Tinian Shipping, which operates the two ferries that carry passengers between Saipan and Tinian, may be transformed into a government-run transport facility.
Senate Vice President Jose M. Dela Cruz said this was one of the “long term” plans that Tinian senators discussed with Gov. Juan N. Babauta, Senate President Paul A. Manglona and Attorney General Robert T. Torres in a meeting Tuesday.
“One of the possibilities is to turn the company into a public corporation or a government-run facility so that it could be qualified to receive federal grants,” said Dela Cruz, D-Tinian, in an interview yesterday.
He said the governor had instructed the Attorney General’s Office “to look into any type of help” that the government could extend to Tinian Shipping.
Last week, U.S. Marshals seized the two ferries following a federal court’s issuance of warrants for the arrest of the vessels. The two ferries, Saipan Express and Tinian Express, were sued by World Fame Shipping Ltd., a Hong Kong-based company, over unpaid debts. (See related story on page 8)
Senate Floor Leader Joaquin G. Adriano, D-Tinian, earlier said the government might help the company pay a portion of its $600,000 debt to World Fame.
But Senate Minority Leader Pete P. Reyes said it is a “ridiculous idea” to bail out the company. “The government has no business in bailing out a failing business. I will not support any government action rescuing a company that made (faulty) business decisions,” said Reyes, R-Saipan.
Reyes said the government might as well rescue other companies that are suffering from financial woes.
He said it would be better if the government prioritize financing public services such as road pavements, the increase in teachers’ salary, the payment of retroactive salaries of government employees and the hazardous pay of Department of Public Safety staff.
Reyes said reducing the tax rate is the only thing that the government can do to help businesses.
“I am confident that the governor will brush this proposal aside. Government funds appropriated by the Legislature is for public service. We don’t offer subsidies for businesses that fail,” Reyes said.
