By Mar-Vic Cagurangan
Variety News Staff

WHILE acknowledging the need for the government of Guam to update antiquated fee structures, a business leader and some senators yesterday warned against exorbitant levies that would drain the pockets of ordinary citizens or create a business-hostile environment.
“We understand that cost recovery is necessary to a certain extent but we need to make sure that the fee adjustments are within reason. We need to make sure that Guam remains community-friendly,” said Stephen Ruder, chairman of the Guam Chamber of Commerce. “If Guam is community-friendly, it is business-friendly.”
The Legislature yesterday approved the administration’s proposal to increase permit, license and service fees by 100 to 500 percent. (See top story)
Ruder said the Chamber is reviewing the administration’s fee schedule packages, which are now part of Bill 74, the 2007 revised budget measure.
“We’ve been working with the administration and the Legislature on this issue and I am looking forward to the opportunity to provide input,” he said.
Sen. Ben Pangelinan, D-Barrigada Heights, said the public would experience “fee shock” once the new rates are implemented.
“I think there will be some ‘fee shock’ considering that there is no public discussion on these fees. The public is unaware that we’re talking about percentage increases and not dollar amount increases. Some fees would increase by a thousand percent,” Pangelinan said.
“I agree that some of the fees need to be adjusted. It took us too long to do that. But I want to make sure that this action will result in better services on the part of the government,” Pangelinan said.
But fee hikes must come with a corresponding lifting of some taxes, he added.
“There has to be a balance. I’m concerned that we are raising these fees and continue to operate and work with the same inefficiency that we have now,” he added.
Sen. Frank Blas, R-Yona, said he would support the proposed fee increases “if the administration is comfortable that these levels would enable the government to recover.”
“I think that for the most part, the new fees are reasonable. There are concerns about raising fees to an exorbitant level, but this is not meant to put businesses out of doing business. Our intention is to recoup,” Blas added.
Sen. Tina Muna Barnes, D-Mangilao, said she is concerned about the lack of public participation in the fee adjustment process.
“We don’t know what methodology has been used to configure these fees. It bothers me. We are increasing fees that will badly affect those who live paycheck to paycheck. It is important that we do this with due process,” Barnes said.
Sen. Jesse A. Lujan, R-Tamuning, seconded Barnes sentiment.
“With these new fee schedules, we are making Guam business-unfriendly,” he added.
“The fee increases are huge and we don’t know how the administration came up with these figures. The stakeholders have not been consulted and the budget officials don’t make themselves available to give explanations,” Lujan said.