|
 |
|
|
|
Este informe no está disponible en español. CARIBBEAN BUSINESSMinding Our Businesses: Part IIITop Gubernatorial Candidates Share Their Visions And Proposals For Guiding Puerto Rico’s Economic DevelopmentBY YVONNE GARCIA & LUCIENNE GIGANTEJuly 6, 2000 Editor’s Note: This is the third in our continuing series on the economic programs of the two major candidates for governor. Sila Maria Calderon of the Popular Democratic Party (PDP) and Carlos Pesquera of the New Progressive Party (NPP) discuss their ecomonic development programs in the areas of tourism, the environment, air and maritime transportation infrastructure. Next week, read their views on telecommunications, the film industry, technology in education, privatization, government reform and others. Despite repeated requests, Popular Independence Party (PIP) candidate Ruben Berrios could not make himself available for an interview. If and when he does, CARIBBEAN BUSINESS will publish his economic development proposals.
With the help of the 1993 Tourism Incentives Law, more hotels have been built in Puerto Rico, boosting the island’s total room inventory to nearly 12,000 rooms. Do you think Puerto Rico has reached its full room potential? Do you have a specific benchmark in terms of the contribution of tourism to the economy? Tourism continues to be a crucial factor in our diversified economy. I see its development in several ways, from large hotels to a smaller scale, country inn (paradores) tourism. I see the Convention Center and the Condado Trio as being important for the metropolitan area and I envision ecotourism and internal tourism as having great potential. We have to improve the experience of tourists who stay in large hotels. We can do that by providing a positive experience in formal ecotourism, which would not only enhance the tourist’s experience but would help local economies. We have great opportunities in this, not just because of our natural beauty but also because of the cultural experience that different towns offer. This is an area for growth. I’m not worried that our tourism is costlier than in the Dominican Republic. I don’t see that as a limiting factor. We have a market where the tourist can be in San Juan in 3.5 hours and it takes 10 minutes to reach an excellent hotel. Instead of complaining that I don’t have cheap hotels, I would improve the experience of what we already offer. This is an important market that will continue growing, and if we tend to that market, we’ll have the clientele we need. In terms of internal tourism, we are proposing a program for 100 kilometers in linear parks, such as the Paseo Piñones and the Third Millennium Park. We want to establish a network of linear parks so that tourists can take their bicycles from region to region and experience the different linear parks. We’re also looking at the Panoramic Route. Under my tenure as Transportation and Public Works secretary, we did a study for a Panoramic Route development plan that would generate economic activity. We want to look at the road as an economic corridor from the point of view of inns and places to visit as part of ecotourism. We’ve already developed many projects, the Mirador Piedra Degetau and the Mirador Villalba, which is under construction now on the Panoramic Route. We should establish other passive recreational projects along the road, joined with a marketing and inn development program. Protecting the environment has become a key issue in Puerto Rico where green areas are increasingly endangered by the proliferation of concrete construction. How can we balance the need to preserve land and protect the island’s natural beauty while allowing for necessary growth? The environment is a very important topic for us. And, from the business point of view, protecting it is a good investment. Among the most important initiatives to protect the environment that I’m proposing is increasing from 5% to 10% the lands that are protected in Puerto Rico. For me, the greatest environmental protection is in protecting land, through the Puerto Rico Conservation Trust or other initiatives that protect lands forever. We also have to be careful in protecting landscapes. That’s something we’re not used to here, but it’s an important issue in some places in the U.S., such as Vermont. We have to begin realizing that there are landscapes that are important for us and it’s counterproductive not to protect them. We have to be cautious with the environmental issue, we have to be proactive and invest in preservation, increase the amount of land available for conservation. Should you win, within your term in office, the majority of landfills now operating on the island will be closed. The Solid Waste Management Authority is well behind schedule for establishing viable solutions to waste management. What would you propose to do with Puerto Rico’s solid waste, short and long term? Definitely, from the point of view of infrastructure, our greatest challenge is the management of solid waste. While is has bearing on the environment and public health, it’s also key to economic development because it can be a costly and limiting factor on our economy. We have to look at this in a decisive and direct manner and we have to share this with municipalities, because we can’t leave it solely up to them. That hasn’t worked. We also can’t discard any type of technology. We have to seek the available technology that is cost effective, environmentally viable, and that is acceptable to communities. My proposal is to call things as they are, if it’s an incinerator, call it so, don’t look for a sophisticated name. But let’s go through a process to orient communities and explain what we want to accomplish, including showing them where such facilities exist in the U.S. If we don’t address this problem, we are on the way to a true crisis in Puerto Rico. My proposal also includes using the Infrastructure Financing Authority (AFI by its Spanish acronym) as a mechanism to address the problem. AFI is empowered by law to address infrastructure problems quickly. In the same way that we addressed the water crisis, we can address the solid waste disposal crisis. We have to achieve a 35% recycling rate but we still have to dispose of the other 65%. We have to improve the capacity to market or sell the recycled products. Projects proposed to handle the solid waste management problem take too long, we have to change that to make the focus more urgent. We need an agency with experience in the bidding process for projects; in preparation of requests for proposals, in effective evaluation of the alternatives, and in the evaluation of technical aspects, procedures and contracts. I propose to use AFI’s model to deal with this problem. Puerto Rico’s waterways are endangered by poor sewage treatment and clandestine dumping practices which are currently outlawed. Would you plan to change enforcement practices or stiffen protective laws? Our goal is to increase connections to the sewage system to 80%. For me, the crucial problem is the number of places not connected to treatment plants because the environmental problem is caused by the fact that the sewage is dumped directly into channels, rivers, and creeks, producing the worst kind of environmental impact. That’s why it’s important to increase connections, even if they are to primary treatment plants. We have to improve primary treatment plants in the short term and then convert to secondary treatment in the interim. In truth, the conditions in Puerto Rico allow for primary treatment to work effectively in some places and to comply with Environmental Protection Agency (EPA) requirements. We may have to build more primary treatment plants but, as an example, the Carolina plant was cited by EPA and no further connections could be made. Once you correct the plant’s violations, you increase the plant’s capacity from 20 million to 40 million gallons per day, so you can connect more people. Our goal should be to eliminate poor plant operations so we can connect more properties to existing primary treatment plants and slowly convert those which would benefit most to secondary treatment plants based on a plan created with available federal help. One project that is crucial for me is cleaning up the Martin Peña Channel. That project has economic development, environmental, and social justice issues for the people who live in that sector. There already exists a master plan for this project, which is long term over six to 10 years and would require a $350 million investment. For me, there’s no justification for having it the way it is. The export-led growth model has been a successful development strategy for countries like Chile and the Asian Tigers. Do you believe it is important to diversify Puerto Rico’s external trade given the fact that the majority of the island’s exports are to the U.S. Mainland? What would you do to diversify trade between Puerto Rico and foreign countries? [ANSWER PENDING] What’s your plan to further develop Puerto Rico’s surface, air, and maritime transportation infrastructure and services? What will be your strategy to foster ancillary economic activity to prevent the proposed transshipment port from becoming a white elephant and develop it into a major job creator? This is one of the most neuralgic points for us. Improvements to our ports in the last few years have not kept up with improvements in other infrastructure areas. Port facilities, cargo, and tourist facilities are important areas to focus on in the next four years. At the Luis Muñoz Marin (LMM) International Airport we have made great advances and fundamental changes. We only have to remember what it was like to enter the airport eight years ago. I believe Puerto Rico is going to have two important airports, the LMM and the Rafael Hernandez Airport in Aguadilla. Basically, they are complementary, and my proposal to extend the Jose de Diego Expressway from Hatillo to Aguadilla will complete a strong roadway connection between them. This would mean that distributing merchandise that arrives to one or the other airport would be effectively the same. Other airports, such as the one in Mayaguez, have lost importance because highway access has improved. We will also push the development of the transshipment port in the south of Puerto Rico. It will most likely be in Guayanilla. It will be fitted with the most advanced technology and we will give special attention to the development of ancillary activities necessary for its successful operation. Shippers to the island are often confused by the Treasury Department’s 6.6% excise tax. They take it as an import duty, thinking that Puerto Rico is outside U.S. customs territory. Do you support the elimination of the 6.6% excise tax on goods entering the island? Would you consider establishing a sales tax to replace it, which economists say would represent a savings to consumers? We don’t have a specific proposal to eliminate the 6.6% but we do want to make its collection easier for people who bring merchandise onto the island so that it’s not a limiting factor. We don’t have a proposal to establish a sales tax in our platform. Still, that’s not to say we haven’t been asked to do so by many sectors, including accountants and manufacturers. There are basically two demands: to maximize the excise tax and to make it more uniform and easier to collect. But we are not proposing a change in this area. To be continued next week. With the help of the 1993 Tourism Incentives Law, more hotels have been built in Puerto Rico, boosting the island’s total room inventory to nearly 12,000 rooms. Do you think Puerto Rico has reached its full room potential? Do you have a specific benchmark in terms of the contribution of tourism to the economy? There has been an improvement in the tourism sector, but Puerto Rico hasn’t yet reached its maximum potential. There is much to develop and improve, especially with the Dominican Republic’s aggressive effort for the sector and the imminent opening of the Cuba. Cuba’s market--where Germans and Spanish have invested millions in tourism developments–will present incredible competition for us. The tourism industry needs additional incentives, promotion, and a more accurate marketing and public relations strategy. For example, local artistic figures that we love in Puerto Rico do not necessarily attract tourism. Not many people visit a country because it’s where an international figure comes from. They can be seen everywhere. We need to market the natural resources we offer. The millions invested in tourism publicity need to be redefined and readjusted in a more accurate way. We need to show our beaches, natural beauty, culture, and hospitality. In addition, there is an internal tourism market of small inns (paradores) that aren’t promoted enough. We need to give support to this small, but important market. I will use our fiscal autonomy to establish a more competitive and rational tourist program. Expansion in the number of rooms is important, but we also need to attend other aspects to maintain high hotel occupancy rates. My tourism proposals attend five areas: development of tourism as a product, legislation, marketing, and improved operations of the Tourism Co. and the Puerto Rico Convention Bureau, as well as other entities such as the Public Service Commission. Protecting the environment has become a key issue in Puerto Rico where green areas are increasingly endangered by the proliferation of concrete construction. How can we balance the need to preserve land and protect the island’s natural beauty while allowing for necessary growth? As I have indicated, Puerto Rico’s development must strike a delicate balance between environment and progress, between urban centers and the convenience of residents, between the new and the historic. Therefore, short-term benefits should not put at risk or destroy the people’s treasures. We will give a veritable push to the responsible development of ecotourism in those areas that are suitable. I believe that achieving a balance between development and the protection of the environment is absolutely desirable and do-able if all the concerned sectors undertake a serious commitment. Government has to be responsible for achieving and maintaining this balance and cannot delegate this responsibility. Should you win, within your term in office, the majority of landfills now operating on the island will be closed. The Solid Waste Management Authority (SWMA) is well behind schedule for viable solutions to waste management. What would you propose to do with Puerto Rico’s garbage, short-term and long-term? Solid waste management is a serious problem that needs to be attended to responsibly and without party-line political considerations. Certainly, the SWMA work itinerary is extremely delayed. Take the case of San Juan municipality, in which we don’t know where our waste will be disposed. [The San Juan landfill closes in December] As mayor, people told me that I was lucky because the San Juan landfill had seven years left of useful life and that I didn’t have to be the one closing it. But I said no. Someone needs to close this landfill. And although it wasn’t a good decision politically, I made the decision. We need to make decisions. We are all responsible. To allow Puerto Rico’s further development, it is necessary to consider proven technologies to manage solid waste that don’t damage public health or the environment. Other countries have done it in a responsible manner using the latest technology. What we need to do is make some decisions now without political fear. We need to analyze the solid waste management alternatives and decide. Similarly we will increase recycling and promote the development of quality operated regional landfills that comply with environmental laws. Puerto Rico’s waterways are endangered by poor sewage treatment and clandestine dumping practices which are currently outlawed. Would you plan to change enforcement practices or stiffen protective laws? This type of practice must stop because it does the country more harm than good, sometimes irreparable damage. I will make use of much stricter laws to penalize the clandestine discharge and the full weight of the law should fall upon those who do not comply. On the other hand, under the program Agua para Todos (Water for All) we will provide separate sanitary sewage system in those areas where they may still have combined sanitary and pluvial sewage systems. Wherever the separation may not be totally feasible, we will implement the most advanced sewage management techniques available in order to reduce the impact of those discharges. At the same time, we will develop an intensive program to provide sanitary sewage systems to rural communities. The export led growth model has been successful development strategy for countries like Chile and the Asian Tigers. Do you believe it is important to diversify Puerto Rico’s external trade given the fact that the majority of the island’s exports are to the U.S. Mainland? What would you do to diversify trade between Puerto Rico and foreign countries? There is no doubt that Puerto Rico has been playing a predominant role in terms of international commerce, especially in the Caribbean and Latin America. Numerous local and international companies successfully manage regional operations from Puerto Rico. This experience should be utilized to expand even more exports to other markets outside of the U.S. mainland, converting Puerto Rico into a regional exportation hub between the Caribbean, Latin America, and the States. There is a huge market in the Caribbean and Latin America that we should exploit. I propose measures directed to develop this market and re-enforce Puerto Rico’s image as a global competitor, looking at new markets for our products. We will conduct a study to identify the infrastructure deficiencies that limit external commerce and take corrective actions and establish alliances with the Hispanic-American market in the States to promote the exchange of products and service. We will work to eliminate the application of Jones Act regulations on shipping to and from Puerto Rico. Certainly, the Jones Act is an unfair obstacle for Puerto Rico. We have great products, such as gourmet coffee, and we need to facilitate their commerce. The Jones Act is playing an important role that has always been always a problem. What’s your plan to further develop Puerto Rico’s surface, air, and maritime transportation infrastructure and services? What will be your strategy to foster ancillary economic activity to prevent the proposed transshipment port from becoming a white elephant and develop it into a major job creator? Puerto Rico has one of the most developed infrastructures in the Caribbean. However, there is still much to develop to guarantee the efficiency of the air and maritime transportation systems. At this moment, it is essential that we evaluate the role and composition of the Ports Authority to eradicate wrongdoings. Integrity must stand behind all public policies established by the government. Similarly, we will study infrastructure deficiencies that limit outside commerce and take corrective actions. I support and promote the creation of the transshipment port--I think it should be located in the south of Puerto Rico--which is going to be extremely important for the development of the island and its commerce. I am totally in favor and as governor, I will promote and create incentives for its further development. I hope the private sector will have a predominant role in the transshipment port construction and administration. My administration will try to stimulate international commerce to establish Puerto Rico as a bridge between the Americas and the rest of the world. Shippers to the island are often confused by Hacienda’s 6.6% excise tax. They take it as an import duty thinking that Puerto Rico is outside the U.S. customs territory. Do you support the elimination of the 6.6% excise tax on goods entering the island? Would you consider the establishment of a sales tax to replace it, which economists say would represent a saving to consumers? I don’t think confusion exists in that way. The actual mechanism has been adjusted in the past to make its implementation simpler. I am willing to consider mechanisms and measures that accelerate excise tax collection, making the process less cumbersome, more effective, and fair for all. Any measures to change the actual collection system will be adequately analyzed and revised. To be continued next week. This Caribbean Business article appears courtesy of Casiano Communications.
|
