Second Opinion
Repeal bars to cruise ships
By Cliff Slater
In the wake of American Classic Voyages' demise, and also our need to boost the economy, we should push for immediate repeal of the federal legislation that makes it so difficult for foreign cruise ships to operate out of Hawai'i.
The Passenger Services Act of 1886 prohibits the carrying of passengers by foreign ships between U.S. ports. All, repeat all, the world's cruise ships today are foreign ones. With Voyages' 50-year-old SS Independence out of service, there are no longer any U.S. cruise ships.
Were this act to be repealed, many more cruise ships would ply Hawaiian waters, spending much-needed dollars with our retailers, and staying in hotels as they typically do before or after a cruise. This would give our tourism a quick shot in the arm since currently Mediterranean cruises are none too popular and idle ships could be put to work here immediately.
At the same time, it would be useful to repeal similar legislation affecting airlines. The cabotage legislation prohibits foreign airlines from taking on new passengers in Hawai'i on their way to the Mainland. It is why many foreign airlines now overfly Hawai'i. With repeal of this legislation, foreign airlines could offer passengers traveling between Asia and the Mainland a stopover option. This inducement might well provide our tourism with another shot in the arm.
And while we are at it, we should also push for repeal of the Jones Act. This legislation prevents Hawai'i companies from bringing in food and other necessities from the Mainland at the lowest shipping costs; they are forced to use much-higher-priced American cargo ships. This means that we are paying far more for the goods we use than is necessary.
In addition, we tend to import more from foreign countries, to the detriment of U.S. Mainland producers, since the shipping costs are so much less for goods coming from Asia on foreign cargo ships.
It is difficult to tell what the Jones Act is costing Hawai'i residents since shipping interests have blocked any study of its effects. However, Guam's governor estimated that if Guam were only able to reduce shipping costs a "modest" 30 percent, Guam's families would each save $1,045. The U.S. General Accounting Office calculated in 1988 that the Jones Act was costing Alaska's families between $1,921 and $4,821 annually. In 1996, then-Sen. Whitney Anderson estimated it cost the average Hawa'i family $1,900 annually. The Jones Act Reform Coalition says it is more like $4,000 per family. Whatever the amount, we in Hawai'i could all use it right now.
However, repeal of this legislation will be difficult because cabotage is "ferociously defended by dedicated lobbies," as USA Today put it.
Why don't our federal legislators just do the right thing and just repeal this legislation? Quite simply, "follow the money." Rep. Neil Abercrombie, for example, received 20 percent of his campaign contributions — over $150,000 — from the cabotage forces during the last election. This is tough money to turn away from, let alone risk losing one's reputation for political honesty, which is to say that having been bought, one stays bought.
One way to start the ball rolling would be for the state House and Senate to jointly and unanimously agree on a resolution to be sent to Congress requesting repeal.
It will be good for Hawai'i. Far more jobs will be created than will be lost, our cost of living will be less and Hawai'i voters will be so grateful that our federal officeholders will not need as much campaign funding; a true win-win result.
Cliff Slater is a regular columnist whose footnoted columns are at www.lava.net/cslater
