TO ENSURE ECONOMIC GROWTH Investment, infrastructure must be compatible

Senate President Paul A. Manglona yesterday vowed to push legislation favorable to the business sector as he outlined current measures being undertaken by lawmakers before a group of businessmen and private sector representatives.

Speaking at the Rotary Club function at the Hyatt Regency, Mr. Manglona said the Legislature will continue to seek ways to attract new investors and ensure economic growth in the Northern Marianas.

“We have to create the right business environment to get what we want and invest whatever is necessary to make our infrastructure compatible with the industries we hope to attract and maintain,” he told the forum.

Mr. Manglona stressed the tourism and garment manufacturing will remain as the Commonwealth’s economic backbone for the next several years, but added that the island government must begin to explore other business opportunities such as banking and information technology.

Legislation he described as “pro-business” such as the proposed free trade zone and a comprehensive telecommunications regulatory bill will help entice investors from these two sectors.

Noting CNMI’s close proximity to Asian markets and its advantages associated with being a U.S. jurisdiction subject to some federal laws, he said “it is time that we take a closer look at what possibilities we may have in the future.”

In order to boost tourist arrivals to the islands, efforts to draw retirees, especially from Japan, must be sustained beyond the establishment of the retirement community that the Legislature approved last year.

Likewise, a major facelift should be carried out in the Garapan tourist district to improve its image beyond the sex industry as well as to keep up with the development being done by CNMI’s competitors on their own, such as Guam which has changed its Tumon tourist district in the past few years.

Mr. Manglona said capital improvement projects have been earmarked for Garapan’s improvement and funds are expected to flow as early as this summer.

Along with this plan, airports on Tinian and Rota will also be modernized to allow more direct flights to the island from key Asian cities where most of their visitors come from.

“[Tourism] is our bread and butter and we need to do all we can to nurture it and showcase our islands as a unique destination that people will want to continue to return to in the future,” said the senator.

The number of visitors to the CNMI has dropped dramatically since 1997 on the on-set of the Asian currency crisis, but the recovery of the region’s powerful economies has buoyed hopes of island leaders for a turn-around of the tourism industry.

Support for apparel industry

The apparel manufacturing sector, on the other hand, should be supported to keep its business here even after the World Trade Organization tears down barriers like quotas and tariffs by 2004.

“We hope for enlightened federal policies to assist us in this regard,” Mr. Manglona explained. “The garment industry ought to be fostered and encouraged in the Commonwealth, where at least U.S. labor [other than minimum wage], safety, and environmental laws apply.”

But the Senate President underscored the need to keep local control of immigration and labor on the island to assure continued economic growth. He pledged to work with the Tenorio administration and the rest of the members of Legislature to implement reforms aimed at protecting all workers in the CNMI.

“I intend to continue improving laws to make the CNMI more business friendly without backsliding on necessary reforms. A stable yet fair balance is definitely necessary between the two,” he said.

While efforts are underway to lure foreign investors, the federal takeover threat has remained the top concern among island leaders who say such a move will devastate the economy.

Since January, the leadership under House Speaker Benigno R. Fitial has passed measures aimed at eliminating anti-business laws, such as the $100,000 security deposit imposed on foreign investment as well as the hiring moratorium on nonresident workers.

That bill is pending with the Senate, along with the free trade zone legislation. The House is expected to pass a labor reform bill patterned after the Federal Fair Labor Standards Act.