Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, let me say at the outset that my amendment requires absolutely no Federal spending, nor is it in any way a precursor to…
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, let me say at the outset that my amendment requires absolutely no Federal spending, nor is it in any way a precursor to future Federal spending. All I am proposing is that private businesses that may want to invest in the Northern Marianas and offer ship repair services to the United States military not be barred from that investment by Federal law.
We often hear it said that the Federal Government should not pick winners and losers. Yet under current law, naval vessels with a home port in the U.S. are prohibited from being overhauled, repaired, or maintained in a shipyard in the Northern Mariana Islands. My amendment fixes that inequity. It proposes to include the Northern Marianas as a U.S. jurisdiction where our military vessels may be serviced. It opens the opportunity for private businesses to do this work in the Marianas.
Businesses may not take advantage of the opportunity, we do not know, but there is no reason for our laws to foreclose this investment if it is feasible from a business point of view.
We also do not know whether the Navy will ever need repair capacity in the Northern Marianas, but we do know that the Department of Defense is realigning our forces to focus on Asia and the Pacific. We know that one area of impending buildup of military assets is the Marianas. So although there are sufficient repair facilities now, it would make good strategic sense for the Navy to have the option at least to repair its vessels in any U.S. jurisdiction in the Pacific region if that ever becomes necessary.
I can say for the record that the Navy has told me it has no opposition to my amendment. Governor Calvo, the Republican Governor of Guam, and the management of Guam's shipyard, who might be concerned about competition, instead actively support my proposal. They recognize that repair facilities in the Northern Marianas could at some point complement, not compete, with Guam and build the regional economy.
Governor Fitial, Republican Governor of the Northern Marianas, also supports changing the Federal law. The Marianas have been hit hard by recession. Lifting the existing prohibition on business investment could help our economy and help create jobs.
I urge my colleagues to support this no-cost, commonsense amendment, and I reserve the balance of my time.
Office of the Governor of Guam,
Adelup, Guam, May 17, 2012.
Hon. Howard ``Buck'' McKeon,
House of Representatives,
Washington, DC.
Hon. Adam Smith,
House of Representatives,
Washington, DC
Dear Chairman McKeon and Ranking Member Smith: In 2008,
Congress passed PL 110 229, the Consolidated Natural
Resources Act of 2008. This legislation was designed to
alleviate the economic disadvantages created by the changes
in visa requirements for our northern neighbor, the
Commonwealth of the Northern Mariana Islands (CNMI), thus
ensuring that the CNMI would be on equal footing with the
rest of the United States in regard to economic development
opportunities.
In order to avoid adverse economic impact on the CNMI PL
110 229 emphasized the economic synergies that could be
generated from a regional economic approach which included
Guam and the CNMI, as evidenced by PL 110 229's creation of
the Guam-CNMI Visa Waiver Program.
Another area of economic opportunity for the CNMI that I
believe could be generated through the regional economic
approach is the amendment to 10 USC Sec. 7310 to allow U.S.
Navy and U.S. flagged vessels to be repaired in the CNMI, as
well as in the United States and Guam. The law was amended in
2006 to include Guam, and it would economically benefit the
CNMI if it was further amended to include the CNMI. Already,
I understand that several companies have expressed interest
in establishing a ship repair facility in the CNMI, and I
believe that such an economic opportunity would be consistent
with regional economic intent of PL 11 229.
In order to expedite the elimination of this current
barrier to the CNMI's development, Representative Sablan of
the CNMI has submitted H.R. 4338. Respectfully, I request
your positive consideration and support of H.R. 4338. I
believe H.R. 4338 would ensure that our region is able to
both benefit from the incredible changes which are taking
place in our communities, as well as to allow us to support
the vital needs of the United States in the future to the
maximum extent of which we are capable. Thank you for your
consideration of my request.
Sincerely,
Eddie Baza Calvo.
Guam Shipyard,
Naval Activities Branch,
Santa Rita, Guam, May 18, 2012.
Hon. Madeleine Z. Bordallo,
House of Representatives,
Washington, DC.
Dear Congresswoman Bordallo: I write in support of
legislation to expand domestic ship repair locations covered
by Section 7310 of Title 10 to include the Commonwealth of
the Northern Mariana Islands (CNMI).
Currently, Section 7310 requires that vessels under the
jurisdiction of the Secretary of the Navy, with a homeport in
the United States or Guam, be overhauled, repaired and
maintained in the United States or Guam, except in the case
of voyage repairs. In March 2012 Congressman Sablan of the
CNMI introduced H.R. 4338 which would amend Subsection (a) of
Section 7310 10 by striking ``the United States, or Guam'' in
each place where it appears, and replacing it with ``the
United States, Guam, or the Commonwealth of the Northern
Mariana Islands''. More recently, Congressman Sablan offered
an amendment to H.R. 4310, the National Defense Authorization
Act for FY 13, which would have the same effect.
At present, there is no shipyard in CNMI capable of
overhaul, repair and maintenance of Navy ships. However, Guam
Shipyard is in discussions with Governor Fitial, about
leasing land at the Seaport to set up a small ship repair
facility in Saipan. We believe there is a market there for
fishing and other small vessels, and perhaps even small Navy
vessels. However, the water depth and other physical
constraints of the harbor at Saipan would not permit its use
to overhaul, repair and maintain the large Navy ships which
form the bulk of the work at Guam Shipyard. Thus, the
shipyard we contemplate opening in Saipan would not compete
with Guam Shipyard for the work it currently performs for the
Navy.
As always, we greatly appreciate the leadership and long-
standing support you have provided on behalf of domestic
repair of Navy vessels, and especially ship repair in Guam.
Your dedicated engagement in Washington on behalf of Guam
Shipyard, has been instrumental in ensuring it remains a
shipyard facility, ready and able to meet Navy ship repair
requirements in the Western Pacific, now and in the future.
Sincerely,
Mathews Pothen,
President and Chief Executive Officer.
Mr. Chairman, I agree with my good friend and colleague from Hawaii that there is no need for large vessel repairs. Those are being presently performed in Honolulu, Hawaii, or on Guam. Actually, the letter to Ms. Bordallo from Guam shipyard actually says this. It says the water depth and other physical constraints of the harbor of Saipan would not permit its use to overhaul, repair, and maintain large Navy ships, which form the bulk of work at Guam shipyard. So there is no disagreement with my good friend from Hawaii on this.
Thus, the shipyard we contemplate opening in Saipan would not compete with Guam shipyard for the work it currently performs for the Navy.
We're not asking for anything here. We're just asking for the authorization. It may not happen. But then again, it may. And we're not asking for money here. We're asking for authorization so that private businesses who want to do it, who find some capacity to do it, can come in and establish a shipyard or a small repair yard on Saipan in the Northern Marianas and do the work and compete for the business. And that's what we need to do here.
I reserve the balance of my time.
Mr. Chairman, I have no more speakers. I just urge my colleagues to join me in support of the amendment.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.