Marine Transportation System

Archive for November, 2014|Monthly archive page

New Congress. New Maritime Policy?

In Congress, Leadership, MTS Policy, Politics on November 15, 2014 at 3:30 pm

As the first draft of this piece was being put to page some small percentage of voters were practicing their citizenship at the polls. The prospects for the Democrats, as a whole, were not very good. Ten days later, and as I now refine this text, the field still is being cleared of Election Day debris. Not just the sloppily pinned signs on the road medians but prognosticators’ tattered reputations and a few shattered incumbents were strewn on the political landscape in need of reclaiming. By far more than the paid pollsters divined in the weeks before November 4, the Republicans were handed the reins in Congress and a number of State Houses. The party consolidated its control of the House and leapt into the majority in the Senate with at least 53 seats and a net gain of eight. The final count awaits a December conclusion in Louisiana where GOP prospects in the run-off are good.

Public dissatisfaction with government in Washington is close to universal but for reasons I will leave to others to explain the Republican Party benefited substantially more than its competition and that will keep them in power, especially at state level, for several years to come. As if speaking for his fellow Republicans across the country re-elected Gov. Sandoval (R-NV) said, “This is a night to savor.”

By the numbers, incumbent US Senate Republicans will be vulnerable in 2016…but let’s not get ahead of ourselves. The matter before us is the next two years of the 114th Congress.

This week the rank and file of both parties in both chambers opted to retain current leadership. Soon we will learn the names to inhabit chairmanships, ranking minority posts, and committee lists. Meanwhile, in the current lame duck session the legislature is expected produce appropriations to keep the government functioning through the fiscal year. They will decide whether the Keystone XL pipeline project should be started, and take up a few other must-pass items before bringing the 113th Congress to a close.

Long before Election Day the US-flag maritime community nervously eyed voter surveys because of what a possible Republican return to power in the Senate could mean. Now, the controlling party is known; how that majority will be reflected in maritime related legislation will be something to watch.

One can easily find Republican legislators who are considered friends of the US maritime industry, whether driven by interest in US-flag cargo preference policy, shipyard activity, the labor force, other sectors that benefit by existing policy, or just a sense of what a nation should say about its maritime capability, security, etc. But that doesn’t mean that the maritime community in Washington, DC was sanguine or unconcerned about the prospect of the GOP taking the lead in producing legislation. In fact, unions, shipyards, US flag operators and others with a stake in the status quo were in varying degrees of pre-election anxiety.

The community has been frustrated with the Obama Administration’s willingness to ease cargo preference requirements. Now, potentially as problematic, Republican legislators who, for philosophical or constituency reasons, have not been inclined to extend Ex-Im Bank authorization or fund cargo preference policy—both key issues for the US merchant marine—will have more influence in policy setting. Add to that the fact that congressional support for the Jones Act is lacking in some quarters where the marketplace is revered and shipper interests—including domestic petroleum producers—would exchange the US flag for lower vessel costs. Some ports hit hard by disruptive events and who need short term Jones Act waivers in order to manage logistics crises, may find some more receptive offices.

A few years ago Jones Act and US-flag interests started Maritime Industry Congressional Sail-In Day to lobby the Hill with a particular aim to educate legislators who are new to maritime issues. The old guard–those who recall there once was a House Merchant Marine and Fisheries Committee, soon 20 years defunct—are nearly gone from Congress as a consequence of natural and electoral attrition. (The American maritime sector has suffered from attrition as well, with a reduced presence in international shipping and, in some respects, an aging Jones Act sector.)

More recent Republican additions to Capitol Hill are a decidedly more conservative population—some of them Libertarians and self-identified tea partiers—who are more market- and less government-oriented. They arrive in Washington with little knowledge of the American maritime tradition and even less of its policy and the rationale behind that policy. They read material from policy critics and, presumably, its advocates.

On the Senate Commerce, Science & Transportation Committee are Marco Rubio (R-FL), Ted Cruz (R-TX) and Ron Johnson (R-WI) who, for example, have opposed reauthorizing the Ex-Im Bank (“corporate welfare”) and could be in the mix to chair the subcommittee with jurisdiction over maritime policy. Veteran John McCain (R-AZ), the likely next chair of the Armed Services Committee, has a record of proposing the repeal of the Jones Act. Referring to a McCain quote in a Wall Street Journal blog, a union newsletter carries this heading: “Sen. John McCain Calls Jones Act’s National Security Benefits Laughable.”

Maybe change is coming, maybe not.  If anything, there is a good chance we will see more jousting on US maritime policy.   Pbea

Advertisements