Cepeda urges administration to balance business interests

Newly installed Saipan Chamber of Commerce president Charles Cepeda said the Fitial administration should keep the balance between attracting new foreign investors and providing support to existing businesses that have been paying taxes to the CNMI government.

Cepeda said fresh investments would generally promote economic development, but the government should maintain a fair playing field that would not interfere with existing businesses’ ability to compete.

Gov. Benigno R. Fitial had appointed Cepeda to his think tank committee that was tasked to come up with solutions to the Commonwealth’s economic problem.

“To entice investors, sometimes we give too much. The businesses who are here are paying a lot [of taxes] to the government,” Cepeda said.

The Chamber of Commerce president cited the Commonwealth Development Authority’s Qualifying Certificate program, which allows investors to take advantage of tax rebates and abatements.

Cepeda said that, while the intention of the QC program is to entice new investors to infuse fresh capital into the Commonwealth, the government should make sure that the incentives would not result in a situation where tax-paying businesses would suffer diminished competitiveness.

“Let’s see how we can help business partners that are already here in the CNMI,” said Cepeda, adding that this would be the first thing he would bring up with the administration’s think tank once it convenes.

Overall, however, Cepeda expressed optimism that the Fitial administration would be more responsive to the business sector’s concern.

“I’m optimistic. He [Fitial] has a good business experience. He has invited investors from outside,” the Chamber’s president said. “He is willing to work with us closely.”

Fitial attended the installation dinner for the new set of Chamber officers at the Fiesta Resort & Spa’s Hibiscus Hall on Tuesday last week.

Speaking before the CNMI’s businessmen, Fitial vowed to run his administration in a pro-business manner by refocusing the government’s scarce resources into efforts that would generate revenue.

Fitial also declared that he would reduce the size of the CNMI government’s workforce to restore fiscal integrity, assuring that his administration would be prudent in its spending. Fitial said hiring of government personnel would be based on merit system.