Legislators slam Miller tricks against CNMI

Members of the CNMI Legislature yesterday slammed as yet another threat to its self-governance a proposed rider in an appropriation bill in the U.S. Congress that will amend the tariff-free treatment of local goods as well as make any raise in the federal minimum wage level applicable in the commonwealth.

Since it will be done through a legislation that will certainly get support from U.S. lawmakers, they said the proposal will undermine the authority of the island government to control its labor and immigration in view of its impact on the CNMI economy.

“Those are serious implications on our Covenant,” explained House Majority Floor leader Ana S. Teregeyo, referring to the landmark agreement between the Northern Marianas and the U.S. establishing the commonwealth government more than 20 years ago.

“That will have serious impact on the commonwealth with respect to our economic development, especially with the present conditions of our economy.” she added.

House Speaker Diego T. Benavente echoed her concerns, saying CNMI leaders hope to use the visit of U.S. Rep. Don Young (R-Alaska) and other key members of the Congress to appeal against any federal takeover proposal.

“We are in critical times,” he told in an interview, “and the leadership has not really decided on a strategy on how to fight off the proposal.”

Young, chair of the House Resources Committee which has jurisdiction over the Northern Marianas and other insular areas, will arrive next week on Saipan a year after his initial visit was called off in early 1998.

According to Benavente, the meeting with the visiting U.S. legislators will determine how the island government will tackle threat of federal takeover which is being pushed by the Clinton administration irked over CNMI’s alleged failure to reform its labor and immigration standards.

“What we say and what we show to Chairman Young is probably going to be the most effective tool or strategy which we need to do to fight off those (actions),” he said.

Benavente added: “Because we feel that those legislation are almost certain to pass the Congress, we need to work on an amendment on those legislation.”

While the proposal is still pending in Washington, some local lawmakers expressed worry that this will finally get through and allow changes in the Covenant, including minimum wage-setting power and the Headnote 3 (a) that provides quota-free, duty-free treatment of garment products from the CNMI to the mainland.

Rep. Melvin Faisao, chair of the House Federal and Foreign Relations Committee, warned of the negative effect of an increase in the minimum wage level in the CNMI, saying businesses already hurting from the present crisis will be forced to shut down due to high labor costs.

“They have included that in the rider provision in a bill that will hurt us the most,” he said.

In his proposed budget package for next year, President Clinton earlier has slashed by more than half the federal funds provided to the CNMI under the Capital Improvement Projects for appropriation to Guam.

House Ways and Means Committee chair Rep. Karl T. Reyes, likewise, lashed back at Rep. George Miller (D-California), the island’s most vocal critic, for pressing a federalization plan for the CNMI despite failure of his earlier attempts.

“Tell Mr. Miller to prepare giving us $300 million a year from the federal government because there is no business that will survive here,” he said.

Senate Vice President Thomas P. Villagomez argued that local problems will be best left for island government to resolve, reiterating his stance against any move to strip CNMI authority over its labor and immigration.

“I don’t believe this is the answer,” he said.