[Weekly Compilation of Presidential Documents Volume 38, Number 40 (Monday, October 7, 2002)]
[Pages 1683-1687]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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.

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    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 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

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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 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

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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 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 Presidential Hall in 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.

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