Proposal granting special incentives to investor junked

House members have junked a Senate proposal to tie to higher minimum wage the plan by the Rota municipality to entice a Japanese wine company into investing on the island by granting incentives, such as tax breaks and infrastructure support.

The lower chamber scrapped an initial joint resolution encouraging the Unkai Distillery Co. to establish a Shochu plant on Rota after the Senate amended the measure to include as a condition for these incentives a minimum wage at par with the federal level of $5.15 an hour.

To pursue the issue, the House instead adopted the other day a new resolution to underscore the need to provide assistance to the distillery company in establishing the Shochu plant on the island.

It said this investment would enable Rota to diversify its economy and expand opportunities for its people at a time when the CNMI’s economic growth has been stunted by the decline of the tourism industry.

Company executives flew late last month to the island to meet with Rota Mayor Benjamin T. Manglona and looked into its investment potential as they are eyeing the establishment of the Shochu plant there.

Unkai, which owns and operates the second largest such plant in Japan, produces Shochu which covers a variety of wines and sake beverages extremely popular in that country and abroad.

Its main ingredients are water and sweet potatoes that are grown all-year round on Rota. Unkai estimates that it will need 100 tons of sweet potatoes each month to support its proposed plant, which could then boost the island’s agriculture sector.

In exchange for its investment, the company has been assured of obtaining tax breaks and business-friendly regulations and laws to benefit both the CNMI and the investors.

In addition, the resolution pledged the Legislature’s commitment to secure further exemptions, such as from paying the excise tax on building and construction materials and labor moratorium, as well as to help lay down the infrastructure requirements.

Offered by Vice Speaker Alejo M. Mendiola, who is the lone Rota representatives to the House, the resolution stressed that the Legislature is “pro-business… firmly committed to pass [or repeal] any and all laws so as to provide Unkai, and all responsible investors, with tax breaks, tax holidays, land incentives, an adequate workforce and other economic incentives.” (BS)