    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book II)]
    [October 3, 2002]
    [Pages 1722-1726]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Calling for Congressional Action on Terrorism Insurance
    Legislation
    October 3, 2002

        Thanks for coming today. We're talking about a serious subject,
    which is jobs--the ability for people to find work in America. I spend a
    lot of my time worrying about the job security of our fellow citizens.
    And after last year's terrorist attacks that destroyed life and
    destroyed building, you've

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    got to recognize they hurt our economy as well.
        We responded to those attacks with incredible unity, and I'm
    grateful. And the enemy is not. But we need to show the same unity and
    resolve to get our people back to work. Too many Americans are looking
    for work, and they can't find work. The economic signs are good--they
    are. Interest rates are low. Inflation is low. Our workers are the most
    productive in the world. Our entrepreneurs are the most productive in
    the world. And that's incredibly positive.
        Yet, we can't be satisfied until anybody who is looking for work can
    find a job. That's what we've got to do here in America. And we can do
    more in Washington, DC. Before these folks go home, there is something
    they can do to help--help America's hardhats get back to work on big
    construction projects. If there is concern, like I know there is, about
    our fellow citizens, concern here in Washington about people being able
    to find work, the Congress can help by passing a terrorism insurance
    bill now.
        We have been talking about this up here for a year. And our workers
    cannot wait any longer. And so my call on the Congress is to reach an
    agreement by tomorrow, so by the time they go home, I can sign a bill, a
    bill which will increase our job base by the thousands.
        I want to thank the business leaders who are here who see the crying
    need for a terrorism insurance bill. I want to thank the carpenter union
    members who stand behind me who are here to represent the fellow members
    of their unions who, if they're not working, want to work--people that
    are putting bread on the table for their families.
        I want to thank the members of the International Association of
    Bridge, Structural, Ornamental, and Reinforcing Iron Workers for coming
    here as well. We've been working with their leaders to try to convince
    Congress to move this important piece of legislation. This is a jobs
    bill. It's important for our country.
        After September the 11th, it's important for our fellow citizens to
    understand that many insurance companies stopped covering builders and
    real estate owners against the risk of terrorist attacks. One of the
    effects of the attack of September the 11th, 2001, was a lot of folks
    couldn't find insurance. Many of those who provide coverage provide only
    limited coverage at high rates, with too many restrictions to provide
    real security.
        Congress's inaction on terrorism is threatening our jobs. They can
    move and need to, to help the economy, because, you see, one recent
    survey shows that more than $15 billion in real estate transactions have
    been terminated or put on hold because the lack of terrorism insurance--
    $15 billion of job-creating projects are not moving forward.
        More than 300,000 jobs are on hold. That's a lot of folks. That's a
    lot of joiners and bricklayers and plumbers and other building
    professionals who can find good-paying work. Construction jobs are at a
    3-year low, as nonresidential construction is down more than 15 percent
    from a year ago. The fact that there is no terrorism insurance is
    affecting commerce and job creation.
        Last week the bond raters at Moody's downgraded $4.5 billion worth
    of commercial mortgage-backed securities because of the lack of
    available terrorism insurance. Congress has failed to act. Congress has
    got to act now, before they go home. They've got to get a bill to my
    desk tomorrow, for the sake of creditworthiness and jobs.
        One of the buildings affected, believe it or not, is Rockefeller
    Center, right there in Manhattan, which as of Tuesday has very little
    terrorism insurance. So Rockefeller Center will get a bad credit rating
    because we haven't acted here in Washington, DC. Lower security ratings
    affect people who

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    have money in the bond market. That includes pension funds, including
    the funds of many public service employees, like teachers and police and
    firefighters. See, when the bond ratings go down, bond prices fall, and
    workers' retirement savings are threatened. That's one of the effects of
    the failure to have terrorism insurance here out of Washington, DC.
        The problem of finding terrorism insurance is widespread; it's just
    not isolated to New York City. We're talking about $15 billion worth of
    projects on hold; we're talking about $15 billion worth of projects all
    across America, not just where the terrorists hit. The Building and
    Owners--Building Owners and Managers Association found that more than a
    quarter of the owners in their survey could not get terrorism insurance
    at any cost. Of the owners who could get insurance, 80 percent of them
    faced caps on their coverage, higher deductibles, quick cancellation
    clauses, exclusions for chemical and biological attacks, or premium
    increases that ranged from 20 to 200 percent.
        These costs, which are in the billions, get eventually passed on. We
    pay for them. Right now, hospitals and office buildings and malls and
    museums and many transportation companies are all having difficulty
    finding terrorism coverage. Without coverage, the economic impact of
    another terrorist attack would be incredibly serious. We could face a
    string of bankruptcies and loan defaults and layoffs that would
    intensify the economic effects of an attack. Enacting terrorism
    insurance will cost us nothing if we experience no further attacks.
        And you need to know your Federal Government is doing everything we
    possibly can do so that we experience no further attacks. We're
    tightening up the homeland security, and I want the Senate to give me a
    good bill on homeland security. And we're chasing these killers down,
    one person at a time, to protect the homeland.
        Yet, if there is an attack, without insurance it will be even more
    devastating than the last attack. It will mean tens of thousands of new
    jobs if we can get a terrorism insurance bill. It will mean billions in
    new investment. It will mean healthier pension and retirement systems.
    If we have terrorism insurance and, God forbid, we have another attack
    on America, we will be able to compensate our victims more quickly and
    limit the economic damage. That's a reality.
        Congress must get it done. I want to remind them that the House
    passed a terrorism insurance bill last November, and the Senate got one
    done in June. Under the legislation, private insurance would pay for
    damages up to a certain amount. The Federal Government would guarantee
    against catastrophic losses. I support that concept, for the reasons
    I've just described.
        Major construction programs will go forward if we can get a good
    piece of legislation. Their friends will be working. The country will be
    more confident if we can get a good bill. Our markets will be reassured.
    It's an incredibly important piece of legislation. I met with members of
    both parties in both Houses this week. I told them essentially what I've
    described to you--the need to get something done. I believe they are
    close to an agreement. I know that they can come together.
        And they ought to resolve the issue of liability as well. My
    position, I think, reflects the position of most Americans, and it's
    this--that we should prevent the victims of a terrorist attack from
    being held liable for punitive damages, which are damages over and above
    the amount needed to compensate the injured person. When an American
    business has been targeted for a terrorist attack, we should not further
    punish it and the people it employs, subjecting it to predatory lawsuits
    and punitive damages. Congress needs to hear that message.
        This provision was agreed to by a bipartisan group in the Senate
    last fall. They have come together on it before. It was prevented from
    going forward. That must

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    not happen again, for the sake of our working people in America. The
    Members can decide at any moment to finalize the bill and send it to my
    desk. It's just not that far away. My call for getting it done tomorrow
    is realistic, if people could put their mind to it.
        I know the Members involved. I know they care deeply about the
    future of our country. See, this isn't a political issue; this is a jobs
    issue. I know they care, and I know they can get it done. And for the
    sake of economic security, they must get it done. For the sake of good,
    hard-working Americans, they need to resolve their differences quickly
    and get me to the desk.
        I want to thank you all for coming. I want to assure you that we are
    making progress on a lot of fronts, most notably on securing the
    homeland.
        Now that I've got you stuck here--[laughter]--I want you to
    understand this is a different kind of war that we fight. See, in the
    old days you could measure progress by saying, ``Well, we've destroyed X
    tanks or Y airplanes or sunk several ships.'' That's not the kind of war
    this Nation now fights. We fight a war against coldblooded killers who
    hide in caves and send youngsters to their suicidal death. They do so
    because--and they hate us because we love freedom. See, they hate for
    what we love. We love our freedoms, and we're not going to relinquish
    our freedoms. And the stronger we hold on to our freedoms, the more they
    hate us.
        And so we've got to button up our homeland. And I spoke to that
    earlier today. You'll hear the debate about homeland security. The
    Congress--some in the Congress want to take away some of the powers that
    every President has had to be able to more securely affect, in this
    case, homeland security. I'm not going to let them do that. It just
    doesn't make any sense not to have managerial--the managerial ability to
    move the right people to the right place at the right time to protect
    America. And I insist that that happen.
        But the best way to protect the homeland is to find these killers.
    And that's exactly what our country is doing, one person at a time. It's
    like an international manhunt. And we're making progress.
        The reason I want to talk to you real quick is because I want you to
    understand that we are making progress on making America more secure.
    We--that is, a coalition of like-minded nations--have hauled in over a
    thousand, couple of thousand of these people. One fellow popped his head
    up the other day, bin al-Shibh, and he's
    no longer a threat because he has been detained. See, the doctrine that
    says, ``Either you're with us or with the enemy,'' still holds. It's an
    important doctrine. It's as important today as it was 13 months ago. And
    a like number of those folks aren't quite as lucky. They're not around
    to hurt us, either, but for different reasons. We're dismantling the
    terrorist network, which hates America, one person at a time.
        And if you've got a relative in the military, you need to know I've
    got a lot of confidence in our folks who wear the uniform. And I want to
    thank you for their sacrifice.
        I asked the Congress to pass a defense bill which says if our troops
    go into harm's way, they deserve the best pay, the best training, and
    the best possible equipment. I have yet to see the defense bill. And not
    only do I want to see a terrorism insurance bill before they go home, I
    want to see a defense bill on my desk before they go home as well. We
    owe that to our soldiers. We owe it to the soldiers' families, and we
    owe it to the world for them to hear that no matter how long it takes,
    no matter how long it takes to defend our freedom and defend
    civilization, itself, the United States of America will stay the course.
        See, we love freedom, and we're not going to relinquish that love.
    And the war on terror extends beyond just a terrorist network. The war
    on terror extends to the world's worst leaders, which have and want

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    to develop and hurt us and our friends and allies with the world's worst
    weapons. We must not allow these people--this guy, Saddam Hussein--to continue to defy the world. He has said he
    would disarm. I have called upon the United Nations to disarm him. I
    have given this body a chance to show the world whether they will be the
    United Nations, an effective body, or the League of Nations. And I don't
    believe we can afford to have a League of Nations again. And I want them
    to be effective; I want it to work.
        There is a coalition of friends that are joining us to call upon
    accountability--accountability with Mr. Saddam Hussein, who lies, kills his own people, poisons his own
    citizens with weapons of mass destruction, who hates America, hates
    Israel, hates our friends and allies. He must be held to account. The
    choice is his, and the choice is the United Nations to deal with this
    man, to hold him to account. And if they won't, for the sake of our
    freedoms and our securities, we cannot allow the world's worst leader to
    hold us hostage and to harm America with the world's worst weapons. We
    owe it to our children.
        The war on terror is more than just Al Qaida. And I believe we can
    achieve peace by speaking clearly, by delineating good and evil, by
    talking about terror and its effects, and by leading people who
    understand the stakes.
        And so out of the evil done to this country, I believe there's going
    to come some incredible good, and that's peace. I long for peace for
    America. I want to be able to say that history has called us to action,
    and we left the world more peaceful for our children.
        But I believe by remaining strong, we can leave a legacy of peace in
    other parts of the world too. I believe peace is possible in the Middle
    East, if we're tough and determined and delineate good from evil and
    fight terror at all costs. And I believe we can achieve peace in South
    Asia.
        No, the enemy hit us, but they didn't know who they were hitting.
    They probably thought we'd file a lawsuit or two. [Laughter] But
    instead, they found a nation which is strong and determined, a nation
    which will stick to our values, a nation which is a compassionate nation
    as well.
        Listen, thank you all for coming. I appreciate the chance to--God
    bless.

    Note: The President spoke at 11:15 a.m. in Room 450 of the Dwight D.
    Eisenhower Executive Office Building. In his remarks, he referred to
    Ramzi bin al-Shibh, an Al Qaida operative suspected of helping to plan
    the September 11, 2001, terrorist attacks, who was captured in Karachi,
    Pakistan; and President Saddam Hussein of Iraq.