Posted on 10/08/2012 4:05:45 PM PDT by radioone
Don’t look now but the Obama Administration torpedoed the American Flagship project’s long-planned, private sector funded initiative to build cruise ships here in America. Marine Link reported:
As Royal Caribbean Cruises confidently orders its third Finnish-government-financed Oasis-class ship, the Obama Administration slams the door on American competition in this $40 billion-a-year industry supported almost entirely by US passenger revenues. The American Flagship project claims Obama bulldozed its long-planned, private sector funded, job-creating initiative – perhaps to spur already prolific foreign-flag campaign contributions.
According to World City America Inc., the Finnish government has agreed to finance a third Royal Caribbean cruise ship while the Obama Administration dictates that the American economy and American jobs will be preempted from competing in this US-driven market. World City advises that the US Maritime Administration has arbitrarily dictated that the nation’s ship financing program cannot be used to build cruise ships despite the fact that the cruise sector is the only segment of the international shipping industry that has consistently done well, year after year, for decades.
Stephanie Gallagher, President of World City America Inc., which company has spent decades and over $60 million trying to capture a fair share of this US-passenger-dependent industry, claims that the Obama Administration has not only “missed the boat” of American opportunity to create and sustain thousands of new jobs and billions in new tax revenues, at no cost to the taxpayer, and with only managed risk, but that President Obama has gone further and dictated that the nations’ ship financing program will not be used to access this huge market.
“It’s a shot in the head,” claims Gallagher. “The Obama Administration, not unlike prior administrations, has enjoyed the foreign-flag cruise lobby largesse and largely ignored the fact that this US-passenger-dependent industry competes with US hotels, resorts, casinos, and other hospitality organizations without having to pay taxes or hire Americans.”
“It’s amazing to me,” said Gallagher, “that the President bragged just last week that he ‘walks the talk’ when it comes to a level playing field and giving Americans a fair shot in the global economy.”
“In reality,” said Gallagher, “American passengers support a $40 billion-a-year industry that found a way to beat the system — to avoid hiring Americans or paying taxes on their multi-billion-dollar revenues.”
“Our organization,” says Gallagher, “found a way to compete by designing a superior product that Royal Caribbean has, in many respects, emulated with their 5,400-passenger Oasis-class ships. But we went further and found an internationally competitive way to build the ship here in America, to fly the Stars & Stripes, to pay taxes, to hire Americans, and to play by the rules.”
“Having demonstrated that our plan would be economically sound, would not cost the taxpayers anything, would not increase the debt but would improve the deficit, the only way to push us off the cliff was to enact policy that preempted the nation’s ship financing program from being used to build cruise ships. That’s what the Obama Administration did,” claims Gallagher.
FYI Ping
Dinesh D’Souza’s movie explains it well, that we have a President who thinks America should be less in the world. In that regard, this decision makes sense.
I’ll bet the shipbuilder’s union will support 0bama anyway.
He wants America to be “the best customer” of countries run by socialist dictators.
Ping!
This doesn’t even begin to tell you how many laws the liberals have stymied business in just the Cruise industry.. Check out the California Air Resources Board (CARB)and the California Clean Air Act.. those 2 restrictive laws in California, keep 23 billion dollars out of our economy! yep
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sfl
Help me understand something here. If the ships were to be privately financed, how would the US Maritime Ship Financing Program be involved?
“Walks the talk”
??????????
http://www.marad.dot.gov/ships_shipping_landing_page/title_xi_home/title_xi_home.htm
Title XI Federal Ship Financing Program
The Federal Ship Financing Program provides for a full faith and credit guarantee by the United States Government to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards.
The program, established pursuant to 46 USC Chapter 537, provides for a full faith and credit guarantee by the U.S. Government of debt obligations issued by (1) U.S. or foreign shipowners for the purpose of financing or refinancing either U.S. flag vessels or eligible export vessels constructed, reconstructed or reconditioned in U.S. shipyards and (2) U.S. shipyards for the purpose of financing advanced shipbuilding technology and modern shipbuilding technology of a privately owned general shipyard facility located in the U.S. The Program is administered by the Secretary of Transportation acting by and through the Maritime Administrator. Under the Federal Credit Reform Act of 1990, appropriations to cover the estimated costs of a project must be obtained prior to the issuance of any approvals for Title XI financing.
They cosign the private money loans, to guarantee the financing.
I'm not a big fan of the government co-signing loans to lower the rates for private borrowing. It takes a pretty careful cost-benefit analysis to convince me that we as a country should outbid another country to buy economic activity by competitive subsidy, which is what loan guarantees are.
Of course, that opinion applies to Obama's green projects, too.
Wonder how much the Finnish Govt. PAID OBAMA to do ths!! What an AWFUL person we have as President!!!
Thanks Army Air Corps
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