[Congressional Record Volume 142, Number 73 (Wednesday, May 22, 1996)]
[Extensions of Remarks]
[Page E876]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          SECTION 936 CONCERNS

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                        HON. BARBARA B. KENNELLY

                             of connecticut

                    in the house of representatives

                        Wednesday, May 22, 1996

  Mrs. KENNELLY. Mr. Speaker, I am very concerned that section 936 is 
phased out in this bill without anything to replace it. Section 936 has 
played a critical role in economic development in Puerto Rico--creating 
and keeping good, high quality, well-paying jobs on the island. Many of 
my constituents in Hartford, CT, have friends and relatives employed by 
section 936 companies in Puerto Rico.
  I am concerned about the impact of the repeal of section 936 on the 
people on Puerto Rico. Poverty is already very high and good jobs 
scarce. What will remain for the people of Puerto Rico? I'm afraid that 
we will only fully realize just how effective it has been when the 
companies that have enjoyed section 936 begin to leave for other parts 
of the Caribbean or Ireland. The bill provides some limited protection 
for the companies doing business in Puerto Rico, but very little 
protection for the people of Puerto Rico.
  It is because of these concerns that I support an economic incentive 
program such as that proposed by Governor Rosello. Chairman Archer has 
taken the first step by establishing a temporary economic incentive 
program that would replace section 936 with a wage credit. This should 
help to spur job creation on the island. By placing the wage credit in 
a new section and phasing it out over 10 years, this bill will allow 
Congress to monitor economic development in Puerto Rico.

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