Inouye Project America Provision To Promote U.S.-Flag Cruise Ships in HawaiiProvision in Omnibus Appropriations Bill Will Boost Hawaii Tourism and Strengthen National SecurityJanuary 17, 2003
FOR IMMEDIATE RELEASE "My proposal builds on the original Project America statute to allow a U.S. company employing American workers to operate those ships under U.S.-flag in Hawaii," Senator Inouye said. "In late November 2001 when the American Hawaii Cruises filed for bankruptcy protection following the attack on September 11th, I said that while I was very disappointed that they were unable to deliver the new U.S.-built cruise ships to Hawaii waters, I also committed myself to work toward a solution that would allow U.S.-flag ships to once again cruise between our islands. My provision today offers the best way to implement the original economic and national security goals, including the creation of approximately 9,000 jobs on and off the ships, and providing a needed boost to Hawaii's economy." The legislation would rebuild the U.S.-flag cruise fleet in Hawaii, permitting Norwegian Cruise Lines, the owner of the Project America ships to document those vessels under U.S.-flag for operation in Hawaii following completion in an overseas shipyard. In addition, the owner would be permitted to reflag a modern foreign-built vessel under U.S. flag for the Hawaii trade. The first U.S.-flagged Project America ship would enter service in 2004, creating approximately 700 American seagoing jobs in Hawaii, and an estimated $85 million in wages and salaries annually. The number of seafaring jobs would grow to about 3,000 in Hawaii as the second Project America cruise ship and then the re-flagged vessel enter service, significantly expanding the pool of qualified seafarers needed to fulfill the nation's defense objectives. In addition, the increase in U.S.-flag cruise operations will generate millions of dollars in economic benefits, including an estimated tax benefit for the federal government of more than $300 million by the year 2007, and an estimated $250 million in wages and salaries annually. The new ships will be required to operate with American crews, be subject to all U.S. laws, including taxation, labor, and environmental laws, and be owned by U.S. citizen corporations. No federal funds will be used for this project. The provision prohibits any federal loan guarantees to be expended to complete the Project America ships. In addition, any administrative costs incurred by the U.S. Maritime Administration in overseeing this program will be reimbursed by the vessel owner. Upon passage by the Senate, the Omnibus Appropriations Bill will go to conference with the House to resolve any differences before sending the bill to the White House for approval. |