[Congressional Record Volume 144, Number 79 (Wednesday, June 17, 1998)]
[House]
[Pages H4695-H4696]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 ADDRESSING HAWAII'S ECONOMIC RECESSION

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Hawaii (Mr. Abercrombie) is recognized for 5 minutes.
  Mr. ABERCROMBIE. Mr. Speaker, I want to take this opportunity to 
thank my colleagues in Congress for all of their cooperation in our 
fight to help Hawaii's economy and to explain why the fight is far from 
over and why we must redouble our efforts to find solutions to the 
State's economic problems.
  Over the last few months, I have had success in bringing new jobs to 
Hawaii. For instance, the defense authorization bill contains over $200 
million for new, needed construction projects in Hawaii, a record 
level. This includes renovation and construction of the barracks at 
Schofield and Kaneohe Marine base, as well as funding for Navy family 
housing and the Pearl Harbor Public Works Center.
  Mr. Speaker, many of my colleagues' constituents are members of the 
U.S. military and reside for at least part of their time in service at 
Schofield or Kaneohe or Pearl Harbor. The military is very important to 
Hawaii. Having the military in Hawaii itself is vital to our national 
interests. I strongly believe we need to maintain and build upon the 
military presence in Hawaii as we approach the 21st century in the 
interest of the national interests of the United States.
  In addition to this, this year's transportation bill included funding 
for several vitally important highway projects which will further 
stimulate the construction industry in Hawaii, as well as provide much-
needed improvements. I extend thanks for myself and on behalf of the 
people of Hawaii for all of the help that has come from Washington 
recently as we try to work our way out of this economic recession.
  Mr. Speaker, I returned recently from Hawaii and continue to hear 
from families and businesses that economic conditions are difficult 
and, therefore, the need for action by the State of Hawaii and Congress 
is necessary to return the islands to economic well-being.
  Although much of the mainland has been experiencing strong economic 
growth, Hawaii, despite periodic spurts of recovery, in fact remains 
stagnant. The 7-year recession in Japan and more recently in Korea, 
Indonesia, Malaysia and Thailand has resulted in declining tourism, 
Hawaii's lifeblood, and subsequently high unemployment, record 
bankruptcies, foreclosures, and declining property values. In short, 
Hawaii is experiencing the deepest recession since statehood.
  Beyond the hardship being experienced by thousands of families in 
Hawaii, there have been layoffs which triggered declining confidence in 
the economy. There has been a cutback in spending and fearing for the 
future, a very real and human reaction I might say, Mr. Speaker.
  The consequence, however, is additional economic contraction, more 
layoffs and every business thus is affected.
  There is, in the face of this grim situation, knowledge that we will 
get back on our feet. In time, the Asian economies will restructure, 
currency exchange rates will stabilize, tourism will rebound, and the 
economy will regain its strength. We must, however, take every action 
available at the disposal of the Federal Government to cushion the 
recession and provide the short-term economic stimulation necessary to 
see it through the hard times.

                              {time}  1930

  In addition to the successes I mentioned earlier, there are some 
projects still in the works. I am happy to be working with the Small 
Business Administration and the Department of Commerce to identify 
resources that can be brought to bear on our problems in Hawaii.
  For example, the Commerce Department needs adequate funding for its 
community and economic development program. A $50 million appropriation 
would provide needed grants for planning and technical assistance many 
communities need which are experiencing the economic problems that 
Hawaii has.
  I am working with the Congressional leadership and administration to 
reestablish the spousal business travel deduction and increasing 
business meal and entertainment deductions which will help promote 
tourism, not only for Hawaii, but all over the mainland as well.

[[Page H4696]]

  I have introduced legislation to repeal the airline tax in last 
year's budget bill. The highway bill, as I indicated, provided Hawaii 
with $135 million in annual formula grants and will fund numerous 
priority projects. Money will be coming in, for example, to help needed 
improvements in Honolulu's harbor.
  I will continue to call on Congress to pass funding for the 
International Monetary Fund. It is all too evident to the people of 
Hawaii that when the Asian economies suffer, the economy of our State 
suffers just as greatly. I might add by extension, Mr. Speaker, the 
mainland as well.
  We should send this money because it is the right thing to do and 
because anything that stabilizes the Asian economies will help increase 
tourism and help to stabilize our own economic progress throughout the 
United States.
  We must also focus on securing long-term solutions to our problems, 
improve our education for our children, higher medical care 
reimbursement. In Hawaii's case, I am helping to diversify Hawaii's 
agriculture and to upgrade the Pacific Missile Range Facility to help 
bring Hawaii's military facilities, which I have mentioned at the 
beginning of my remarks, Mr. Speaker, into the 21st Century.
  I also want to upgrade Hawaii's telecommunications links to the 
mainland and the world.
  Tourism, the military and agriculture will continue to be Hawaii's 
key industries in the next century. We must, however, be well prepared 
to guide the changes underway. In the long run, technology development 
and innovation, as well as diversity within those industries, will lead 
us back to economic growth, jobs and prosperity. We must make wise 
decisions in this time of economic crisis.
  I look forward to working with my colleagues to resolve Hawaii's 
economic problems.

                          ____________________