The expressions of Rob Bishop, chairman of the House Natural Resources Committee, in favor of Puerto Rico´s statehood came with minimum requirements such as a "vibrant economy" and "a fiscally sound government" on the island, which is currently under a process of territorial bankruptcy.
That is, for Puerto Rico to be accepted as a state, the island fiscal and economic scenario must be diametrically opposed to what has been happening since 2006: economic depression, budget deficiencies and nonpayments to creditors.
"However before the status changes, there has to be some things that are manifest. Obviously, a vibrant economy and a stable government that is fiscally sound, is an essential element that goes along with that,” Bishop said at a press conference in San Juan with Washington Resident Commissioner Jenniffer González, who has a different vision on the issue differently.
González insisted that in order to achieve the island´s economic improvement, Puerto Rico´s statehood has to be granted first.
"Statehood is the only way that Puerto Rico can get out of this economic situation. If we had the votes in the House and the Senate, many of the fiscal and financial issues that we are facing would be in the past," said González.
It is a similar statement to that of Carlos "Johnny" Méndez, president of the Puerto Rico House of Representatives, after meeting with Bishop yesterday morning.
After listening to local officials, Bishop insisted on his statement.
“I also realize there are certain steps to get there. They are not necessarily easy steps and what happens to the financial stability of this island is one of those key critical components,” said Bishop, whose committee has jurisdiction over Puerto Rico status.
Governor Ricardo Rosselló Nevares also had his own perspective. He argued that statehood "cannot be conditioned on fiscal or economic considerations," reacting to Bishop´s expressions.
Bishop's visit that was to last at least until today, Saturday, was of an official nature and included meetings with leaders of the private sector, politicians and executives of some public corporations, such as PREPA. In the congressman´s agenda, there was not a meeting scheduled with Rosselló Nevares. Both politicians had public confrontations in recent months due to opposing interpretations of PROMESA.
According the Resident Commissioner, the Governor had a "very tight" agenda. Yesterday´s agenda included handing over property titles along with Florida’s Democratic Senator, Bill Nelson, who currently holds the chair that Rick Scott, Florida Republican governor, wants.
New statehood bill
A possible middle point could be materialized with a new bill in Congress that, after a transition process, could lead Puerto Rico to become a state of the United States.
Gonzalez did not specify measure details. She said that they are working on conversations so that the proposal is supported by Democrats and Republicans in the US House and Senate.
Bishop supported this effort because, in his opinion, it could lead the island to meet the conditions that make statehood viable for Puerto Rico. “I think it is a solution that is long overdue,” said Bishop regarding political relations between Puerto Rico and the United States.
"In the case of Utah, which should have been made a state 40 years before it was actually made a state. Sometimes you have to pass some preconditions for Washington to accept it," said the Republican lawmaker.
Bishop said that the problem of statehood receptivity is mainly in the US Senate. He said that, there, the Puerto Rican issue is not well understood, compared to the House of Representatives, which tends to be more receptive.
"That is why it is important that they have leaders there who understand the Puerto Rican issue," Bishop said just before referring to Governor Scott, who wants to become a senator for that state.
Political rivalry
Disagreements between Bishop and the Governor have intensified at the end of March when the congressman sent a letter to the members of the Board expressing his frustration because, as the entity that controls Puerto Rican finances, it had not promoted a dialogue with government creditors, nor had it claimed enough transparency from the government.
Rosselló Nevares responded to Bishop's arguments with a letter, urging him to watch over Puerto Rican interests and not just those of bondholders.
Weeks later, Bishop, demanded to the Board again to impose strong structural and fiscal measures in Puerto Rico and recalled the broad powers that Congress provided the entity that oversees the finances of the island´s government.
His statements hit the core of the debate during the process of development of fiscal and structural measures that should be included in the fiscal plan. The Governor rejected any imposed measure that was not strictly fiscal, especially cuts in government retiree’s pensions and the section of the new labor reform that eliminates compensation for unjustified dismissal, sick and vacation leave reduction, and eliminates the Christmas bonus, among others. Initially, the Governor would endorse the proposal if the minimum wage was increased, without conditions, to $ 8.25.
José Carrión, President of the Board, argued that these measures are necessary to boost the economic development of Puerto Rico and, therefore, reduce the government´s fiscal problems.
The debate had a time of great tension on April 19, when Board certified a fiscal plan for the central government with the provisions that Rosselló Nevares objected to. The governor said he would not comply with these provisions in fiscal planning.
After the approval of the fiscal document, the tone of Bishop's statements changed. Yesterday, instead of exhorting the Board to be more aggressive in the austerity measures that were imposed, he spoke about understandings and the common goals that different leaders of the government and the private sector should have. He also "granted" Jenniffer González the request to hold a hearing during the summer in Washington D.C. to review the Boards achievements and efficiency. Regarding this issue, yesterday, González was particularly critical of the Board expenses at a time when they imposed austerity measures in the Government.
"To achieve progress, everyone must be on the same page and not fight ... What we need is to make sure that in this effort to revitalize the economy and give stability to the island, since before the hurricane, but especially after the hurricane, everyone is at the table and focused on the same goal," said the Republican congressman for Utah.
These statements came right after the president of the local House of Representatives complained about the lack of receptivity they had had in the Board.
"We have to make sure that we are rebuilding the economy. It is not so much a matter of more federal or insurance companies’ funds but how we're going to develop jobs in the private sector," Bishop added.
Energy renovation
Bishop emphasized on the energy reform and the opportunities that Puerto Rico have to become the hub of energy production in the Caribbean. He said that this process should be led by the private sector, with government supervision. He added that natural gas should be the "vehicle" to energize Puerto Rico.
"I would like to see more natural gas ports here, either stable or floating as seen in other areas of the world. There must be an infrastructure that can integrate natural gas. It is a process that can not be rushed because we have an opportunity to do it well," said Bishop, shortly before admitting that he has discussed the issue in Washington with private companies executives that he did not mention.
Reporter Javier Colón Dávila collaborated on this story.
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