Business leaders hold dialogue with OIA chief

Business leaders yesterday asked Office of Insular Affairs Director Danny Aranza for assistance in reviving the island’s sluggish economy amid threats of legislation in the U.S. Congress which they said would hasten the death of the garment industry in the CNMI.

Members of the Saipan Chamber of Commerce met with Mr. Aranza over breakfast where the business group asked the OIA chief if there was any truth to reports that the Clinton Administration is supporting a proposed measure which will slap tariffs on garment exports of the Northern Marianas.

Acting Gov. Jesus R. Sablan also attended the regular forum with the Chamber which also became a venue for the OIA to turn over $12 million in federal grants to the CNMI government.

However, Mr. Aranza remained evasive in giving his answer, saying he was not aware of any statement from Washington which spells out the stand of the administration on the controversial legislation.

Acting Saipan Chamber of Commerce president Tony Mosley said businessmen emphasized to Mr. Aranza efforts being made to get the economy back on track.

During the discussion, Mr. Sablan stressed that the departure of the apparel industry in the CNMI will have serious adverse effects on the island’s economy.

Chamber director Richard Pierce told Mr. Aranza that an OIA-funded economic conference held in Saipan nearly 18 months ago revealed that the CNMI’s apparel industry accounted for nearly 50 percent of the island’s economic activities.

Mr. Pierce, who is also executive director of the SGMA, said he owns a small company on the island which employs only five resident workers. The company has sales of half a million dollars annually, and that nearly 50 percent of their sales are to the factories and companies as well as government that services the industry.

“I know first hand the impact that we would incur should the garment industry no longer remain here in the CNMI,” he said.

With the significant contribution of the apparel industry in the CNMI, Mr. Aranza said the Clinton Administration does not intend to eliminate the industry since it would hurt the island’s economy.

He added that Washington has always been concerned with the plight of the workers in Saipan and the infrastructure demands placed on local public services due to the presence of the garment industry.

In fact, Mr. Aranza pointed out that the local apparel industry may still remain even if the bill is passed but the liberalization of trade with China may result in the shifting of garment production in the communist country.

Chamber director David Wiseman lamented OIA’s failure to recognize the steps undertaken by the CNMI government in addressing the problems earlier identified by the federal officials.