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Extensions of Remarks 20681 Extensions of Remarks September 15, 1981 EXTENSIONS OF REMARKS 20681 EXTENSIONS OF REMARKS THE THREAT OF WATERWAY the waterways. But according to Port of IMPACT USER CHARGES Portland officials, this proposed plan will have a severe impact on the national water­ The loss of four to five million tons of ways system, the Columbia/Snake system, cargo on the lower Columbia River will have HON. LES AuCOIN the national economy, and affect 15,000 jobs a severe impact on the economy of the OF OREGON in the Northwest alone. entire region. Handling this volume of cargo IN THE HOUSE OF REPRESENTATIVES Garry J. Whyte, Executive Secretary of adds a total of about $750 million to the re­ the Columbia River Towboat Association, gion's economy and creates over 15,000 jobs, Tuesday, September 15, 1981 monitors activities which affect the eight according to Port officials. Any drop in • Mr. AuCOIN. Mr. Speaker, Congress companies belonging to the association. The cargo volume along the navigable shallow­ is now reviewing legislation that would issue is "vital to our life support system," he draft system would affect 19 port districts. impose certain user charges on our Na­ says, "but it is coming too fast." The administration's proposal would tion's ports and waterways as a way of "Deep-draft steam ship operators don't obtain money from the local users, who in recovering the Federal Government's seem to be aware of the ramifications," tum will try to pass along the extra charges Whyte notes. For example, cargo being to the customer. User charges cannot be cost of building and maintaining these shipped from Lewiston by barge will cost passed on to foreign consumers, and since 43 important commercial facilities. more due to the fuel tax being charged the percent of U.S. exports are farm products, Few will dispute the need to look at towboat operators. When the shipment gets the U.S. farmer will be forced to absorb the the way we finance these projects. But to Portland and is loaded, the steam ship bulk of the increased costs. as we do so, we must be mindful of the will pay the deep draft fees. This system amounts to double taxation according to Farmers who rely on the Columbia/Snake real impact cost recovery will have on Whyte. River system would be handed a double bill. our waterways and ports-especially in The towboat operators began paying a First they must pay a higher price to re­ the West. user fuel tax of $.04 per gallon of diesel fuel ceive fuel and fertilizer; then, after harvest, Mr. Speaker, I am seriously con­ last October. Operators are facing an addi­ they must absorb the extra user fees to get cerned that proposals now being con­ tional $.02 this October. President Reagan's their products to market. Some raw materi­ sidered will cripple shipping commerce plan would add additional charges on top of al being shipped may allow the producers to and international trade on the west that. As transportation charges increase pass on the higher costs, but farm products coast and in my own State of Oregon. Northwest shippers may seek alternate such as grain are traded on the world methods perhaps causing cargo shifts to Ca­ market where competition sets the price. As evidence of this crippling impact, I nadian ports, where fees are less. This Foreign buyers will seek alternative suppli­ want to call to my colleagues' atten­ would cause cargo volume on the waterways ers or products rather than pay increased tion an article that recently appeared to decline, leaving the remaining users to prices. Over the long run, full-recovery user in Oregon Business magazine by Dan shoulder the burden for maintenance and charges will reduce the ability of farmers Poush. His analysis and commentary operation. Add to that any new construc­ and suppliers to compete on the world clearly shows what this legislation tion, and the fees could drive even the market. means for Oregon. I ask unanimous strongest out of business. James Q. Johnson, Executive Vice-Presi­ consent to insert the article at this An analysis of the impacts of the user dent and General Manager of Interior Ele­ charge produced by the Port of Portland vator Co., The Dalles, calls himself "a point in the RECORD. points out that some waterway segments THE THREAT OF WATERWAY USER CHARGES middle man". His purpose is to store, sort, may eventually be closed. Parts of the and ship grain to the Portland market. He <By Dan Poush) system which require higher maintenance said he agrees with President Reagan, that President Reagan's proposed waterway or have a low volume, may be closed purely users of the river should pay, but added, user charge <the so-called cost recovery pro­ for ecomomic reasons. Only those segments "the dam across the river allows many posal) may very well deal a deadly blow to that can afford to pay for operation and users. Irrigation is a user, and flood control barge shipping in the Pacific Northwest. If maintenance themselves will survive. The serves many people. How in the world can approved, the Reagan plan would strap rippling effect will then be felt by ports you proportion that out? Hydro-electric those who ship freight by barge with higher downstream, with the result that only the power benefits too." barge fuel taxes, thus reducing the competi­ largest volume ports will be able to cover tive edge they have over other modes of their costs. The biggest ports will get bigger Johnson claims that because of the dams transportation. at the expense of small and mid-size ports. and flood control, thousands of acres of The economic impact of this proposal The Columbia/Snake River system is the land in low areas have become productive would have a crippling effect, not only on fourth largest system in the U.S. for tons farms and the additional taxes and fees re­ barge traffic on the Columbia and Snake carried by barges, and the only system west ceived from products passing through the Rivers, but on the Port of Portland as well. of the Rockies. The economic impact on a locks have more than paid for its mainte­ "There has never been a more serious and single 50,000-ton shipload of export grain nance and operation. negative impact" looming for the Port, ac­ calling on Portland could be as high as Johnson is also very sympathetic to the cording to Lloyd Anderson, Executive Direc­ $23,750. That would be the combined total farmers' plight, but said "even the .farmer tor, Port of Portland. "One out of every ten user taxes paid for shallow draft <the river with 1000 bushels will have to pay more. Of jobs is affected by the system," he says. system) and deep-draft operation and ma:tn­ course the tax is going to be passed on. Any "This would have a paralytic effect on tenance. Adding new construction costs of cost that comes to us will be passed on to growth.'' enlarging Bonneville Lock and deepening the farmer. In many cases the user fee is Growth is an important factor affecting the mouth of the Columbia would bring the the cream." the entire river system, with huge invest­ total taxes for each 50,000-ton grain ship ments being risked on future business. The call to $63,750, according to Port of Port­ WIDE OPPOSITION Port of Portland is planning a $300 million land researchers Glenn Vanselow and Mary Opposition to the proposed cost recovery investment in new facilities at one port, but Brugo. Conservatively, the report stated, proposal is being felt throughout the investments of this magnitude will not the immediate oceangoing cargo loss is esti­ nation. Members of the Pacific Northwest occur if the proposed legislation is imple­ mated at four to five million tons, or 15 per­ Congressional delegation have joined to­ mented. cent of the total volume of cargo in 1980. gether in writing a three-page letter to The Reagan plan is a simple formula to Containers, logs/lumber /plywood, autos, President Reagan dated June 18, 1981, in have the users of the waterway systems pay dry bulks and grain are particularly vulner­ which they recognize that the objective of for the recovery of federal expenditures for able. The impact on the upper river system the proposal is to raise additional revenues, deep-draft navigation projects-anything would be even more dramatic because it but ask the President to take into account a over 14 feet in depth. The second aspect of would not only lose its share of the lower broader range of objectives, including the the proposal is to promote a user-pays con­ Columbia cargo, but other barge cargo improvement of the overall transportation cept for the operation and maintenance of would be diverted to other carriers. system and our position in world markets. e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 20682 EXTENSIONS OF REMARKS September 15, 1981 The delegation stressed that the proposal, ager, Government Relations, for the Port of At Shaver Transportation, as elsewhere, while raising additional funds, would do so Portland, strongly feels that three pressure any tax levied will be passed on. "There is at a significant cost. They said that: groups have caused President Reagan to use no way we can absorb the tax," Shaver says. Development of a mature, energy-efficient this proposed method to raise money. The This nation has 25,543 miles of waterways waterway system will be retarded; Cargo railroad tops his list of pressure groups who serving 87 percent of major U.S.
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