Tax incentives for FTZ investors only – Jones

Free Trade Zone Task Force chairman Bob Jones yesterday defended a plan by the CNMI government to grant incentives to businessmen who would invest in the future free trade zone on Saipan, saying such move would attract fresh capital needed to help stimulate the ailing island economy.

Jones explained infusion of new money especially in high technology industries would employ local college graduates and ease the island’s dependence on imported labor.

“Those of us who have been here do not need tax incentives for the most part because we have been losing money. You don’t pay taxes when you lose money,” said Jones. The most important incentive which should not be taken away from businessmen here is their ability to import skilled workers.

Amid renewed threats of a federal takeover, Jones said the CNMI government must continue its fight to allow the Northern Marianas handle its own immigration and labor functions.

The federal government, Jones said, has not given up its plan to get rid of the garment industry, which departure would hurt the CNMI economy. “We have to continue fighting to save our garment and tourism industries whatever it takes. Without the ability to bring in skilled workers would make us dependent on handouts for the rest of our lives,” he said.

Officials and businessmen are pinning their hopes on the establishment of free trade zones to pull out the Northern Marianas from economic distress.

He said Saipan is not competitive enough with Guam in the grant of incentives considering the existence of a number of restrictions which discourage businessmen from investing here.

The FTZ project, patterned after the Philippines and Hawaii, was unveiled in the Economic Conference held on Saipan last March.

The committee is looking at the possibility of using the Commonwealth Port Authority’s property near the airport for the initial phase of the project. Likewise, the ports authority is hoping that the project would help increase the agency’s revenue, which has drastically declined due to the plunge in tourist arrivals.

Based on the plan, CNMI’s Free Trade Zone must only attract environmentally-friendly businesses to protect the island’s natural beauty and not jeopardize the Northern Marianas tourism economy.