The chamber officials noted that the revenue shortfall could get worse within the next two months due to this outbreak, and highlighted the importance of obtaining federal assistance as soon as possible.
The chamber officials were president Velma Palacios, secretary Tyrell Pauling, board members Alex Sablan and Marcia Calvo, and executive director Maxine Laszlo.
The legislators present for this meeting were Speaker Blas Jonathan Attao, Vice Speaker Lorenzo Deleon Guerrero, Reps. Sheila Babauta, Roman Benavente, Luis John Castro, Joseph Flores, Joseph Leepan Guerrero, Donald Manglona, Marco Peter, Edwin Propst, Christina Sablan, and Ralph Yumul.
Representatives from the Department of Finance were also present.
The chamber officials said their biggest fear is outmigration, mainly because of its negative impact on the Commonwealth economy. They added that the cuts to the average workweek are not much of an incentive for individuals and/or families to remain in the islands.
Rep. Marco Peter said the main issue with the flight cancellations on the part of tourists is not so much the number of passengers boarding flights, but the fact that people are hesitant to even set foot in airports amid the global novel coronavirus outbreak.
Several questions arose from the discussions, including what kind of federal aid can be requested, what types of other industries can possibly thrive in the Commonwealth, what needs to be updated in the government’s current budget, as well as tax issues.
Saipan Chamber of Commerce officials initiated a dialogue with the members of the House of Representatives on Monday morning regarding the economic impact of the coronavirus outbreak. Photo by K-Andrea Evarose S. Limol
Chamber board member Sablan said one potential new industry is information technology.
Laszlo said the long-term problem is that it is difficult to do business in the Commonwealth, while the short-term problem is trying to figure out how to stay afloat.
She added that the Commonwealth will need federal assistance because there are not many options left to resolve the islands’ short-term problem.
Palacios said the Commonwealth should be more proactive in trying to secure federal assistance.
Regarding taxes, chamber board member Sablan said there is an estimated $2 million loss, due to certain businesses neglecting to pay taxes that they owe.
He added that the chamber has always opposed a tax amnesty because it is unfair to other local businesses, especially those that are struggling to stay afloat.
Rep. Propst said Imperial Pacific International, the Saipan casino investor, “owes” the CNMI government “$33 million.”
He emphasized the importance of looking into businesses that are not paying taxes, despite being required by law to pay those taxes.
The chamber officials will be meeting with the Office of the Governor today, Tuesday, to discuss their concerns with the administration. They also intend to meet with U.S. Congressman Gregorio Kilili Camacho Sablan as soon as possible to also discuss these matters.
