Veto override is defeated

With two votes short of the needed three-fourths approval, the attempt to override the governor’s veto of the proposed repeal of the fuel surcharge fee was defeated, 10-6, during a session at the House of Representatives yesterday.

The motion to reverse the governor’s decision needed 12 “yes” votes to pass the chamber.

Those who voted “yes” were political opposition lawmakers led by House Speaker Benigno R. Fitial, Vice Speaker Timothy P. Villagomez, Reps. Heinz S. Hofschneider, David Apatang, Jesus Attao, Oscar M. Babauta, Juan Lizama, Clyde Norita, Crispin Ogo, and Justo Quitugua.

Those who voted “no” were administration allies House minority leader Arnold I. Palacios and Reps. Ramon Tebuteb, Joseph Deleon Guerrero, Janet Maratita, Martin Ada, and Norman S. Palacios.

Rep. Benjamin Seman of the ruling Republican Party was absent while Rep. Ray Yumul is on military leave.

Prior to the voting, Hofschneider spoke lengthily in Chamorro on grave mismanagement at the Commonwealth Utilities Corp. and the Babauta administration’s failure to abort the crisis.

He also took pains to enumerate the administration’s “bad policy decisions” and their adverse impact on the local economy.

He cited the 2003 Rose Bowl Parade, direct hiring and retirement compensation of alien workers, reprogramming of public funds, and the ongoing emergency declaration on utilities, as well as the outstanding government debts with the Retirement Fund amounting to nearly $100 million and CUC totaling some $18 million.

“And he is saying, it’s pretty darn good?” said Hofschneider in reference to Gov. Juan N. Babauta’s oft-quoted line in describing the state of the Commonwealth.

Deleon Guerrero came to the administration’s defense, reminding the body that the issue at hand concerns fuel surcharge and the CUC’s inability to purchase fuel.

“Let’s do the campaigning during our political campaigns. CUC figures are simple. During the 13th Legislature, they used to spend $40 million for fuel. Now they need $60 million, so where’s the $20 million [going to come from]? The CUC debt is a separate issue. It’s being contested. We should set that aside because it’s under litigation,” said Deleon Guerrero.

Further, Deleon Guerrero said that CUC is mandated by law to do full-cost recovery and that CUC would be ably managed without legislative interventions.

He said the fuel surcharge is only a partial-cost recovery, noting that while the oil prices have increased more than 100 percent, the fuel surcharge is only a 32-percent increase.

He said that repealing the existing surcharge fee is like “digging a hole which we [will] not [be] able to come out of.” Repealing the fuel surcharge, he said, would result in a bigger budget shortfall.

The administration earlier said that CUC would need at least $32 million to purchase fuel. Even with a fuel surcharge, CUC still faces an $18 million shortfall.

Rep. Arnold I. Palacios said he would not mind voting for the repeal of the fuel surcharge “if I believe in my heart it is in the best interest of the public.”

Hofschneider said, “You don’t need fuel surcharge. You need the CUC board, a competent board to set the rates, increase the rates.”

Palacios replied, “If we take [out] the fuel surcharge today, our problems will intensify.”

Fitial tried to convince Palacios’ group to go ahead with the override of the governor’s veto on House Bill 14-343 by offering the passage of three bills that were separately offered by Palacios, Attao, and Apatang but this failed to sway the minority bloc’s vote.

Palacios’ bill aims to raise the poker fee from $6,000 to $10,000 and use the new revenues to pay for fuel surcharge up to 2,000 kilowatt hour a month per household. Attao and Apatang offered bills appropriating funds for the fuel surcharge.

Fitial expressed disappointment yesterday, saying that “politics” won the day.

“It’s politics that came into play. All we wanted is to work together to relieve our people of the burdensome fuel surcharge,” said Fitial.

Gov. Babauta vetoed H.B. 14-343 last month. The bill, which had passed the Legislature, aims to repeal the law that authorizes CUC to impose the fuel surcharge fee.

Gov. Babauta said that CUC continues to be in a financial crisis and removing the fuel surcharge without alternative sources amid the rising cost of fuel would mean the collapse of the utility agency.

The CNMI government has infused additional funds totaling $11.4 million to CUC this fiscal year. The administration has also reprogrammed some $5.1 million, purely for CUC’s fuel emergency needs. CUC buys 3 million gallons of fuel every month.