Daniel Inouye: “I believe the Record should note that up until the latter part of 1967, America controlled the seas. Most of the cruise…”

“I believe the Record should note that up until the latter part of 1967, America controlled the seas. Most of the cruise vessels were American owned, American built. Today, the situation is slightly changed. Last year, over 6.2 million passengers worldwide--and 75 percent were Americans. The Caribbean and the Bahamas regions, which is the largest North American market, does not have a single American cruise vessel. Cruises are the fastest growing segment of the tourism industry. They bring in over $7.5 billion in revenues. And 113 vessels currently operate in the North American market--1 American. Of the 30 companies operating in the North American market, 3 companies--foreign companies, Mr. President--command over 70 percent of the market. These foreign ships are obviously built in foreign shipyards. They employ very cheap foreign labor and operate outside our regulations. They pay no U.S. taxes and are not available for U.S. emergencies. Shipbuilding subsidies in foreign countries in recent years ranged from 9 percent to 33 percent of the cost of the vessel's construction. At a 9-percent construction subsidy, an operator today could build a new $500 million, 130,000-ton cruise vessel in a foreign yard and reduce its cost of capital by an astounding $45 million. The United States, since the early 1980's, has not subsidized the commercial construction of ships. These foreign companies also take advantage of the lower cost of foreign labor.”