Nick Smith

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, first of all, I invite the gentleman from New York (Mr. Rangel) to come over and join the Republican party. We still believe in that philosophy that he is starting to think. Mr. Speaker, I am disappointed that there is so much rhetoric, and we are shy on some upright honesty on what is happening in Social Security. First of all, let me suggest that with a unified budget deficit last year of over $20 billion, this year, in that same way that we figure surplus and deficit, we are going to have a surplus of $70 billion. And let me also suggest that almost every Democrat on that side of the aisle last year voted for the tax cuts even though we had a much larger deficit than we do this year. And what happened? Because of the fact that there is some way to treat taxes to make it more fair to stimulate the economy we have ended up bringing in more tax revenue this year, and it has been a stimulus to a stronger economy in this country. That is part of the solution, long term, to any Social Security solution. Let me additionally suggest, Mr. Speaker, to whoever might be listening to our debate, that neither approach, the Rangel amendments, nor this rule, move in the direction of saving Social Security. All we are saying is, let us start paying down the public debt a little bit, and that is good. That is going to help a little bit. But what we are really going to have to do to save Social Security is to increase the return on the investment that working men and women in this country are putting into their Social Security tax. Right now, Mr. Speaker, the Tax Foundation says that, on average, they are going to have a negative return on that money that they pay into Social Security. A negative return; the estimate is between a negative \1/2\ and a negative 1\1/2\. What we have got to do to save Social Security is have a better return on that investment. We cannot continue as a pay-as-you-go program for Social Security. So, all of this pretense that we are setting the money aside is just that, it is pretense. I went to the Committee on Rules, and my amendment in the Committee on Rules, and that is my disappointment, Mr. Speaker, with the Committee on Rules; my amendment incorporated my House Bill 4033 that says from now on when the government borrows money from Social Security it should be marketable, negotiable Treasury bills. It is not that today. They are just blank IOUs, as will this new account be. It also said that from now on OMB and CBO, the administration and Congress' budget people, will not consider the surplus coming into the Social Security Trust Fund as revenue in terms of defining a deficit or a surplus. I think the important thing as we start solving Social Security, that we be up front, that we be honest with the American people.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, it is with great respect for his many years of service to the community and to his church as educator, counsellor, and administrator that I am proud to salute Rev. Robert L. Brown. Rev. Brown served as pastor at the Gethsemane Temple Church of God in Christ for 11 years. Bishop Earl J. Wright appointed him Superintendent of the Albion District in 1985, overseeing several churches in the Albion area. He chairs the Elder's Council in the jurisdiction and is the Chairman of the Second Jurisdiction of Southwest Michigan Church of God in Christ, Inc. As pastor of Grace Temple Church of God in Christ in Albion, Michigan, Rev. Brown has inspired many to become personally involved in doing God's work and making more gentle man's life on Earth. Led by his preaching and example, they in turn light the lives of even more people, even reaching as faraway as Port au Prince, Haiti--where their missionary ministry has built a church and a school to help others discover God's love. He married missionary Lillie B. Kemp in December 1948 and they'll be celebrating their 50th anniversary this year. The Browns have five adult children and fifteen grandchildren. In honoring Rev. Brown today, we honor the principles of virtue, moral courage, and sacrifice which he and others in the spirit of peace and the spirit of Christ have long espoused. As an inspiration, strength, and a blessing to those whose lives are touched by his, he helps others understand the place of faith in their lives and discover how to love God and one's fellow man. Therefore, the Congress of the United States is proud to join with his lovely wife, fine family and his many admirers in extending highest praise and congratulations to Rev. Robert L. Brown.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to discuss the domestic deep-sea passenger cruise industry, or better, the lack of it in the United States. Currently, there is only one ocean-going cruise ship left in the entire U.S. flag fleet. That means that millions of dollars of American tourist money which are spent on cruises each year are going to our foreign competitors. The reason there are no cruise ships in our domestic fleet is because of an archaic protectionist law known as the Passenger Services Act. The legislation was passed before the turn of the century and requires all cruise ships in the domestic service to be built in the United States. U.S. shipyards, however, have no interest in building these types of ships and are not competitive on the international market. In fact, the last one built in this country was the U.S.S. Independence in 1956. Things have gotten so bad that when Disney Corp. solicited over $1 billion in contracts to build cruise ships in this country, not a single U.S. shipyard even bid on the project. Now those ships are being built in Italy, but they will be legally barred from servicing the domestic cruise market because of the Passenger Services Act. Mr. Speaker, this act no longer serves the interests of this country. It stifles maritime job creation and does nothing to promote domestic shipbuilding. Instead, it gives away the cruise market to our foreign competitors, whose customers are mostly Americans. To fix this problem I am introducing legislation today that will stimulate increased domestic cruise ship opportunities for the American cruising public. My legislation will allow three foreign-built cruise ships to participate in the U.S. domestic cruising market. These cruising vessels must still hire an American crew, pay U.S. taxes, and obey all U.S. environmental, labor, and safety regulations. Senator McCain has introduced the companion bill, S. 2507, and he expects the Senate Commerce Committee to take action on the bill this session. This legislation is absolutely necessary to help create a U.S. domestic ocean-going cruise industry and I would call upon my colleagues to support this bill.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Madam Chairman, as I have been down here since 1993, I see one danger, and that is many people in Washington tend to become elitists. They study a problem. They think they can solve that problem better than anybody else in the world even if it is a local problem. In this case, we have come up with many decisions on how the Washington money has to be spent as we send it back to local schools and to the States. So we say, look, here is some money to build a roof, but you can only use it for roof building. Here is money for the Internet and wiring for the Internet, but that is all you can spend it for. If you have already put in that kind of technology, tough luck. This bill moves that decision making from Washington back to teachers, back to parents, back to that local school board. Anybody that believes that those solutions that are closest to the problem have the best chance in success of solving that problem are going to support this kind of legislation that gets 95 percent of the money out of Washington, gives it back to the classrooms where we can use it to teach students to the best of the ability of those parents.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I would urge all my colleagues on both sides of the aisle to refrain from demagoguery of Social Security during this election year. For the last 40 years, this House has been spending every cent that comes into the Social Security Trust Fund for other social program spending. This year for a unique experience we will start paying down the public debt. That means lower interest rates to help keep the economy strong. A strong economy means it will be easier to keep Social Security solvent. In this election year and into next year, the challenge for all of us is to consider all solutions and not scare seniors or politically demagogue Social Security. Our goal in 1999 must be to fix Social Security. Mr. Speaker, I would ask my colleagues to consider joining with me on my bill, H.R. 4033, that requires that Social Security Trust Fund money can no longer be used to balance the budget. The bill also provides that any Trust Fund money invested with the U.S. Treasury will be in the form of marketable negotiable Treasury bills, not the unredeemable I.O.U.s now used. I invite my colleague to cosponsor this bill with me.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Chairman, I thank the gentleman for yielding time. I guess my message is, Drug dealers, while the economy is good, while there are jobs out there, you better start looking for another job, because here comes some aggressive legislation that is going to be serious about the war on drugs. These bills that we are passing today are going to be the beginning of a serious effort to get rid of a serious problem in this Nation. I have been holding drug forums across my district in Charlotte, in Battle Creek, in Jackson, in Adrian, in Hillsdale and Branch counties. What has impressed me the most is that if communities get involved, if parents start taking action, then it happens. We cannot do it just here in Washington, D.C., and that is why the Drug-Free Communities Act, that is why this kind of legislation that starts empowering local communities and parents makes a huge difference. Just a couple of statistics. If a youngster does not use drugs before they are 19 years old, then there is a 90 percent chance that they will never have a drug problem. If parents talk to their kids about the dangers of using drugs, then you reduce the chances of those kids ever having a drug problem by 33 percent. Parents might think they are talking to their kids but when you ask those kids, only one-third of those kids say their parents talk to them seriously about the problems of using drugs. I met a father at one of my drug forums. He said, ``My son was an athlete. He was on the starting line-up for the football team. He was getting A's. Then he got into drugs. Now, he is not in sports. He is moping around, doing bad in everything to do with school.'' Drugs and alcohol are a major cause of crime, they are a major cause of a student not learning to their full potential. Parents and communities, just do it, get involved. This kind of legislation does it.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. I yield to the gentleman from Missouri.

Mr. SMITH of Michigan. Mr. Chairman, the amendment I am offering today would allow funds under this act to be used for family literacy services. The objective is to provide more cooperation and partnership between parent and child. In other programs, such as the Bilingual Education Act, funds are permitted to be used for both the children and their parents. I believe H.R. 3892 will be even more effective in helping our Nation's English language learners if we allow local communities to use these funds for family literacy services. Oftentimes, both English language learners and their parents are in need of assistance in obtaining the English language skills they need for success. Family literacy programs have already provided successful results with immigrant populations and their families of limited English proficiency. While in Michigan, in the Michigan Senate in the 1980's, I started a program called Home Instruction Program for Preschool Youth. That program worked with parents and helped them work with their children for at-risk families. The results of that program were exceptionally encouraging because not only were the youth, when they went to school, much more successful compared to a test group of those students that had not had those services, but the parents themselves increased their reading proficiency by 200 and 300 percent and went on to finish school. Over the years, we have accumulated a great deal of evidence that working with children and their parents at the same time is a highly successful method of helping families improve their skills. Now, at the same time, these programs provide parents with the assistance they need to make sure that their child's success is going to be most successful because they are that child's most important teachers. These programs do empower parents. In addition, family literacy programs provide parents and children with time to interact for the purpose of enhancing the child's learning and developing a relationship of reciprocal learning and teaching. Mr. Chairman, my amendment also includes a definition of family literacy that is consistent with the recently passed Adult Education and Family Literacy Act, which was part of the Workforce Investment Act of 1998. If my colleagues will allow me to define the way I have defined family literacy in this act, (a) consistent with the Workforce Investment Act, it is that parents and children work together; (b) equipping parents to partner with their children in learning; (c) parent literacy training, including training that contributes to economic self-sufficiency; and (d) appropriate instruction for children of parents receiving parent literacy services. Mr. Chairman, family literacy programs provide valuable literacy service to our Nation's families, and I encourage my colleagues to adopt this amendment and allow funds under this act to be used for these effective programs.

Mr. SMITH of Michigan. Mr. Chairman, reclaiming my time, I appreciate the comments from the gentleman from Missouri, and if I can be a surrogate in helping him improve the bill, I am glad to do that.

Mr. SMITH of Michigan. I yield to the gentleman from California.

Mr. SMITH of Michigan. Mr. Chairman, pursuant to the rule, I offer amendment No. 6.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Madam Speaker, I rise today to talk about an act known as the Jones Act. The Jones Act is an act passed by Senator Jones of Washington as a floor amendment in the Senate in 1920. It is a protectionist act that requires that any transportation of goods by ship between any two U.S. ports has to be on a ship made in the U.S.A., manned by U.S. sailors, paying U.S. taxes, et cetera. I have legislation that is going to tremendously make a difference in helping farmers this fall and next year that says, let us allow these vessels to be built anyplace in the world to transport these agricultural commodities, still require that they be manned by U.S. crews, that they be American-owned, American-flagged, pay all American taxes, and comply with environmental laws. Agriculture is going through a tremendously depressed time. We cannot afford to further depress those commodity prices by limiting the transportation to move these goods between U.S. ports.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to pay tribute to a distinguished gentleman in my district who has performed commendable service to the U.S. Air Force. On Friday, August 7, 1998, Colonel Thomas L. Shively, Commander, Air Force Cataloging and Standardization Center (CASC), in Battle Creek, Michigan, will retire from active duty after over twenty-six years of service in our U.S. Armed Forces. Also on this day CASC will be deactivated and Michigan will lose its last remaining active duty Air Force installation. Colonel Shively served as CASC Commander from September, 1996 to August of this year. During that time, I have had the distinct pleasure of working with him and his staff on issues facing the CASC and all cataloging operations at the Federal Center. Tom served as the Air Force's representative to the Department of Defense's Cataloging and Centralization Study which selected Battle Creek as the site at which to centralize all cataloging operations. Colonel Shively and the men and women of CASC, along with the Defense Logistics Service Center, now known as the Defense Logistics Information Service (DLIS), were instrumental in the decision-making process to locate the new cataloging center in Battle Creek in March of 1997. Mr. Speaker, it should be readily apparent that Colonel Thomas Shively accomplished much during his tenure as Commander. CASC has been a leader in improving its operations through automation, process improvements, and entrepreneurship, which has resulted in improved efficiency throughout the organization. As the Air Force has moved away from focusing on measuring processes to measuring performance, CASC has been a role model for the extensive customer service oriented approach it has taken over the last several years. The men and women of CASC have become experts at what they do. So much so that today they handle cataloging functions for the National Weather Service and the Federal Aviation Administration, and, at this time, are negotiating contracts with other agencies as well. CASC also has put its expertise to work to help identify those Missing in Action during the Vietnam War by matching aircraft parts to the corresponding aircraft, which in turn help identify the crews aboard those planes. Colonel Shively also reduced the work force by over one hundred people without involuntary separation and streamlined the budget for 1998 saving taxpayers over $3.7 million, which was returned to the Air Force Material Command to meet other budget shortfalls. These are examples of the bold and responsible leadership Colonel Shively has demonstrated and what others have come to expect from him. Colonel Shively also has been an active member of our Battle Creek community. He is a member of the Battle Creek Area Chamber of Commerce, the American Business Clubs (AMBUCS), the Knights of Columbus, Character Counts, a volunteer at the Veteran's Administration Hospital, a speaker before numerous groups, and a member of St. Phillip's Catholic Church. Colonel Shively plans to remain in the Battle Creek area to become the Assistant Director of the Battle Creek Area Math and Science Center. I am confident that the bright and talented students of the Math and Science Center will benefit from the same type of leadership that Tom has given CASC over the years. In closing, Mr. Speaker, Bonnie and I salute Colonel Shively and wish him, his wife Barbara and their two children the very best in the years to come. On behalf of my constituents in Calhoun County, I also offer Colonel Shively my profound thanks for a job well done.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to recognize the end of an era in the United States Air Force and in my district. On Friday, August 7, the Air Force Cataloging and Standardization Center (CASC) of Battle Creek, Michigan, will be deactivated from active duty at 0900. The functions of (CASC) will be incorporated as part of a new service-wide cataloging effort of the Defense Logistics Agency, known as the Defense Logistics Information Service (DLIS). CASC was the last remaining active duty Air Force facility in Michigan. CASC began cataloging operations in Battle Creek in 1973. This was the beginning of efforts to centralize all Department of Defense (DOD) cataloging in Battle Creek. In 1976, all Air Force cataloging functions were transferred to Battle Creek. The Air Force and CASC sought to encourage other branches of our Armed Forces and agencies to centralize their cataloging efforts in Battle Creek as well. Mr. Speaker, in 1996 the Office of the Secretary of Defense approved their idea to have the Defense Logistics Agency (DLA) lead the new consolidated center and to deactivate CASC. That plan was finalized in March of 1997. This entrepreneurial spirit and their willingness to deactivate their unit for the greater good is simply the kind of innovative and decisive leadership CASC has shown over the years. CASC's Corporate Board developed a comprehensive strategic plan, putting customer service first. Independent customer surveys support this claim. Such efforts should be a role model for every federal agency. CASC's efforts to incorporate state-of-the art automation into their work processes led to a significant workload enhancements and improved efficiency throughout the organization. These significant modernizations reduced the work force by nearly 300 people, however, all reductions were done without any involuntary separations. CASC workers retired, resigned or were placed in other organizations. One of the technical accomplishments of CASC has been to identify crashed aircraft from the Vietnam War. CASC employees were able to match recovered aircraft parts to specific aircraft, making it possible to identify aircrews missing in action. In 1983, CASC established a helpline (call center) to provide Air Force personnel with answers to complex logistic information questions. CASC's call center exceeds industry standards in all categories. Over its twenty-two year history., CASC's innovative approach to cataloging has saved taxpayers over $60 million. the entrepreneurial spirit within CASC has led to agreements with non-DoD agencies such as the National Weather Service and the Federal Aviation Administration to provide cataloging services which have saved taxpayers $250,000 per year. Negotiations with further agencies continue. Such efforts has moved CASC away from measuring processes to measuring performance. Their efforts are a model for our entire U.S. Air Force to emulate. Mr. Speaker, as an Air Force veteran and on behalf of my constituents in Calhoun County, I am proud to offer this tribute in recognition of the accomplishments of the outstanding men and women of CASC.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I want to talk about Social Security. Mr. Speaker, when I first came here 5\1/2\ years ago, we were not only borrowing a great deal from the Social Security Trust Fund, but we had an additional deficit spending that approached $300 billion. Now, this year, we are not only going to have a zero deficit under the traditional way that we calculated deficit spending, but this year, if we have just a little bit of luck, we are going to have a real balanced budget. That means that we may have balance not considering the $80 billion that government is borrowing from the Social Security Trust Fund. This is one of the best years in the history of this country in terms of revenues exceeding expenditures. This year we might exceed $80 billion in terms of the unified budget. That means a real, honest balanced budget without the Social Security surplus. I think it is very important that in the future we start changing the way that we do business. We stop fooling people, we stop borrowing from the Social Security Trust Fund, and consider that revenue as a way to mask the deficit. A real balanced budget is when we reach balance, not including that amount borrowed from the trust fund. My bill HR 4033 does that and I invite my colleagues to co-sponsor.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise in support of the Shipping Relief for Agriculture Act, H.R. 4236. U.S. domestic maritime law is embodied in section 27 of the Merchant Marine Act, known as the Jones Act. The Jones Act requires that all cargo transported from one U.S. port to another (even via a foreign port) must travel on vessels built, owned, manned, and flagged in the United States. While initially sounding pro-American, the Jones Act has not protected the fleet. According to the U.S. Maritime Administration, there are only 119 deep- sea ships left in the domestic fleet (down from over 2,500 in 1945) and only three of these are dry bulk vessels. Only two bulkers have been built in U.S. shipyards in the last 35 years. To contract for a new ship would cost an American operator over three times the international market rate before any type of export subsidy was applied. This practically assures no new bulkers will be built in this country. It is time that we stop fooling ourselves that a renaissance in U.S. shipbuilding is just around the corner. Because of the Jones Act, U.S. agricultural producers today do not have access to domestic deep-sea transportation options available to their foreign competitors. There are no bulk carriers operating on either coast of the United States, in the Great Lakes, nor out to Guam, Alaska, Puerto Rico, or Hawaii. This puts American producers at a competitive disadvantage because foreign producers are able to ship their products to American markets at competitive international rates whereas U.S. producers are not. American agricultural producers also need access to deep-sea transportation options because other modes of transportation are saturated. Last year's rail woes would have been averted if just 2% of domestic agricultural production could have traveled by ocean-going vessel. With an expected record harvest on the way, the bottlenecks and congestion of last year will in all likelihood be revisited. Burlington and Union Pacific have already notified agricultural shippers to expect delays. This raises rail rates to artificially high levels at a time when commodity prices are already depressed--directly impacting farm income. The Shipping Relief for Agricultural Act will eliminate the U.S. build requirement for deepwater dry bulk vessels for the carriage of agricultural products, dry bulk cargo, and forest products. All vessels would still be required to obey all U.S. law, including environmental, safety, labor, and tax regulations. This bill brings more ships to the U.S. fleet, allows U.S. Agricultural shippers access to ships, and will also provide much needed jobs for the American Merchant Marine.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. I am sorry, could the gentleman say that again?

Mr. SMITH of Michigan. They have been indicted under existing law. I am not familiar whether they have been convicted or not. There was a guilty plea this afternoon, I understand.

Mr. SMITH of Michigan. Reclaiming my time, I would say so far Trie, Chung and six others have been indicted for their roles of violating this part of our law. Just today, Howard Glicken, a fund-raiser and friend of the Vice President, pleaded guilty to soliciting $20,000 in foreign contributions.

Mr. SMITH of Michigan. They would be in violation of existing law, is my understanding. But if they have a green card, I have exempted these types of individuals from the more extensive parameters of the law under my amendment. But if the gentleman would look to existing law, it is my understanding that these individuals now, not green card holders, but under the amendment we passed last week, we extended it to green card holders, and under that provision I have exempted that type of individual from the greater penalties.

Mr. SMITH of Michigan. Well, certainly if we look at the activities of Charlie Trie or John Huang or Johnny Chung, these individuals that now have been indicted for illegal contributions under existing law. Again, we do not change any of the definition in existing law, who falls under this act and who might be subject to these violations.

Mr. SMITH of Michigan. The penalty is not more severe. The option is more extensive. So in the eyes of the court, if they decide that the violation is egregious enough, they have an option of a greater penalty than under existing law. Existing law has a maximum penalty of $25,000 and a maximum jail sentence of not to exceed 1 year in jail. So we give the court greater latitude of increasing that to not more than.

Mr. SMITH of Michigan. I yield to the gentleman from California.

Mr. SMITH of Michigan. I yield to the gentleman from Texas.

Mr. SMITH of Michigan. I yield to the gentleman from California.