[Congressional Record Volume 147, Number 112 (Friday, August 3, 2001)]
[Extensions of Remarks]
[Pages E1556-E1557]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


               SUPPORT FOR HARBOR INVESTMENT PROGRAM ACT

                                 ______
                                 

                         HON. ROBERT A. BORSKI

                            of pennsylvania

                    in the house of representatives

                        Thursday, August 2, 2001

  Mr. BORSKI. Mr. Speaker, today I am introducing, along with Ms. Dunn 
and 24 Members of Congress, the ``SHIP'' Act, or Support for Harbor 
Investment Program Act, to repeal the harbor maintenance tax and 
provide an alternative source of funding to maintain our Nation's 
harbors and waterways.

[[Page E1557]]

  I am fortunate to serve as a representative of a major East Coast 
port city, and I am well aware of the importance of continued reliable 
financing of our Nation's harbors and waterways. Every year, hundreds 
of billions of dollars of goods enter and are moved through this 
country by means of our water system offering a cost-effective and 
environmentally friendly alternative to other means of transportation.
  As our economy increasingly moves toward globalization, we will face 
a corresponding need for safe, efficient, and modern port facilities 
and waterways to sustain such growth. Expanded use of larger shipping 
vessels and increased ship traffic at many of our Nation's ports will 
require a significant investment in increased channel depth and 
capacity.
  The export provision of the Harbor Maintenance Tax (HMT), the system 
that currently provides financial resources for this maintenance, was 
deemed unconstitutional in a 1998 Supreme Court decision and the 
European Union has since challenged the import provision as an unfair 
trade practice and is considering bringing a complaint to the World 
Trade Organization regarding the tax.
  This is why we are introducing the SHIP Act today--to provide an 
alternative funding source to maintain our Nation's harbors and 
waterways. This legislation repeals the HMT and restores the 200-year 
Federal obligation to adequately fund operation and maintenance of the 
Nation's harbors with funding from the general revenues of the 
Treasury.
  It is only appropriate to fund the construction and maintenance of 
our Nation's harbors and waterways through the general revenues in 
light of the nationwide benefit that comes from a safe and efficient 
port system. To that same end, GAO reported that $22 billion in these 
general revenues are a direct result of our ports and navigation 
system. It is evident that we must return this responsibility back to 
the federal government.
  The existing Harbor Maintenance Tax puts our maritime industry at a 
competitively disadvantage. The tax increases the price of goods sold 
in the U.S. and diverts cargo Canada, which does not have a similar 
tax. At a time we should be working to attract new commerce to our U.S. 
ports, and take advantage of our waterways to relieve congestion, we 
are hindering their ability to remain competitive, attract business and 
aid in relieving congestion. The time to repeal this unfair and 
detrimental tax is now!
  Mr. Speaker, it is important to provide our ports with safe, 
efficient, and modern port facilities and waterways. We must work to 
return this responsibility to the federal government as it was for over 
200 years. The SHIP Act collaborates the support of groups as diverse 
as the American Association of Port Authorities, the American Waterways 
Operators, the National Grain and Feed Association, and others.
  I want to thank the bill's current cosponsors and supporters and urge 
all Member to support this important piece of legislation.

                          ____________________