[Congressional Record Volume 141, Number 81 (Tuesday, May 16, 1995)]
[Extensions of Remarks]
[Page E1042]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1042]]
                COAST GUARD REAUTHORIZATION ACT OF 1995

                                 ______


                        HON. STEVE C. LaTOURETTE

                                of ohio

                    in the house of representatives

                         Tuesday, May 16, 1995
  Mr. LaTOURETTE. Mr. Speaker, when the House debated and passed the 
Coast Guard Reauthorization Act of 1995 on Tuesday of last week, the 
issue of Coast Guard inspection fees was raised by some of my 
colleagues on the Transportation and Infrastructure Committee. Although 
the amendment failed on a point of order, I wish to associate myself 
with the logical arguments made on the floor that day.
  The Budget Reconciliation Act of 1990 requires that the Coast Guard 
impose user fees for some of its services. While I am in support of the 
concept, and recognize the importance of such an approach to assist in 
balancing the budget, the Coast Guard has gone off course with its fee 
schedule in terms of fairness and balance among different classes of 
boats.
  The Coast Guard estimates it is charging $87 per hour for the 
inspection service. However, my colleague from Louisiana, Mr. Tauzin, 
cited an example of a 1 hour inspection costing $545 under the current 
fee schedule. This is unacceptable. I believe in fee-for-service, but 
the fees must reflect the value of the services rendered. I fear that 
the burden of the current policy will fall disproportionately on small 
vessel owners and small businesses; those who can afford it the least. 
I am supportive of capping the inspection fees based on boat length to 
ensure fairness within the current system.
  I also believe it is appropriate for the Coast Guard to consider a 
fee schedule that takes into account the seasonal nature of some 
commercial boating operations. For example, Rutherford's Cruise Line, 
which operates in my district from the Grand River on Lake Erie, only 
operates during summer months. Under the current system, Rutherford's 
would pay almost $2,400 to the Coast Guard to inspect three vessels. 
Small cruise line businesses on the Great Lakes have a limited season 
and short time in which to make their operation run in the black. The 
current annual fee requirement, which treats a vessel in Florida the 
same as one on the Great Lakes, is burdensome and economically unfair 
to boaters in the Great Lakes region.
  I understand Mr. Tauzin's amendment will be the subject of hearings 
before the Ways and Means Committee and the Transportation and 
Infrastructure Committee in the near future. I am supportive of finding 
a rational and fair approach to the inspection fee schedule that more 
closely approximates the true cost of the inspection process.
  Recreational boating, including charter boat fishing, is an important 
part of the economy in my district. The 60 miles of Lake Erie shoreline 
I represent has seen a tremendous resurgence over the past 10 years due 
to a revitalized Great Lakes fishery. I am encouraged by the small 
businesses entrepreneurs, who are taking advantage of the opportunity 
to start new businesses and do not believe they should be punished with 
unreasonable inspection fees.


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