[Congressional Record Volume 143, Number 49 (Wednesday, April 23, 1997)]
[Extensions of Remarks]
[Pages E724-E725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       SUPPORT FOR THE JONES ACT

                                 ______
                                 

                        HON. JOHN JOSEPH MOAKLEY

                            of massachusetts

                    in the house of representatives

                       Wednesday, April 23, 1997

  Mr. MOAKLEY. Mr. Speaker, on behalf of myself and the chairman of the 
Rules Committee, Mr. Solomon, and a bipartisan group of our colleagues, 
I have introduced today a resolution that strongly reaffirms the 
Congress' support for the Jones Act, section 27 of the Merchant Marine 
Act of 1920, one of the comerstones of U.S. maritime policy. With 
origins dating back more than 200 years, the Jones Act requires that 
vessels used to transport cargo between U.S. ports be built in the 
United States, owned by U.S. citizens and crewed by U.S. citizen 
mariners.
  The U.S. domestic Jones Act fleet plays a critical role in 
safeguarding U.S. economic and military security by ensuring U.S. 
control of essential transportation assets and our maritime 
infrastructure. It is not surprising that there are over 40 other 
nations that have similar laws that limit access to their domestic 
commerce to their national flag vessels in order to better enhance and 
support their own economic and military security.
  Domestic trade has always been the core of our maritime industry. 
This trade, which consists of seaborne commerce between our States and 
territories and coastwise, Great Lakes and river commerce, has insured 
the survival of our maritime industry. The Jones Act has fostered the 
growth of a highly productive and diverse fleet of large, 
technologically advanced, fuel efficient vessels. These vessels 
transport all types of U.S. domestic commerce in a timely, 
economically, and responsive manner. This fleet is better equipped than 
ever to serve America's economy. Today's fleet consists of more than 
twice as many large vessels as it did in 1965. These vessels are not 
only larger but faster and much more productive in terms of their cargo 
carrying and delivery capability. As a result, a single American 
mariner working aboard one of today's technologically advanced vessels 
is able to deliver as much as 17 times the amount of cargo as 30 years 
ago. The Jones Act, along with the comparable requirements applicable 
to America's aviation, rail, and trucking industries, plays a vital 
role in ensuring that America's shippers and consumers continue to have 
a reliable, efficient, and competitively balanced domestic 
transportation system. America's shippers and consumers benefit greatly 
by using equipment built to U.S. standards and operated by trained U.S. 
citizen workers.
  Vessels comprising the U.S. domestic Jones Act fleet does not receive 
any operating or construction subsidies from the U.S. Government, but 
rather are supported entirely through private capital investment by 
U.S. maritime companies. To date, these private investments have 
totaled approximately $26 billion. This investment pumps nearly $15 
billion into the national economy, including more than $4 billion in 
direct wages to U.S. citizens. This economic impact is multiplied by 
thousands of additional jobs which Jones Act industries support in 
downstream industries and local communities in which Jones Act-related 
income is spent. In fact, the U.S.-flag domestic fleet provides direct 
employment for 124,000 Americans, including 80,000 merchant sailors and 
44,000 shipyard and other shoreside workers. Their livelihoods are 
directly tied to the construction, repair, maintenance, supply, and 
operation of the 44,000 vessels and barges in the Jones Act fleet.
  Not only do American citizens, our constituents, benefit from the 
Jones Act but so do Federal and State treasuries. The construction and 
operation of the privately owned U.S.-flag domestic fleet generates 
approximately $300 million annually in corporate tax revenues for the 
Federal Treasury and another $55 million annually in State tax 
revenues. Americans working aboard U.S.-flag domestic vessels and in 
related domestic industries pay approximately $1 billion $100 million 
annually in Federal income taxes and another $272 million in State 
income taxes. These revenues will be lost to our Federal and State 
governments if foreign vessels and foreign crews are allowed to enter 
America's domestic trades.
  The Jones Act provides many significant and costeffective national 
security benefits. In times of international crisis, the Jones Act 
fleet keeps goods flowing reliably and securely between U.S. ports, 
supporting the domestic economic base needed to sustain military action 
overseas. It also serves as an efficient and cost-effective adjunct to 
government-owned and other commercial sealift defense resources. The 
same U.S. merchant mariners who crew these Jones Act vessels in 
peacetime can be mobilized, as they have in the past, to crew surge and 
sustainment vessels for the Department of Defense.
  Despite the claims made by foreign shipping interests and their 
spokespersons, without the Jones Act, foreign flag vessels--free of 
virtually all U.S. laws, taxes, and obligations--would be able to 
complete unfairly, not only against U.S.-flag vessels but also against 
America's trucking, rail, and pipeline industries. Americans will not 
benefit if the Jones Act was weakened or repealed. Americans will not 
benefit when their fellow citizen maritime workers lose their jobs. 
Americans will not benefit when Federal and State taxing authorities 
lose desperately needed revenues. Foreign shipping interests must not 
be given our domestic shipping market, the world's most lucrative 
domestic shipping market, into which they could dump their foreign 
built, foreign crewed vessels and capture our trades.
  It is important to remember that if we, as Members of Congress, 
choose to not support the Jones Act, we will instead have chosen to 
eliminate an American industry. By doing so we will be turning over its 
functions and responsibilities to foreign owned and controlled vessels 
crewed by foreign nationals. It means that we will have chosen to wipe 
out the billions of dollars in private investments made in an all-
American industry. We will have done so in order to give heavily 
subsidized, largely unregulated foreign shipping interests the right to 
control the movement of America's domestic commerce, to dictate the 
terms and conditions of such shipments. We will have allowed foreign 
shippers to export freight revenues., taxes and jobs outside of the 
United States. It means that we will open our market to foreign 
shipping interests that do not pay U.S. taxes, do not comply with 
America's safety, environmental and worker protection laws, and do not 
employ American workers. It means we will have given foreign shipping 
interests the ability and the right to compete unfairly against U.S. 
vessels, pipelines, railroads, and trucks.
  Common sense dictates that our economic and military security 
requires an American owned, built and crewed domestic fleet and this 
common sense has prevailed for over 200 years. I ask that you join Mr. 
Solomon, our colleagues and me in supporting our bipartisan resolution 
that strongly reaffirms the Congress' support for the Jones Act.

                            H. Con. Res. --

       Whereas a privately owned United States-flag merchant fleet 
     and maritime industry are vital to the economic, military, 
     and international political security of the United States;
       Whereas it is essential for the Congress to reaffirm its 
     support for those programs and policies that have 
     successfully developed and maintained a strong, competitive, 
     and economically viable United States-flag merchant marine, 
     including section 27 of the Merchant Marine Act, 1920 (46 
     App. U.S.C. 883), popularly known as the Jones Act,

[[Page E725]]

     which reserves the carriage of America's waterborne domestic 
     commerce to privately owned United States-flag commercial 
     vessels that are built and repaired in United States 
     shipyards and owned and crewed by United States citizens, and 
     similar statutes pertaining to the domestic dredging, 
     fishing, salvage, and towing industries;
       Whereas these statutes have fostered the growth of a highly 
     productive and diverse fleet of large, technologically 
     advanced, and fuel-efficient vessels, that is capable of 
     transporting in a timely, economical, and responsive manner 
     all types of United States domestic commerce and that carries 
     approximately 21 percent of the freight moved in the domestic 
     transportation market while accounting for less than 2 
     percent of domestic expenditures for freight transportation;
       Whereas the United States-flag domestic merchant fleet has 
     more than twice the number of large vessels than in 1965 and 
     productivity of the fleet over the past 30 years has more 
     than tripled the fleet's ability to serve American shippers 
     and consumers;
       Whereas this increased growth and gains in productivity are 
     due largely to the increased capital investments by private 
     industry in the fleet and to the cooperative relationship 
     that exists between American vessel operators and their 
     American citizen crews;
       Whereas more than 40 of America's trading partners have 
     comparable laws and restrictions to limit access to their 
     domestic commerce to their national flag vessels in order to 
     better enhance and support their own economic and military 
     security;
       Whereas the Jones Act and related statutes are necessary to 
     prevent America's domestic economy from being dominated and 
     controlled by foreign shipping interests which today operate 
     in international commerce outside the scope of United States 
     Government laws and regulations, including tax obligations, 
     that apply to all types of United States-flag vessels and 
     their crews, to the entire domestic transportation 
     infrastructure, and to all other industries located in the 
     United States;
       Whereas the Jones Act and related statutes, along with the 
     comparable requirements applicable to America's aviation, 
     rail, and trucking industries, play a vital role in ensuring 
     that America's shippers and consumers continue to have a 
     reliable, efficient, and competitively balanced domestic 
     transportation system that uses equipment built to American 
     standards and operated by trained American citizen workers;
       Whereas allowing foreign flag vessels and foreign crews to 
     operate in America's domestic trades will threaten the 
     economic viability of America's transportation system, which 
     operates in compliance with all United States Government laws 
     and regulations, including tax obligations;
       Whereas the Jones Act and related statutes and the 
     construction and operation of the privately owned United 
     States-flag domestic fleet contribute significantly to the 
     national economy, generating approximately $300,000,000 
     annually in corporate tax revenues for the Federal Treasury, 
     and another $55,000,000 annually in State tax revenues, all 
     of which would be lost if foreign vessels were allowed to 
     enter America's domestic trades;
       Whereas Americans working aboard United States-flag 
     domestic vessels and in related domestic industries pay 
     $1,100,000,000 annually in Federal income taxes and another 
     $272,000,000 in State income taxes, revenue which will be 
     lost if foreign vessels and foreign crews are allowed to 
     enter America's domestic trades;
       Whereas the domestic maritime industry provides a 
     significant source of employment to maintain a cadre of well 
     trained, loyal American citizen merchant mariners ready and 
     able to respond, as always, to our Nation's call in time of 
     war or other emergency; and
       Whereas the Jones Act and related statutes are necessary 
     because the construction and repair of the United States-flag 
     domestic merchant fleet provides the primary source of 
     commercial shipbuilding opportunities for American shipyards 
     and their workforce, helping to maintain the shipyard 
     mobilization base necessary to America's national security: 
     Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That it is the sense of the Congress that 
     section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 
     883), popularly known as the Jones Act, and related statutes 
     are critically important components of our Nation's economic 
     and military security and should be fully and strongly 
     supported.

                          ____________________