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CDA calls on gov’t to protect garment industry
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Posted on Jan 07 1999
Commonwealth Development Authority Chairman Juan S. Tenorio calls upon the local government to come up with measures that will cushion the garment industry from the worsening global economic turmoil.
He issued the statement amid proposals to increase anew garment factories’ user fee in a veiled attempt to raise more revenues for the cash-strapped government.
“They should not be hasty in making drastic changes. Increasing user fee for the garment industry will not be good at this time. They should just leave it alone and make sure that everybody is following the standard,” Tenorio said.
He said the garment industry is already reeling from the economic crisis. Nonetheless, imposing a tighter measure will choke it to death.
“The legislature should really look into helping the garment sector. They should prioritize it because it helped and continues to help the CNMI carry through these bad times,” he said.
When the CNMI’s tourism-based economy was badly hit by the Asian crisis, it was the garment sector that helped the local government meet its financial obligations.
The industry has once again proven itself a dependable source of income by generating $46.6 million to the general coffers in user fees and business taxes alone in 1998.
The industry also contributed $56.6 million more to the general fund through payment to various miscellaneous fees during the same period.
Yet, the clothing industry whose income topped $800 million in 1997, remains adamant in its belief that the government has yet to do its share in protecting and enhancing its business operations.
“The CNMI government needs to be cautious and prudent in its approach to any change in basic economic policy where it would adversely affect this industry’s ability to compete in the global market,” Richard Pierce, executive director of the Saipan Garment Manufacturers Association was quoted as saying in a previous Tribune interview.
Industry sources said over recent months, there has been a decline in the volume of apparels produced by the Northern Marianas.
They confirms the drop in consumers’ low purchasing power as a direct effect of the continuing global economic crisis.
