[Congressional Record Volume 154, Number 112 (Wednesday, July 9, 2008)]
[Senate]
[Pages S6505-S6506]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI (for herself and Mr. Stevens):
  S. 3234. A bill to amend the Internal Revenue Code of 1986 to provide 
a temporary income tax credit for commercial fishermen to offset high 
fuel costs; to the Committee on Finance.
  Ms. MURKOWSKI. Mr. President, I rise to introduce a bill that will 
help commercial fishermen in Alaska and all over the United States 
offset high fuel prices by providing a temporary income tax credit for 
excessive fuel costs. I am pleased to have Mr. Stevens join me in 
introducing this important legislation.
  Diesel fuel prices in Alaska and across the Nation have increased 
more than 50 percent over the past year. Some fishermen are reporting 
that they are now spending up to 70 percent of their income for fuel. 
This is having a devastating impact on this industry as fishermen do 
not have the option of passing the cost of fuel onto clients or 
customers, turning to alternative modes of transportation to do their 
jobs, or selling their product for a higher price. They can't simply 
increase the price of fish to offset higher fuel costs. Fish prices, in 
most cases, are set by the seafood processing sector and are tied to 
prices in the global seafood market in which Alaskan and American 
seafood compete.
  All around the world, fishermen are responding to this crisis. They 
are

[[Page S6506]]

blockading harbors in Ireland and France, protesting at the European 
Union headquarters in Belgium, rioting in Italy and Spain, burning 
fishing boats in Thailand, and striking in Japan.
  Fishermen all over the United States are staying tied to the dock, 
unable to make enough money from their catch to pay for the fuel. In 
Gloucester and Biloxi, Key West and Honolulu, Point Judith and Kodiak, 
fishermen simply can't afford to go fishing. And some U.S. vessels are 
running all the way from the Gulf of Mexico and California to Mexico to 
buy fuel. Even the Federal Government is cancelling fishery stock 
assessment surveys due to the high cost of fuel. As you can see, 
fishermen are getting hit from all sides right now.
  When fishermen can't go fishing, they can't make their boat and 
permit payments. Many are simply going out of business. Fishermen are 
not the only ones who are concerned about the high price of fuel. The 
seafood processing sector also is facing higher costs for energy and 
many other inputs and is worried about the industry's ability to 
maintain a steady supply of fish. When fishermen don't leave the dock, 
the processors don't get their fish and a major seafood supply shortage 
could occur in the near future.
  Some people might say that if fish stocks were healthier or fewer 
boats were fishing, that the industry could better deal with the 
increased price of fuel. But even in Alaska, where we have abundant, 
sustainably managed fish stocks that supply over 50 percent of the 
seafood in the United States, we are still suffering. The price of fuel 
has increased from an average of $1.80 per gallon in 2004 to $2.80 last 
year and diesel is now $4.50 on average.
  In Alaska, we have already limited the number of vessels in most 
fisheries, so they are not over capitalized. We also have established 
many limited access privilege programs such as limited entry, 
individual fishing quotas, and coops, where fishermen can make choices 
to harvest in the most efficient and economic way. So, even though we 
have tried to make the fisheries much more economical, we still are 
being severely impacted by these high fuel prices. We are much more 
able to withstand these high fuel prices than regions and fisheries 
that have not limited the number of vessels or slowed the race for 
fish. But, many fisheries in Alaska, including our salmon fisheries, 
where over 150 million fish likely will be caught in a 2\1/2\ month 
season, fishermen must catch the fish while they are available. In 
other parts of the country, where fishermen are still racing for fish 
and have not limited the number of vessels participating, things must 
be far worse.
  In order to provide temporary relief to the commercial fishermen 
across the country, I am introducing this legislation. If we allow the 
fishermen in this country to stay tied to the dock, or go out of 
business, we may lose a large portion of the industry. Since over 80 
percent of the seafood Americans eat is imported, we simply can't 
afford for this to happen. We must try to assist this industry weather 
this storm. I believe this legislation will help us do that.
                                 ______