IF the intent of raising user fee in the industry is to benefit the people of the CNMI through further development of the tourism industry then this plan is going to accomplish the exact opposite of that.
You raise taxes in the garment industry to the extent that it eliminates the industry, you create further taxes upon the remaining industry and business in the CNMI.
On the idea of a task force to review replacement revenue sources: The speaker already sits on the SEDC, which is tasking itself with exactly that.
On one hand, the speaker says he wants to review the industry because he doesn’t know anything about its economics, and on the other hand he says he knows that they are making enormous profit. Which is it; he knows, or he doesn’t know?
Why does the speaker, and other members of the Legislature for that matter, choose to ignore the original deal they made with the manufacturers before they even situated in the CNMI? I realize that the speaker was not a part of the original negotiations and agreement, but I was. And, the continued refusal to acknowledge the existence of that agreement, although not as significant as the impact of raising user fee another 35 percent, is nonetheless important to this debate.
The user fee was not created as a trade-off for no business gross revenue taxes. It is equal to the old exemption on excise taxes.
Three factories are located on public land. Twenty-eight factories are located on private land. Where does he get this stuff?
The factories bring 30 percent of the garbage to the Puerto Rico dump. Does this excuse the government’s failure to execute on the other 70 percent?
Pedestrian traffic? Just because DFS paid for a traffic light for their customers, the speaker wants another free ride from their public safety responsibilities? Shall we get radar guns and begin issuing traffic citations?
It is preposterous to have the lawmakers suggest that they need to take advantage of this industry before it leaves, when it is within their power to protect this industry so that it can continue to provide jobs, revenue and a standard of living that would not be available without its being here.
RICHARD A. PIERCE
Executive Director
Saipan Garment
Manufacturers Association
