THE administration wants to know whether the garment industry is paying enough for the privilege of doing business in the CNMI where the minimum wage is way below the federal rate and factories can export their products to the U.S. duty free.
Commerce Secretary Fermin M. Atalig, in a memorandum to the governor, said “the absence of hard data to justify its contribution, and any position taken by anyone, is pure speculation.”
Several years ago, the federal government said the controversial industry earned $1 billion in one year alone.
Industry officials, however, are claiming that their earnings have been decreasing these past several years.
In order to arrive at a “more definitive position,” Atalig is proposing the establishment of a new division that will monitor the garment industry.
Like the banking section that oversees the banking industry, the new division will ensure “transparent monitoring” of the garment industry, Atalig said.
He told Variety yesterday that the Department of Commerce had already prepared the “implementation phase” of the plan, which still needs the governor’s approval.
Richard A. Pierce, executive director of the Saipan Garment Manufacturers Association, said “it is about time that the garment industry finally have a place in the commonwealth government.”
“It’s great news. I have lobbied heavily and hard…to create an office like that,” he said.
Pierce said he favors the creation of a new office “that will have the knowledge to assist us.”
He said SGMA would “do everything” to get the proposal started.
Acting Gov. Diego T. Benavente also supports Atalig’s proposal.
“This will lead the way in regaining confidence in the industry,” he said.
“I think what is missing right now are factual numbers,” and this is why most lawmakers favor increasing the industry’s user’s fee, Benavente said.
