Deadline looms for comments
By Laura Matthews • Pacific Daily News • February 15, 2010
The 90-day period for the public to comment on the Draft Environmental Impact Statement is coming to a close.
Residents now have three days left to submit their comments and recommendations on the draft EIS for consideration by the Department of Defense regarding the transfer of Marines from Okinawa to Guam.
The comment period ends at midnight Feb. 17 in the U.S. mainland time, or 3 p.m. Feb. 18 on Guam.
About 8,000 Marines and their 9,000 dependents will be moving from Okinawa to the island by 2015. To prepare for their arrival, numerous construction projects must be completed. The buildup is expected to increase Guam's population by about 80,000, mostly from construction workers and others in jobs related to the buildup.
About 33,000 jobs will be created, the draft EIS said.
The draft EIS gives a detailed account of how Guam's community will change because of the buildup. The Joint Guam Program Office and a team of socioeconomic experts collected feedback from the Guam and CNMI governors, the Chambers of Commerce, other island resources and community experts to assess the impact of the relocation of Marines will have on the island's education, health-care services, employment opportunities, property values, crime, cost of living and other socioeconomic issues.
Hearings on the draft EIS have resulted in many comments from Guam residents about the buildup, including many expressing concern over possible changes.
But still there are some residents who haven't submitted a comment to the Department of Defense and don't intend to.
"The voice of the people here on Guam doesn't matter," said Agana Heights resident Victor Mendiola, 40. "Without the United States monitoring Guam, we would be in chaos."
Mendiola said because Guam has no factories and exports, the military is needed.
"Guam can survive without the buildup, but it can't survive without the military," Mendiola said. "The buildup will do something for us here."
Though he doesn't plan to submit comments on the military's proposed buildup, he has some concerns. Mendiola said the buildup will both benefit Guam and adversely affect it.
"What concerns me is the number of people coming here and the planning of the government," Mendiola said. "They don't plan for the next 10 years, you see. Guam doesn't have the infrastructure to sustain us even now. ... But as for bringing the military here, just consider them tourists -- they switch in and out, and they bring money."
Santa Rita resident Doris Mead, 52, said that's money that could stir Guam's economy. She doesn't plan to submit comments on the buildup either, but said she does support the buildup.
"That's more jobs and stuff like that and it helps out the island, more or less," Mead said. "The only concerns I have are water problems and power. Where I live, water pressure is very low now."
Recently, southern residents were asked to conserve water for six weeks as the Guam Waterworks Authority upgrades its Ugum treatment plant. The agency needs to close half of the plant while contractors install a new membrane filtration system.
'Big adjustment'
For Anabel Takai, a 47-year-old from Yigo, what worries her is what will happen in the job market. As a rooms manager at one of Guam's hotels, she believes new jobs associated with the buildup will snatch away good laborers.
"It's going to be a big adjustment," she said. "(The buildup) will start job openings and it will have an effect on wages. ... The minimum-wage workers will leave for the better-paying jobs."
Takai said she will submit her comments on the buildup before the deadline.
Showing posts with label Cost of Living. Show all posts
Showing posts with label Cost of Living. Show all posts
Wednesday, February 17, 2010
Wednesday, February 03, 2010
PNC :: GEDA: Buildup Comes With Some Big Negatives
PNC :: GEDA: Buildup Comes With Some Big Negatives
Friday, 29 January 2010
Guam - GEDA Administrator Tony Blaz has submitted his top concerns over the impact of the military buildup to Senator Frank Aguon Jr.'s Committee on Economic Development.
In his letter to Aguon, Blaz lists the following impacts and concerns:
*GRT, corporate income taxes and personal income taxes could be as high as $423 in 2014 and then declining to $104 million in 2017.
*There may be a time lag between when GovGuam revenues are needed and when they are available for use.
*The buildup would generate more demands on Guam for roads, ports sewer, water, power and other infrastructure and will increase the pressure for substantial borrowing.
Read GEDA's list of concerns and impacts
*Members of the military do not spend a great deal of their income in the local economy, especially if they are housed on base and buy their groceries on base. Currently only 12% of the enlisted military income is spent on Guam.
*The average annual income of military personnel is just $29-thousand dollars. 11,182 active duty personnel translates into a total annual payroll of #323 million. Just 12% will be spent in the local economy.
*Housing for the military will be provided by the military, not the Guam private market. Local shippers and wholesaler will increase sales to the military bases but when imported goods are sold on base, most of the value of those sales won't be realized and profits won't be reinvested locally.
*There will be a "recession-like" period after 2014 when business will have to lay off workers after the peak buildup period.
*Guam workers will likely see the cot of living continue to rise faster than their incomes.
*The cost of living during the construction phase could negatively affect households on fixed incomes, although other households could benefit from rising wages.
*Hotels could benefit conssiderably, but the service sector could undergo a difficult period due to loss of labor to higher paying jobs and pressure or increased wages.
Written by : Kevin Kerrigan
Friday, 29 January 2010
Guam - GEDA Administrator Tony Blaz has submitted his top concerns over the impact of the military buildup to Senator Frank Aguon Jr.'s Committee on Economic Development.
In his letter to Aguon, Blaz lists the following impacts and concerns:
*GRT, corporate income taxes and personal income taxes could be as high as $423 in 2014 and then declining to $104 million in 2017.
*There may be a time lag between when GovGuam revenues are needed and when they are available for use.
*The buildup would generate more demands on Guam for roads, ports sewer, water, power and other infrastructure and will increase the pressure for substantial borrowing.
Read GEDA's list of concerns and impacts
*Members of the military do not spend a great deal of their income in the local economy, especially if they are housed on base and buy their groceries on base. Currently only 12% of the enlisted military income is spent on Guam.
*The average annual income of military personnel is just $29-thousand dollars. 11,182 active duty personnel translates into a total annual payroll of #323 million. Just 12% will be spent in the local economy.
*Housing for the military will be provided by the military, not the Guam private market. Local shippers and wholesaler will increase sales to the military bases but when imported goods are sold on base, most of the value of those sales won't be realized and profits won't be reinvested locally.
*There will be a "recession-like" period after 2014 when business will have to lay off workers after the peak buildup period.
*Guam workers will likely see the cot of living continue to rise faster than their incomes.
*The cost of living during the construction phase could negatively affect households on fixed incomes, although other households could benefit from rising wages.
*Hotels could benefit conssiderably, but the service sector could undergo a difficult period due to loss of labor to higher paying jobs and pressure or increased wages.
Written by : Kevin Kerrigan
Tuesday, January 19, 2010
'I'm not against the buildup': Supporters prepare in anticipation of economic growth
'I'm not against the buildup': Supporters prepare in anticipation of economic growth
By Amritha Alladi • Pacific Daily News • January 18, 2010
A slew of activists have fervently voiced their opposition to the military buildup during a series of recent public hearings, but there are some others who look forward to the economic growth expected from the buildup -- though they may not be as vocal in their assertions.
They have until Feb. 17 to submit their opinions quietly on paper.
For example, Jose Villas, general manager of Eureka's Construction, said he hasn't commented on the draft Environmental Impact Statement. However, he supports the expansion opportunities presented by the relocation of 8,000 Marines and their dependents to Guam.
"I'm not against the buildup," he said. "Our employees right now are all local workers, they're all skilled. That's all we need, to train those kind of people."
That's not to say Villas is placing all his hopes on the buildup, because Villas, like many other in his field, knows not to put all his eggs in one basket.
James Martinez, president of the Guam Contractors Association, said he, too, has not been to any of the draft EIS hearings, but he supports the military buildup. He said the association has been training workers in light carpentry. However, the training in heating, air conditioning, light carpentry and photovoltaic systems is long-term and sustainable so workers will not only be employable for maintenance jobs after the buildup is over, but will also be employable whether the buildup happens.
"Even if it doesn't happen, there's building of infrastructure we need to take care of," Martinez said. "If you're going to train specifically for this military buildup, you're probably training for the wrong reason."
In fact, it's because the fate of the buildup still see-saws precariously that local businessman James Adkins said Guam's residents shouldn't challenge the Defense Department's land acquisition requests.
"The military is starting to look at some of the things that are being said by our senators that they do not want the military here. You couple that with the other things that are going on in Japan (and) we are not sure that we will even get this buildup," Adkins said.
And according to him, no one has produced an alternative to solving Guam's economic problems. So far, the buildup has been the only viable option, he said.
"I agree," said Guam Visitors Bureau General Manager Gerry Perez. "I have not heard any major economic development initiative proffered by those most vocal in opposing the military buildup."
According to the draft EIS, the military buildup will create 3,000 jobs for civilian workers by the 2014 peak, and an additional 6,150 jobs will be provided on a "more permanent basis" thereafter. The government of Guam is expected to generate $325 million in 2014 revenue alone, the document states.
However, Guam Department of Labor chief economist Gary Hiles said it's not so black-and-white.
"The buildup will bring more jobs to the island and more revenue to the government of Guam. However, it will cause the government of Guam to incur substantial additional capital investment for infrastructure and increased operating costs in public safety, health care and education," he said.
While some of these costs can be mitigated through increased federal support, like the federal legislative action to exclude Guam from the national caps on the number of H-2B workers, more federal mitigation is required, he said.
For instance, the removal of provisions in federal law that protected Guam and U.S. workers will require additional mitigation so that the standard of living of workers doesn't continue to deteriorate due to the costs of living increasing faster than wages, he said. He added the proposed actions outlined in the draft EIS indicate an increase in the cost of living for Guam's residents.
Albert Perez, an economist with the Bureau of Statistics and Plans, agreed the buildup opportunities will be more fruitful for some than others, but the real reason for Guam's economic decline isn't that the military lightened its operations on Guam, as Adkins noted during a recent public hearing.
"I think the principal factor affecting what hasn't fueled our local economy of late is the state of the world financial markets," Albert Perez said. "Notwithstanding the military buildup, what will gradually fuel Guam's economy is a recovered world financial market which investors, tourists and consumers alike perceive as stable and long-lasting."
But tourism's dependence on foreign markets will only get Guam so far, according to GVB's Gerry Perez.
Guam, as a "leisure market" dependent on the now-declining markets of Japan and Korea, has been starved for cash in recent years, he said.
"This situation has made it difficult ... to pay for necessary upgrades in our tourism plant and island infrastructure, while attending to critical health, education, and public safety issues," he said. "The military buildup will stimulate new markets, attract higher spending business travelers, and generate more income to pay for improvements in public service."
He said the buildup will also force the upgrades in long-neglected roads, bridges, utilities, and other infrastructure that serve both local residents and tourists.
"The planned expenditures from the military buildup far exceeds the combined total of all tourism investments made in Guam since the industry's inception some 40 years ago," Gerry Perez added. "This is the magnitude of what's at stake, and is the reason for House Armed Services Committee Chairman Ike Skelton saying that we need to get this 'done right.'"
By Amritha Alladi • Pacific Daily News • January 18, 2010
A slew of activists have fervently voiced their opposition to the military buildup during a series of recent public hearings, but there are some others who look forward to the economic growth expected from the buildup -- though they may not be as vocal in their assertions.
They have until Feb. 17 to submit their opinions quietly on paper.
For example, Jose Villas, general manager of Eureka's Construction, said he hasn't commented on the draft Environmental Impact Statement. However, he supports the expansion opportunities presented by the relocation of 8,000 Marines and their dependents to Guam.
"I'm not against the buildup," he said. "Our employees right now are all local workers, they're all skilled. That's all we need, to train those kind of people."
That's not to say Villas is placing all his hopes on the buildup, because Villas, like many other in his field, knows not to put all his eggs in one basket.
James Martinez, president of the Guam Contractors Association, said he, too, has not been to any of the draft EIS hearings, but he supports the military buildup. He said the association has been training workers in light carpentry. However, the training in heating, air conditioning, light carpentry and photovoltaic systems is long-term and sustainable so workers will not only be employable for maintenance jobs after the buildup is over, but will also be employable whether the buildup happens.
"Even if it doesn't happen, there's building of infrastructure we need to take care of," Martinez said. "If you're going to train specifically for this military buildup, you're probably training for the wrong reason."
In fact, it's because the fate of the buildup still see-saws precariously that local businessman James Adkins said Guam's residents shouldn't challenge the Defense Department's land acquisition requests.
"The military is starting to look at some of the things that are being said by our senators that they do not want the military here. You couple that with the other things that are going on in Japan (and) we are not sure that we will even get this buildup," Adkins said.
And according to him, no one has produced an alternative to solving Guam's economic problems. So far, the buildup has been the only viable option, he said.
"I agree," said Guam Visitors Bureau General Manager Gerry Perez. "I have not heard any major economic development initiative proffered by those most vocal in opposing the military buildup."
According to the draft EIS, the military buildup will create 3,000 jobs for civilian workers by the 2014 peak, and an additional 6,150 jobs will be provided on a "more permanent basis" thereafter. The government of Guam is expected to generate $325 million in 2014 revenue alone, the document states.
However, Guam Department of Labor chief economist Gary Hiles said it's not so black-and-white.
"The buildup will bring more jobs to the island and more revenue to the government of Guam. However, it will cause the government of Guam to incur substantial additional capital investment for infrastructure and increased operating costs in public safety, health care and education," he said.
While some of these costs can be mitigated through increased federal support, like the federal legislative action to exclude Guam from the national caps on the number of H-2B workers, more federal mitigation is required, he said.
For instance, the removal of provisions in federal law that protected Guam and U.S. workers will require additional mitigation so that the standard of living of workers doesn't continue to deteriorate due to the costs of living increasing faster than wages, he said. He added the proposed actions outlined in the draft EIS indicate an increase in the cost of living for Guam's residents.
Albert Perez, an economist with the Bureau of Statistics and Plans, agreed the buildup opportunities will be more fruitful for some than others, but the real reason for Guam's economic decline isn't that the military lightened its operations on Guam, as Adkins noted during a recent public hearing.
"I think the principal factor affecting what hasn't fueled our local economy of late is the state of the world financial markets," Albert Perez said. "Notwithstanding the military buildup, what will gradually fuel Guam's economy is a recovered world financial market which investors, tourists and consumers alike perceive as stable and long-lasting."
But tourism's dependence on foreign markets will only get Guam so far, according to GVB's Gerry Perez.
Guam, as a "leisure market" dependent on the now-declining markets of Japan and Korea, has been starved for cash in recent years, he said.
"This situation has made it difficult ... to pay for necessary upgrades in our tourism plant and island infrastructure, while attending to critical health, education, and public safety issues," he said. "The military buildup will stimulate new markets, attract higher spending business travelers, and generate more income to pay for improvements in public service."
He said the buildup will also force the upgrades in long-neglected roads, bridges, utilities, and other infrastructure that serve both local residents and tourists.
"The planned expenditures from the military buildup far exceeds the combined total of all tourism investments made in Guam since the industry's inception some 40 years ago," Gerry Perez added. "This is the magnitude of what's at stake, and is the reason for House Armed Services Committee Chairman Ike Skelton saying that we need to get this 'done right.'"
Thursday, December 24, 2009
Military Buildup Fact Sheet
Military Buildup Fact Sheet
LATEST VERSION, COMPLETED 5:36 p.m. 12/23/09
By: Craig Santos Perez
Guam, a possession of the United States, is one of 15 islands in the Marianas, an archipelago in the western Pacific so pristine and rich in biodiversity that it was recently designated a federally protected Marine National Monument. However, military activities are exempt from this so-called “protection” and the Department of Defense has plans to effectively destroy the natural habitats of these islands with the “Guam Military Buildup,”slated to take place over the next five years. Guam, an island only half the size of Cape Cod with a current population of 178,000, will soon become home to 80,000 additional troops, dependents and laborers, as well as a nuclear-powered aircraft carrier, a missile defense system, and numerous sites for military training practices.
Though the people of these islands are being told that the Buildup will improve their quality of life, the facts below, culled from a recently released Draft Environmental Impact Statement, show otherwise.
The REAL STORY behind the Guam Military Buildup
The Military Buildup being planned for Guam and the rest of the Mariana Islands chain is being sold to us as a once-in-a-lifetime economic opportunity. But if you read the Draft Environmental Impact Statement (DEIS) put out by the Department of Defense, it quickly becomes clear that this is far from the truth. And if you know your Pacific history, it is a simple connection of dots to see that the Buildup will likely be as cataclysmic for our people and environment as the atomic testing at Bikini was for the Marshall Islands.
Below are a collection of facts taken from the Draft Environmental Statement released November 20, 2009:
I. ECONOMY
Myth: The military buildup will be great for Guam’s economy.
Fact: The military’s DEIS document states that very little money will go into Guam’s economy. According to the report, most contracts will go to large off-island companies, not to local contractors. Most money spent by the 80,000 newcomers will be spent on base, at companies also based on-island, not at local businesses. The 40,000 low-paid workers imported from the Philippines will not spend their money on Guam, but will send most of it back home.
And don’t think that Guam residents will benefit from an increase in construction jobs. According to the DEIS, at the projected 2014 peak in such jobs, only 2,566 will go to Guam residents, while 15,157 will be taken by off-island workers.
In addition, the military conducted a separate report which revealed that the cost of living will rise, but wages will remain low too low to keep up with skyrocketing costs. Guam Housing Urban Renewal Authority Executive Director, Benny Pinaula, does not feel the buildup will help keep housing affordable.
How will GovGuam fare during the buildup? The costs to the Government of Guam associated with the buildup will be $2.9 Billion dollars. But GovGuam officials are uncertain as to how those projects will be paid for.
Eddie Calvo explained that the buildup will cost millions of dollars to maintain roads, to upgrade wastewater treatment and by taking revenue from the port. Calvo recently wrote that the $50 million appropriated for roads within the 2010 Defense Budget is “a drop in the bucket to what is required to expand the roads and harden bridges to handle the thousands of containers and workers that will be arriving on island.”
Calvo also pointed out that EPA has ordered the local government to spend nearly $300million dollars to develop secondary wastewater treatment facilities. Though the military will ultimately be end-users of the northern facilities, it appears that the local government will bear the brunt of the upfront costs, resulting from EPA’s edict.
According to Calvo, it has been discovered that commercial cargo has been shipping out of the Navy side of the harbor. If this trend is a portend of things to come, this may cost the local government millions of dollars in lost revenue in the years to come.
To sum things up, the military build up will NOT help local Guam businesses, will NOT provide a boon in construction jobs, will NOT be an economic boost for local Guam residents, and will cost Guam’s government millions of dollars. The fact that the DEIS was written by big defense contractors in Hawaii, not Guam, indicates where the money will go, and it is not to you and me.
II. NOT A “DONE DEAL”
Myth: The Guam Military Buildup is a “done deal.”
Fact: The Military Buildup is NOT a “done deal,” as the Pacific Daily News would have us believe. There are many variables that need to take place in order for it to happen.
The buildup depends on what Japan decides to do. The U.S. is relying on Japan building an additional base on Okinawa in order for the troops to transfer from there to Guam. They are also depending on Japan to kick in $6 billion to help fund the buildup. However, Japan doesn’t want to build another base and it has been questioning the exorbitant expenses of the buildup, such as $775,000 per housing unit. Japan could make a decision that significantly delays the buildup, or even prevents it entirely.
Especially since the economic downturn, the Pentagon, too, has been uncertain about the expenses of the buildup (see this article from as recently as May 2009: “Pentagon Reconsiders Pricey Guam Move” at http://www.govexec.com/dailyfed/0509/050709cdam1.htm )
The powerful Heritage Foundation, the ultra-conservative, rightwing think tank, has been behind this buildup from the start, and has been steadily lobbying Congress to spend the billions of dollars it will take to make it happen. The Heritage Foundation takes the “Manifest Destiny” view of America, that it must rule the world, rather than share the world. And yet, in December 2009, a Pew Research Center study showed that almost half of Americans think that their country should “mind its own business internationally.” No doubt, these people would be opposed to the idea that $15 billion in their tax dollars is going to the Guam buildup, devoted to the military domination of another hemisphere. If these people were even aware of the buildup, let alone if they knew where Guam was, they would object to their Congressional representatives’ greenlighting the buildup. So far, less than $1 billion has been appropriated for the colossal project. There is no guarantee that the remaining $14 billion plus will come through.
So, it isn’t a “done deal” after all. It is a future that can be shaped by the strategy and foresight of the people, starting at the grassroots.
III. WATER
Myth: There will be no problem supplying water to 80,000 new people on Guam. All we need to do is drill 22 more wells.
Fact: False. Twenty-two new wells will deplete our freshwater source. If there were enough water for that many more people, the DEIS would not have listed a desalination plant as a long-term solution. Desalination plants have adverse effects on the environment; and building one would make the people of Guam dependent on the military for the most basic resource for life – water.
If there were enough water to go around, the military would not consider the development of Tolaeyuus River (“Lost River”) in Santa Rita, either, to augment the water supply during the dry season. This would entail dredging the reservoir area of the existing dam, and installing a pump station and pipeline.
Another scheme listed in the EIS is a comprehensive dredging of Fena Lake to increase capacity. Dredging equals more environmental devastation.
The DEIS makes no guarantee of water for the estimated 260,000-plus people to be on the island. So when you run short of water, as too many of us already do in Agat, Santa Rita, Piti and Asan, just remember the old Navy saying: “The needs of the Navy come first”.
IV. SOCIAL AND CULTURAL CONFLICTS
Myth: People living on the base and civilians will live together harmoniously, as “one.”
Fact: The buildup will create three distinct classes: 1) the military, who will be given expensive homes and good salaries; 2) the local people, who will be marginalized as second-class citizens and 3) 40,000 “temporary workers” who will be housed in barracks.
Billions of dollars are slated to be poured into construction inside the fence, while THERE ARE NO PLANS TO SPEND ANY MONEY OUTSIDE THE FENCE, except for road construction (not maintenance). There will be no money to help the current systems deal with infrastructure inadequacies or the expected rise in crime.
The difference between “inside the fence” and “outside the fence” will be more evident within our education system than it already is. There is already a big difference between the quality of education between the DODEA schools and local public schools. The shameful separate-but-equal ethic is alive and well on Guam, and will thrive further if the military buildup is allowed to take place.
Medical care and other social services will share similar problems. While military personnel on-island will receive better funded care, the thousands of additional people will overwhelm Guam’s already stressed medical and social services.
Meanwhile, who will monitor and enforce the labor abuse of the temporary workers, most of whom will be from the Philippines and the Federated States of Micronesia? There is already a problem regarding huge human-rights and labor abuse on Guam. Human-rights violations will most likely get worse, without adequate monitoring or enforcement. In addition, the idea that these workers are really “temporary” is a myth. Studies show that the vast majority of workers who migrate to the states from the Philippines, even on temporary visas, stay, and create families. Do not expect a population reduction after the buildup.
V. CRIME INCREASE
The huge surge of young single males, both Marines and laborers, along with the disparity between haves and have-nots, will lead to an increase in crime, fights, alcoholism, rape and prostitution. According to the DEIS, the buildup will also cause an increase in drug smuggling, due to the increased flow of goods and legal and illegal immigrants into Guam. Currently, the drug methamphetamine is already readily available on Guam, due to a steady supply from the Philippines, Hong Kong, China, Taiwan, and South Korea.
VI. STRESSED SOCIAL SERVICES
As pointed out by social worker Dr. Gerhard Schwab, social services cannot keep up with current demands. He says that currently, “children in private and public child welfare organizations experience neglect and abuse… hard-working families do not have the health care and family support they need to care for their elderly and sick family members … our best local social service professionals leave Guam because of poor working conditions and/or lack of support and resources for their work.” And that is the way things are now.
If the buildup is allowed to go forward, troubles will get worse. The workload will double, while no money or resources are being appropriated to deal with these gigantic, foreseeable problem social problems.
Peter Sgro, president of the Guam Healthcare Development Foundation, says 500-600 additional doctors, nurses, technical, management and administration professionals will be needed on Guam, should the buildup take place. Where will they come from? Currently, Guam already falls below the national average in terms of healthcare provider to general population ratio.
VII. CROWDING
Bottom line: More people, less land.
Get ready for a road system that will be a constant traffic jam of construction trucks.
The military is eyeing an additional 3,900 acres to take, including the FAA property, which was supposed to have been given back. The total amount of land they want is one and a half times the size of Barrigada.
Regarding population increase: at first, the DOD told residents that the buildup would increase the population by 40,000, though they were always aware that the figure was really 80,000 — double that! Unfortunately, no one told the people of Guam until the last possible moment – the day the EIS was released (November 20, 2009). Why did they wait so long? Maybe because they knew how upsetting this information would be.
Currently, the cap on H-2B temporary workers allowed to enter the country is only 66,000 for the entire United States. But on tiny Guam, that cap for such workers has been lifted. Instead of protecting the island from a surge of migrants, the government is encouraging a dangerous population spike. Clearly, no consideration was given to living conditions, resources or infrastructure on Guam. All that is considered important to project planners is to get the military facilities up and running – no matter what are the human, social or environmental costs.
VIII. RACIST ATTITUDES
According to the Draft EIS, the transplanted Marines will not have an impact on Guam’s overall crime and social order. Instead the report blames migrants from the Federated States of Micronesia as the likely cause. This blatantly racist mindset behind the planning of Guam’s future is deplorable and goes against everything America stands for.
And racism will continue to flourish as the buildup’s planned social stratification takes hold, with predominantly Caucasian military personnel living in the most comfort inside the fence, while Pacific Islanders live outside the fence in lesser conditions, or outright squalor. It is tragically ironic that people native to the region are the ones to be relegated to the worst housing, the worst education system, the worst medical facilities, and the lowest wages. As 80,000 new people are dumped on Guam to fall into their preordained caste in this new “planned community” of Apartheid, the Buildup will exponentially accelerate the denigration of Pacific Islanders in their own land.
IX. NO MORE GREEN SPACE
Most of the four- and two- lane roads in the north will be widened to six- and seven-land highways.
The greenery in the north will be removed, not just for road work, but to house many of the 80,000 new people. One hundred acres of jungle will be replaced by a camp for tens of thousands of low-wage laborers. More jungle will be razed to make way for the luxury military homes. These homes will be soundproofed to protect those inside from the noise of the new landing pad. Local homes just outside the gate will not have such sound protection.
X. NOISE
Aside from the harrowing noise of helicopters coming and going, the racket of weapons firing from the firing range will plague much of the island. A 2000 study from Asahikawa Medical College shows that aircraft-noise exposure resulted in a range of physical and mental consequences including sleep disorders, hearing loss, higher rates of low birth weight infants, fatigue, neurosis, and negative effects on children.
XI. NO MORE ACCESS TO NATURE
According to the impact study, “There are several recreational resources that the public would lose the access to, and the use of the features if the proposed action were implemented: Guam International Raceway, Marbo Cave, Pagat Trail and associated trails near it, cultural gathering activities (suruhana), and off-shore fishing near Marbo Cave.”
The DEIS spends chapters detailing their plans for creating “recreation space” for their dependents. They go on about how important it is to make sure that there is lots of “wide, open, green space” within their neighborhoods. In the mean time, they are taking away OUR recreation space. They are lessening the wide, open, green space in OUR neighborhoods. And what does the DEIS say to try to make things better? It actually says we should replace our outdoor culture with indoor physical fitness centers, and indoor recreational resources such as bowling, skating rink, youth center, theater and recreational pavilion. Do they really think that bowling is an acceptable substitute for traditional fishing practices? Can they really be that culturally insensitive? And even if people wanted to go bowling instead of fishing, what makes them think local people would be able to afford such diversions, as the cost of living skyrockets against their low wages?
XII. STRESSED INFRASTRUCTURE
As 80,000 newcomers create waste and stress on our utilities and roads, the local people must cope with the burdened electrical system, continual road maintenance, limited water supply and thousands of tons of additional sewage. As mentioned earlier, funding for the Guam Buildup does not include any financial support for infrastructure outside the fence.
XIII. DESTRUCTION OF CULTURAL HERITAGE SITES
The DEIS states that cultural heritage sites to be destroyed or compromised include locations at Apra Harbor, Anderson AFB, Orote Field, Anderson South, and a sizable portion of land south of Route 15. As described in the report, a parcel of land at Anderson Air Force Base that is rich in archaelogical artifacts will be subject to “100-percent disturbance.” In addition, it warns of increased vandalism at the historical coastal site of Haputo, rich with latte stones.
XIV. THE DESTRUCTION OF PAGAT
The limestone forest that stretches from Marbo Caves to Pagat Caves is being considered for use as a firing range, where the military can practice shooting and bombing. The land belongs to several families who have been caring for it for decades, choosing to not develop because they prize the land for its inherent values. Their efforts to keep the land pristine have made it more desirable for the military. The site in Pagat is registered at the Department of Historic Preservation as an archaeological site.
XV. THE DESECRATION OF MOUNT JUMULLONG MANGLO
This holy mountain, where thousands of island residents pilgrimage every year on Good Friday, is also being considered for use as a firing range. This is disrespectful of local Chamorro traditions.
XVI. DESTRUCTION OF REEF AND FISHING IN APRA HARBOR
Twenty-five acres of reef is slated to be dredged. The sediment churned up by the dredging will kill the coral that is not plowed up and the fish population. According to Manny Duenas, president of the Fisherman’s Co-op, the dredging will “affect Guam in itself because we know the fish don’t just live in one area.”
Destruction to Guam’s undersea life will take place through regularly scheduled underwater detonations as part of war games training.
XVII. LARGEST MANGROVE FOREST ON U.S. SOIL DESTROYED
The dredging at Apra Harbor will destroy the mangrove forest there.
XVIII. SEA TURTLE AND SPINNER DOLPHIN HABITAT DESTROYED
The green sea turtle, the Hawksbill sea turtle and the Spinner dolphin, all protected by federal law, will be wiped out in Apra Harbor.
We are trading endangered species and their ecosystems for a nuclear-powered aircraft carrier.
XIX. REMOVAL OF DUKDUK TREES; DECIMATION OF IFIT TREES
The ifit tree is the official tree of Guam, traditionally used as timber, for fuel wood and craftsman art. The termite-resistant hardwood has completely disappeared from some parts of southeast Asia already and is increasingly harder to find on Guam. Construction eyed for Finegayan at Andersen South, and a firing range would decimate the critically-endangered ifit trees, says the DEIS. The construction would also require the removal of dukduk trees, a traditional resource used by canoe builders.
XX. DESTRUCTION OF NATIVE MEDICINAL PLANTS
The hundreds of acres of jungle to be destroyed or contaminated contains native plants used in traditional medicine. To destroy these plants is to destroy Guam’s Chamorro heritage.
XXI. HAZARDOUS AND TOXIC WASTE
The total amount of hazardous waste produced by the increased military presence will equal 8 tons per year! (according to the DEIS)
The DEIS refuses to disclose all of the toxic and hazardous materials they will be storing; this is most likely because they are radioactive and banned from the shores of most countries. Our island is still in the process of decontaminating land and removing toxic materials left behind by the military; and many older generations of Guamanians suffer from an abnormally high cancer rate resulting from previous exposure to radiation by the military.
XXII. DEPLETION OF REEF RESOURCES BY H-2 WORKERS
What little reef resources are left may be quickly depleted by the underpaid foreign workers who tend to comb the reefs for food.
XXIII. WILL AFFECT THE ENTIRE MARIANA ARCHIPELAGO
The Guam Buildup does not affect only Guam. It will have grave, irreversible consequences for the entire island chain. The military does not see the Mariana Islands as a biodiverse treasure of natural wonders that the U.S. has even designated a protected Marine National Monument (“protected” from everyone except the military). Rather, the military sees our islands as a gigantic shooting gallery, which they’ve aptly re-named the Mariana Islands Range Complex (MIRC). Guam will be where the soldiers will live; the MIRC will be their enormous playground where they will learn how to destroy life.
The MIRC area will encompass about 501,873 square nautical miles to include open ocean and coastal areas. The combined land area on Guam, Rota, Tinian, Saipan, and Farallon de Medinilla to be used for training areas and facilities will be about 64 nautical miles, and approximately 63,000 nautical miles of airspace will be designated as Special Use Airspace. Already bombing practice occurs routinely on Farallon de Medinilla, an island not long ago prized by locals for its excellent fishing. Now it is off-limits and contaminated, worsening by the day.
Stopping the Guam Buildup will “cut off the head of the snake” that would otherwise kill or severely diminish the celebrated reef and land ecologies of the rest of the archipelago. According to the Population Reference Bureau, only 30% of Guam’s natural habitat remains. But that sad statistic is not shared by the rest of the islands in the chain, still plentiful in biological diversity.
The spectacularly beautiful and ecologically rich island of Tinian would be hardest hit, if we let this happen. Tinian is home to many endemic species, including the Tinian Monarch, an endemic bird. The DEIS explains that the military intends to use two-thirds of the island to routinely conduct many hazardous activities, including live-fire training (which leaves behind depleted uranium and other highly toxic materials), various pyrotechnics and detonations both on land and underwater, and amphibious landings (heavy, lumbering tanks crushing the thriving reef as well as destroying the sea-turtle nesting areas on the beach). No species will be left undamaged. These activities will decimate one of the healthiest and most biologically diverse marine ecosystems on the planet, thus also destroying an important food source for its Pacific Island inhabitants.
In addition to the destruction caused by bombs, tanks, planes, ships and nuclear and hazardous wastes, the islands will also suffer from opportunists “cashing in” on the sudden inflow of a large demographic of single males looking for “rest and relaxation.” As on Guam, we can safely predict a rise in prostitution, illegal drugs, and crime. On Rota – pristine and undeveloped; an authentic “tropical paradise” — the construction of two hotel-casinos are in the works, in anticipation of the Guam Buildup becoming a reality.
As you can see from these facts presented in the military’s Draft Environmental Impact Statement, the Guam Buildup is a recipe for nothing short of social and ecological disaster. Please do what you can to stop it.
Here is an interesting observation from blogger Dave Owen (www.guamblog.com):
“The Draft Environment Impact Statement (DEIS) wasn’t written to protect Guam. It was written to protect the U.S. government from criticism once things go wrong on Guam. The U.S. will say that the 11,000 page DEIS is evidence of its great concern and care for Guam. It’s just the opposite. It’s a pile of data and observation dumped on the island far too late, and Guam has been given precious little time – just 90 days – to respond to it. The buildup, as the DEIS illustrates, impacts every aspect of the island; the environment, land use and development, schools, health care, crime, roads — the sum of Guam’s quality of life. With the DEIS in hand, Guam’s government must now prioritize the buildup’s impact and then prepare mitigation strategies. It’s a Manhattan Project-sized task and one that’s impossible to complete in the amount of time available. Guam can rest assured that the U.S. will use the DEIS as its defense when things go wrong: We prepared you, Guam.”
LATEST VERSION, COMPLETED 5:36 p.m. 12/23/09
By: Craig Santos Perez
Guam, a possession of the United States, is one of 15 islands in the Marianas, an archipelago in the western Pacific so pristine and rich in biodiversity that it was recently designated a federally protected Marine National Monument. However, military activities are exempt from this so-called “protection” and the Department of Defense has plans to effectively destroy the natural habitats of these islands with the “Guam Military Buildup,”slated to take place over the next five years. Guam, an island only half the size of Cape Cod with a current population of 178,000, will soon become home to 80,000 additional troops, dependents and laborers, as well as a nuclear-powered aircraft carrier, a missile defense system, and numerous sites for military training practices.
Though the people of these islands are being told that the Buildup will improve their quality of life, the facts below, culled from a recently released Draft Environmental Impact Statement, show otherwise.
The REAL STORY behind the Guam Military Buildup
The Military Buildup being planned for Guam and the rest of the Mariana Islands chain is being sold to us as a once-in-a-lifetime economic opportunity. But if you read the Draft Environmental Impact Statement (DEIS) put out by the Department of Defense, it quickly becomes clear that this is far from the truth. And if you know your Pacific history, it is a simple connection of dots to see that the Buildup will likely be as cataclysmic for our people and environment as the atomic testing at Bikini was for the Marshall Islands.
Below are a collection of facts taken from the Draft Environmental Statement released November 20, 2009:
I. ECONOMY
Myth: The military buildup will be great for Guam’s economy.
Fact: The military’s DEIS document states that very little money will go into Guam’s economy. According to the report, most contracts will go to large off-island companies, not to local contractors. Most money spent by the 80,000 newcomers will be spent on base, at companies also based on-island, not at local businesses. The 40,000 low-paid workers imported from the Philippines will not spend their money on Guam, but will send most of it back home.
And don’t think that Guam residents will benefit from an increase in construction jobs. According to the DEIS, at the projected 2014 peak in such jobs, only 2,566 will go to Guam residents, while 15,157 will be taken by off-island workers.
In addition, the military conducted a separate report which revealed that the cost of living will rise, but wages will remain low too low to keep up with skyrocketing costs. Guam Housing Urban Renewal Authority Executive Director, Benny Pinaula, does not feel the buildup will help keep housing affordable.
How will GovGuam fare during the buildup? The costs to the Government of Guam associated with the buildup will be $2.9 Billion dollars. But GovGuam officials are uncertain as to how those projects will be paid for.
Eddie Calvo explained that the buildup will cost millions of dollars to maintain roads, to upgrade wastewater treatment and by taking revenue from the port. Calvo recently wrote that the $50 million appropriated for roads within the 2010 Defense Budget is “a drop in the bucket to what is required to expand the roads and harden bridges to handle the thousands of containers and workers that will be arriving on island.”
Calvo also pointed out that EPA has ordered the local government to spend nearly $300million dollars to develop secondary wastewater treatment facilities. Though the military will ultimately be end-users of the northern facilities, it appears that the local government will bear the brunt of the upfront costs, resulting from EPA’s edict.
According to Calvo, it has been discovered that commercial cargo has been shipping out of the Navy side of the harbor. If this trend is a portend of things to come, this may cost the local government millions of dollars in lost revenue in the years to come.
To sum things up, the military build up will NOT help local Guam businesses, will NOT provide a boon in construction jobs, will NOT be an economic boost for local Guam residents, and will cost Guam’s government millions of dollars. The fact that the DEIS was written by big defense contractors in Hawaii, not Guam, indicates where the money will go, and it is not to you and me.
II. NOT A “DONE DEAL”
Myth: The Guam Military Buildup is a “done deal.”
Fact: The Military Buildup is NOT a “done deal,” as the Pacific Daily News would have us believe. There are many variables that need to take place in order for it to happen.
The buildup depends on what Japan decides to do. The U.S. is relying on Japan building an additional base on Okinawa in order for the troops to transfer from there to Guam. They are also depending on Japan to kick in $6 billion to help fund the buildup. However, Japan doesn’t want to build another base and it has been questioning the exorbitant expenses of the buildup, such as $775,000 per housing unit. Japan could make a decision that significantly delays the buildup, or even prevents it entirely.
Especially since the economic downturn, the Pentagon, too, has been uncertain about the expenses of the buildup (see this article from as recently as May 2009: “Pentagon Reconsiders Pricey Guam Move” at http://www.govexec.com/dailyfed/0509/050709cdam1.htm )
The powerful Heritage Foundation, the ultra-conservative, rightwing think tank, has been behind this buildup from the start, and has been steadily lobbying Congress to spend the billions of dollars it will take to make it happen. The Heritage Foundation takes the “Manifest Destiny” view of America, that it must rule the world, rather than share the world. And yet, in December 2009, a Pew Research Center study showed that almost half of Americans think that their country should “mind its own business internationally.” No doubt, these people would be opposed to the idea that $15 billion in their tax dollars is going to the Guam buildup, devoted to the military domination of another hemisphere. If these people were even aware of the buildup, let alone if they knew where Guam was, they would object to their Congressional representatives’ greenlighting the buildup. So far, less than $1 billion has been appropriated for the colossal project. There is no guarantee that the remaining $14 billion plus will come through.
So, it isn’t a “done deal” after all. It is a future that can be shaped by the strategy and foresight of the people, starting at the grassroots.
III. WATER
Myth: There will be no problem supplying water to 80,000 new people on Guam. All we need to do is drill 22 more wells.
Fact: False. Twenty-two new wells will deplete our freshwater source. If there were enough water for that many more people, the DEIS would not have listed a desalination plant as a long-term solution. Desalination plants have adverse effects on the environment; and building one would make the people of Guam dependent on the military for the most basic resource for life – water.
If there were enough water to go around, the military would not consider the development of Tolaeyuus River (“Lost River”) in Santa Rita, either, to augment the water supply during the dry season. This would entail dredging the reservoir area of the existing dam, and installing a pump station and pipeline.
Another scheme listed in the EIS is a comprehensive dredging of Fena Lake to increase capacity. Dredging equals more environmental devastation.
The DEIS makes no guarantee of water for the estimated 260,000-plus people to be on the island. So when you run short of water, as too many of us already do in Agat, Santa Rita, Piti and Asan, just remember the old Navy saying: “The needs of the Navy come first”.
IV. SOCIAL AND CULTURAL CONFLICTS
Myth: People living on the base and civilians will live together harmoniously, as “one.”
Fact: The buildup will create three distinct classes: 1) the military, who will be given expensive homes and good salaries; 2) the local people, who will be marginalized as second-class citizens and 3) 40,000 “temporary workers” who will be housed in barracks.
Billions of dollars are slated to be poured into construction inside the fence, while THERE ARE NO PLANS TO SPEND ANY MONEY OUTSIDE THE FENCE, except for road construction (not maintenance). There will be no money to help the current systems deal with infrastructure inadequacies or the expected rise in crime.
The difference between “inside the fence” and “outside the fence” will be more evident within our education system than it already is. There is already a big difference between the quality of education between the DODEA schools and local public schools. The shameful separate-but-equal ethic is alive and well on Guam, and will thrive further if the military buildup is allowed to take place.
Medical care and other social services will share similar problems. While military personnel on-island will receive better funded care, the thousands of additional people will overwhelm Guam’s already stressed medical and social services.
Meanwhile, who will monitor and enforce the labor abuse of the temporary workers, most of whom will be from the Philippines and the Federated States of Micronesia? There is already a problem regarding huge human-rights and labor abuse on Guam. Human-rights violations will most likely get worse, without adequate monitoring or enforcement. In addition, the idea that these workers are really “temporary” is a myth. Studies show that the vast majority of workers who migrate to the states from the Philippines, even on temporary visas, stay, and create families. Do not expect a population reduction after the buildup.
V. CRIME INCREASE
The huge surge of young single males, both Marines and laborers, along with the disparity between haves and have-nots, will lead to an increase in crime, fights, alcoholism, rape and prostitution. According to the DEIS, the buildup will also cause an increase in drug smuggling, due to the increased flow of goods and legal and illegal immigrants into Guam. Currently, the drug methamphetamine is already readily available on Guam, due to a steady supply from the Philippines, Hong Kong, China, Taiwan, and South Korea.
VI. STRESSED SOCIAL SERVICES
As pointed out by social worker Dr. Gerhard Schwab, social services cannot keep up with current demands. He says that currently, “children in private and public child welfare organizations experience neglect and abuse… hard-working families do not have the health care and family support they need to care for their elderly and sick family members … our best local social service professionals leave Guam because of poor working conditions and/or lack of support and resources for their work.” And that is the way things are now.
If the buildup is allowed to go forward, troubles will get worse. The workload will double, while no money or resources are being appropriated to deal with these gigantic, foreseeable problem social problems.
Peter Sgro, president of the Guam Healthcare Development Foundation, says 500-600 additional doctors, nurses, technical, management and administration professionals will be needed on Guam, should the buildup take place. Where will they come from? Currently, Guam already falls below the national average in terms of healthcare provider to general population ratio.
VII. CROWDING
Bottom line: More people, less land.
Get ready for a road system that will be a constant traffic jam of construction trucks.
The military is eyeing an additional 3,900 acres to take, including the FAA property, which was supposed to have been given back. The total amount of land they want is one and a half times the size of Barrigada.
Regarding population increase: at first, the DOD told residents that the buildup would increase the population by 40,000, though they were always aware that the figure was really 80,000 — double that! Unfortunately, no one told the people of Guam until the last possible moment – the day the EIS was released (November 20, 2009). Why did they wait so long? Maybe because they knew how upsetting this information would be.
Currently, the cap on H-2B temporary workers allowed to enter the country is only 66,000 for the entire United States. But on tiny Guam, that cap for such workers has been lifted. Instead of protecting the island from a surge of migrants, the government is encouraging a dangerous population spike. Clearly, no consideration was given to living conditions, resources or infrastructure on Guam. All that is considered important to project planners is to get the military facilities up and running – no matter what are the human, social or environmental costs.
VIII. RACIST ATTITUDES
According to the Draft EIS, the transplanted Marines will not have an impact on Guam’s overall crime and social order. Instead the report blames migrants from the Federated States of Micronesia as the likely cause. This blatantly racist mindset behind the planning of Guam’s future is deplorable and goes against everything America stands for.
And racism will continue to flourish as the buildup’s planned social stratification takes hold, with predominantly Caucasian military personnel living in the most comfort inside the fence, while Pacific Islanders live outside the fence in lesser conditions, or outright squalor. It is tragically ironic that people native to the region are the ones to be relegated to the worst housing, the worst education system, the worst medical facilities, and the lowest wages. As 80,000 new people are dumped on Guam to fall into their preordained caste in this new “planned community” of Apartheid, the Buildup will exponentially accelerate the denigration of Pacific Islanders in their own land.
IX. NO MORE GREEN SPACE
Most of the four- and two- lane roads in the north will be widened to six- and seven-land highways.
The greenery in the north will be removed, not just for road work, but to house many of the 80,000 new people. One hundred acres of jungle will be replaced by a camp for tens of thousands of low-wage laborers. More jungle will be razed to make way for the luxury military homes. These homes will be soundproofed to protect those inside from the noise of the new landing pad. Local homes just outside the gate will not have such sound protection.
X. NOISE
Aside from the harrowing noise of helicopters coming and going, the racket of weapons firing from the firing range will plague much of the island. A 2000 study from Asahikawa Medical College shows that aircraft-noise exposure resulted in a range of physical and mental consequences including sleep disorders, hearing loss, higher rates of low birth weight infants, fatigue, neurosis, and negative effects on children.
XI. NO MORE ACCESS TO NATURE
According to the impact study, “There are several recreational resources that the public would lose the access to, and the use of the features if the proposed action were implemented: Guam International Raceway, Marbo Cave, Pagat Trail and associated trails near it, cultural gathering activities (suruhana), and off-shore fishing near Marbo Cave.”
The DEIS spends chapters detailing their plans for creating “recreation space” for their dependents. They go on about how important it is to make sure that there is lots of “wide, open, green space” within their neighborhoods. In the mean time, they are taking away OUR recreation space. They are lessening the wide, open, green space in OUR neighborhoods. And what does the DEIS say to try to make things better? It actually says we should replace our outdoor culture with indoor physical fitness centers, and indoor recreational resources such as bowling, skating rink, youth center, theater and recreational pavilion. Do they really think that bowling is an acceptable substitute for traditional fishing practices? Can they really be that culturally insensitive? And even if people wanted to go bowling instead of fishing, what makes them think local people would be able to afford such diversions, as the cost of living skyrockets against their low wages?
XII. STRESSED INFRASTRUCTURE
As 80,000 newcomers create waste and stress on our utilities and roads, the local people must cope with the burdened electrical system, continual road maintenance, limited water supply and thousands of tons of additional sewage. As mentioned earlier, funding for the Guam Buildup does not include any financial support for infrastructure outside the fence.
XIII. DESTRUCTION OF CULTURAL HERITAGE SITES
The DEIS states that cultural heritage sites to be destroyed or compromised include locations at Apra Harbor, Anderson AFB, Orote Field, Anderson South, and a sizable portion of land south of Route 15. As described in the report, a parcel of land at Anderson Air Force Base that is rich in archaelogical artifacts will be subject to “100-percent disturbance.” In addition, it warns of increased vandalism at the historical coastal site of Haputo, rich with latte stones.
XIV. THE DESTRUCTION OF PAGAT
The limestone forest that stretches from Marbo Caves to Pagat Caves is being considered for use as a firing range, where the military can practice shooting and bombing. The land belongs to several families who have been caring for it for decades, choosing to not develop because they prize the land for its inherent values. Their efforts to keep the land pristine have made it more desirable for the military. The site in Pagat is registered at the Department of Historic Preservation as an archaeological site.
XV. THE DESECRATION OF MOUNT JUMULLONG MANGLO
This holy mountain, where thousands of island residents pilgrimage every year on Good Friday, is also being considered for use as a firing range. This is disrespectful of local Chamorro traditions.
XVI. DESTRUCTION OF REEF AND FISHING IN APRA HARBOR
Twenty-five acres of reef is slated to be dredged. The sediment churned up by the dredging will kill the coral that is not plowed up and the fish population. According to Manny Duenas, president of the Fisherman’s Co-op, the dredging will “affect Guam in itself because we know the fish don’t just live in one area.”
Destruction to Guam’s undersea life will take place through regularly scheduled underwater detonations as part of war games training.
XVII. LARGEST MANGROVE FOREST ON U.S. SOIL DESTROYED
The dredging at Apra Harbor will destroy the mangrove forest there.
XVIII. SEA TURTLE AND SPINNER DOLPHIN HABITAT DESTROYED
The green sea turtle, the Hawksbill sea turtle and the Spinner dolphin, all protected by federal law, will be wiped out in Apra Harbor.
We are trading endangered species and their ecosystems for a nuclear-powered aircraft carrier.
XIX. REMOVAL OF DUKDUK TREES; DECIMATION OF IFIT TREES
The ifit tree is the official tree of Guam, traditionally used as timber, for fuel wood and craftsman art. The termite-resistant hardwood has completely disappeared from some parts of southeast Asia already and is increasingly harder to find on Guam. Construction eyed for Finegayan at Andersen South, and a firing range would decimate the critically-endangered ifit trees, says the DEIS. The construction would also require the removal of dukduk trees, a traditional resource used by canoe builders.
XX. DESTRUCTION OF NATIVE MEDICINAL PLANTS
The hundreds of acres of jungle to be destroyed or contaminated contains native plants used in traditional medicine. To destroy these plants is to destroy Guam’s Chamorro heritage.
XXI. HAZARDOUS AND TOXIC WASTE
The total amount of hazardous waste produced by the increased military presence will equal 8 tons per year! (according to the DEIS)
The DEIS refuses to disclose all of the toxic and hazardous materials they will be storing; this is most likely because they are radioactive and banned from the shores of most countries. Our island is still in the process of decontaminating land and removing toxic materials left behind by the military; and many older generations of Guamanians suffer from an abnormally high cancer rate resulting from previous exposure to radiation by the military.
XXII. DEPLETION OF REEF RESOURCES BY H-2 WORKERS
What little reef resources are left may be quickly depleted by the underpaid foreign workers who tend to comb the reefs for food.
XXIII. WILL AFFECT THE ENTIRE MARIANA ARCHIPELAGO
The Guam Buildup does not affect only Guam. It will have grave, irreversible consequences for the entire island chain. The military does not see the Mariana Islands as a biodiverse treasure of natural wonders that the U.S. has even designated a protected Marine National Monument (“protected” from everyone except the military). Rather, the military sees our islands as a gigantic shooting gallery, which they’ve aptly re-named the Mariana Islands Range Complex (MIRC). Guam will be where the soldiers will live; the MIRC will be their enormous playground where they will learn how to destroy life.
The MIRC area will encompass about 501,873 square nautical miles to include open ocean and coastal areas. The combined land area on Guam, Rota, Tinian, Saipan, and Farallon de Medinilla to be used for training areas and facilities will be about 64 nautical miles, and approximately 63,000 nautical miles of airspace will be designated as Special Use Airspace. Already bombing practice occurs routinely on Farallon de Medinilla, an island not long ago prized by locals for its excellent fishing. Now it is off-limits and contaminated, worsening by the day.
Stopping the Guam Buildup will “cut off the head of the snake” that would otherwise kill or severely diminish the celebrated reef and land ecologies of the rest of the archipelago. According to the Population Reference Bureau, only 30% of Guam’s natural habitat remains. But that sad statistic is not shared by the rest of the islands in the chain, still plentiful in biological diversity.
The spectacularly beautiful and ecologically rich island of Tinian would be hardest hit, if we let this happen. Tinian is home to many endemic species, including the Tinian Monarch, an endemic bird. The DEIS explains that the military intends to use two-thirds of the island to routinely conduct many hazardous activities, including live-fire training (which leaves behind depleted uranium and other highly toxic materials), various pyrotechnics and detonations both on land and underwater, and amphibious landings (heavy, lumbering tanks crushing the thriving reef as well as destroying the sea-turtle nesting areas on the beach). No species will be left undamaged. These activities will decimate one of the healthiest and most biologically diverse marine ecosystems on the planet, thus also destroying an important food source for its Pacific Island inhabitants.
In addition to the destruction caused by bombs, tanks, planes, ships and nuclear and hazardous wastes, the islands will also suffer from opportunists “cashing in” on the sudden inflow of a large demographic of single males looking for “rest and relaxation.” As on Guam, we can safely predict a rise in prostitution, illegal drugs, and crime. On Rota – pristine and undeveloped; an authentic “tropical paradise” — the construction of two hotel-casinos are in the works, in anticipation of the Guam Buildup becoming a reality.
As you can see from these facts presented in the military’s Draft Environmental Impact Statement, the Guam Buildup is a recipe for nothing short of social and ecological disaster. Please do what you can to stop it.
Here is an interesting observation from blogger Dave Owen (www.guamblog.com):
“The Draft Environment Impact Statement (DEIS) wasn’t written to protect Guam. It was written to protect the U.S. government from criticism once things go wrong on Guam. The U.S. will say that the 11,000 page DEIS is evidence of its great concern and care for Guam. It’s just the opposite. It’s a pile of data and observation dumped on the island far too late, and Guam has been given precious little time – just 90 days – to respond to it. The buildup, as the DEIS illustrates, impacts every aspect of the island; the environment, land use and development, schools, health care, crime, roads — the sum of Guam’s quality of life. With the DEIS in hand, Guam’s government must now prioritize the buildup’s impact and then prepare mitigation strategies. It’s a Manhattan Project-sized task and one that’s impossible to complete in the amount of time available. Guam can rest assured that the U.S. will use the DEIS as its defense when things go wrong: We prepared you, Guam.”
Tuesday, December 01, 2009
Military Buildup to Raise Cost of Living on Guam
Military Buildup to Raise Cost of Living on Guam
Guam - While conducting the Draft Environmental Impact Statement the military also conducted a stand alone study on the socio-economic impact of the military buildup.
This study estimates an increasing cost of living while wages stay low.
In addition to studying the various environmental effects of the proposed military buildup on Guam the military also conducted a study on the various impacts the buildup will have on the economy and the society as a whole.
Tremendous impacts are expected to both the economy and the society due to the drastic increase in population. DOD has estimated that this population boom will reach it's peak in 2014 when over 79 thousand new people will be living on Guam. This increase however won't remain as people will leave when the construction boom winds down. DOD estimates the amount of new people on island to decline to around 30 to 33 thousand. The study reports that this rapid growth and decline in the population construction and the economy will cause what's known as a "boomtown effect".
This according to the report can result in a recession like period when the construction boom ends. One of the biggest impacts however will be the increase to the cost of living on Guam. The D.E.I.S. states that "Guam workers will likely continue to see the cost of goods and services rise faster than their incomes." This is not something new. According to the D.E.I.S. from 2000-2008 guam workers have seen their standard of living or purchasing power decline by 30%. The buildup according to the D.E.I.S. won't reverse this trend. It will however slow the rate of decline in the standard of living by providing for more jobs and an increase in average wages. This increase in wages however is primarily focussed in the areas of construction and civilian military workers. The report states that those with the ability to quickly renegotiate their wages will have a better chance at maintaining or increasing their standard of living.
As for households living on fixed incomes they will have reduced purchasing power and thus a lower standard of living.
Most civilian military jobs would likely go to either the spouses of new active duty personnel or to labor brought in from off-island. Only about 25% of civilian military jobs are expected to be filled by current guam residents.
Overall the cost of living will increase. Only those who are able to get jobs in construction, civilian military positions, and those who are in a position to negotiate their wages should be able to keep up with rising costs. As for the rest they will likely continue to see their purchasing power decline.
Written by :
Clynt Ridgell
Guam - While conducting the Draft Environmental Impact Statement the military also conducted a stand alone study on the socio-economic impact of the military buildup.
This study estimates an increasing cost of living while wages stay low.
In addition to studying the various environmental effects of the proposed military buildup on Guam the military also conducted a study on the various impacts the buildup will have on the economy and the society as a whole.
Tremendous impacts are expected to both the economy and the society due to the drastic increase in population. DOD has estimated that this population boom will reach it's peak in 2014 when over 79 thousand new people will be living on Guam. This increase however won't remain as people will leave when the construction boom winds down. DOD estimates the amount of new people on island to decline to around 30 to 33 thousand. The study reports that this rapid growth and decline in the population construction and the economy will cause what's known as a "boomtown effect".
This according to the report can result in a recession like period when the construction boom ends. One of the biggest impacts however will be the increase to the cost of living on Guam. The D.E.I.S. states that "Guam workers will likely continue to see the cost of goods and services rise faster than their incomes." This is not something new. According to the D.E.I.S. from 2000-2008 guam workers have seen their standard of living or purchasing power decline by 30%. The buildup according to the D.E.I.S. won't reverse this trend. It will however slow the rate of decline in the standard of living by providing for more jobs and an increase in average wages. This increase in wages however is primarily focussed in the areas of construction and civilian military workers. The report states that those with the ability to quickly renegotiate their wages will have a better chance at maintaining or increasing their standard of living.
As for households living on fixed incomes they will have reduced purchasing power and thus a lower standard of living.
Most civilian military jobs would likely go to either the spouses of new active duty personnel or to labor brought in from off-island. Only about 25% of civilian military jobs are expected to be filled by current guam residents.
Overall the cost of living will increase. Only those who are able to get jobs in construction, civilian military positions, and those who are in a position to negotiate their wages should be able to keep up with rising costs. As for the rest they will likely continue to see their purchasing power decline.
Written by :
Clynt Ridgell
Tuesday, October 06, 2009
Life on Guam getting more expensive
Life on Guam getting more expensive
Wednesday, 07 October 2009 03:33 by Jude Lizama | Variety News Staff
AS ALMOST anyone who shops or rents a home or apartment here can tell you, the cost of living on Guam continues to rise as household earnings contract even further. The island’s most recent consumer price index of 106.9 shows a marked increase of 1.4 percent over the second quarter.
In the meantime, the most recent Department of Labor statistics reflect the total number of jobs on Guam declined measurably in the preliminary statistics, as of this summer, as did private sector employment and average weekly hours paid.
The private sector particularly has been significantly affected by reduced visitor arrival numbers.
The latest figure from Bureau of Statistics and Plans found third quarter prices this year reflected less than one percent over the same period last year.
But, much like CPI data from a year ago, the dollar's buying power remains at a dismal 64 cents on the dollar for consumers when compared to conditions for the base year 1996.
However, due to the current global economic crises, there is some, though little, respite in the cost of sheltering a family on Guam. Last year’s growth rates for the second and third quarters reflect an almost identical rate of growth of 2.4 and 2.8 percent, respectively.
However, growth over the last year is minimal at 1.6 percent, especially when compared with the 2007 to 2008 increase of 10.9 percent for rent and lodging expenses on island.
And, then there is the price of gas; it continues to creep up at just under one percent from the preceding quarter, but nearly by three percent when compared to the same period last year. Between the third quarter of ’08 and this year, costs for home fuel and electricity showed a slight decrease, less than a half a percentage point for and 13.2 percent, respectively.
Water, sewer and trash costs pushed higher though, increasing almost 25 percent for rate payers of these services.
According to the DOL website, higher costs of living strained an already precarious situation for workers who have seen their buying power slashed by the increase in expenses and a reduction in earning power.
The DOL June 2009 employment report notes the average weekly hours paid to workers in the hospitality industry, a chief employer on Guam, declined dramatically. Paid hours averaged 31.7 in June, down from 36.4 the same period last year. In percentage terms, hours worked declined 13% in hotels, 7% in retail and 4% for all private industry for the comparable period. Private total average weekly earnings were little changed, however, as higher hourly earnings offset the decline in hours worked.
As Guam’s hospital progresses towards accreditation, solvency will remain an issue as residents are likely to still find it hard to meet the high costs associated with medical care on Guam. Healthcare expenses showed an increase of 3.1 percent when compared to last year’s third quarter index.
While shoppers have by now noticed that cereal products, poultry, and fish and seafood have increased by 3.6, 10.3, and 22.9 percent from one year ago, the index on beef, pork, eggs, dairy products, and fresh fruits actually reflect some relief with drops of 9.0, 11.3, 8.4, and 0.8 percent when compared to the same period in 2008.
Education was a bright spot in the report as communication, educational books and supplies, and computers all showed some easing of inflation, led by computers with a price drop of nearly 18 percent largely due to manufacturers cutting costs in line with conservative spending habits as a result of the financial meltdown of word stock markets.
Other areas that show inflationary creep in the Bureau statistics include tuition and other school fees, and telephone services which rose mildly at less than one half of 1 percent.
Wednesday, 07 October 2009 03:33 by Jude Lizama | Variety News Staff
AS ALMOST anyone who shops or rents a home or apartment here can tell you, the cost of living on Guam continues to rise as household earnings contract even further. The island’s most recent consumer price index of 106.9 shows a marked increase of 1.4 percent over the second quarter.
In the meantime, the most recent Department of Labor statistics reflect the total number of jobs on Guam declined measurably in the preliminary statistics, as of this summer, as did private sector employment and average weekly hours paid.
The private sector particularly has been significantly affected by reduced visitor arrival numbers.
The latest figure from Bureau of Statistics and Plans found third quarter prices this year reflected less than one percent over the same period last year.
But, much like CPI data from a year ago, the dollar's buying power remains at a dismal 64 cents on the dollar for consumers when compared to conditions for the base year 1996.
However, due to the current global economic crises, there is some, though little, respite in the cost of sheltering a family on Guam. Last year’s growth rates for the second and third quarters reflect an almost identical rate of growth of 2.4 and 2.8 percent, respectively.
However, growth over the last year is minimal at 1.6 percent, especially when compared with the 2007 to 2008 increase of 10.9 percent for rent and lodging expenses on island.
And, then there is the price of gas; it continues to creep up at just under one percent from the preceding quarter, but nearly by three percent when compared to the same period last year. Between the third quarter of ’08 and this year, costs for home fuel and electricity showed a slight decrease, less than a half a percentage point for and 13.2 percent, respectively.
Water, sewer and trash costs pushed higher though, increasing almost 25 percent for rate payers of these services.
According to the DOL website, higher costs of living strained an already precarious situation for workers who have seen their buying power slashed by the increase in expenses and a reduction in earning power.
The DOL June 2009 employment report notes the average weekly hours paid to workers in the hospitality industry, a chief employer on Guam, declined dramatically. Paid hours averaged 31.7 in June, down from 36.4 the same period last year. In percentage terms, hours worked declined 13% in hotels, 7% in retail and 4% for all private industry for the comparable period. Private total average weekly earnings were little changed, however, as higher hourly earnings offset the decline in hours worked.
As Guam’s hospital progresses towards accreditation, solvency will remain an issue as residents are likely to still find it hard to meet the high costs associated with medical care on Guam. Healthcare expenses showed an increase of 3.1 percent when compared to last year’s third quarter index.
While shoppers have by now noticed that cereal products, poultry, and fish and seafood have increased by 3.6, 10.3, and 22.9 percent from one year ago, the index on beef, pork, eggs, dairy products, and fresh fruits actually reflect some relief with drops of 9.0, 11.3, 8.4, and 0.8 percent when compared to the same period in 2008.
Education was a bright spot in the report as communication, educational books and supplies, and computers all showed some easing of inflation, led by computers with a price drop of nearly 18 percent largely due to manufacturers cutting costs in line with conservative spending habits as a result of the financial meltdown of word stock markets.
Other areas that show inflationary creep in the Bureau statistics include tuition and other school fees, and telephone services which rose mildly at less than one half of 1 percent.
Sunday, June 07, 2009
Navy Raises Water Rate
Navy raises water rate
Sunday, 07 June 2009
Marianas Variety News Staff
(Navy) – The Naval Facilities Engineering Command Marianas has notified the Consolidated Commission on Utilities that the Navy will charge $4.06 per 1,000 gallons of water supplied to the Guam Waterworks and Power Authorities beginning Oct. 1.
This rate is consistent with the Navy’s promise toward graduated rate adjustments designed to minimize financial impact to GWA and GPA, and to bring the previously reduced water rate in line with the rate charged to Navy and other Department of Defense customers, according to a press release from the Navy.
The fiscal year 2009 rate of $3.80 for GWA and GPA was less than the rate paid by Navy and other DoD customers.
According to the Navy, the adjustment is based on the current cost of operations and maintenance to continue to produce reliable and safe drinking water to the Naval Base and other customers in the southern villages of Agat, Santa Rita, Piti, Nimitz Hill, parts of Asan and Maina, and the Apra Harbor area.
“The Navy operates, maintains and repairs its water production and distribution system through the Navy Working Capital Fund (NWCF) and not direct appropriated funds,” said Capt. Paul Fuligni, NAVFAC Marianas commanding officer. “As such, our rates are developed to cover the operation and maintenance of our water system,” he added.
In a letter to CCU chairman Simon Sanchez, Fuligini said the Navy’s current projection is for a water rate of approximately $4.12 per 1,000 gallons. “However,” he added, “this rate is subject to further review and adjustment.”
Sunday, 07 June 2009
Marianas Variety News Staff
(Navy) – The Naval Facilities Engineering Command Marianas has notified the Consolidated Commission on Utilities that the Navy will charge $4.06 per 1,000 gallons of water supplied to the Guam Waterworks and Power Authorities beginning Oct. 1.
This rate is consistent with the Navy’s promise toward graduated rate adjustments designed to minimize financial impact to GWA and GPA, and to bring the previously reduced water rate in line with the rate charged to Navy and other Department of Defense customers, according to a press release from the Navy.
The fiscal year 2009 rate of $3.80 for GWA and GPA was less than the rate paid by Navy and other DoD customers.
According to the Navy, the adjustment is based on the current cost of operations and maintenance to continue to produce reliable and safe drinking water to the Naval Base and other customers in the southern villages of Agat, Santa Rita, Piti, Nimitz Hill, parts of Asan and Maina, and the Apra Harbor area.
“The Navy operates, maintains and repairs its water production and distribution system through the Navy Working Capital Fund (NWCF) and not direct appropriated funds,” said Capt. Paul Fuligni, NAVFAC Marianas commanding officer. “As such, our rates are developed to cover the operation and maintenance of our water system,” he added.
In a letter to CCU chairman Simon Sanchez, Fuligini said the Navy’s current projection is for a water rate of approximately $4.12 per 1,000 gallons. “However,” he added, “this rate is subject to further review and adjustment.”
Monday, November 10, 2008
Guam Power Bills to Drop
Power bills to drop: Fuel surcharge rollback will take effect Dec. 1
By Bryan C. Sualog
Pacific Daily News
November 11, 2008
Guam Power Authority customers can look forward to lower power bills for at least the next few months.
The Public Utilities Commission unanimously voted to approve the Guam Power Authority's request to lower the Levelized Energy Adjustment Clause, or fuel surcharge, at a special meeting yesterday.
The surcharge, which makes up about two-thirds of power bills, was lowered from 18.775 cents per kilowatt-hour to 17.105 cents per kilowatt-hour.
The lower surcharge represents a 6.95-percent decrease in the total bill for an average customer.
"We're very pleased that they concurred with our recommendation," said Guam Power Authority General Manager Joaquin C. Flores.
The change effectively rolls back Guam's last increase. On Oct. 3, the fuel surcharge was increased from 17.044 cents per kilowatt-hour to 18.775 cents per kilowatt-hour.
The reduction will go into effect Dec. 1.
"Meters read after the first of December will enjoy the new rate," Flores said. "If you're consuming power and you're on or about the beginning of the month, when you get billed for December, then your consumption would be affected by this new rate decrease."
Flores said any break in prices would be helpful to ratepayers.
"It's about $16 to $17 for the average user," Flores said of the reduction.
Barrigada resident John Rosario said even though his power bill wasn't too bad, he was looking forward to a lower bill.
"Nowadays, every little thing to save money would be a big help," he said.
Rosario said he recently found out he needed to go to the Philippines for medical treatment., The money he will save from the fuel surcharge reduction would go toward his trip, he said.
Prior to the surcharge reduction, Rosario said he and his family implemented power-saving measures to save money, such as only turning on the air conditioner before they go to sleep and running the water heater for only one hour, at night.
"It's become a way of life now. It's easier for us," he said.
Rosario said he plans on continuing with the energy conservation practices to save even more money.
While some residents are excited and looking forward to the drop in their power bills, other residents aren't so optimistic.
Jaelene San Nicolas of Mangilao said she wasn't expecting much from the reduction because she expects the fuel surcharge will just go up again.
"I don't think it will help me. That's my point of view," she said.
Emergency filing
Normally, the LEAC is adjusted every six months, but in October, GPA received informal approval from the Consolidated Commission on Utilities to begin a petition to lower power rates because of the rapidly falling price of fuel.
Any changes in oil pricing that are $2 million over or under the cost of fuel recovery allows the power agency to approach the PUC on an emergency basis.
Flores said a filing would have to be submitted Dec. 15 for the next LEAC adjustment in February. He said the next adjustment would "depend on how prices behave and whether they stay below $75 a barrel."
Flores said if crude oil stays below $75 a barrel, ratepayers will be able to enjoy the decrease through February.
"I think we made it very clear that it would be a reduction, subject to oil prices staying where they're at."
GPA Spokesman Art Perez said GPA's Web site will be updated to reflect the reduction in the fuel surcharge. The Web site is:
www.guampowerauthority.com
"They can log on, see what that change is going to be and make that adjustment," he said. "That will be a welcome relief for everybody as we continue to monitor this."
The site's calculator should be updated by the end of the week, Perez said.
By Bryan C. Sualog
Pacific Daily News
November 11, 2008
Guam Power Authority customers can look forward to lower power bills for at least the next few months.
The Public Utilities Commission unanimously voted to approve the Guam Power Authority's request to lower the Levelized Energy Adjustment Clause, or fuel surcharge, at a special meeting yesterday.
The surcharge, which makes up about two-thirds of power bills, was lowered from 18.775 cents per kilowatt-hour to 17.105 cents per kilowatt-hour.
The lower surcharge represents a 6.95-percent decrease in the total bill for an average customer.
"We're very pleased that they concurred with our recommendation," said Guam Power Authority General Manager Joaquin C. Flores.
The change effectively rolls back Guam's last increase. On Oct. 3, the fuel surcharge was increased from 17.044 cents per kilowatt-hour to 18.775 cents per kilowatt-hour.
The reduction will go into effect Dec. 1.
"Meters read after the first of December will enjoy the new rate," Flores said. "If you're consuming power and you're on or about the beginning of the month, when you get billed for December, then your consumption would be affected by this new rate decrease."
Flores said any break in prices would be helpful to ratepayers.
"It's about $16 to $17 for the average user," Flores said of the reduction.
Barrigada resident John Rosario said even though his power bill wasn't too bad, he was looking forward to a lower bill.
"Nowadays, every little thing to save money would be a big help," he said.
Rosario said he recently found out he needed to go to the Philippines for medical treatment., The money he will save from the fuel surcharge reduction would go toward his trip, he said.
Prior to the surcharge reduction, Rosario said he and his family implemented power-saving measures to save money, such as only turning on the air conditioner before they go to sleep and running the water heater for only one hour, at night.
"It's become a way of life now. It's easier for us," he said.
Rosario said he plans on continuing with the energy conservation practices to save even more money.
While some residents are excited and looking forward to the drop in their power bills, other residents aren't so optimistic.
Jaelene San Nicolas of Mangilao said she wasn't expecting much from the reduction because she expects the fuel surcharge will just go up again.
"I don't think it will help me. That's my point of view," she said.
Emergency filing
Normally, the LEAC is adjusted every six months, but in October, GPA received informal approval from the Consolidated Commission on Utilities to begin a petition to lower power rates because of the rapidly falling price of fuel.
Any changes in oil pricing that are $2 million over or under the cost of fuel recovery allows the power agency to approach the PUC on an emergency basis.
Flores said a filing would have to be submitted Dec. 15 for the next LEAC adjustment in February. He said the next adjustment would "depend on how prices behave and whether they stay below $75 a barrel."
Flores said if crude oil stays below $75 a barrel, ratepayers will be able to enjoy the decrease through February.
"I think we made it very clear that it would be a reduction, subject to oil prices staying where they're at."
GPA Spokesman Art Perez said GPA's Web site will be updated to reflect the reduction in the fuel surcharge. The Web site is:
www.guampowerauthority.com
"They can log on, see what that change is going to be and make that adjustment," he said. "That will be a welcome relief for everybody as we continue to monitor this."
The site's calculator should be updated by the end of the week, Perez said.
Friday, July 18, 2008
GPA Bills May Increase
Power bills may increase:
GPA wants another fuel surcharge hike
By William B. Martin Jr.
Pacific Daily News • July 18, 2008
Plan to find a way to reduce your spending in the next few months so you can pay higher power bills.
The Guam Power Authority asked the Public Utilities Commission in June to approve an increase to the Levelized Energy Adjustment Clause, or fuel surcharge, portion of customer bills. It once again cited rising fuel costs as the reason behind the increase.
If approved, Guam residents can expect to pay an additional 7.3 percent of their total bill, or about $17.33 on an average 1,000 kilowatt-hour monthly consumption rate, the commission docket states.
Simon Sanchez, chairman of the Consolidated Commission on Utilities, said that, if passed, the increase would push the fuel portion of power bills to about 75 percent.
"We all see the prices at the pump," GPA General Manager Joaquin Flores said. "We must all be aware of how volatile (the oil market) is right now."
The adjustment proposal comes a little over a month after an emergency LEAC adjustment hit islanders' wallets to the tune of a 10 percent increase.
Flores said the June adjustment was an emergency measure to recover fuel costs lost over the previous LEAC cycle, while the proposed increase is the result of a "mechanical" review process that takes place every six months.
Sanchez said the adjustment is designed to account for another six months of fuel purchases.
"The hope is when you make these fuel cost projections," he said, "it will hold six months, unless the (fuel) market goes crazy again."
Streetlights
Acting Gov. Michael Cruz yesterday signed a loan document for the government of Guam to settle its $13.8 million streetlight debt to the Guam Power Authority.
The debt caused the power authority to begin disconnecting village streetlights earlier this year, prompting the Guam Legislature and administration to pass legislation to borrow money to pay off the debt.
"We're closing a chapter -- hopefully -- in our history that really needs to be closed," said Cruz.
The payment will offset a 2- to 6-percent base rate increase to customer power bills that would have gone into effect last month. If the debt hadn't been paid, the increase would have gone into effect this year instead of next year.
Sanchez said the payment also will take some $5.3 million off the top of fuel costs, which, if not recovered, would require an even higher fuel surcharge increase.
Flores reminded Cruz and other government officials that a shortfall still exists in the payment of current streetlight operations and will need to be addressed or the problem will arise again.
Bureau of Budget and Management Research Director Bertha Duenas said there is a provision in Public Law 29-85 that allows General Fund money to be used for this fiscal year's shortfall -- around $1.2 million -- but questioned why lawmakers didn't allow the provision for future years.
"Why don't we just do everything as we should in one bill?" she asked.
GPA wants another fuel surcharge hike
By William B. Martin Jr.
Pacific Daily News • July 18, 2008
Plan to find a way to reduce your spending in the next few months so you can pay higher power bills.
The Guam Power Authority asked the Public Utilities Commission in June to approve an increase to the Levelized Energy Adjustment Clause, or fuel surcharge, portion of customer bills. It once again cited rising fuel costs as the reason behind the increase.
If approved, Guam residents can expect to pay an additional 7.3 percent of their total bill, or about $17.33 on an average 1,000 kilowatt-hour monthly consumption rate, the commission docket states.
Simon Sanchez, chairman of the Consolidated Commission on Utilities, said that, if passed, the increase would push the fuel portion of power bills to about 75 percent.
"We all see the prices at the pump," GPA General Manager Joaquin Flores said. "We must all be aware of how volatile (the oil market) is right now."
The adjustment proposal comes a little over a month after an emergency LEAC adjustment hit islanders' wallets to the tune of a 10 percent increase.
Flores said the June adjustment was an emergency measure to recover fuel costs lost over the previous LEAC cycle, while the proposed increase is the result of a "mechanical" review process that takes place every six months.
Sanchez said the adjustment is designed to account for another six months of fuel purchases.
"The hope is when you make these fuel cost projections," he said, "it will hold six months, unless the (fuel) market goes crazy again."
Streetlights
Acting Gov. Michael Cruz yesterday signed a loan document for the government of Guam to settle its $13.8 million streetlight debt to the Guam Power Authority.
The debt caused the power authority to begin disconnecting village streetlights earlier this year, prompting the Guam Legislature and administration to pass legislation to borrow money to pay off the debt.
"We're closing a chapter -- hopefully -- in our history that really needs to be closed," said Cruz.
The payment will offset a 2- to 6-percent base rate increase to customer power bills that would have gone into effect last month. If the debt hadn't been paid, the increase would have gone into effect this year instead of next year.
Sanchez said the payment also will take some $5.3 million off the top of fuel costs, which, if not recovered, would require an even higher fuel surcharge increase.
Flores reminded Cruz and other government officials that a shortfall still exists in the payment of current streetlight operations and will need to be addressed or the problem will arise again.
Bureau of Budget and Management Research Director Bertha Duenas said there is a provision in Public Law 29-85 that allows General Fund money to be used for this fiscal year's shortfall -- around $1.2 million -- but questioned why lawmakers didn't allow the provision for future years.
"Why don't we just do everything as we should in one bill?" she asked.
Monday, July 14, 2008
Farmers Face Difficulties
Farmers face difficulties:
Farmers co-op would help agricultural leaseholders
By Steve Limtiaco
Pacific Daily News
July 15, 2008
Dededo farmer Ernie Wusstig, who leases 20 acres of agricultural land from the Chamorro Land Trust, said there are many farmers who use their Land Trust property.
"But a lot of them aren't using it either," he said. "They're planting (junk) cars."
Wusstig, who is using his leased property to grow sweet corn -- which he sells along the roadside in Barrigada -- doesn't fault those who aren't using the land.
It's more expensive than ever to farm on Guam, he said, because of increases in the price of water and fertilizer. The water agency increased the price per gallon for agricultural accounts, and fertilizer that used to cost $600 a ton now costs $1,200.
And there also isn't a consistent market for local produce, he said -- one of the reasons he sells produce on his own instead of to local grocery stores. Grocery stores sometimes buy local only until their off-island shipments arrive, he said.
But ongoing efforts to form a farmers cooperative could change all that, he said, and make it easier and profitable for those with agricultural leases from the Land Trust to begin using their land.
Of the 3,666 leases issued by the Land Trust, 955 are one acre or larger, which means they are considered agricultural leases.
The Land Trust requires agricultural leaseholders to use their land -- at least two-thirds must be cultivated at all times -- or risk losing it, but that requirement hasn't been enforced since the Land Trust lease program was implemented nearly 13 years ago.
Land is leased for 99 years to Chamorros -- defined by law as those who are citizens because of the Organic Act, or their descendants.
"With the military coming in, we're going to be using more produce. I believe our farmers can supply that. We've got to plan it out good and make it work," said Wusstig, who is vice president of the new cooperative's board of directors.
The involvement of Land Trust leaseholders is critical to the success of the new farmers cooperative because the Land Trust administers 90 percent of the island's agricultural land, particularly the larger parcels, said Bob Barber, agricultural economist for the University of Guam's Cooperative Extension Service.
Wusstig said the Cooperative Extension Service currently is working on grants for a feasibility study and is entering into an agreement with the Guam Hotel and Restaurant Association to begin supplying local produce to its member businesses.
Farmers co-op would help agricultural leaseholders
By Steve Limtiaco
Pacific Daily News
July 15, 2008
Dededo farmer Ernie Wusstig, who leases 20 acres of agricultural land from the Chamorro Land Trust, said there are many farmers who use their Land Trust property.
"But a lot of them aren't using it either," he said. "They're planting (junk) cars."
Wusstig, who is using his leased property to grow sweet corn -- which he sells along the roadside in Barrigada -- doesn't fault those who aren't using the land.
It's more expensive than ever to farm on Guam, he said, because of increases in the price of water and fertilizer. The water agency increased the price per gallon for agricultural accounts, and fertilizer that used to cost $600 a ton now costs $1,200.
And there also isn't a consistent market for local produce, he said -- one of the reasons he sells produce on his own instead of to local grocery stores. Grocery stores sometimes buy local only until their off-island shipments arrive, he said.
But ongoing efforts to form a farmers cooperative could change all that, he said, and make it easier and profitable for those with agricultural leases from the Land Trust to begin using their land.
Of the 3,666 leases issued by the Land Trust, 955 are one acre or larger, which means they are considered agricultural leases.
The Land Trust requires agricultural leaseholders to use their land -- at least two-thirds must be cultivated at all times -- or risk losing it, but that requirement hasn't been enforced since the Land Trust lease program was implemented nearly 13 years ago.
Land is leased for 99 years to Chamorros -- defined by law as those who are citizens because of the Organic Act, or their descendants.
"With the military coming in, we're going to be using more produce. I believe our farmers can supply that. We've got to plan it out good and make it work," said Wusstig, who is vice president of the new cooperative's board of directors.
The involvement of Land Trust leaseholders is critical to the success of the new farmers cooperative because the Land Trust administers 90 percent of the island's agricultural land, particularly the larger parcels, said Bob Barber, agricultural economist for the University of Guam's Cooperative Extension Service.
Wusstig said the Cooperative Extension Service currently is working on grants for a feasibility study and is entering into an agreement with the Guam Hotel and Restaurant Association to begin supplying local produce to its member businesses.
Friday, June 06, 2008
Unclear How Guam Will Be Impacted by Continental's Cuts
Impact of airline's cuts on Guam still unclear
By Gaynor Dumat-ol Daleno
Pacific Daily News
June 7, 2008
The parent company of Guam-based Continental Micronesia announced it will reduce flights and lay off about 3,000 managers and employees worldwide because of jet fuel prices.
"Our fuel expense this year would be $2.3 billion more than it was last year. That increase alone amounts to about $50,000 per employee," Houston-based Continental Airlines stated in a bulletin to employees.
What Continental Airlines' cutbacks mean to its employees on Guam and the rest of Micronesia is unclear at this time. Continental Micronesia's Guam office isn't commenting on the flight cuts and layoffs announced by its parent company's corporate office.
Grace Garces, with Continental Micronesia's marketing office, said there's nothing to add to what corporate has announced.
On Guam, Continental Micronesia employs about 1,500 people and its $90 million annual payroll has been an asset to the local economy.
When Continental Airlines trimmed as many as 12,000 of its 56,000 global workforce weeks after 9/11, about 250 Continental Micronesia employees were furloughed, according to Pacific Daily News files.
"Continental doesn't anticipate any further comment until after it has had the opportunity to meet with employees during the next week," the airline's Houston corporate office stated.
The airline stated fare increases haven't been enough to cover its soaring jet fuel costs.
They acknowledged, with higher fares, fewer people will fly.
"As fewer customers fly, we will need to reduce our capacity. ... As we reduce our capacity, we will need fewer employees to operate the airline," according to the company statement to its employees.
Continental's 3,000 global job cuts translate to almost a 7 percent reduction in its 45,000 global workforce. The job reductions will take effect after the peak summer season, except for management and clerical reductions, which will begin sooner, the airline states.
"The company will offer voluntary programs in an effort to reduce the number of co-workers who will be furloughed or involuntarily terminated due to the capacity cuts. Details of these programs will be available next week," the airline states.
The airline industry is facing its worst crisis since the terror attacks in 2001, Continental states.
Guam tourism
There's concern globally in the tourism and travel industry about soaring fuel prices, said Gerry Perez, Guam Visitors Bureau general manager.
He said airlines in general are trying to cope by reducing flights and maximizing capacity. The best way to insulate Guam from the impact of any reduction in flights is to aggressively promote the island, he said.
But the visitors bureau's marketing cash has been dwindling, from as much as $18 million for Japan marketing alone in the late 1990s to less than $6 million for Japan marketing last year.
When fuel prices make travel to longer-haul destinations more expensive, Perez said there's a possible "a silver lining" for Guam in the race for tourists from Japan.
But Perez said that silver lining is "a maybe."
Overall, fuel-related economic jitters and the global credit crunch have dampened enthusiasm for travel worldwide, he said.
Still, Guam's visitor arrivals in May showed a rebound from April. Preliminary arrival numbers show Japanese arrivals went up 5 percent and South Korean arrivals increased 15 percent last month compared to May last year, Perez said.
Houston cuts
Continental Chairman and Chief Executive Lawrence Kellner, and President Jeff Smisek, will forgo pay for the rest of the year, the airline stated.
Last year, Kellner's salary was $712,500 and total compensation was valued at nearly $6 million by the company, down 9.3 percent from the year before, according to an analysis by The Associated Press of a company filing with the Securities and Exchange Commission.
However, about one-third of Kellner's compensation was in stock and option grants that are now worth far less than they were when granted in February 2007, because of the slump in the company's stock, the AP reported.
Fewer flights
The airline states it will implement flight reductions in September, at the end of the summer season. Available seats for domestic flights will drop by about 11 percent in the fourth quarter, compared to the same period last year.
Continental will retire 67 Boeing 737-300 and 737-500 aircraft between now and next year and replace them with fuel-efficient aircraft, the airline states.
In the second half of this year, Continental will receive its order for 16 new, next-generation Boeing 737-800s and 737-900ERs. It will receive 18 more of the fuel-efficient aircraft next year. Continental's fleet will shrink from 375 this year to 344 aircraft next year.
Jet fuel is at $151 a barrel now, a 75 percent increase from a year ago, according to Continental.
By Gaynor Dumat-ol Daleno
Pacific Daily News
June 7, 2008
The parent company of Guam-based Continental Micronesia announced it will reduce flights and lay off about 3,000 managers and employees worldwide because of jet fuel prices.
"Our fuel expense this year would be $2.3 billion more than it was last year. That increase alone amounts to about $50,000 per employee," Houston-based Continental Airlines stated in a bulletin to employees.
What Continental Airlines' cutbacks mean to its employees on Guam and the rest of Micronesia is unclear at this time. Continental Micronesia's Guam office isn't commenting on the flight cuts and layoffs announced by its parent company's corporate office.
Grace Garces, with Continental Micronesia's marketing office, said there's nothing to add to what corporate has announced.
On Guam, Continental Micronesia employs about 1,500 people and its $90 million annual payroll has been an asset to the local economy.
When Continental Airlines trimmed as many as 12,000 of its 56,000 global workforce weeks after 9/11, about 250 Continental Micronesia employees were furloughed, according to Pacific Daily News files.
"Continental doesn't anticipate any further comment until after it has had the opportunity to meet with employees during the next week," the airline's Houston corporate office stated.
The airline stated fare increases haven't been enough to cover its soaring jet fuel costs.
They acknowledged, with higher fares, fewer people will fly.
"As fewer customers fly, we will need to reduce our capacity. ... As we reduce our capacity, we will need fewer employees to operate the airline," according to the company statement to its employees.
Continental's 3,000 global job cuts translate to almost a 7 percent reduction in its 45,000 global workforce. The job reductions will take effect after the peak summer season, except for management and clerical reductions, which will begin sooner, the airline states.
"The company will offer voluntary programs in an effort to reduce the number of co-workers who will be furloughed or involuntarily terminated due to the capacity cuts. Details of these programs will be available next week," the airline states.
The airline industry is facing its worst crisis since the terror attacks in 2001, Continental states.
Guam tourism
There's concern globally in the tourism and travel industry about soaring fuel prices, said Gerry Perez, Guam Visitors Bureau general manager.
He said airlines in general are trying to cope by reducing flights and maximizing capacity. The best way to insulate Guam from the impact of any reduction in flights is to aggressively promote the island, he said.
But the visitors bureau's marketing cash has been dwindling, from as much as $18 million for Japan marketing alone in the late 1990s to less than $6 million for Japan marketing last year.
When fuel prices make travel to longer-haul destinations more expensive, Perez said there's a possible "a silver lining" for Guam in the race for tourists from Japan.
But Perez said that silver lining is "a maybe."
Overall, fuel-related economic jitters and the global credit crunch have dampened enthusiasm for travel worldwide, he said.
Still, Guam's visitor arrivals in May showed a rebound from April. Preliminary arrival numbers show Japanese arrivals went up 5 percent and South Korean arrivals increased 15 percent last month compared to May last year, Perez said.
Houston cuts
Continental Chairman and Chief Executive Lawrence Kellner, and President Jeff Smisek, will forgo pay for the rest of the year, the airline stated.
Last year, Kellner's salary was $712,500 and total compensation was valued at nearly $6 million by the company, down 9.3 percent from the year before, according to an analysis by The Associated Press of a company filing with the Securities and Exchange Commission.
However, about one-third of Kellner's compensation was in stock and option grants that are now worth far less than they were when granted in February 2007, because of the slump in the company's stock, the AP reported.
Fewer flights
The airline states it will implement flight reductions in September, at the end of the summer season. Available seats for domestic flights will drop by about 11 percent in the fourth quarter, compared to the same period last year.
Continental will retire 67 Boeing 737-300 and 737-500 aircraft between now and next year and replace them with fuel-efficient aircraft, the airline states.
In the second half of this year, Continental will receive its order for 16 new, next-generation Boeing 737-800s and 737-900ERs. It will receive 18 more of the fuel-efficient aircraft next year. Continental's fleet will shrink from 375 this year to 344 aircraft next year.
Jet fuel is at $151 a barrel now, a 75 percent increase from a year ago, according to Continental.
Friday, December 07, 2007
Cohen: High Cost of Living in Islands Caused by Limited Private Sector
Cohen says cost of living on islands high due to limited private sector participation
By Gemma Q. Casas
Variety News Staff
12/7/07
THE federal official in charge of overseeing assistance and programs for American insular areas says the cost of living in island communities is high due to limited private sector participation.
David Cohen, the U.S. Interior Department’s deputy assistant secretary for insular affairs, was the keynote speaker at the Annual Conference of the Island Government Finance Officers’ Association held on Tuesday in Honolulu, Hawaii.
He said “in most of the insular area economies, there is an unsustainable imbalance between the public and private sectors.”
A strong private sector propels a healthy economy, he said. This way “jobs are created and taxes are collected to fund essential services for the public.”
But many islands do not have economies dominated by the private sector. “In many island economies, this model is turned on its head: The economy is dominated by the public sector. Since the public sector generally is a consumer and not a producer of wealth, this type of economy can only be sustained with outside subsidies. I have referred to these island economies as being “upside down in the middle of the ocean.” They will have to get right-side up in order to get their heads above water,” said Cohen.
However, the odds are against the island communities because of their remote locations and susceptibility to extreme weather conditions. “These communities tend to have small populations, few resources and remote locations. That means they are heavily dependent upon transportation systems to bring people and goods to and from their islands, and that transportation is likely to be significantly more expensive than it is in more populated areas. This, in turn, tends to make everything else on the island more expensive. The cost of doing business is therefore high.”
By Gemma Q. Casas
Variety News Staff
12/7/07
THE federal official in charge of overseeing assistance and programs for American insular areas says the cost of living in island communities is high due to limited private sector participation.
David Cohen, the U.S. Interior Department’s deputy assistant secretary for insular affairs, was the keynote speaker at the Annual Conference of the Island Government Finance Officers’ Association held on Tuesday in Honolulu, Hawaii.
He said “in most of the insular area economies, there is an unsustainable imbalance between the public and private sectors.”
A strong private sector propels a healthy economy, he said. This way “jobs are created and taxes are collected to fund essential services for the public.”
But many islands do not have economies dominated by the private sector. “In many island economies, this model is turned on its head: The economy is dominated by the public sector. Since the public sector generally is a consumer and not a producer of wealth, this type of economy can only be sustained with outside subsidies. I have referred to these island economies as being “upside down in the middle of the ocean.” They will have to get right-side up in order to get their heads above water,” said Cohen.
However, the odds are against the island communities because of their remote locations and susceptibility to extreme weather conditions. “These communities tend to have small populations, few resources and remote locations. That means they are heavily dependent upon transportation systems to bring people and goods to and from their islands, and that transportation is likely to be significantly more expensive than it is in more populated areas. This, in turn, tends to make everything else on the island more expensive. The cost of doing business is therefore high.”
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