Stay limit law clips firms’ growth potentials

Small and medium scale enterprises in the Northern Marianas may be the most vulnerable sector to the ill effects of existing government regulations, particularly issues relating to nonresident workers.

Local businessmen said the series of regulations recently implemented by the CNMI government is hurting the already ailing business environment on the islands.

They are reacting to the Senate’s refusal to completely repeal the three-year stay limit law on nonresident workers which, they said, would be catastrophic to the Northern Marianas economy due to the absence of local manpower.

These regulations will make it very difficult for businesses to expand. The business community may also be forced to freeze expansion plans as a result of uncertainties on the availability of ample workforce on the islands.

“We won’t grow if prospects for small- and medium-scale businesses were boxed. We may have already forgotten that the backbone of our economy here is the small businesses,” they said.

A proposed measure passed by the Senate yesterday suspending the implementation of the three-year limit law until 2005 is not likely to make it through the House of Representatives.

The business sector’s sentiments were shared by some members of the House of Representatives who said they will press for the outright repeal of the three-year stay limit law, citing its adverse impact to the local economy.

The Legislature’s upper chamber last week passed Senator Ramon S. Guerrero’s proposal that will create a task force to study possible effects of the three-year stay limitation law to businesses in the Northern Marianas.

Congressmen believe a more concrete action — one that is long-term in nature and one that will give existing businesses and future investments more security in terms of workers’ availability — is the only answer.

Some members of the lower house vowed to block the “suspension bill’s” passage once the House of Representatives deliberates on the proposed measure. They said they would continue to insist for the repeal of the three-year limit law in its entirety.

Hotel Association President Ron Sablan said it was a letdown on the part of the businesses since all necessary information were forwarded to the upper chamber to help them decide on the issue.

“We accommodate local employees, but until when will they understand there’s not enough workforce to support the businesses. If we want that to happen, we have to wait until 2045 to have enough local workers,” said Mr. Sablan.

He said businesses are still hoping for a total repeal of the three-year limit law, in order to alleviate the conditions faced by both the local business community and the Commonwealth economy.

Under the existing law, guest workers who have stayed in the Commonwealth for three consecutive years must leave and stay outside the Northern Marianas for six months before they can be employed again. (ARF)