Sheater, who has 40 years experience in banking and finance in the Asia-Pacific, agreed with House Minority Leader Diego T. Benavente, who noted that the government’s budget projection will further decline in the following months.
Benavente R-Saipan, said the government work-hour cuts are also affecting businesses, and this will result in less revenue for the government.
Sheater said businesses respond quickly to government actions concerning taxes and wages.
Businesses, he added, make quick decisions when facing increases in taxes and the minimum wage.
A higher minimum wage may result in job cuts while tax increases are usually passed on to the consumers, Sheater said.
A tax hike, he added, is something the businesses do not like to hear about.
Sheater also said that the CNMI Constitution’s Article 12 restricts the entry of new investors in the commonwealth. The current land lease rules bring difficulties to the hotel industry, he added.
Article 12 states that the “acquisition of permanent and long-term interests in real property within the commonwealth shall be restricted to persons of Northern Marianas descent.”
House Ways and Means Chairman Ramon S. Basa, Covenant-Saipan, said they invited Sheater to join an economic recovery team formed by the House leadership.
The team will convene after Thanksgiving in the House chamber. Sheater said he is willing to offer his assistance.
According to Basa, “We need to bring together a cross section of the community, including key government agencies like the Commonwealth Development Authority, the Department of Commerce, the banking industry, and the other members of the business sector to come up with the best solutions to the ailing economy.”
//
