Chamber calls for CUC’s privatization
First of four parts
The Saipan Chamber of Commerce presented to Gov. Ralph DLG Torres and Lt. Gov. Victor B. Hocog yesterday an eight-point Economic Development Roadmap with privatizing the Commonwealth Utilities Corp., strengthening the tourism industry, and labor issues part of a plan that would help steer the Commonwealth toward the right direction.
Financial services, land issues/zoning/infrastructure, environment, investment, and government operations are the other things highlighted on the EDR, which is the Chamber’s way of reaching “all those affected by economic instability in the [CNMI].”
The EDR is also the Chamber board of directors’ “attempt to engage public and private leadership with the mutually beneficial goal of a more productive and sustainable local economy.”
“The Chamber has decided to pursue the recommendations herein over the course of this Chamber administration with the help and partnership of the CNMI government and other private sector groups,” the EDR’s introduction read.
Tourism, services, construction, gaming, and the government are the CNMI’s only industries that the Commonwealth is relying for revenues.
Federal and local legislation, revenue laws and regulations, and local tax corporate and individual rebate structure are the things that built the CNMI economy. “This remains much the same today but what avails itself of the Commonwealth’s ‘formula’ has changed dramatically,” the financial services part of the report noted.
Businesses “must be able to rely upon sound and reliable financial governance, unwavering tax structure, and sound financial institutions,” the report added. The CNMI should look into import protections, preparing for accountancy training and certification to compensate for loss of CW accountants, and providing small businesses with capital to start or to grow.
The report is also suggesting that CUC should be privatized so it would give the chance to future developers to build larger complexes and install their own power production. “Focus on power distribution rather than production by supporting Independent Power Production,”
Protecting current employment, however, must be considered in allowing private companies or corporations in taking over some government functions and agencies. “Privatization will eliminate excessive waste while providing services at a more reasonable cost and making service providers accountable to profiting shareholders.”
Operations of solid waste management is another area the Chamber report noted should be privatized since universal trash collection would help reduce illegal dumping sites and littering both in public and private lands.
“The current transfer station and landfill are not working efficiently. There are insufficient funds to fix pumps. Privatizing these operations would encourage private companies to build additional transfer stations and facilities.”
As far as privatizing CUC, this has been proposed in the past many times, there have also been RFP’s been put out and a few takers.
From the past what was encountered among other problems was the bundling of the many Govt. imposed CUC obligations such as the CDA loan and other things at the time.
This was a “deal breaker” Among the many other problems that was looked at was the ignorance and unworkable required obligations by the local Govt. at the time that a private enterprise that would take over the CUC.
One such requirement was mandated to keep ALL CUC employees regardless if they were capable or not and even if the number of the current employees were required for the operation.
With the privatization at the time the Govt. was still trying to micromanage any private company that would be taken over a proven failed operation by the same people that put it in that situation.
Also the same unqualified Govt. people would be dictating what type of new generation would added or be replacing the present system.
It would make sense for all such Govt. operated entities be privatized, but then this would hinder all of these failed politicians to be able to secure jobs for their families. All employees would have to be employed based on their merit.
As far as an efficient operated landfill, from other areas, this will not cut down on illegal dumping as there would be fees, even in the area that household trash was exempt from tipping fees, this did not cut down on such dumping,
Regular household pick up did not have an effect either as many did not want to pay for such services. Other areas the Govt subsidized certain area and used their own Govt. owned trucks and equipment.
BUT most landfills have been put out for privatization in places such as Hawaii due to the proximity to large bodies of water the the limited ground water.
It is high time someone has caught on the bandwagon to privatize CUC and happily looking forward when such a feat is accomplished, sooner the better for everyone; a win win situation!
How much can you afford to pay for power, water and other utilities? A private company would insist on making a profit and charging enough to make reserves for capital improvements to their infrastructure and cover repairs and Maintenance as well as fuel cost. Also, one can assume the cheap labor the CUC enjoys now from foreign workers would no longer be available and those cost will be passed along to everyone.
I would say hire a Contract Operations Company to run the CUC not Privatize it. (privatizing means that an outside company owns the infrastructure). Then what you are contracting is efficient management (that seems to be lacking now). It is typical for many municipalities (especially on islands such as Guam and American Samoa) to send two or three people to do a one man job. The work force needs to be “right sized”. A Contract Operations company can also purchase more efficiently and acquire discounts from vendors that they already deal with nation wide. So when are these EPA Stipulated Order required positions going to be filled – (Director, Deputy Director, Water & Wastewater Division Manager) that have been vacant for way over a year now? If the CUC cannot attract and retain qualified people to manage the organization – contract for these services through a private company.