Teno to Congress: Status quo

Saying self-government provided under the Covenant must continue, Gov. Pedro P. Tenorio appealed to U.S. lawmakers to keep the status quo to help the Northern Marianas weather the economic difficulties confronting it.

Local authority over immigration and minimum wage standards has enabled the CNMI to develop a strong private sector economy and wean the island away from heavy federal subsidy, the governor said in his testimony to the U.S. House Resources Committee hearing last week.

“We are now at a critical economic crossroads: we are faced with the challenge of diversifying our economy at the same time that one of two major industries is about to leave,” Tenorio told the panel.

“We are deeply concerned because the same tools that permitted us to build our current economy are under serious attack,” he added.

Tenorio, who is scheduled to arrive on Saipan tomorrow after attending two hearings in Washington D.C. over the island’s labor and immigration conditions, briefed the committee on reform measures which his administration has implemented over the past one and half year.

He said these efforts will continue to address concerns expressed by federal officials over capability of the CNMI to handle its own labor and immigration system.

“We will continue our efforts and look forward to working more closely and cooperatively with federal enforcement agencies,” Tenorio said at the September 16 hearing.

The committee chaired by Rep. Don Young (R-Alaska), which has oversight of the Northern Marianas and other insular areas, conducted the hearing to update members of local and federal enforcement of labor laws on the island as well as use of federal funds here.

In his 12-page testimony, Tenorio asked the panel to preserve construction grants provided by Washington to the CNMI under capital improvement projects 702 agreement of the Covenant.

The Clinton Administration has threatened to cut the financial assistance, which amounts to $11 million per year, due to inability by the CNMI to use the money over the last three years.

Island leaders have blamed the dwindling government revenues brought about by the economic crisis for its failure to meet the matching requirement, but they have recently identified sources to raise the badly-needed funds.

Tenorio likewise urged the committee to weigh the impact of the Asian recession on the local economy when considering legislation affecting the Commonwealth, including a measure that will strip CNMI powers over immigration, minimum wage and customs.

“Please help us restore investor confidence, which has been badly damaged by the uncertainty regarding our situation and negative publicity over the last few years,” he asked. “This is critical to our efforts to maintain self-sufficiency and diversify our economy.”

The island government has come under fire in recent years due to its alleged failure to curb the number of alien workers and stem labor abuses that prompted the Clinton Administration to push federal takeover proposals in Congress.