By Gemma Q. Casas
Variety News Staff

NORTHERN Marianas remains embroiled in deep economic crisis more than a year after the new administration that promised "better times" took over but Gov. Benigno R. Fitial says there is still hope.
"Last year I reported to you that the CNMI government was broke. Today I stand before you to report that we are still broke," said Fitial in his second State of the Commonwealth Address held on Friday at the Multi-Purpose Center, adding that, "there are no quick or easy fixes" to solve the islands’ myriad of economic-related problems.
"I still have three years left in office and I would never lose faith in the potential of this great commonwealth. We will have better times in just a matter of time. God bless all of you and God bless the commonwealth."
The ceremony promptly started around 9 .am.
But it deviated from the customary program by having the Washington Rep. Pete A. Tenorio deliver his State of the Washington Office Report ahead of the governor.
No protest actions occurred outside the venue but at least one local resident prominently displayed a huge billboard atop a pick-up truck calling for the governor’s "recall."
Fitial who was sworn into office on Jan. 9, 2006 said he’s "still working on forging the better destiny for the commonwealth."
He urged the people, the private sector and the various branches of the governor to help him achieve this goal.
"I have not lost sight of our aspiration and my dream is still very much alive but realizing the dream would not be possible without help….I need the community’s support. I need the Legislature’s support. I need the private sector’s support. I need the support of my friend, the Washington rep," he said.
"I ask for your patience and understanding as we move toward the light at the end of a very dark tunnel. I strongly believe that by working together, we will find the energy, the determination and the commitment to bring our islands back into the light of prosperity and the life of abundance," he added.

Downtrend
The governor reported the government’s projected revenues will further slip in anticipation of more garment factories to shut down and the decline in airline seats from Japan, the main market of the local tourism industry.
From a high of 17,000 work force, the governor said there are currently about 6,000 remaining garment factory workers on the island, which indicates a sharp decline in garment production.
In 2001, the local garment industry was estimated to have contributed more than $80 million in direct and indirect taxes to the local economy. This year, Fitial said this figure is projected to go down to $30 million.
The garment manufacturers’ direct taxes to the government through the user’s fee is projected to drop to $11.5 million this year from 2001’s base figure of $37 million.
The governor said air seat capacity from Japan is projected to drop to 174,000 next year from a high of 519,000 a year before Japan Airlines pulled out its 14 flights a week between Tokyo and Saipan in late 2005.
With both the garment and tourism industries at an all time low, the governor said the monthly tax collections of the cash-strapped government would reach only $14 million, down by more than $3 million compared to previous months.
But despite these depressing facts, the governor said there are still new potential investments that are coming to the commonwealth.
He said the two-casino investors in Tinian — Marianas Resort Development Corp. and Bridge Investment Group — are pushing ahead with their casino-hotel-resort investments in Tinian.
MRDC expects its multimillion-dollar project to be finished in about two years. BIG anticipates to bring in as many as 1,000 Chinese tourists to its proposed casino site by 2010.

New austerity measures
In his speech, the governor also warned his administration may implement more cost-cutting measures to mitigate the impact of its steadily declining revenues.
This includes a reduction in workforce among civil service employees.
He said it’s about time that more local residents are employed in the private sector, adding that the Department of Labor will strictly enforce the 20 percent local requirement to every private employer.
Companies who will not be able to comply with the 20 percent local workforce requirement will be publicly posted.
"No more waivers so that citizens will know of all job vacancies," said the governor, adding that the Legislature is working on a new labor bill.
Additionally, the governor said the biweekly shut down of government offices under the austerity holiday will not be further extended.
The measure, which was designed to reduce government workers’ salaries by 10 percent would be replaced by a pending measure at the Legislature mandating that they not be paid for for some legal holidays.