Fitial respects Guam gov's request for delay in military buildup
Saturday, January 30, 2010
By Haidee V. Eugenio
Gov. Benigno R. Fitial said yesterday that he respects Guam Gov. Felix P. Camacho's request to U.S. Navy Secretary Ray Mabus to delay the implementation of the military buildup in Guam beyond 2014.
Camacho wrote Mabus a letter on Thursday, asking him that all Guam military buildup program be “delayed to beyond 2014 to protect the integrity of the III Marine Expeditionary Force and ensure that impacts are minimized to our island infrastructure and socioeconomic services.”
Fitial, whose administration is looking at the military buildup as an opportunity to boost the CNMI economy, said he respects Camacho's position on the buildup, which aims to relocate U.S. Marines from Okinawa, Japan to Guam.
The 15- to $20-billion military buildup in Guam includes the construction of military training ranges on Tinian, two-thirds of which is leased by the U.S. Department of Defense.
Because Guam cannot accommodate all training for the relocating Marines, the military looks at Tinian to provide opportunities for training groups of 200 Marines or larger due to greater land availability. Tinian is only about 100 miles or 160 kilometers away from Guam.
“If the governor of Guam and its people feel that there is a need to delay its implementation, then that is a position rightfully reserved for them. Therefore, Governor Fitial does not intend to write a separate letter to Secretary Mabus. It is important to recognize that without a buildup in Guam, there would be no anticipated impact on the Commonwealth,” said press secretary Angel A. Demapan when asked for comment on Camacho's request.
In his two-page letter to Mabus, Camacho said Article 2 of the Guam International Agreement clearly states that the U.S. shall take necessary measures for the relocation of the U.S. Marines, including funding for projects to develop facilities in Guam.
“I believe that a request for an extension would help lessen the impact of the military buildup on Guam. In fact, during our village workshop on Jan. 20, I expressed my intention to ask the United States to consider extending their deadline for the buildup. The extension will greatly impact every area of public concern. It will lessen the pressure currently being placed on our people to accommodate a significant influx in our population,” said Camacho.
He said in order to ensure that the Guam military buildup program is fully implemented as planned, he asked that the Adaptive Program Techniques as identified in the draft Environmental Impact Statement be used to extend the construction phase of the program.
Camacho said this will enable Guam to be better prepared for the impacts associated with the Marine relocation while protecting the integrity of the III Marine Expeditionary Force.
“I believe that this request is consistent with the Guam International Agreement signed by U.S. Secretary of State Hillary Clinton and Japan Foreign Minister Hirofumi Nakasone on Feb. 17, 2009,” he told Mabus.
Mabus was one of ranking U.S. military officials to visit Saipan and Guam last year.
Camacho said there is support of the relocation of U.S. Marines from Okinawa to Guam and overall support for the U.S. armed services.
“However, we must not overlook the reality that we have a fragile territorial economy, posses a limited amount of financial resources and lack the capacity to absorb the impacts of 20 years worth of growth in a five-year time frame,” he said.
The request for delay comes at a time when the CNMI and Guam are preparing comments on the 11,000 pages of documents on the military buildup's draft Environmental Impact Statement. The deadline for submitting comments is on Feb. 17.
Showing posts with label CNMI Economy. Show all posts
Showing posts with label CNMI Economy. Show all posts
Wednesday, February 03, 2010
Thursday, November 19, 2009
DHS interim rule deficient for many reasons-Willens
DHS interim rule deficient for many reasons-Willens
Friday, November 20, 2009
By Ferdie de la Torre
Reporter
The U.S. Department of Homeland Security should not implement the interim rule on the CNMI-Transitional Worker Classification on Nov. 28, 2009, as it is deficient for many reasons, according to Gov. Benigno R. Fitial's special legal counsel, Howard P. Willens.
In the CNMI's comments on the interim rule, Willens said the rule fails to implement the statutory requirement that the DHS Secretary establish and enforce a transitional work permit system in the CNMI that provides for allocation and a reduction in the number of foreign workers to zero by Dec. 31, 2014.
Willens said DHS failed to conduct an economic impact analysis of the proposed regulations, as required by Executive Order 12866 and the Regulatory Flexibility Act of 1980.
He added that the rule fails to implement the statutory goals of minimizing harm to the CNMI, protecting and increasing job opportunities for U.S. citizens; and fostering the expansion of tourism and economic development.
“We believe that DHS has an obligation under the Administrative Procedure Act to review all the comments submitted in this rule-making proceeding and amend its proposed regulations so that they comply with the requirements of Public Law 110-229 (federalization law) and will not cause the serious injury to the Commonwealth people and economy that will otherwise result,” he said.
Willens said the rule describes no system for how the permits are to be divided among employers.
“In view of the law's mandated reduction in the number of permits to zero within five years, there can be no question but that DHS will be required to confront the need to allocate permits among CNMI employers whose collective demand for foreign workers is greater than the available number of permits during the next year,” he said.
The proposed regulations, he noted, do not even identify the criteria that might be used in making critical distinctions among employers competing for foreign workers.
Second, Willens said, the proposed rules do not identify any procedure for reducing the number of the permits to zero by the end of the transition period.
Based on data supplied by the Commonwealth in August 2008, Willens said, the rule indicates that 19,083 foreign workers are in the CNMI and concludes that about 14,543 of these workers (13,543 in-status and 1,000 out-of-status) “will be granted CW status in 2009.”
“With these figures at hand, DHS certainly had sufficient data to consider the alternative means of reducing the number of foreign workers during the transition period as required by the law,” he said.
The counsel said DHS' failure to comply with the law imposes additional burdens and uncertainty on CNMI citizens.
He said the CNMI economy is composed almost entirely of small businesses, many with less than five employees and only a handful with more than 50 employees.
“Without some clear indication of DHS' intentions with respect to the allocation and reduction of the available permits for foreign workers, all participants in the economy suffer,” Willens said.
He said the proposed rule will also hurt the Commonwealth's “very successful efforts” to stop human trafficking under its 2007 labor reform law.
“The federal rule lacks safeguards to ensure that women coming to the Commonwealth possess the necessary skills in their intended occupation; it has no procedures for checking credentials or an orientation at the airport before entry; and provides no available employment history records that could flag likely abuses and previous infractions by employers before a permit is granted,” he said.
Friday, November 20, 2009
By Ferdie de la Torre
Reporter
The U.S. Department of Homeland Security should not implement the interim rule on the CNMI-Transitional Worker Classification on Nov. 28, 2009, as it is deficient for many reasons, according to Gov. Benigno R. Fitial's special legal counsel, Howard P. Willens.
In the CNMI's comments on the interim rule, Willens said the rule fails to implement the statutory requirement that the DHS Secretary establish and enforce a transitional work permit system in the CNMI that provides for allocation and a reduction in the number of foreign workers to zero by Dec. 31, 2014.
Willens said DHS failed to conduct an economic impact analysis of the proposed regulations, as required by Executive Order 12866 and the Regulatory Flexibility Act of 1980.
He added that the rule fails to implement the statutory goals of minimizing harm to the CNMI, protecting and increasing job opportunities for U.S. citizens; and fostering the expansion of tourism and economic development.
“We believe that DHS has an obligation under the Administrative Procedure Act to review all the comments submitted in this rule-making proceeding and amend its proposed regulations so that they comply with the requirements of Public Law 110-229 (federalization law) and will not cause the serious injury to the Commonwealth people and economy that will otherwise result,” he said.
Willens said the rule describes no system for how the permits are to be divided among employers.
“In view of the law's mandated reduction in the number of permits to zero within five years, there can be no question but that DHS will be required to confront the need to allocate permits among CNMI employers whose collective demand for foreign workers is greater than the available number of permits during the next year,” he said.
The proposed regulations, he noted, do not even identify the criteria that might be used in making critical distinctions among employers competing for foreign workers.
Second, Willens said, the proposed rules do not identify any procedure for reducing the number of the permits to zero by the end of the transition period.
Based on data supplied by the Commonwealth in August 2008, Willens said, the rule indicates that 19,083 foreign workers are in the CNMI and concludes that about 14,543 of these workers (13,543 in-status and 1,000 out-of-status) “will be granted CW status in 2009.”
“With these figures at hand, DHS certainly had sufficient data to consider the alternative means of reducing the number of foreign workers during the transition period as required by the law,” he said.
The counsel said DHS' failure to comply with the law imposes additional burdens and uncertainty on CNMI citizens.
He said the CNMI economy is composed almost entirely of small businesses, many with less than five employees and only a handful with more than 50 employees.
“Without some clear indication of DHS' intentions with respect to the allocation and reduction of the available permits for foreign workers, all participants in the economy suffer,” Willens said.
He said the proposed rule will also hurt the Commonwealth's “very successful efforts” to stop human trafficking under its 2007 labor reform law.
“The federal rule lacks safeguards to ensure that women coming to the Commonwealth possess the necessary skills in their intended occupation; it has no procedures for checking credentials or an orientation at the airport before entry; and provides no available employment history records that could flag likely abuses and previous infractions by employers before a permit is granted,” he said.
Thursday, November 12, 2009
US: NMI's challenge to interim rule too speculative
US: NMI's challenge to interim rule too speculative
Thursday, November 12, 2009
By Ferdie de la Torre
The U.S. government described as “too speculative” the CNMI's claim that the Department of Homeland Security's interim permit rule on the transitional worker program will lead to disastrous economic conditions.
The U.S. government, through the Office of Immigration Litigation trial attorney Theodore W. Atkinson, insisted that the issuance of the interim permit rule does not add to or alter the CNMI's arguments about the constitutionality of the Consolidated Natural Resources Act of 2008 (federalization law).
Atkinson said the existence of the interim permit rule does not add to the CNMI's challenge to the CNRA, because it does not deviate from the mandates of the CNRA in any way.
Atkinson's arguments are contained in the U.S. government's response yesterday to the CNMI's supplemental memorandum in support of a motion for a preliminary injunction.
“In other words, the mere issuance of regulations to implement the Act does not impact the CNMI's arguments regarding the constitutionality of the Act itself,” the lawyer said.
Atkinson said the CNMI's argument that the interim permit rule proves that the Act ousts local control over two-thirds of the CNMI's private sector workforce is nothing new.
“This is the same argument the CNMI has repeatedly made throughout its briefing on the instant motion, but the issuance of the Interim Permit Rule does not provide support for the CNMI's speculative claims of future injury or add to its challenge of the Act,” he said.
The Act itself, Atkinson said, mandates the implementation of a CNMI-only worker permitting system, and specifies that the number of CNMI-only permits shall be reduced during the period of transition to zero at the end of the transition period.
He said the transition period can be extended for five-year periods at the discretion of the U.S. Labor Secretary.
The attorney emphasized that the CNMI's claim is not only speculative but “is also wholly undermined by the fact that the CNMI challenges the transitional nonresident worker permit system, but does not challenge the application of all other federal immigration laws to the CNMI.”
Atkinson said that position is confounding because it completely cuts against the CNMI's argument that a preliminary injunction would avoid harsh economic and other results.
He said without the provisions of the CNRA creating a transitional worker permitting system and without the interim permit rule, nonresident workers currently in the CNMI and who travel outside the CNMI would be inadmissible upon return to the Commonwealth under federal immigration laws not challenged by the CNMI, once those laws take effect on Nov. 28.
Atkinson added that businesses in the CNMI would be unable to hire nonresident workers from outside the Commonwealth as of Nov. 28, because without a CW (transitional worker) classification, such nonresident workers would also be inadmissible.
“In short, without the Interim Permit Rule being effective on Nov. 28, 2009, current CNMI nonresident workers may not be able to return to the CNMI if they leave within two years of that date, and businesses in the CNMI may not be able to 'import' any new nonresident workers from outside the CNMI if the number of current nonresident workers in the CNMI drops,” Atkinson said.
He pointed out that while the CNMI's claims regarding economic injury arising from the implementation of the transitional worker permit system under the Act is speculative, the impact on the CNMI of the immediate application of federal immigration laws in the absence of the interim permit rule is not.
Atkinson asked the court to conclude that the U.S. Congress properly exercised its authority in enacting the CNRA and applying federal immigration law, including the transitional work permit system, to the CNMI.
He said the court should deny the CNMI's motion for a preliminary injunction and grant the United States' motion to dismiss the lawsuit.
The interim rule was published on Oct. 27, 2009. It is scheduled to become effective on Nov. 28, providing for a CNMI Transitional Worker Program.
The CNMI contends that DHS cannot justify its failure to follow the notice and comment provisions of the Administrative Procedure Act before issuing these regulations in final form.
The CNMI seeks for a preliminary injunction to stop the implementation and enforcement of the interim rule.
The CNMI wants the court to issue a preliminary injunction that would prevent DHS from enforcing or implementing the interim permit rule pending the court's resolution of the Commonwealth's claims on the merits.
Thursday, November 12, 2009
By Ferdie de la Torre
The U.S. government described as “too speculative” the CNMI's claim that the Department of Homeland Security's interim permit rule on the transitional worker program will lead to disastrous economic conditions.
The U.S. government, through the Office of Immigration Litigation trial attorney Theodore W. Atkinson, insisted that the issuance of the interim permit rule does not add to or alter the CNMI's arguments about the constitutionality of the Consolidated Natural Resources Act of 2008 (federalization law).
Atkinson said the existence of the interim permit rule does not add to the CNMI's challenge to the CNRA, because it does not deviate from the mandates of the CNRA in any way.
Atkinson's arguments are contained in the U.S. government's response yesterday to the CNMI's supplemental memorandum in support of a motion for a preliminary injunction.
“In other words, the mere issuance of regulations to implement the Act does not impact the CNMI's arguments regarding the constitutionality of the Act itself,” the lawyer said.
Atkinson said the CNMI's argument that the interim permit rule proves that the Act ousts local control over two-thirds of the CNMI's private sector workforce is nothing new.
“This is the same argument the CNMI has repeatedly made throughout its briefing on the instant motion, but the issuance of the Interim Permit Rule does not provide support for the CNMI's speculative claims of future injury or add to its challenge of the Act,” he said.
The Act itself, Atkinson said, mandates the implementation of a CNMI-only worker permitting system, and specifies that the number of CNMI-only permits shall be reduced during the period of transition to zero at the end of the transition period.
He said the transition period can be extended for five-year periods at the discretion of the U.S. Labor Secretary.
The attorney emphasized that the CNMI's claim is not only speculative but “is also wholly undermined by the fact that the CNMI challenges the transitional nonresident worker permit system, but does not challenge the application of all other federal immigration laws to the CNMI.”
Atkinson said that position is confounding because it completely cuts against the CNMI's argument that a preliminary injunction would avoid harsh economic and other results.
He said without the provisions of the CNRA creating a transitional worker permitting system and without the interim permit rule, nonresident workers currently in the CNMI and who travel outside the CNMI would be inadmissible upon return to the Commonwealth under federal immigration laws not challenged by the CNMI, once those laws take effect on Nov. 28.
Atkinson added that businesses in the CNMI would be unable to hire nonresident workers from outside the Commonwealth as of Nov. 28, because without a CW (transitional worker) classification, such nonresident workers would also be inadmissible.
“In short, without the Interim Permit Rule being effective on Nov. 28, 2009, current CNMI nonresident workers may not be able to return to the CNMI if they leave within two years of that date, and businesses in the CNMI may not be able to 'import' any new nonresident workers from outside the CNMI if the number of current nonresident workers in the CNMI drops,” Atkinson said.
He pointed out that while the CNMI's claims regarding economic injury arising from the implementation of the transitional worker permit system under the Act is speculative, the impact on the CNMI of the immediate application of federal immigration laws in the absence of the interim permit rule is not.
Atkinson asked the court to conclude that the U.S. Congress properly exercised its authority in enacting the CNRA and applying federal immigration law, including the transitional work permit system, to the CNMI.
He said the court should deny the CNMI's motion for a preliminary injunction and grant the United States' motion to dismiss the lawsuit.
The interim rule was published on Oct. 27, 2009. It is scheduled to become effective on Nov. 28, providing for a CNMI Transitional Worker Program.
The CNMI contends that DHS cannot justify its failure to follow the notice and comment provisions of the Administrative Procedure Act before issuing these regulations in final form.
The CNMI seeks for a preliminary injunction to stop the implementation and enforcement of the interim rule.
The CNMI wants the court to issue a preliminary injunction that would prevent DHS from enforcing or implementing the interim permit rule pending the court's resolution of the Commonwealth's claims on the merits.
Wednesday, November 04, 2009
CNMI asks court to declare DHS regulations invalid
CNMI asks court to declare DHS regulations invalid
Thursday, November 05, 2009
By Ferdie de la Torre
Reporter
The CNMI has asked the U.S. District Court for the District of Columbia to declare as invalid the Department of Homeland Security's interim final rule on the CNMI transitional worker program.
The CNMI, through the Jenner & Block law firm, asked the court to rule that the manner with which DHS promulgated the interim permit rule violates the Administrative Act.
Jenner & Block stressed that the “societal, familiar, and personal damage” that will be caused by Public Law 110-229, the Consolidated Natural Resources Act of 2008 (federalization law), “is as severe as its economic impact.” The law firm said the law will force thousands of U.S. citizen children to separate from their parents who are not U.S. citizens.
In the CNMI's amended complained filed on Nov. 2, Jenner & Block also questioned the legality of the interim final rule.
The complaint, which named the United States, DHS Secretary Janet Napolitano, DHS, U.S. Department of Labor Secretary Hilda Solis, and U.S. Labor as defendants-also asked the court to prevent these defendants from acting in violation of the Covenant.
The CNMI wants the court to issue a permanent injunction prohibiting the defendants from enforcing federalization in the CNMI.
The law firm asserted that the defendants violated APA by promulgating the regulations required by Public Law 110-229 without notice to the CNMI and other affected stakeholders and giving them an opportunity to comment.
DHS issued the interim rule on Oct. 27. It is set to go into effect on Nov. 28, 2009, the effective date of the CNRA.
Jenner & Block said the CNRA will strike a devastating, and perhaps fatal, blow on the economy by prohibiting the Commonwealth from ensuring an adequate supply of labor for local residents and businesses.
The law firm said CNRA imposes an uncertain permitting system for an indefinite period of time on about two-thirds of the Commonwealth's private sector workforce and requires that the number of Commonwealth-only permits be reduced to zero by the end of 2014, the end date for the transition period.
“As the number of Commonwealth-only permits is reduced, foreign workers lawfully admitted under CNMI law will have to leave the Commonwealth if they are unable to obtain a visa under the narrow and specialized classifications of the federal immigration laws or if their employers cannot obtain the necessary permits from that steadily shrinking pool of permits,” the law firm said.
Jenner & Block said most of the foreign workers will not be able to qualify for federal visas because existing federal immigration laws do not allow visas for low-skill jobs that are “permanent” rather than “temporary.”
“In addition, because no 'Commonwealth-only' permits can be issued or can authorize employment after 2014, whatever relief is potentially available during the transition period is necessarily temporary,” the law firm said.
The law firm pointed out that the local workforce is not enough to compensate for the labor deficit the CNRA will create.
The overall U.S. citizen population of about 30,000 and the U.S. citizen workforce of about 11,000 have remained constant in size for most of the past decade.
“There is no reasonable basis for assuming that the U.S. citizen population can produce a workforce of sufficient size to meet the needs of the CNMI economy,” the law firm said.
The CNRA, Jenner & Block said, has placed the CNMI in a legal and economic limbo of indefinite duration.
“Such an environment is toxic to economic development,” the law firm said, citing business plans for new ventures that are already being revised or canceled, foreign investment being withdrawn, among other things.
“No other city, county, or state in America has a federal bureaucracy exercising plenary authority over two-thirds of its private sector labor force,” the law firm stressed.
In addition, the CNRA will also rend its social fabric, the law firm said.
The 24,000 alien workers and their families make up roughly 40 percent of the Commonwealth's total population. Jenner & Block said many of these people have lived in the CNMI for over a decade and include thousands of U.S. citizen children.
Under the provisions of CNRA, the complaint said, these children's parents are subject to expulsion from the Commonwealth over the next several years, even if they otherwise could have remained gainfully employed in the CNMI.
When required to leave, the law firm said, these parents will be forced to either separate from their children and find another home for them in the CNMI, or to take these U.S. citizen children away from their home country and the opportunities and benefits of growing up in the U.S.
Jenner & Block said the challenged provisions of CNRA abrogate the CNMI's right of local self-government by denying the Commonwealth the right to regulate its local workforce and economy.
Thursday, November 05, 2009
By Ferdie de la Torre
Reporter
The CNMI has asked the U.S. District Court for the District of Columbia to declare as invalid the Department of Homeland Security's interim final rule on the CNMI transitional worker program.
The CNMI, through the Jenner & Block law firm, asked the court to rule that the manner with which DHS promulgated the interim permit rule violates the Administrative Act.
Jenner & Block stressed that the “societal, familiar, and personal damage” that will be caused by Public Law 110-229, the Consolidated Natural Resources Act of 2008 (federalization law), “is as severe as its economic impact.” The law firm said the law will force thousands of U.S. citizen children to separate from their parents who are not U.S. citizens.
In the CNMI's amended complained filed on Nov. 2, Jenner & Block also questioned the legality of the interim final rule.
The complaint, which named the United States, DHS Secretary Janet Napolitano, DHS, U.S. Department of Labor Secretary Hilda Solis, and U.S. Labor as defendants-also asked the court to prevent these defendants from acting in violation of the Covenant.
The CNMI wants the court to issue a permanent injunction prohibiting the defendants from enforcing federalization in the CNMI.
The law firm asserted that the defendants violated APA by promulgating the regulations required by Public Law 110-229 without notice to the CNMI and other affected stakeholders and giving them an opportunity to comment.
DHS issued the interim rule on Oct. 27. It is set to go into effect on Nov. 28, 2009, the effective date of the CNRA.
Jenner & Block said the CNRA will strike a devastating, and perhaps fatal, blow on the economy by prohibiting the Commonwealth from ensuring an adequate supply of labor for local residents and businesses.
The law firm said CNRA imposes an uncertain permitting system for an indefinite period of time on about two-thirds of the Commonwealth's private sector workforce and requires that the number of Commonwealth-only permits be reduced to zero by the end of 2014, the end date for the transition period.
“As the number of Commonwealth-only permits is reduced, foreign workers lawfully admitted under CNMI law will have to leave the Commonwealth if they are unable to obtain a visa under the narrow and specialized classifications of the federal immigration laws or if their employers cannot obtain the necessary permits from that steadily shrinking pool of permits,” the law firm said.
Jenner & Block said most of the foreign workers will not be able to qualify for federal visas because existing federal immigration laws do not allow visas for low-skill jobs that are “permanent” rather than “temporary.”
“In addition, because no 'Commonwealth-only' permits can be issued or can authorize employment after 2014, whatever relief is potentially available during the transition period is necessarily temporary,” the law firm said.
The law firm pointed out that the local workforce is not enough to compensate for the labor deficit the CNRA will create.
The overall U.S. citizen population of about 30,000 and the U.S. citizen workforce of about 11,000 have remained constant in size for most of the past decade.
“There is no reasonable basis for assuming that the U.S. citizen population can produce a workforce of sufficient size to meet the needs of the CNMI economy,” the law firm said.
The CNRA, Jenner & Block said, has placed the CNMI in a legal and economic limbo of indefinite duration.
“Such an environment is toxic to economic development,” the law firm said, citing business plans for new ventures that are already being revised or canceled, foreign investment being withdrawn, among other things.
“No other city, county, or state in America has a federal bureaucracy exercising plenary authority over two-thirds of its private sector labor force,” the law firm stressed.
In addition, the CNRA will also rend its social fabric, the law firm said.
The 24,000 alien workers and their families make up roughly 40 percent of the Commonwealth's total population. Jenner & Block said many of these people have lived in the CNMI for over a decade and include thousands of U.S. citizen children.
Under the provisions of CNRA, the complaint said, these children's parents are subject to expulsion from the Commonwealth over the next several years, even if they otherwise could have remained gainfully employed in the CNMI.
When required to leave, the law firm said, these parents will be forced to either separate from their children and find another home for them in the CNMI, or to take these U.S. citizen children away from their home country and the opportunities and benefits of growing up in the U.S.
Jenner & Block said the challenged provisions of CNRA abrogate the CNMI's right of local self-government by denying the Commonwealth the right to regulate its local workforce and economy.
Saturday, October 17, 2009
Despite high freight cost, NMI farmers may still benefit from Guam military buildup
Despite high freight cost, NMI farmers may still benefit from Guam military buildup
Friday, 16 October 2009 00:00 By Raquel Bagnol - Reporter
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THE commonwealth should take advantage of government contracts for disadvantaged businesses to benefit from the military buildup on Guam.
This is one of the recommendations made by Project Management Operations LLC, a U.S.-based consultant of the CNMI government and the governor’s Strategic Economic Development Council.
The consultant prepared a 77-page draft document titled, “A Strategic Approach: Utilizing CNMI’s Natural Resources to Provide Complimentary Support to [Department of Defense] Guam.”
The high cost of freight from the CNMI to Guam, among other things, was raised in the comments and questions section of the draft document which pointed out that CNMI farmers may find it hard to compete for Department of Defense contracts against bigger competitors on Guam.
“The DoD will most likely not subsidize shipments from the CNMI, but there are some options available that CNMI should consider,” Project Management Operations said.
It added that the CNMI should take advantage of SBA HUBzone, 8a and Veteran designations.
The Small Business Administration HUBzone provides federal contracting opportunities for qualified small businesses located in distressed areas.
SBA’s 8(a) business development program is created to help small disadvantaged businesses compete in the American economy and get access the federal procurement market.
“This allows the CNMI businesses to go after government contracts set aside for disadvantaged businesses,” Project Management Operations said.
It said the commonwealth should come up with a packaged solution to the military to utilize training operations and allow the use of CNMI ports for transportation of goods to and from Guam.
The public has until tomorrow to comment on the 77-page draft document which can be accessed on the CNMI Department of Commerce Web site, www.commerce.gov.mp.
Friday, 16 October 2009 00:00 By Raquel Bagnol - Reporter
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THE commonwealth should take advantage of government contracts for disadvantaged businesses to benefit from the military buildup on Guam.
This is one of the recommendations made by Project Management Operations LLC, a U.S.-based consultant of the CNMI government and the governor’s Strategic Economic Development Council.
The consultant prepared a 77-page draft document titled, “A Strategic Approach: Utilizing CNMI’s Natural Resources to Provide Complimentary Support to [Department of Defense] Guam.”
The high cost of freight from the CNMI to Guam, among other things, was raised in the comments and questions section of the draft document which pointed out that CNMI farmers may find it hard to compete for Department of Defense contracts against bigger competitors on Guam.
“The DoD will most likely not subsidize shipments from the CNMI, but there are some options available that CNMI should consider,” Project Management Operations said.
It added that the CNMI should take advantage of SBA HUBzone, 8a and Veteran designations.
The Small Business Administration HUBzone provides federal contracting opportunities for qualified small businesses located in distressed areas.
SBA’s 8(a) business development program is created to help small disadvantaged businesses compete in the American economy and get access the federal procurement market.
“This allows the CNMI businesses to go after government contracts set aside for disadvantaged businesses,” Project Management Operations said.
It said the commonwealth should come up with a packaged solution to the military to utilize training operations and allow the use of CNMI ports for transportation of goods to and from Guam.
The public has until tomorrow to comment on the 77-page draft document which can be accessed on the CNMI Department of Commerce Web site, www.commerce.gov.mp.
Tuesday, October 13, 2009
CNMI to 'support' Guam on military buildup
77-page draft document seeks public input
By Haidee V. Eugenio
Reporter
The CNMI plans to provide operational support and services to Guam instead of viewing the neighbor island as a “competition” to maximize benefits from the $15-billion, multi-year U.S. military buildup in Guam.
This highlights the 77-page draft document, “A Strategic Approach: Utilizing CNMI's Natural Resources to Provide Complimentary [sic] Support to DoD Guam.”
The publication of the document marks the first time that the CNMI government has come up with a written plan on how to benefit from the movement of some 8,000 Marines from Okinawa to Guam, some 17,000 family members, and up to 20,000 federal construction workers to the island.
The public has until this Friday, Oct. 16, to comment on the draft document.
These operational and support services, which are detailed in the draft report, include the CNMI providing airport and seaport facilities for deployment, training and relocation; provide ground forces training areas; provide storage facilities; provide solid food like “meals ready to eat” for military personnel; catering services; and lastly, provide a rest and recreation destination for military personnel.
Project Management Operations LLC, a Colorado-based global provider of project management and information technology operation consulting services, prepared the draft document as consultants to the CNMI Department of Commerce and Gov. Benigno R. Fitial's Strategic Economic Development Council (SEDC).
In recent months, top U.S. military officials, including Navy Secretary Ray Mabus, visited Saipan as part of a familiarization tour in the Pacific region.
So far, however, the U.S. military has not announced concrete plans for the CNMI when it comes to the buildup on Guam.
Press secretary Charles Reyes, when asked for comment on the draft document yesterday, said the U.S. military regional buildup is strongly viewed as one of the main sources of economic opportunity for an economic recovery, in a critical period under federalization.
He said the CNMI government and the CNMI private business sector are closely collaborating to maximize the economic benefits and reduce the costs of the Marianas U.S. military buildup.
“We want to make sure that the CNMI works with Guam, the federal government, the military, and all stakeholders to ensure a smooth transition into a new economy with federalization and the U.S. military buildup. This effort is but a starting point. Much still needs to be done. We must also coordinate our efforts with the Tinian leadership,” Reyes told Saipan Tribune.
The federal government will take over CNMI immigration by Nov. 28, 2009 as mandated by U.S. Public Law 110-229 or the Consolidated Natural Resources Act.
Among other things, the CNMI may lose its critical Chinese and Russian tourist markets under the visa waiver program of the federalization law. This means millions in tourism revenue loss for the CNMI.
But the void left by these two tourist market, should no legislative fix or administrative fix occur, can be filled up by economic benefits of the regional military buildup in Guam.
Strategic goal
The draft document's goal is to emphasize military opportunities associated with the regional buildup as the CNMI tries to understand how the military buildup can be beneficial to its people.
Currently, there are three recommended choices of strategy:
1. Treat Guam as the competition regarding military operations and service support;
2. Recognize Guam as an ally and offer complementary operational support and services; and
3. Maintain status quo by continuing to market the CNMI's natural resources to the surrounding populations.
Consultants Project Management Operations LLC, in the draft document, recommends for the CNMI to choose option 2 - be a complement to Guam's military buildup with the following strategy focuses in order of importance: operational support; supply and maintenance; and quality of life services.
“If the CNMI views Guam as a partner, then together, the communities can provide a complementary set of operational support, supply and services, along with the opportunities to utilize the natural resources and beauty that the CNMI offers. The islands can enjoy the successes of Guam and reap the benefits of the increased revenue opportunities for the near and long term alike,” the draft document said.
If the CNMI views Guam as its competition regarding military operations and support “then the CNMI has lost,” the consultants said.
CNMI military opportunities
The CNMI, being a U.S. territory and its capital island of Saipan only 120 miles from Guam, can provide alternate airport and seaport facilities that could be used to enhance training opportunities for deployment training, and operations and maintenance logistics function, the document said.
In addition to the training opportunities, the airfield operations facilities, supported by the U.S. Air Force Guam operations staff, provide alternate hangar capacity in the case of relocation of aircraft and crews due to mission requirements and/or weather.
“The CNMI's natural resources and proximity to the other forces in the region give it a unique competitive advantage that should be explored. The CNMI's unique situation provides the DoD with an excellent option for training and support services,” the consultants said.
The CNMI's resources can also be used to provide surface training areas.
For example, a small arms training range, which is being planned for Tinian, is an excellent way for the CNMI to use its resources to meet the needs of the Marines and take advantage of the chance to provide critical operational support while gaining the opportunity to receive capital investment into the CNMI economy.
Historically, ranges of this nature have been estimated to provide between $10 million and $25 million in capital investment into the construction of the project.
“The CNMI has the opportunity to propose further capital investments by offering land for ammunition storage facilities on Tinian. The users of this range will require ammunition for each training rotation,” the draft document said.
Other potential and specific opportunities the CNMI may have with the U.S. Department of Defense: port of embarkation and debarkation; staging of prepositioned equipment; deployment support; deployment training; and ground forces training.
“Overall, [this gives] the best opportunity for the CNMI to show its awareness of the DoD's needs and to demonstrate its willingness to support the U.S. mission in the region. The CNMI needs to move swiftly, but surely, to secure a seat at the table when support operations are being discussed,” the consultants said.
Under the military supply and maintenance support, the CNMI can provide fuel storage and distribution; water storage and distribution; waste removal and processing; food handling and distribution; provide meals, catering services, potable water and ice; provide depot and field level maintenance as well as electronic maintenance; and storage facilities of all kinds.
Lastly, the CNMI can be a place where military service personnel can relax.
“The calm waters and placid beaches set an amazing backdrop that can be utilized to provide the much needed rest and relaxation opportunities that the DoD provides to its service members and families,” the draft report said.
Wanted: Military liaison
Consultants Project Management Operations LLC, in the draft document, also recommended the CNMI's hiring of a military liaison “to help create the necessary relationships to effectively meet both the military's and the CNMI's requirements.”
“The CNMI needs that person who can build rapport by speaking the language and understanding the needs of the [Department of Defense] while maintaining vigilant support of the CNMI's resources, heritage and goals for providing support to the DoD and its allies,” the document reads.
A copy of the draft document is now available on the CNMI Department of Commerce website, www.commerce.gov.mp.
Comments on the draft document can be sent to commercedept@pticom.com.
By Haidee V. Eugenio
Reporter
The CNMI plans to provide operational support and services to Guam instead of viewing the neighbor island as a “competition” to maximize benefits from the $15-billion, multi-year U.S. military buildup in Guam.
This highlights the 77-page draft document, “A Strategic Approach: Utilizing CNMI's Natural Resources to Provide Complimentary [sic] Support to DoD Guam.”
The publication of the document marks the first time that the CNMI government has come up with a written plan on how to benefit from the movement of some 8,000 Marines from Okinawa to Guam, some 17,000 family members, and up to 20,000 federal construction workers to the island.
The public has until this Friday, Oct. 16, to comment on the draft document.
These operational and support services, which are detailed in the draft report, include the CNMI providing airport and seaport facilities for deployment, training and relocation; provide ground forces training areas; provide storage facilities; provide solid food like “meals ready to eat” for military personnel; catering services; and lastly, provide a rest and recreation destination for military personnel.
Project Management Operations LLC, a Colorado-based global provider of project management and information technology operation consulting services, prepared the draft document as consultants to the CNMI Department of Commerce and Gov. Benigno R. Fitial's Strategic Economic Development Council (SEDC).
In recent months, top U.S. military officials, including Navy Secretary Ray Mabus, visited Saipan as part of a familiarization tour in the Pacific region.
So far, however, the U.S. military has not announced concrete plans for the CNMI when it comes to the buildup on Guam.
Press secretary Charles Reyes, when asked for comment on the draft document yesterday, said the U.S. military regional buildup is strongly viewed as one of the main sources of economic opportunity for an economic recovery, in a critical period under federalization.
He said the CNMI government and the CNMI private business sector are closely collaborating to maximize the economic benefits and reduce the costs of the Marianas U.S. military buildup.
“We want to make sure that the CNMI works with Guam, the federal government, the military, and all stakeholders to ensure a smooth transition into a new economy with federalization and the U.S. military buildup. This effort is but a starting point. Much still needs to be done. We must also coordinate our efforts with the Tinian leadership,” Reyes told Saipan Tribune.
The federal government will take over CNMI immigration by Nov. 28, 2009 as mandated by U.S. Public Law 110-229 or the Consolidated Natural Resources Act.
Among other things, the CNMI may lose its critical Chinese and Russian tourist markets under the visa waiver program of the federalization law. This means millions in tourism revenue loss for the CNMI.
But the void left by these two tourist market, should no legislative fix or administrative fix occur, can be filled up by economic benefits of the regional military buildup in Guam.
Strategic goal
The draft document's goal is to emphasize military opportunities associated with the regional buildup as the CNMI tries to understand how the military buildup can be beneficial to its people.
Currently, there are three recommended choices of strategy:
1. Treat Guam as the competition regarding military operations and service support;
2. Recognize Guam as an ally and offer complementary operational support and services; and
3. Maintain status quo by continuing to market the CNMI's natural resources to the surrounding populations.
Consultants Project Management Operations LLC, in the draft document, recommends for the CNMI to choose option 2 - be a complement to Guam's military buildup with the following strategy focuses in order of importance: operational support; supply and maintenance; and quality of life services.
“If the CNMI views Guam as a partner, then together, the communities can provide a complementary set of operational support, supply and services, along with the opportunities to utilize the natural resources and beauty that the CNMI offers. The islands can enjoy the successes of Guam and reap the benefits of the increased revenue opportunities for the near and long term alike,” the draft document said.
If the CNMI views Guam as its competition regarding military operations and support “then the CNMI has lost,” the consultants said.
CNMI military opportunities
The CNMI, being a U.S. territory and its capital island of Saipan only 120 miles from Guam, can provide alternate airport and seaport facilities that could be used to enhance training opportunities for deployment training, and operations and maintenance logistics function, the document said.
In addition to the training opportunities, the airfield operations facilities, supported by the U.S. Air Force Guam operations staff, provide alternate hangar capacity in the case of relocation of aircraft and crews due to mission requirements and/or weather.
“The CNMI's natural resources and proximity to the other forces in the region give it a unique competitive advantage that should be explored. The CNMI's unique situation provides the DoD with an excellent option for training and support services,” the consultants said.
The CNMI's resources can also be used to provide surface training areas.
For example, a small arms training range, which is being planned for Tinian, is an excellent way for the CNMI to use its resources to meet the needs of the Marines and take advantage of the chance to provide critical operational support while gaining the opportunity to receive capital investment into the CNMI economy.
Historically, ranges of this nature have been estimated to provide between $10 million and $25 million in capital investment into the construction of the project.
“The CNMI has the opportunity to propose further capital investments by offering land for ammunition storage facilities on Tinian. The users of this range will require ammunition for each training rotation,” the draft document said.
Other potential and specific opportunities the CNMI may have with the U.S. Department of Defense: port of embarkation and debarkation; staging of prepositioned equipment; deployment support; deployment training; and ground forces training.
“Overall, [this gives] the best opportunity for the CNMI to show its awareness of the DoD's needs and to demonstrate its willingness to support the U.S. mission in the region. The CNMI needs to move swiftly, but surely, to secure a seat at the table when support operations are being discussed,” the consultants said.
Under the military supply and maintenance support, the CNMI can provide fuel storage and distribution; water storage and distribution; waste removal and processing; food handling and distribution; provide meals, catering services, potable water and ice; provide depot and field level maintenance as well as electronic maintenance; and storage facilities of all kinds.
Lastly, the CNMI can be a place where military service personnel can relax.
“The calm waters and placid beaches set an amazing backdrop that can be utilized to provide the much needed rest and relaxation opportunities that the DoD provides to its service members and families,” the draft report said.
Wanted: Military liaison
Consultants Project Management Operations LLC, in the draft document, also recommended the CNMI's hiring of a military liaison “to help create the necessary relationships to effectively meet both the military's and the CNMI's requirements.”
“The CNMI needs that person who can build rapport by speaking the language and understanding the needs of the [Department of Defense] while maintaining vigilant support of the CNMI's resources, heritage and goals for providing support to the DoD and its allies,” the document reads.
A copy of the draft document is now available on the CNMI Department of Commerce website, www.commerce.gov.mp.
Comments on the draft document can be sent to commercedept@pticom.com.
Friday, September 11, 2009
Guam bureau supports MVA plea for federalization delay
By Moneth Deposa
Reporter
Saturday, September 12, 2009
The Guam Visitors Bureau has backed the position of its counterpart in the CNMI by adopting a resolution that supports a delay in the implementation of federalization by another year, or until Oct. 1, 2010.
GVB board chair David B. Tydingco, along with 12 other board members, is convinced the Department of Homeland Security is not ready to implement the Consolidated Natural Resources Act of 2008 on Nov. 28 this year.
That law, Public Law 110-229, extends the application of the Immigration and Nationality Act to the CNMI. Its intent is to establish six ports of entry in the Commonwealth to enable the Secretary of Homeland Security to administer and enforce the Guam-CNMI Visa Waiver Program, and to allow for the application of U.S. immigration laws in the CNMI.
It is also intended to establish requirements for nonimmigrant visitors wanting to go to Guam or the CNMI under the visa waiver program.
“The delay in implementation of P.L. 110-229 will allow time for the DHS to implement additional security measures such as electronic travel authorization, biometric entry-exit requirements, and other border patrol security infrastructure in the CNMI to address security concerns as well as cooperate with China in reducing the rate of nonimmigrant visa refusals,” the GVB resolution stated.
P.L. 110-229 excluded two important tourism markets-China and Russia-from the Guam-CNMI Visa Waiver Program.
Recently, the CNMI Marianas Visitors Authority adopted a resolution urging Guam Delegate Madeleine Bordallo and CNMI Delegate Gregorio Kilili C. Sablan to introduce legislation that would indefinitely delay the federalization law.
It cited, among other things, the impact to the CNMI of losing both Chinese and Russian markets.
MVA earlier disclosed that Russian and Chinese visitors accounted for 20 percent of the total number of tourists who visited the islands in FY 2008.
The agency estimated that it stands to lose $66.7 million in direct impact and $218.3 million in indirect impact in a 12-month period if it loses these markets.
The DHS had rejected the proposal to include Russia and China in the visa waiver program due to security and political concerns.
'Consensus'
Press secretary Charles Reyes Jr. welcomed yesterday the support shown by the Guam bureau.
“We welcome this development and we're very appreciative of their support to the CNMI tourism and economy,” he told Saipan Tribune.
Reyes said the resolution only shows that there is a “consensus” in the idea of delaying federalization.
“This is another indication of the consensus in this region. .We're all asking to delay the implementation,” he said, expressing hope that there will be positive action in Congress since majority in the affected areas have spoken their piece.
In the CNMI, the Fitial administration, Legislature, business groups, and community members have expressed their support to delay anew the law's implementation.
“It's not in our control [the decision to delay].but it's the right thing to do and we're going to fight for what is right whether it is feasible or not,” Reyes said, adding that everybody acknowledges that DHS is not ready at this time.
“We're united on this issue and there is no logical choice but to delay it.” he added.
Reporter
Saturday, September 12, 2009
The Guam Visitors Bureau has backed the position of its counterpart in the CNMI by adopting a resolution that supports a delay in the implementation of federalization by another year, or until Oct. 1, 2010.
GVB board chair David B. Tydingco, along with 12 other board members, is convinced the Department of Homeland Security is not ready to implement the Consolidated Natural Resources Act of 2008 on Nov. 28 this year.
That law, Public Law 110-229, extends the application of the Immigration and Nationality Act to the CNMI. Its intent is to establish six ports of entry in the Commonwealth to enable the Secretary of Homeland Security to administer and enforce the Guam-CNMI Visa Waiver Program, and to allow for the application of U.S. immigration laws in the CNMI.
It is also intended to establish requirements for nonimmigrant visitors wanting to go to Guam or the CNMI under the visa waiver program.
“The delay in implementation of P.L. 110-229 will allow time for the DHS to implement additional security measures such as electronic travel authorization, biometric entry-exit requirements, and other border patrol security infrastructure in the CNMI to address security concerns as well as cooperate with China in reducing the rate of nonimmigrant visa refusals,” the GVB resolution stated.
P.L. 110-229 excluded two important tourism markets-China and Russia-from the Guam-CNMI Visa Waiver Program.
Recently, the CNMI Marianas Visitors Authority adopted a resolution urging Guam Delegate Madeleine Bordallo and CNMI Delegate Gregorio Kilili C. Sablan to introduce legislation that would indefinitely delay the federalization law.
It cited, among other things, the impact to the CNMI of losing both Chinese and Russian markets.
MVA earlier disclosed that Russian and Chinese visitors accounted for 20 percent of the total number of tourists who visited the islands in FY 2008.
The agency estimated that it stands to lose $66.7 million in direct impact and $218.3 million in indirect impact in a 12-month period if it loses these markets.
The DHS had rejected the proposal to include Russia and China in the visa waiver program due to security and political concerns.
'Consensus'
Press secretary Charles Reyes Jr. welcomed yesterday the support shown by the Guam bureau.
“We welcome this development and we're very appreciative of their support to the CNMI tourism and economy,” he told Saipan Tribune.
Reyes said the resolution only shows that there is a “consensus” in the idea of delaying federalization.
“This is another indication of the consensus in this region. .We're all asking to delay the implementation,” he said, expressing hope that there will be positive action in Congress since majority in the affected areas have spoken their piece.
In the CNMI, the Fitial administration, Legislature, business groups, and community members have expressed their support to delay anew the law's implementation.
“It's not in our control [the decision to delay].but it's the right thing to do and we're going to fight for what is right whether it is feasible or not,” Reyes said, adding that everybody acknowledges that DHS is not ready at this time.
“We're united on this issue and there is no logical choice but to delay it.” he added.
Sunday, September 06, 2009
MVA: Delay federalization
Monday, 07 September 2009 00:00 By Gemma Q. Casas - Variety News Staff
THE board of directors of the Marianas Visitors Authority has adopted a resolution urging Guam Congresswoman Madeleine Bordallo and CNMI Congressman Gregorio C. Sablan to introduce legislation delaying indefinitely the law mandating the U.S. Department of Homeland Security to run the local immigration system, or until Russia and China are included in the Guam-CNMI Visa Waiver Program.
The board said the ease of travel that Russian and Chinese tourists currently enjoy when visiting the territories should be continued even if the immigration system of the CNMI is federalized starting Nov. 28.
According to MVA, Russia and Chinese markets accounted for nearly 20 percent of the total tourists who visited the islands during fiscal year 2008.
“Based on this estimate and given a time frame of 12 months before the security measures are in place, the CNMI stands to lose $66,795,809 in direct impact and $218,371,673 in indirect impact. For islands that are dependent on a single industry — tourism — it is not difficult to imagine what this economic loss will have on the businesses and the people of the CNMI,” the MVA resolution reads.
“Considering the significant economic benefit of visitors from [China] and Russia, any interruption in their access to the NMI would have a detrimental and long-standing effect on the economy and the livelihood of the people,” the resolution further stated.
MVA Chairman Jerry Tan, Vice Chairwoman Marian Aldan-Pierce, treasurer Yoichi Matsumura, secretary Kazusuke Fukuju and members Emma Villagomez, Edward Maratita, Byung Kyu Park and Wayne Pangelinan signed the resolution which was then transmitted to Sablan, Bordallo and other U.S. lawmakers, including House Committee on Natural Resources Chairman Nick Rahall, D-WV.
MVA said studies indicate that the CNMI should develop other niche markets because sophisticated and seasoned travelers from Japan are more than likely to travel outside of an organized tour and head to similar Asian tropical destinations that are priced cheaper and offer better sceneries than the islands.
DHS rejected the proposal to include Russia and China in the Guam-CNMI Visa Waiver Program citing security and political concerns as main reasons.
THE board of directors of the Marianas Visitors Authority has adopted a resolution urging Guam Congresswoman Madeleine Bordallo and CNMI Congressman Gregorio C. Sablan to introduce legislation delaying indefinitely the law mandating the U.S. Department of Homeland Security to run the local immigration system, or until Russia and China are included in the Guam-CNMI Visa Waiver Program.
The board said the ease of travel that Russian and Chinese tourists currently enjoy when visiting the territories should be continued even if the immigration system of the CNMI is federalized starting Nov. 28.
According to MVA, Russia and Chinese markets accounted for nearly 20 percent of the total tourists who visited the islands during fiscal year 2008.
“Based on this estimate and given a time frame of 12 months before the security measures are in place, the CNMI stands to lose $66,795,809 in direct impact and $218,371,673 in indirect impact. For islands that are dependent on a single industry — tourism — it is not difficult to imagine what this economic loss will have on the businesses and the people of the CNMI,” the MVA resolution reads.
“Considering the significant economic benefit of visitors from [China] and Russia, any interruption in their access to the NMI would have a detrimental and long-standing effect on the economy and the livelihood of the people,” the resolution further stated.
MVA Chairman Jerry Tan, Vice Chairwoman Marian Aldan-Pierce, treasurer Yoichi Matsumura, secretary Kazusuke Fukuju and members Emma Villagomez, Edward Maratita, Byung Kyu Park and Wayne Pangelinan signed the resolution which was then transmitted to Sablan, Bordallo and other U.S. lawmakers, including House Committee on Natural Resources Chairman Nick Rahall, D-WV.
MVA said studies indicate that the CNMI should develop other niche markets because sophisticated and seasoned travelers from Japan are more than likely to travel outside of an organized tour and head to similar Asian tropical destinations that are priced cheaper and offer better sceneries than the islands.
DHS rejected the proposal to include Russia and China in the Guam-CNMI Visa Waiver Program citing security and political concerns as main reasons.
Thursday, April 02, 2009
30 Tinian Farmers May Be Displaced by the US Military
30 Tinian farmers, ranchers may be displaced by the US military
By Moneth Deposa
Reporter
The Saipan Tribune
April 3, 2009
A significant number of farmers, ranchers, and hog raisers on Tinian are expected to be displaced if the U.S. military decides to fully utilize the property it leased on the island.
According to the Tinian Legislative Delegation, up to 30 ranchers and farmers -- about 80 percent of the island's agriculture sector -- would be affected and the municipality needs to find a site soon for their relocation.
Delegation chair Sen. Joseph Mendiola said final plans detailing what specific part of Tinian will be used for military exercises and training will be presented to the island's leaders in July.
The U.S. military holds the lease to about two-thirds of available land on Tinian.
“We don't know yet the final plans for Tinian. Up to this time, we're still waiting word from the military, which is also coordinating with the municipality and the governor. [There is] no final word yet if all two-thirds of Tinian would be used for their training sites,” he said.
Without the military's confirmation, the delegation cannot plan for the future of its farmers and ranchers, Mendiola said.
Although the Tinian community is counting on the positive economic impact of the buildup, they are also concerned about possible displacement.
“A lot of farmers and ranchers would be displaced if they [U.S. military] decide to use the entire two-thirds of Tinian,” Mendiola said
The senator said some public lands on Tinian may be identified as new sites for the farmers and ranchers.
If it were up to him, Mendiola said, he prefers that the military use the North Field as an exclusive military training ground.
He added that the island's airport is close to the U.S. military's leased property and problems may arise if the area is used for live-fire training and other military exercises.
The transfer of some 8,000 Marines from Okinawa, Japan to Guam starting in 2012 is projected to benefit the CNMI, particularly Tinian.
However, Mendiola said, even the approximate number of U.S. Marines who will be assigned to Tinian is not known yet.
“Even that number is not available to us.we're still on a 'waiting game,'” he said, adding that whatever recommendation the CNMI leadership may have for the military would be supported by the delegation.
http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=89101
By Moneth Deposa
Reporter
The Saipan Tribune
April 3, 2009
A significant number of farmers, ranchers, and hog raisers on Tinian are expected to be displaced if the U.S. military decides to fully utilize the property it leased on the island.
According to the Tinian Legislative Delegation, up to 30 ranchers and farmers -- about 80 percent of the island's agriculture sector -- would be affected and the municipality needs to find a site soon for their relocation.
Delegation chair Sen. Joseph Mendiola said final plans detailing what specific part of Tinian will be used for military exercises and training will be presented to the island's leaders in July.
The U.S. military holds the lease to about two-thirds of available land on Tinian.
“We don't know yet the final plans for Tinian. Up to this time, we're still waiting word from the military, which is also coordinating with the municipality and the governor. [There is] no final word yet if all two-thirds of Tinian would be used for their training sites,” he said.
Without the military's confirmation, the delegation cannot plan for the future of its farmers and ranchers, Mendiola said.
Although the Tinian community is counting on the positive economic impact of the buildup, they are also concerned about possible displacement.
“A lot of farmers and ranchers would be displaced if they [U.S. military] decide to use the entire two-thirds of Tinian,” Mendiola said
The senator said some public lands on Tinian may be identified as new sites for the farmers and ranchers.
If it were up to him, Mendiola said, he prefers that the military use the North Field as an exclusive military training ground.
He added that the island's airport is close to the U.S. military's leased property and problems may arise if the area is used for live-fire training and other military exercises.
The transfer of some 8,000 Marines from Okinawa, Japan to Guam starting in 2012 is projected to benefit the CNMI, particularly Tinian.
However, Mendiola said, even the approximate number of U.S. Marines who will be assigned to Tinian is not known yet.
“Even that number is not available to us.we're still on a 'waiting game,'” he said, adding that whatever recommendation the CNMI leadership may have for the military would be supported by the delegation.
http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=89101
Marianas Buildup, Not Guam Buildup
'Marianas buildup, not Guam military buildup'
By Haidee V. Eugenio
Reporter
Saipan Tribune
April 3, 2009
Guam Lt. Gov. Michael Cruz yesterday said he and Gov. Felix P. Camacho propose to rename what has long been known as the Guam military buildup to “Marianas buildup,” and both look to forming a regional economic task force to tap a projected $2 billion to $4 billion in annual defense-related contracts associated with the influx of military personnel on Guam.
Cruz was the keynote speaker at yesterday's opening of the two-day 2009 Economic Restoration Summit, which drew over a hundred businessmen and government officials from the CNMI and Guam.
He talked about the growing need for a regional approach to the economic challenges faced by the Marianas.
“I firmly believe that Guam's strategic value would diminish if not for the assets of the CNMI. The complexity of current military operations and the security requirements which accompany them cannot be resolved by one island alone,” Cruz told participants in the summit held at the Fiesta Resort and Spa in Garapan.
Jobs
In his remarks, Cruz said he and Camacho propose a regional program in which the CNMI government will share experts with Guam for up to four years, with taxes paid to the Commonwealth to ensure critical government services.
Cruz said the next four years will increase Guam's need for tax enforcement officers, building inspectors, environmental health inspectors, policy specialists and public safety officers.
Although Guam will train its people to meet the increased demand, the number of needed positions requires that it finds other sources such as the CNMI.
“If the CNMI has an excess of these officials, we believe our governments can engage in a program of shared expertise during the peak years of the buildup,” he said.
The program, according to Cruz, would allow the region to share in Guam's future prosperity and by giving jobs to people.
Opportunities
CNMI Gov. Benigno R. Fitial, in his welcoming remarks, recognized the military buildup and the federal stimulus funding as opportunities for the islands.
The summit identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI, and brought together experts, entrepreneurs, lawmakers and other policymakers to help develop these industries.
Results of the summit will be presented at the U.S. Department of the Interior-sponsored Business Opportunities in the Islands Conference in Hawaii from April 6 to 8.
In an interview, Cruz recognized the CNMI's growing interest in agriculture and aquaculture which on Guam, “unfortunately, is sort of a dying industry because of multiple concerns, and the increasing price of land.”
Reducing the cost of shipping goods from the CNMI to Guam, he said, is a key area of cooperation.
“Gov. Felix Camacho has been very strong about ensuring the region benefits from the prosperity that Guam is going to see. A healthy region is a healthy Guam, and a healthy Guam should mean a healthy region,” Cruz said.
He added that the Marianas buildup recognizes the various impacts the military relocation will have on the islands, which need to work collaboratively to share in the success coming their way.
“This region must deal with a higher military profile, a large population influx, and a severe lack of skilled labor. If we do not meet our challenges together, we will be divided by them.” he added.
To implement this concept, Cruz and Camacho propose the creation of a regional economic task force that will use the Marianas buildup as the initial engine to address the region's economic concerns.
The proposed economic task force is seen to explore continued collaboration on the guest worker program to ensure new federal regulations address the region's shared concerns.
Accompanying Cruz on Saipan for the summit was his chief of staff, Carlotta De Leon Guerrero, a former TV anchor on Saipan.
Difficulties
Businesses in the CNMI and Guam experience significant difficulty identifying federal contracts and obtaining them, according to Cruz.
While companies with Guam addresses transacted approximately $250 million with the federal government last year, only less than 10 percent of the companies in Guam actually performed the work, he said.
“With a projected $2 billion to $4 billion per year in defense-related contracts associated with the buildup, companies throughout Guam, the CNMI and Micronesia must participate in these good times, especially after we survived the hard times,” said Cruz.
Over the next four years, Guam's population is expected to grow by 28 to 30 percent-the equivalent of some 22 years of population growth occurring in less than a third of that time.
Cruz said the government of Guam is spearheading efforts to prepare for the buildup, but these efforts are not for the military alone.
A dramatic increase in the population requires an upgrade to public services such as health, education, public safety, cultural preservation and economic development.
No easy solutions
Fitial, in his welcoming remarks at the summit, said it's not an easy task to develop promising new industries because of a dramatic change in the economic environment.
For example, the CNMI no longer holds its traditional competitive advantages such as local control of minimum wage rates, local control of immigration, and duty-free access to U.S. markets via Headnote 3(a) provision.
There may be no easy solutions, he said, but the Economic Restoration Summit represents a “good, healthy starting point.”
Fitial thanked former Supreme Court chief justice Jose S. Dela Cruz and others for publicly calling for an economic summit to discuss the CNMI's problems. He also thanked Commerce Secretary Michael Ada for organizing the summit along with other public and private sector agencies such as CDA, Northern Marianas College, and IT&E.
The well organized summit, co-sponsored by the Department of Commerce and the Commonwealth Development Authority, identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI.
Commerce Secretary Ada presented the Commonwealth Economic Development Strategy, which serves as a master plan for the CNMI's economic development. Among the priority projects involve the Commonwealth Utilities Corp., inter-island super ferry, alternative energy, and housing. Ada also provided an update on CNMI efforts to tap into the American Recovery and Reinvestment Act, or the federal stimulus package.
Dr. Arthur L. Smith, president of consulting firm Management Analysis Inc., said with half-a-billion dollar in proposed projects, the cost of which is more than three times the CNMI's annual budget, there is increased opportunity for public-private partnership.
He cited as examples the CUC power plant 1, Garapan Elementary School, Garapan redevelopment, Pinatang Beach Park, alternative energy and international sports complex as areas in which public-private partnership can benefit the CNMI.
Sergio Loya, project manager of MAI, presented the results of discussions on aquaculture, agriculture and edu-tourism. Each was followed by presentations of experts and entrepreneurs, including Dr. Shaun Moss of the Oceanic Institute who talked about aquaculture; businessman Tony Pellegrino, who talked about agriculture; and Wayne Pangelinan, who talked about edu-tourism.
The summit was broadcast through video teleconference to Rota and Tinian participants, who were also able to ask the presenters questions.
http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=89102
By Haidee V. Eugenio
Reporter
Saipan Tribune
April 3, 2009
Guam Lt. Gov. Michael Cruz yesterday said he and Gov. Felix P. Camacho propose to rename what has long been known as the Guam military buildup to “Marianas buildup,” and both look to forming a regional economic task force to tap a projected $2 billion to $4 billion in annual defense-related contracts associated with the influx of military personnel on Guam.
Cruz was the keynote speaker at yesterday's opening of the two-day 2009 Economic Restoration Summit, which drew over a hundred businessmen and government officials from the CNMI and Guam.
He talked about the growing need for a regional approach to the economic challenges faced by the Marianas.
“I firmly believe that Guam's strategic value would diminish if not for the assets of the CNMI. The complexity of current military operations and the security requirements which accompany them cannot be resolved by one island alone,” Cruz told participants in the summit held at the Fiesta Resort and Spa in Garapan.
Jobs
In his remarks, Cruz said he and Camacho propose a regional program in which the CNMI government will share experts with Guam for up to four years, with taxes paid to the Commonwealth to ensure critical government services.
Cruz said the next four years will increase Guam's need for tax enforcement officers, building inspectors, environmental health inspectors, policy specialists and public safety officers.
Although Guam will train its people to meet the increased demand, the number of needed positions requires that it finds other sources such as the CNMI.
“If the CNMI has an excess of these officials, we believe our governments can engage in a program of shared expertise during the peak years of the buildup,” he said.
The program, according to Cruz, would allow the region to share in Guam's future prosperity and by giving jobs to people.
Opportunities
CNMI Gov. Benigno R. Fitial, in his welcoming remarks, recognized the military buildup and the federal stimulus funding as opportunities for the islands.
The summit identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI, and brought together experts, entrepreneurs, lawmakers and other policymakers to help develop these industries.
Results of the summit will be presented at the U.S. Department of the Interior-sponsored Business Opportunities in the Islands Conference in Hawaii from April 6 to 8.
In an interview, Cruz recognized the CNMI's growing interest in agriculture and aquaculture which on Guam, “unfortunately, is sort of a dying industry because of multiple concerns, and the increasing price of land.”
Reducing the cost of shipping goods from the CNMI to Guam, he said, is a key area of cooperation.
“Gov. Felix Camacho has been very strong about ensuring the region benefits from the prosperity that Guam is going to see. A healthy region is a healthy Guam, and a healthy Guam should mean a healthy region,” Cruz said.
He added that the Marianas buildup recognizes the various impacts the military relocation will have on the islands, which need to work collaboratively to share in the success coming their way.
“This region must deal with a higher military profile, a large population influx, and a severe lack of skilled labor. If we do not meet our challenges together, we will be divided by them.” he added.
To implement this concept, Cruz and Camacho propose the creation of a regional economic task force that will use the Marianas buildup as the initial engine to address the region's economic concerns.
The proposed economic task force is seen to explore continued collaboration on the guest worker program to ensure new federal regulations address the region's shared concerns.
Accompanying Cruz on Saipan for the summit was his chief of staff, Carlotta De Leon Guerrero, a former TV anchor on Saipan.
Difficulties
Businesses in the CNMI and Guam experience significant difficulty identifying federal contracts and obtaining them, according to Cruz.
While companies with Guam addresses transacted approximately $250 million with the federal government last year, only less than 10 percent of the companies in Guam actually performed the work, he said.
“With a projected $2 billion to $4 billion per year in defense-related contracts associated with the buildup, companies throughout Guam, the CNMI and Micronesia must participate in these good times, especially after we survived the hard times,” said Cruz.
Over the next four years, Guam's population is expected to grow by 28 to 30 percent-the equivalent of some 22 years of population growth occurring in less than a third of that time.
Cruz said the government of Guam is spearheading efforts to prepare for the buildup, but these efforts are not for the military alone.
A dramatic increase in the population requires an upgrade to public services such as health, education, public safety, cultural preservation and economic development.
No easy solutions
Fitial, in his welcoming remarks at the summit, said it's not an easy task to develop promising new industries because of a dramatic change in the economic environment.
For example, the CNMI no longer holds its traditional competitive advantages such as local control of minimum wage rates, local control of immigration, and duty-free access to U.S. markets via Headnote 3(a) provision.
There may be no easy solutions, he said, but the Economic Restoration Summit represents a “good, healthy starting point.”
Fitial thanked former Supreme Court chief justice Jose S. Dela Cruz and others for publicly calling for an economic summit to discuss the CNMI's problems. He also thanked Commerce Secretary Michael Ada for organizing the summit along with other public and private sector agencies such as CDA, Northern Marianas College, and IT&E.
The well organized summit, co-sponsored by the Department of Commerce and the Commonwealth Development Authority, identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI.
Commerce Secretary Ada presented the Commonwealth Economic Development Strategy, which serves as a master plan for the CNMI's economic development. Among the priority projects involve the Commonwealth Utilities Corp., inter-island super ferry, alternative energy, and housing. Ada also provided an update on CNMI efforts to tap into the American Recovery and Reinvestment Act, or the federal stimulus package.
Dr. Arthur L. Smith, president of consulting firm Management Analysis Inc., said with half-a-billion dollar in proposed projects, the cost of which is more than three times the CNMI's annual budget, there is increased opportunity for public-private partnership.
He cited as examples the CUC power plant 1, Garapan Elementary School, Garapan redevelopment, Pinatang Beach Park, alternative energy and international sports complex as areas in which public-private partnership can benefit the CNMI.
Sergio Loya, project manager of MAI, presented the results of discussions on aquaculture, agriculture and edu-tourism. Each was followed by presentations of experts and entrepreneurs, including Dr. Shaun Moss of the Oceanic Institute who talked about aquaculture; businessman Tony Pellegrino, who talked about agriculture; and Wayne Pangelinan, who talked about edu-tourism.
The summit was broadcast through video teleconference to Rota and Tinian participants, who were also able to ask the presenters questions.
http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=89102
Saturday, February 07, 2009
US cable network airs episode on Saipan collapse
Friday, 06 February 2009 00:00 By Raquel Bagnol - Variety News Staff
Visiting Saipan nowadays is like coming back to what was once a thriving civilization that had been destroyed and abandoned
This was according to Adam Yamaguchi, a television correspondent and producer at Current TV, a cable network founded by former Vice President Al Gore.
He visited the island recently to document the “rise and sudden collapse of a tiny piece of America.”
The trailer for his documentary “The Battle of Saipan” is available online: http://current.com/items/89699623/battle_of_saipan_trailer.htm
“Saipan is a nice place that I would pay a lot of my own money to visit, but Saipan is facing one of the fastest economic collapses in history,” Yamaguchi said in the trailer.
He added, “The present battle of Saipan is an economic one, and throughout the islands you can see the victims.”
He said many of the foreign workers who came to work for garment factories are now loitering the island, jobless and have no means to go home.
He said some factory workers have resorted to prostitution just to survive.
The Current Web site includes an excerpt from “The Battle of Saipan” showing Yamaguchi talking with guest workers now in the sex trade. (http://current.com/items/89782146/adam_picks_up_a_prostitute.htm)
“Saipan used to have the best of both worlds — cheap labor to allow it to compete with the prices of garments in U.S. mainland manufacturers, and no quota on what it could ship to the mainland,” Yamaguchi said.
He added that a few years ago, 17,000 Chinese workers were making clothing in over three dozen garment factories, earning $3 an hour “which is just 60 percent of the minimum wage rate in the U.S. mainland,” Yamaguchi said.
All this ended when World Trade Organization rules took effect in 2005 following a 10-year transition period.
Now, garment factories in Third World countries, where labor is cheaper, can also export their apparel to the U.S. without quota restrictions.
“Once the ultimate globalization success story, the island of Saipan now faces one of the fastest economic collapses in history,” the Current Web site stated. “After suffering a harsh history of military struggles as well as a temporary economic boom after becoming a U.S. commonwealth, the island now stands devastated. Scores of factories remain empty, rotting shopping centers litter the country, and former factory workers turn to the sex industry for survival.”
Visiting Saipan nowadays is like coming back to what was once a thriving civilization that had been destroyed and abandoned
This was according to Adam Yamaguchi, a television correspondent and producer at Current TV, a cable network founded by former Vice President Al Gore.
He visited the island recently to document the “rise and sudden collapse of a tiny piece of America.”
The trailer for his documentary “The Battle of Saipan” is available online: http://current.com/items/89699623/battle_of_saipan_trailer.htm
“Saipan is a nice place that I would pay a lot of my own money to visit, but Saipan is facing one of the fastest economic collapses in history,” Yamaguchi said in the trailer.
He added, “The present battle of Saipan is an economic one, and throughout the islands you can see the victims.”
He said many of the foreign workers who came to work for garment factories are now loitering the island, jobless and have no means to go home.
He said some factory workers have resorted to prostitution just to survive.
The Current Web site includes an excerpt from “The Battle of Saipan” showing Yamaguchi talking with guest workers now in the sex trade. (http://current.com/items/89782146/adam_picks_up_a_prostitute.htm)
“Saipan used to have the best of both worlds — cheap labor to allow it to compete with the prices of garments in U.S. mainland manufacturers, and no quota on what it could ship to the mainland,” Yamaguchi said.
He added that a few years ago, 17,000 Chinese workers were making clothing in over three dozen garment factories, earning $3 an hour “which is just 60 percent of the minimum wage rate in the U.S. mainland,” Yamaguchi said.
All this ended when World Trade Organization rules took effect in 2005 following a 10-year transition period.
Now, garment factories in Third World countries, where labor is cheaper, can also export their apparel to the U.S. without quota restrictions.
“Once the ultimate globalization success story, the island of Saipan now faces one of the fastest economic collapses in history,” the Current Web site stated. “After suffering a harsh history of military struggles as well as a temporary economic boom after becoming a U.S. commonwealth, the island now stands devastated. Scores of factories remain empty, rotting shopping centers litter the country, and former factory workers turn to the sex industry for survival.”
Sunday, January 11, 2009
Camacho: ‘The enemy is us, not feds’
MONDAY, 12 JANUARY 2009 00:00
BY MONETH G. DEPOSA - VARIETY NEWS STAFF
Former Gov. Carlos S. Camacho says CNMI leaders should stop blaming the federal government for the problems they themselves created.
The CNMI’s first governor, Carlos S. Camacho, and first lt. governor, Francisco C. Ada, pose with the members of the commonwealth’s first cabinet during a historic gathering on Friday.
“They blame everything on the federal government but the enemy is us…not the feds,” he said during the gathering on Friday of the members of the first commonwealth administration for a special luncheon that marked the 31st anniversary of the CNMI government.
The CNMI’s first governor, Camacho, and first lt. governor, Francisco C. Ada, reminisced over lunch at the Hafa Adai Hotel with 10 members of their administration.
Camacho, a medical doctor, and former NMI District Administrator Ada beat the Territorial — which later became known as the Republican — ticket of businessman Jose C. “Joeten” Tenorio and then-NMI District Legislature Vice Speaker Olympio T. Borja in the first CNMI election in Nov. 1977.
Camacho-Ada garnered 2,986 votes while Tenorio-Borja received 2,864.
On Jan. 9, 1978, Camacho and the rest of the CNMI leadership were sworn into office.
He failed to get re-elected in 1981 and lost to Republican Pedro P. Tenorio. In 1985, Camacho teamed up with now Saipan Mayor Juan B. Tudela but they lost to Tenorio and then-Lt. Gov. Pete A. Tenorio.
Camacho, in an interview on Friday, said he was disappointed that the first CNMI inauguration day had been “neglected.”
Asked what he considers his administration’s legacy, he said: “Government discipline. I am so proud to have worked with the best group that demonstrated the values of perseverance and hard work.”
He said he and Ada organized Friday’s gathering to show their appreciation for their cabinet officials.
“We’re getting old and some of us have already died,” said the 71-year-old Camacho. “After 31 long years, this is the first time and probably…the last for the group. We just wanted to see everybody.”
Camacho said their group has already lost five of their members, including the resident representatives for Rota and Tinian, as well as the directors for public safety and the CNMI hospital.
Executive department heads back then were headed by directors.
Discipline
Camacho and Ada said they are saddened by the CNMI’s dismal conditions.
“Discipline is very important…and that’s what they’ve lost,” Camacho said.
“Problems cannot solely be blamed on others…. Now, they blame everything on the federal government,” he added.
Ada described the CNMI’s relation with the federal government during their time as “strong and excellent.”
The two former leaders welcome the federalization of local labor and immigration, saying “this is long overdue for the CNMI.”
They believed that the federalization lawsuit was filed because of “outside influence,” the current leadership’s inability to govern, greed and self-interest.
Ada said not a lot of their vetoes were overridden by the Legislature.
“There was cooperation and understanding between the executive and the lawmakers in our time,” he added.
Camacho said even though the CNMI had concerns with its relationship with Washington, D.C. “we didn’t fight the feds.
“There was a specific instance about food stamps that we we’re concerned about…but we didn’t quarrel with the feds,” the former governor recalled.
Camacho was governor from Jan. 1978 to Jan. 1982.
“We wanted to be known as the administration that laid the foundation for the CNMI,” he said. “We wanted the people to realize that we wanted to help them. We wanted to maintain our good relationship with the U.S. Congress and the rest of the federal government.”
Under his administration, he said telecommunications were privatized, the hospital and the international airport were built, the food stamp program was implemented, the Retirement Fund and Northern Marianas College were established.
Small government
The CNMI’s first director of finance and accounting, now Sen. Maria T. Pangelinan, D-Saipan, said the first CNMI budget amounted to $5 million.
“We had a small government,” she said.
“Everyone was very cooperative and there was discipline,” she added. “That was why we had a centralized channel of all information and it was very easy to work on the total financial picture of the government. Compared to what we’re experiencing at the present when it’s very hard to get actual data and financial information to make the best budget decision in setting goals for the government and making sure that taxpayers are being served properly.”
Back then, she said, there were fewer government employees and businesses.
“Fiscal management and government discipline” were the norm, she added.
“We underwent training during the transition period and there was a plan which we all followed,” she said. “But now, don’t have a plan which is very critical. The CNMI needs to have a plan — we have to have a roadmap to lead us where we’re going or we’ll get lost.”
Pangelinan believes that the CNMI should “reflect and start doing things right.”
800 employees
The CNMI’s first director of personnel, Felicitas Tee Abraham, said the government had 800 personnel at the time — compared to the over 4,000 it now employs.
She noted that the government is now “too loaded and too much.”
She said the administration then was focused on capacity-building of personnel.
Manuel A. Sablan, the CNMI’s first director of programs and budget, said Camacho worked closely with the federal government.
“We met constantly with the feds to see to it that we’re on the right track,” he said.
Sablan said the islands’ Covenant with the U.S. provided the tools to promote the islands’ economy.
Also attending the gathering were Isamu Abraham, the first director of public health; Vicente N. Santos, the director of political and public affairs; Jose C. Ayuyu, director of commerce and labor; Joaquin Q. DL. Guerrero, chief of administration; Francisco M. Diaz, the then-mayor of Saipan; Francisco Castro, director of immigration; Felix Sasamoto, director of the Emergency Management Office; and Soledad B. Sasamoto, the secretary of the lt. governor.
Also present were the CNMI’s former first lady Winnie P. Camacho, and Ines S. Ada, the wife of the former lt. governor.
BY MONETH G. DEPOSA - VARIETY NEWS STAFF
Former Gov. Carlos S. Camacho says CNMI leaders should stop blaming the federal government for the problems they themselves created.
The CNMI’s first governor, Carlos S. Camacho, and first lt. governor, Francisco C. Ada, pose with the members of the commonwealth’s first cabinet during a historic gathering on Friday.
“They blame everything on the federal government but the enemy is us…not the feds,” he said during the gathering on Friday of the members of the first commonwealth administration for a special luncheon that marked the 31st anniversary of the CNMI government.
The CNMI’s first governor, Camacho, and first lt. governor, Francisco C. Ada, reminisced over lunch at the Hafa Adai Hotel with 10 members of their administration.
Camacho, a medical doctor, and former NMI District Administrator Ada beat the Territorial — which later became known as the Republican — ticket of businessman Jose C. “Joeten” Tenorio and then-NMI District Legislature Vice Speaker Olympio T. Borja in the first CNMI election in Nov. 1977.
Camacho-Ada garnered 2,986 votes while Tenorio-Borja received 2,864.
On Jan. 9, 1978, Camacho and the rest of the CNMI leadership were sworn into office.
He failed to get re-elected in 1981 and lost to Republican Pedro P. Tenorio. In 1985, Camacho teamed up with now Saipan Mayor Juan B. Tudela but they lost to Tenorio and then-Lt. Gov. Pete A. Tenorio.
Camacho, in an interview on Friday, said he was disappointed that the first CNMI inauguration day had been “neglected.”
Asked what he considers his administration’s legacy, he said: “Government discipline. I am so proud to have worked with the best group that demonstrated the values of perseverance and hard work.”
He said he and Ada organized Friday’s gathering to show their appreciation for their cabinet officials.
“We’re getting old and some of us have already died,” said the 71-year-old Camacho. “After 31 long years, this is the first time and probably…the last for the group. We just wanted to see everybody.”
Camacho said their group has already lost five of their members, including the resident representatives for Rota and Tinian, as well as the directors for public safety and the CNMI hospital.
Executive department heads back then were headed by directors.
Discipline
Camacho and Ada said they are saddened by the CNMI’s dismal conditions.
“Discipline is very important…and that’s what they’ve lost,” Camacho said.
“Problems cannot solely be blamed on others…. Now, they blame everything on the federal government,” he added.
Ada described the CNMI’s relation with the federal government during their time as “strong and excellent.”
The two former leaders welcome the federalization of local labor and immigration, saying “this is long overdue for the CNMI.”
They believed that the federalization lawsuit was filed because of “outside influence,” the current leadership’s inability to govern, greed and self-interest.
Ada said not a lot of their vetoes were overridden by the Legislature.
“There was cooperation and understanding between the executive and the lawmakers in our time,” he added.
Camacho said even though the CNMI had concerns with its relationship with Washington, D.C. “we didn’t fight the feds.
“There was a specific instance about food stamps that we we’re concerned about…but we didn’t quarrel with the feds,” the former governor recalled.
Camacho was governor from Jan. 1978 to Jan. 1982.
“We wanted to be known as the administration that laid the foundation for the CNMI,” he said. “We wanted the people to realize that we wanted to help them. We wanted to maintain our good relationship with the U.S. Congress and the rest of the federal government.”
Under his administration, he said telecommunications were privatized, the hospital and the international airport were built, the food stamp program was implemented, the Retirement Fund and Northern Marianas College were established.
Small government
The CNMI’s first director of finance and accounting, now Sen. Maria T. Pangelinan, D-Saipan, said the first CNMI budget amounted to $5 million.
“We had a small government,” she said.
“Everyone was very cooperative and there was discipline,” she added. “That was why we had a centralized channel of all information and it was very easy to work on the total financial picture of the government. Compared to what we’re experiencing at the present when it’s very hard to get actual data and financial information to make the best budget decision in setting goals for the government and making sure that taxpayers are being served properly.”
Back then, she said, there were fewer government employees and businesses.
“Fiscal management and government discipline” were the norm, she added.
“We underwent training during the transition period and there was a plan which we all followed,” she said. “But now, don’t have a plan which is very critical. The CNMI needs to have a plan — we have to have a roadmap to lead us where we’re going or we’ll get lost.”
Pangelinan believes that the CNMI should “reflect and start doing things right.”
800 employees
The CNMI’s first director of personnel, Felicitas Tee Abraham, said the government had 800 personnel at the time — compared to the over 4,000 it now employs.
She noted that the government is now “too loaded and too much.”
She said the administration then was focused on capacity-building of personnel.
Manuel A. Sablan, the CNMI’s first director of programs and budget, said Camacho worked closely with the federal government.
“We met constantly with the feds to see to it that we’re on the right track,” he said.
Sablan said the islands’ Covenant with the U.S. provided the tools to promote the islands’ economy.
Also attending the gathering were Isamu Abraham, the first director of public health; Vicente N. Santos, the director of political and public affairs; Jose C. Ayuyu, director of commerce and labor; Joaquin Q. DL. Guerrero, chief of administration; Francisco M. Diaz, the then-mayor of Saipan; Francisco Castro, director of immigration; Felix Sasamoto, director of the Emergency Management Office; and Soledad B. Sasamoto, the secretary of the lt. governor.
Also present were the CNMI’s former first lady Winnie P. Camacho, and Ines S. Ada, the wife of the former lt. governor.
Tuesday, December 16, 2008
Feds Ask Court to Dismiss Fitial Lawsuit
Feds ask court to dismiss Fitial lawsuit
Wednesday, 17 December 2008
By Gemma Q. Casas
Marianas Variety News Staff
THE U.S. Department of Justice is asking the federal court in the nation’s capital to dismiss the Fitial administration’s federalization lawsuit, saying the governor’s arguments are “speculative and hypothetical.”
Gov. Benigno R. Fitial filed the lawsuit in the U.S. District Court for the District of Columbia on Sept. 12.
Theodore W. Atkinson, a trial attorney of the District Court Section of the Office of Immigration Litigation under the U.S. Department of Justice, argued in his four-page motion that there is no basis for the federal court to address the speculated disastrous impact of the federalization law.
“The action should be dismissed for four reasons: 1) the CNMI lacks standing to bring this action because the injuries alleged by the CNMI are not ‘concrete and particularized’ but are instead speculative and hypothetical; 2) even if the alleged harms are not speculative, the injuries alleged are too remote for the court to adequately address them at this time and thus the action is not ripe,” Atkinson stated.
He added: “The governor of the CNMI lacks standing to bring this action on behalf of the CNMI because he cannot show that he has protected ‘procedural interest’ that confers standing on him to bring this action; and 4) even if the CNMI has met its constitutional standing requirements, the action should be dismissed because the Covenant generally permits Congress to apply federal law to the CNMI and expressly and unambiguously permits Congress to apply the immigration and naturalization laws of the United States to the CNMI.”
Atkinson also submitted to the federal court 65 pages of memorandum of points and authorities to substantiate the DOJ’s position on the lawsuit which named as defendants Homeland Security Secretary Michael Chertoff and Labor Secretary Elaine Chao in their official capacities.
The governor’s lawyers have up to Jan. 16, 2009 to file a reply.
According to his lawsuit, the federalization law will be disastrous to the local economy, which is heavily dependent on cheap foreign workers.
Wednesday, 17 December 2008
By Gemma Q. Casas
Marianas Variety News Staff
THE U.S. Department of Justice is asking the federal court in the nation’s capital to dismiss the Fitial administration’s federalization lawsuit, saying the governor’s arguments are “speculative and hypothetical.”
Gov. Benigno R. Fitial filed the lawsuit in the U.S. District Court for the District of Columbia on Sept. 12.
Theodore W. Atkinson, a trial attorney of the District Court Section of the Office of Immigration Litigation under the U.S. Department of Justice, argued in his four-page motion that there is no basis for the federal court to address the speculated disastrous impact of the federalization law.
“The action should be dismissed for four reasons: 1) the CNMI lacks standing to bring this action because the injuries alleged by the CNMI are not ‘concrete and particularized’ but are instead speculative and hypothetical; 2) even if the alleged harms are not speculative, the injuries alleged are too remote for the court to adequately address them at this time and thus the action is not ripe,” Atkinson stated.
He added: “The governor of the CNMI lacks standing to bring this action on behalf of the CNMI because he cannot show that he has protected ‘procedural interest’ that confers standing on him to bring this action; and 4) even if the CNMI has met its constitutional standing requirements, the action should be dismissed because the Covenant generally permits Congress to apply federal law to the CNMI and expressly and unambiguously permits Congress to apply the immigration and naturalization laws of the United States to the CNMI.”
Atkinson also submitted to the federal court 65 pages of memorandum of points and authorities to substantiate the DOJ’s position on the lawsuit which named as defendants Homeland Security Secretary Michael Chertoff and Labor Secretary Elaine Chao in their official capacities.
The governor’s lawyers have up to Jan. 16, 2009 to file a reply.
According to his lawsuit, the federalization law will be disastrous to the local economy, which is heavily dependent on cheap foreign workers.
Sunday, November 23, 2008
Trade institute is racing against time
Monday, 24 November 2008 00:00 By Emmanuel T. Erediano - Variety News Staff
The newly established Northern Marianas Trades Institute has five years to produce a considerable number of skilled local residents to replace their nonresident counterparts who will be gone by Dec. 2014 as a result of the federalized immigration system that will take effect next year.
NMTI opened on July 15 to train local residents for jobs that are usually filled by guest workers who are willing to accept low wages.
Anthony Pellegrino, who owns a number of businesses on Saipan, said in an interview on Friday that even before the federalization law was enacted, he realized that the CNMI will have five and a half years to build an adequate local work force to replace the guest workers.
The Fitial administration believes that the federalization law will reduce to zero by Dec. 31, 2014 the number of nonresident workers who currently make up 80 percent of the CNMI’s total workforce in the private sector.
Most locals work for the public sector which pays much more than the private companies.
Pellegrino said as an investor who wants to continue doing business on Saipan, he had to think of plan that could at least mitigate the effect of federalization five years from now.
Human capital
Pellegrino said he established the trade institute because he believes the strength of any community lies in the trade skills of its populace.
His start-up money was $60,000 to $70,000 but the real investment here, he said, is motivation.
If a community’s natural resources are used up, the people will be poor forever, he said. But if people are educated, trained and skilled, a country can always become great, Pellegrino added, citing Japan, South Korea, Singapore and Taiwan as examples.
“They invested in their people. I call it human capital. The more educated and more skillful the people are the stronger we can become,” Pellegrino said.
In the case of the CNMI, Pellegrino said local residents will be left to continue running the economy under a federalized immigration and labor system.
Educating people in trades, he said, is a sustainable way to keep the CNMI economy growing.
“I strongly feel that if the CNMI trains its human resources it can become one of the finest jurisdictions in the entire Pacific area, but over the years, the local people have been discouraged from learning any trade. They have been elbowed out of the market place because of the abundant supply of inexpensive or low-waged workers,” he said.
Head start
Three weeks ago, 26 local students completed the three-month pre-requisite course at the institute.
They now have to choose any of NMTI’s trade courses —carpentry and painting, plumbing, electronics, sewing, cosmetics, hair styling and culinary arts.
Today, these students, will start to learn “hands-on,” Pellegrino said.
He said there is a great sense of pride and accomplishment among the local students.
Pellegrino is confident that NMTI will be able to produce skilled local residents before the last group guest workers leave the islands.
The only question is, would the number of skilled locals be enough to cover all the jobs that will be left vacant?
Pellegrino said 110 more local residents have enrolled.
The new enrollees, he said, are young men and women, 17 to 35 years old.
Most are jobless and do not have the same skills as guest workers have.
Unfinished job
Pellegrino recalls that when he opened the institute, there was not a trade school in place.
Northern Marianas College used to offer vocational training, but despite the tens of millions of dollars spent on the program, the enrollment and graduation rates for local residents were “appallingly low,” according to a government official.
The then-NMC officials said locals would have no motivation to learn trade skills if CNMI wages remained low.
Public Law 5-4 mandates that the portion of the guest workers’ application and renewal fees will fund NMC’s apprenticeship, vocational and trade training programs.
Public Law 6-4, or the NMC Vocational Education Program Act of 1988, established the college’s apprenticeship vocational management training program in secretarial science, bookkeeping and construction trades.
This program was supposed to be funded by fees collected from businesses that hired nonresident workers.
The programs had to be discontinued due to lack of students.
Some of the equipment like an electronic panel, woodwork tables and tools have not been used for years and are rusting already.
No future competition
The federalization law will fund a CNMI vocational school to train local residents for guest worker job.
Pellegrino said that if the local government establishes such school he will not compete with it.
He is willing to close NMTI once the federally required vocational school is established.
“I will be grateful if somebody will continue this for me,” he said, adding that he established NMTI just to show what the commonwealth can do to help itself.
The newly established Northern Marianas Trades Institute has five years to produce a considerable number of skilled local residents to replace their nonresident counterparts who will be gone by Dec. 2014 as a result of the federalized immigration system that will take effect next year.
NMTI opened on July 15 to train local residents for jobs that are usually filled by guest workers who are willing to accept low wages.
Anthony Pellegrino, who owns a number of businesses on Saipan, said in an interview on Friday that even before the federalization law was enacted, he realized that the CNMI will have five and a half years to build an adequate local work force to replace the guest workers.
The Fitial administration believes that the federalization law will reduce to zero by Dec. 31, 2014 the number of nonresident workers who currently make up 80 percent of the CNMI’s total workforce in the private sector.
Most locals work for the public sector which pays much more than the private companies.
Pellegrino said as an investor who wants to continue doing business on Saipan, he had to think of plan that could at least mitigate the effect of federalization five years from now.
Human capital
Pellegrino said he established the trade institute because he believes the strength of any community lies in the trade skills of its populace.
His start-up money was $60,000 to $70,000 but the real investment here, he said, is motivation.
If a community’s natural resources are used up, the people will be poor forever, he said. But if people are educated, trained and skilled, a country can always become great, Pellegrino added, citing Japan, South Korea, Singapore and Taiwan as examples.
“They invested in their people. I call it human capital. The more educated and more skillful the people are the stronger we can become,” Pellegrino said.
In the case of the CNMI, Pellegrino said local residents will be left to continue running the economy under a federalized immigration and labor system.
Educating people in trades, he said, is a sustainable way to keep the CNMI economy growing.
“I strongly feel that if the CNMI trains its human resources it can become one of the finest jurisdictions in the entire Pacific area, but over the years, the local people have been discouraged from learning any trade. They have been elbowed out of the market place because of the abundant supply of inexpensive or low-waged workers,” he said.
Head start
Three weeks ago, 26 local students completed the three-month pre-requisite course at the institute.
They now have to choose any of NMTI’s trade courses —carpentry and painting, plumbing, electronics, sewing, cosmetics, hair styling and culinary arts.
Today, these students, will start to learn “hands-on,” Pellegrino said.
He said there is a great sense of pride and accomplishment among the local students.
Pellegrino is confident that NMTI will be able to produce skilled local residents before the last group guest workers leave the islands.
The only question is, would the number of skilled locals be enough to cover all the jobs that will be left vacant?
Pellegrino said 110 more local residents have enrolled.
The new enrollees, he said, are young men and women, 17 to 35 years old.
Most are jobless and do not have the same skills as guest workers have.
Unfinished job
Pellegrino recalls that when he opened the institute, there was not a trade school in place.
Northern Marianas College used to offer vocational training, but despite the tens of millions of dollars spent on the program, the enrollment and graduation rates for local residents were “appallingly low,” according to a government official.
The then-NMC officials said locals would have no motivation to learn trade skills if CNMI wages remained low.
Public Law 5-4 mandates that the portion of the guest workers’ application and renewal fees will fund NMC’s apprenticeship, vocational and trade training programs.
Public Law 6-4, or the NMC Vocational Education Program Act of 1988, established the college’s apprenticeship vocational management training program in secretarial science, bookkeeping and construction trades.
This program was supposed to be funded by fees collected from businesses that hired nonresident workers.
The programs had to be discontinued due to lack of students.
Some of the equipment like an electronic panel, woodwork tables and tools have not been used for years and are rusting already.
No future competition
The federalization law will fund a CNMI vocational school to train local residents for guest worker job.
Pellegrino said that if the local government establishes such school he will not compete with it.
He is willing to close NMTI once the federally required vocational school is established.
“I will be grateful if somebody will continue this for me,” he said, adding that he established NMTI just to show what the commonwealth can do to help itself.
Report: Thousands of locals have already left NMI
Monday, 24 November 2008 00:00 By Junhan B. Todeno - Variety News Staff
Because of the economic crisis, more than 4,000 local residents have already moved to the states, according to the report conducted on the economic impact of federalization on the CNMI.
“Like American Samoans, people originally from the CNMI have established substantial communities on the mainland, particularly in the western states,” Malcolm D. McPhee & Associates said in its 96-page report.
The federally funded report was commissioned by the governor, who is now using its findings to support the lawsuit he filed against the federalization law.
Rota’s Sen. Paul A. Manglona and Rep. Victor B. Hocog have noted the “heavy exodus” of island residents seeking good paying jobs in the U.S.
Saipan Mayor Juan B. Tudela believes that four families “are leaving every week.”
According to the report, the loss of local residents will further damage the economy because it is reducing the local labor force.
“With no ability to replace those workers, the economy would slump even more,” the report stated.
It noted that the CNMI is losing its young and educated residents, which will reduce its chances for economic advancement in the future.
This reporter interviewed several local residents who were holding yard sales because they had decided to settle down in the states.
“We’re moving out by January next week,” a family in Koblerville said.
Another resident said they will join their relatives who are now in the states.
“In light of the lack of jobs, a decline in the standard of living, a deteriorating public sector, and the right to move freely to the states, which offer much higher paying jobs, it would be surprising if a substantial number of U.S qualified residents did not leave the CNMI,” the report said.
Former Speaker Oscar C. Rasa, the CNMI Descents for Self-Government and Indigenous Rights spokesman and adviser, said the exodus will continue “if we do nothing to counter this problem.”
The report said if there is no significant outmigration, the local economy will eventually settle down to a workable size, supporting about 16,000 jobs.
However, it added, with no ability to expand its workforce, the economy will ultimately stagnate.
“Because of distance and cultural differences, CNMI residents may be less inclined to move away from home than people in the rest of the United States. But it should be pointed that for years there has been a steady stream of American Samoans migrating to the states in search of better jobs and schools. Moreover, as Samoans have built communities in the states, it appears that the process of leaving home has become easier,” the report stated.
Because of the economic crisis, more than 4,000 local residents have already moved to the states, according to the report conducted on the economic impact of federalization on the CNMI.
“Like American Samoans, people originally from the CNMI have established substantial communities on the mainland, particularly in the western states,” Malcolm D. McPhee & Associates said in its 96-page report.
The federally funded report was commissioned by the governor, who is now using its findings to support the lawsuit he filed against the federalization law.
Rota’s Sen. Paul A. Manglona and Rep. Victor B. Hocog have noted the “heavy exodus” of island residents seeking good paying jobs in the U.S.
Saipan Mayor Juan B. Tudela believes that four families “are leaving every week.”
According to the report, the loss of local residents will further damage the economy because it is reducing the local labor force.
“With no ability to replace those workers, the economy would slump even more,” the report stated.
It noted that the CNMI is losing its young and educated residents, which will reduce its chances for economic advancement in the future.
This reporter interviewed several local residents who were holding yard sales because they had decided to settle down in the states.
“We’re moving out by January next week,” a family in Koblerville said.
Another resident said they will join their relatives who are now in the states.
“In light of the lack of jobs, a decline in the standard of living, a deteriorating public sector, and the right to move freely to the states, which offer much higher paying jobs, it would be surprising if a substantial number of U.S qualified residents did not leave the CNMI,” the report said.
Former Speaker Oscar C. Rasa, the CNMI Descents for Self-Government and Indigenous Rights spokesman and adviser, said the exodus will continue “if we do nothing to counter this problem.”
The report said if there is no significant outmigration, the local economy will eventually settle down to a workable size, supporting about 16,000 jobs.
However, it added, with no ability to expand its workforce, the economy will ultimately stagnate.
“Because of distance and cultural differences, CNMI residents may be less inclined to move away from home than people in the rest of the United States. But it should be pointed that for years there has been a steady stream of American Samoans migrating to the states in search of better jobs and schools. Moreover, as Samoans have built communities in the states, it appears that the process of leaving home has become easier,” the report stated.
Tuesday, November 11, 2008
Report: Depression under federalization
Wednesday, 12 November 2008 00:00 By Junhan B. Todeno - Variety News Staff
UNDER a federalized immigration system, the CNMI economy will lose approximately 44 percent of its real gross domestic product, 60 percent of its jobs, and 45 percent of its real personal income by 2015, according to a report commissioned by the governor.
“Unequivocally, this is a depression of great magnitude. It is equivalent to turning back the clock for the CNMI economy to 1985,” stated the report which was funded by a grant from the Office of Insular Affairs of the U.S. Department of the Interior.
Malcolm D. McPhee & Associates and Dick Conway, an economic development and research services based in Sequin, Washington, submitted the report on Oct. 31 to Gov. Benigno R. Fitial and to U.S. Interior Secretary Dirk Kempthorne.
Fitial has sued the federal government to prevent the implementation of the federalization law in June 2009.
Garment factories
According to the report, the demise of the local garment industry, which cannot compete with China’s cheap labor, resulted in the lost of more than 11,000 jobs in the CNMI.
In 2007, total employment fell by 35.6 percent drop from 2004.
In a short span of three years, the CNMI lost one-third of its economy, one that took more than 20 years to build, the report said.
Federalization, the report added, will compound the CNMI’s economic woes.
“The immigration measure could prove troublesome for the visitor industry, now the CNMI’s only driving force is the economy, because about 70 percent of its workers are non-U.S. citizens,” the report added.
“The outlook for the CNMI economy is bleak.”
According to the report, the last garment factory is expected to close in 2009, and the visitor industry, after one or two good years, will have to grapple with a declining workforce as foreign workers are forced to leave the islands under the federalization law.
“Even if local residents are willing to take the low wage jobs in hotels, restaurants, and retail stores — an assumption with little basis in past experience — the visitor industry will face a labor shortage,” the report said.
Recommendation
The report recommends the repeal of the federal statutes extending the U.S. minimum wage and immigration laws to the CNMI.
The CNMI, it added, should also seek federal assistance to small investors, and consider amending its Covenant with the U.S.
The CNMI, the report said, needs a law that recognizes the realities of its current economic situation and provides the necessary tools for recovery.
Future scenarios
The report said under the best of circumstances, business revenue and employment in the visitor industry will likely decline by 20 percent between 2010 and 2015.
Short of spending tens of millions of dollars to shore up education, healthcare, and other government functions, there is little that can be done to improve the local economy, the report stated.
Federalization, it added, will drive up production cost and cap the supply of labor in the CNMI economy — this will preclude any meaningful economic development in the future.
In contrast, the report stated, the return of reasonable local control over immigration and the minimum wage will allow the visitor industry to expand, making up for some of the jobs lost during the downturn of the apparel industry.
Labor mobility is just as essential to economic development and growth as is the mobility of capital, goods and services, and technology, the report stated.
“It might be said that the quicker way to ruin a small isolated island economy and prevent any real chance of recovery is to cut off its supply of labor,” the report added.
UNDER a federalized immigration system, the CNMI economy will lose approximately 44 percent of its real gross domestic product, 60 percent of its jobs, and 45 percent of its real personal income by 2015, according to a report commissioned by the governor.
“Unequivocally, this is a depression of great magnitude. It is equivalent to turning back the clock for the CNMI economy to 1985,” stated the report which was funded by a grant from the Office of Insular Affairs of the U.S. Department of the Interior.
Malcolm D. McPhee & Associates and Dick Conway, an economic development and research services based in Sequin, Washington, submitted the report on Oct. 31 to Gov. Benigno R. Fitial and to U.S. Interior Secretary Dirk Kempthorne.
Fitial has sued the federal government to prevent the implementation of the federalization law in June 2009.
Garment factories
According to the report, the demise of the local garment industry, which cannot compete with China’s cheap labor, resulted in the lost of more than 11,000 jobs in the CNMI.
In 2007, total employment fell by 35.6 percent drop from 2004.
In a short span of three years, the CNMI lost one-third of its economy, one that took more than 20 years to build, the report said.
Federalization, the report added, will compound the CNMI’s economic woes.
“The immigration measure could prove troublesome for the visitor industry, now the CNMI’s only driving force is the economy, because about 70 percent of its workers are non-U.S. citizens,” the report added.
“The outlook for the CNMI economy is bleak.”
According to the report, the last garment factory is expected to close in 2009, and the visitor industry, after one or two good years, will have to grapple with a declining workforce as foreign workers are forced to leave the islands under the federalization law.
“Even if local residents are willing to take the low wage jobs in hotels, restaurants, and retail stores — an assumption with little basis in past experience — the visitor industry will face a labor shortage,” the report said.
Recommendation
The report recommends the repeal of the federal statutes extending the U.S. minimum wage and immigration laws to the CNMI.
The CNMI, it added, should also seek federal assistance to small investors, and consider amending its Covenant with the U.S.
The CNMI, the report said, needs a law that recognizes the realities of its current economic situation and provides the necessary tools for recovery.
Future scenarios
The report said under the best of circumstances, business revenue and employment in the visitor industry will likely decline by 20 percent between 2010 and 2015.
Short of spending tens of millions of dollars to shore up education, healthcare, and other government functions, there is little that can be done to improve the local economy, the report stated.
Federalization, it added, will drive up production cost and cap the supply of labor in the CNMI economy — this will preclude any meaningful economic development in the future.
In contrast, the report stated, the return of reasonable local control over immigration and the minimum wage will allow the visitor industry to expand, making up for some of the jobs lost during the downturn of the apparel industry.
Labor mobility is just as essential to economic development and growth as is the mobility of capital, goods and services, and technology, the report stated.
“It might be said that the quicker way to ruin a small isolated island economy and prevent any real chance of recovery is to cut off its supply of labor,” the report added.
Saturday, May 03, 2008
CNMI to be included in DOD Economic Program
NMI to be included in DOD Economic Program
Press Release
Published in the Saipan Tribune
5/3/08
CNMI Resident Representative Pete A. Tenorio announced yesterday that a vital amendment to Department of Defense Programs has been introduced. Sponsored by Guam Rep. Madeleine Bordallo, H.R. 5931, the Joint Guam Projects Oversight Act, includes a section that proposes to include the CNMI and the Virgin Islands in the authorizing legislation for the Office of Economic Adjustment.
The OEA is responsible for the planning, directing, coordinating and managing of DoD economic adjustment programs for communities, areas, and states adversely affected by DoD realignment actions. It also assists local communities, areas, or states with special impact assistance in expanding public service facilities to meet requirements generated by major expansions or the establishment of new DoD installations.
“This is a major step forward in preparing for the relocation of marines to Guam from Okinawa. Even though DOD has not yet released their final plans for the relocation, it is important that the CNMI is eligible for these impact grants,” said Tenorio. “I am thankful to.Bordallo for including this provision in her bill, and looking out for our interests.”
The section is also included in the 2009 Defense Authorization bill that is currently under consideration by House Armed Services Committee.
“OEA grants will be essential for repairs to Tinian's harbor and other infrastructure to support DOD's plans for use of their land. I am very thankful to the Tinian Delegation and Phil Long for bringing this need to my attention,” said Tenorio.
Press Release
Published in the Saipan Tribune
5/3/08
CNMI Resident Representative Pete A. Tenorio announced yesterday that a vital amendment to Department of Defense Programs has been introduced. Sponsored by Guam Rep. Madeleine Bordallo, H.R. 5931, the Joint Guam Projects Oversight Act, includes a section that proposes to include the CNMI and the Virgin Islands in the authorizing legislation for the Office of Economic Adjustment.
The OEA is responsible for the planning, directing, coordinating and managing of DoD economic adjustment programs for communities, areas, and states adversely affected by DoD realignment actions. It also assists local communities, areas, or states with special impact assistance in expanding public service facilities to meet requirements generated by major expansions or the establishment of new DoD installations.
“This is a major step forward in preparing for the relocation of marines to Guam from Okinawa. Even though DOD has not yet released their final plans for the relocation, it is important that the CNMI is eligible for these impact grants,” said Tenorio. “I am thankful to.Bordallo for including this provision in her bill, and looking out for our interests.”
The section is also included in the 2009 Defense Authorization bill that is currently under consideration by House Armed Services Committee.
“OEA grants will be essential for repairs to Tinian's harbor and other infrastructure to support DOD's plans for use of their land. I am very thankful to the Tinian Delegation and Phil Long for bringing this need to my attention,” said Tenorio.
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