Senate chair vows support for HeadNote 3(a) change

Sen. Pedro Domenici, who is chairman of the Senate Energy and Natural Resources Committee, has assured the CNMI of his continuing support for the bill that would amend HeadNote 3(a), according to Washington Rep. Pete A. Tenorio

The statement of support was reportedly made during the oversight hearing on the state of the economies and fiscal affairs in the territories of Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands.

Tenorio had testified on the “ailing” condition of the CNMI economy and urged passage of Senate Bill 1954 as a remedy. Tenorio said the amendment would keep the CNMI garment industry viable for the next several years and that, during this time, other industries could be developed in the CNMI to replace it.

Following Tenorio’s testimony, Domenici quickly replied that, even though the Energy Committee did not have jurisdiction, the Finance Committee does, that they are pushing for the amendment to be approved.

“This is more than I had expected,” said Tenorio. “The heart of the HeadNote 3(a) issue is about fairness. Foreign countries should not have a trade advantage over the territories with the U.S., and this affects all of the territories, not just the CNMI. I appreciate that Governor [Benigno R.] Fitial recently wrote Senators Craig and Akaka, the bill’s sponsors, stating his support and ongoing need for the amendment.”

The bill was introduced last year prior to Fitial’s inauguration as governor.

“It has been a challenge getting this far. Our garment industry is still somewhat controversial, and there are members of Congress who would like to see it fold completely. However, we have been able to make the case that we must keep the industry viable as long as possible for the sake and well-being of the people of the CNMI. A lot of our tax revenue is from the garment industry, and those taxes fund jobs, health care, schools, and other essential public services,” said Tenorio.

At the hearing, Tenorio also asked for assistance to resolve the outstanding tax cover over issue with the U.S. Treasury and asked that funding for government operations, as allowed in the Covenant, be revisited.

The CNMI voluntarily gave up operations funding in 1992 as the goal of financial self-sufficiency had been met.

“Our economy is too susceptible to external factors such as U.S. trade agreements with foreign countries and financial problems in our tourist markets. It may be embarrassing to ask for assistance, but there is nothing wrong in doing so,” concluded Tenorio.

Transcripts of Tenorio’s and Interior Deputy Assistant Secretary Dave Cohen’s testimony at the hearing can be found at www.resrep.gov.mp. (PR)