[ OUR OPINION ]
Outdated law impedes
cruise ship industryANOTHER company's request for exemption from an antiquated U.S. maritime law that hinders development of a cruise ship industry in the islands should be enough to prod Hawaii's congressional delegate and state leaders to take action. If they don't, Hawaii will miss an opportunity to add another element to its tourist industry.
THE ISSUE Norwegian company wants a waiver from the law that limits foreign-owned ships.
Norwegian Cruise Lines this week became the second company this year to seek relief from an 1886 provision of what is generally known as the Jones Act that allows only U.S. flag and built ships to carry passengers between U.S. ports. That's why foreign-owned Norwegian, which began weekly cruises through Hawaii in December, must steam to Fanning Island in Kiribati, about 1,200 miles south, to conform to U.S. regulations.
The round trip to Fanning, where Norwegian has invested millions to make it a tourist destination, takes about 4 to 5 days and has boosted the economy there even though the ship is in port for just a few hours. If the ship were allowed to stay in Hawaii waters its passengers would likely be spending their money here and increasing state revenues instead.
On a larger scale, the law stymies a part of the tourism industry that has strong potential for growth. Cruise line business has increased in the past few years and would be a natural expansion of tourism here. However, as long as the act is in place, companies would be hard pressed to extend their service.
The law was enacted to protect the U.S. shipbuilding industry, but over the years, the industry has focused on military vessels and has allowed foreign shipyards to become dominant in cruise ship development. As a result there is little U.S. shipbuilding to protect. No U.S. company has built a cruise liner since the 1960s.
In June, a Washington, D.C.-based investment firm, D'Arcinoff Group, began seeking a waiver similar to that granted to American Classic Voyages. D'Arcinoff wants to be allowed to run a foreign-built ship in Hawaii until it builds a new ship in Maryland. It also wants a $1.6 billion federal loan guarantee to finance the ship-building. American Classic's deal was a debacle. The company, already suffering losses, filed for bankruptcy after Sept. 11, leaving a ship unfinished and taxpayers holding the bag.
Norwegian Cruise Line's request is different in that it just wants the exemption. Sen. Daniel Inouye, who spearheaded American Classics' deal, says Norwegian would have to operate through a U.S. subsidiary and be subject to restrictions involving labor and environmental issues. The company should certainly be expected to comply with U.S. law, but the senator and his fellow delegates in Congress as well as Hawaii's political and business leaders, should press for relaxation of the tourism-choking law.
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An auditor for the city?
Let the voters decideHAVING an auditor oversee city operations independent of the City Council and the administration would go a long way toward advancing credibility in government among taxpayers and reducing inefficiency. A City Charter amendment to establish an auditor should be placed on the ballot for voters to decide and Mayor Jeremy Harris should give citizens that opportunity by approving the Council-initiated provision.
THE ISSUE A move is under way to establish a city auditor's position.
An auditor's voice would remove political motivations -- and accusations of such -- from disputes between the Council and the mayor. Recent conflicts between the two governing bodies have developed into "he-said, she-said" situations with neither being able to provide clear information on city finances and functions. The public would have a better picture of how tax dollars are being spent if an auditor is in place to sort out matters.
The city's operating budget runs to more than $1 billion and its capitol improvement funds total $455 million. As city revenues have decreased, the Council and the Harris administration have increasingly engaged in tug-of-wars over how much is being spent and for what purposes.
The Council's proposal would empower the auditor to review the performances of city departments and officials and to conduct audits it deems necessary. Audits also may be initiated by the Council, the administration and the public. While the state's auditor cannot, by law, investigate the legislative branch, the city's would have the authority to take a look at Council operations.
The auditor would have subpoena powers, a tool that would force willful or reluctant officials to provide needed information. The Council may invoke subpoena powers for special inquiries, as it is attempting to do with questions about cost overruns in the construction of Central Oahu Regional Park. However, such actions can be perceived as politically motivated, a charged that would be eliminated by an auditor's independent voice. The auditor could be removed only by a two-thirds majority of the Council, lending some assurance that the job could be done without fear of reprisals.
Harris, according to his spokeswoman, is reluctant to put his signature on the amendment because he is concerned about the cost of creating a new agency. The Council estimates that about $500,000 would be needed to fund the office. It would be money well spent. If accountability is what city taxpayers want, an independent auditor may be what is needed.
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Published by Oahu Publications Inc., a subsidiary of Black Press.Don Kendall, Publisher
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