The 54-year-old Palacios who bid the House farewell before it adjourned on Tuesday said the leadership tried to meet its responsibility.
Palacios was the running mate of GOP gubernatorial candidate Rep. Heinz S. Hofschneider in the 2009 general elections. They narrowly lost to incumbent Gov. Benigno R. Fitial and Lt. Gov. Eloy Inos of the ruling Covenant Party.
The Covenant Party will run the 17th House leadership after the four elected independents decided to align with it.
“In any democratic form of government, a stalwart opposition party is essential to keep government officials honest, clean and responsive to the needs of the general public,” Palacios said. “Indeed our system of government is founded on two principles — the separation of power among the three branches of the government and the checks and balances system.”
Palacios said there were many complicated issues that surfaced during the 16th Legislature: the extension of federal immigration law to the islands, the power crisis at the Commonwealth Utilities Corp., the financial mess at the Retirement Fund and the government’s challenge to shore up the local tourism industry, the backbone of the CNMI economy.
Palacios said a new budget is crucial to the government’s continued operation and this should be given priority by the 17th Legislature.
“A timely budget is crucial to curb runaway expenditures by the government, especially the executive branch, which receives the bulk of the annual general appropriation for government operations. A timely budget is crucial especially when the government’s revenue stream is severely affected by the tough economic conditions besetting the CNMI,” he added.
The power crisis is also an important issue, he added.
“The blackout crisis of 2008 showed all of us how perilously close Saipan’s power plant system was to a total meltdown. Early in our term in 2008, we held multiple meetings with CUC executive director and staff about the state of disrepair at the power plant in Lower Base that left many families literally in the dark because of the troubled power engines,” Palacios said.
He said the governor’s decision to place CUC under a state of emergency isn’t the solution.
“Mismanagement of CUC is the primary cause of the sad state of our infrastructure under CUC control,” he added.
The declaration of the Marianas Trench Marine National Monument that stirred controversy among local officials was the only policy issue wherein the 16th House agreed with the administration, the speaker said.
“The governor and I were in sync that an outright presidential declaration without much input from the CNMI people would be a travesty of justice and an outright exercise of imperialism. Although both of us shared the ultimate opinion that a marine monument would mean an infringement on CNMI authority over its vast marine resources, we recognized the importance of our input to the federal team,” said Palacios.
“It is with that same spirit of cooperation and genuine commitment that I bid the 16th Legislature a fond farewell and adios. With deep gratitude for all that you have done for me, I wish you the best of luck, perhaps most especially to those who are returning to the 17th Legislature,” he added.


