legislators have had a “good relationship” with Saipan Chamber of Commerce and other business groups.

“We have been pro-business,” he said, adding that they are currently reviewing laws that have hampered influx of investments into the CNMI, including removal of the $100,000 security cash bond imposed on each business.

The legislature had come under fire in the past year over implementation of laws that impacted on the private sector, including the ban on the hiring of foreign manpower, at a time when the Asian crisis has devastated the island economy.

According to Benavente, the government was not prepared to deal with the sharp drop in economic activities as it was bent on undertaking labor and immigration reforms after the previous administration adopted measures that angered the federal government.

“The current economic situation happened within the few months (of the Tenorio administration),” he explained, “and with those statutes in place right now, I would confirm that this leadership is presently looking at and turning things around to where we are now trying to entice investors.”

The proposal to establish the first free trade zone in the commonwealth will be a priority of Gov. Pedro P. Tenorio’s administration for this new year and legislators are expected to throw their support behind the move, the House Speaker said.

“We are doing everything we can to assist (the businessmen), but with controls because we are willing to invite investors but not at the expense (of our labor and immigration reforms,” Benavente pointed out.