Why Lingle Defends the Jones Act

Linda Lingle continues to defend the Jones Act.  This old maritime law protects the shipping monopoly enjoyed by the select few who can service Hawaii, like Matson and (until very recently) their parent company Alexander & Baldwin. These archaic restrictions raise the costs of all imported items such as food and raw materials and Hawaii’s cost of living by as much as 30% or more.  Look no further than the public campaign contribution reports to understand why Linda Lingle, during her eight years as Governor,  would steadfastly protect such an unfair monopoly preying on Hawaii’s people.

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“When it comes to backing gubernatorial candidates, according to recent filings, Alexander & Baldwin Inc. executives are for Linda Lingle.”

                                                                                   Pacific Business News, August 12, 2001

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This brings to mind the old saw: “You dance with them that brung ya.” It also should tend to remind the voters that large campaign war chests come at a price, and that price is paid by the residents of Hawaii when their elected officials bow to their corporate patrons and ignore the negative impact to their constituents.

Jonesing For Economic Recovery

With Hawaii hosting APEC, talk about the value of free trade among Pacific nations has hit our local media. There is, however, no mention of the restrictive trade laws, like the Jones Act, that severely limit international shipping.

Foreign-flagged vessels cannot freely engage in international commerce in Hawaii, and our ability to export and the exorbitant costs of our imports are controlled by a tightly held local company.

If Horizon fails, there will be only Matson and its parent company, Alexander & Baldwin, holding a nearly total monopoly. Pasha will still be operating on its limited basis.

The cost of living in Hawaii is much higher than anywhere else in the United States. Because of our isolation and unique dependency on shipping that is controlled by a monopoly, the cost of living will only get worse.

Hawaii’s political elite can talk all they want about free trade, but as long as they take campaign contributions from those that control it now, there won’t be any competition any time soon.

Carroll Releases White Paper on Economic Fixes for Hawaii

Honolulu, November 12, 2011 – In his just-released white paper report entitled HAWAII’S POTENTIAL FOR OPEN PORTS AND FREE TRADE IN HAWAII, Adopting Singapore’s Economic Model, John Carroll, a candidate for the U.S. Senate, lays out a bold plan for removing shipping restrictions that stifle free trade for Hawaii.

Hawaii has long suffered from restrictive and antiquated maritime laws that limit shipping and prevent foreign flagged vessels from competing. This lack of competitive shipping has curtailed the development of our agricultural industries as well as having driven up the cost of living for every Hawaii resident.

Carroll says the removal of specific laws, like the Jones Act and ensuring compliance with the Commerce Clause are critical if Hawaii is going to enjoy economic prosperity.

“If what is offered here becomes reality, I will rest in peace knowing that a wonderful future will be available for all Hawaii’s children to come including my eight great grandchildren. I have worked for over forty years to get these onerous restrictions eliminated, “ said Carroll.

Carroll would also like to thanks those that helped him prepare this white paper report: Keith Rollman, Cormick Barnes, Ingrid Johnson, Sierra Payne and Moe Sy and their mentor Ken Schoolland for their contributions and support.

READ THE FULL WHITE PAPER REPORT:

Attachment: (PDF) HAWAII’S POTENTIAL FOR OPEN PORTS AND FREE TRADE, Adopting Singapore’s Economic Mode

Carroll Team Seeks ‘Jones Act’ Solutions

Carroll Forms Team To Take On Jones Act

Honolulu, October 4, 2011–John Carroll met with his research team that will be helping him prepare a white paper on the impact of the archaic Jones Act on Hawaii’s economy.  This little discussed law, left over from the 1930′s, put restrictions on interstate shipping, and essentially denies foreign-flagged vessels free-trade access to American ports.  Hawaii has suffered disproportionately as a result, with shipping costs kept artificially high and export options drastically reduced.  The effect of the Jones Act has been to drive up Hawaii’s cost of living by limiting (to almost a monopoly) all import shipping.  What we not-so-affectionately refer to as the “Matson Tax,” unfairly adds approximately 30% to the cost of all daily essentials.

For example, Hawaii now imports about 85% of  its food.  A gallon of fresh milk, if you can find it, costs around $8 a gallon, about $5 more than in Seattle.  This situation is made worse by the fact that Hawaii’s local food production is also negatively impacted by the Jones Act.  Foreign vessels who deliver product to Hawaii must return empty instead of carrying Hawaiian agricultural product back to their home ports.  This has virtually eliminated one of Hawaii’s best markets for agricultural products and made farming and ranchingin the Islands an unprofitable and risky undertaking.

The Jones Act literally hurts Hawaii coming and going.

Carroll’s group of HPU students and young professionals will be analyzing the economic impact of the Jones Act on Hawaii, and establish the actual costs to individuals living in Hawaii.  They will also be comparing more open trade ports like Singapore and Hong Kong, and projecting the economic impact on Hawaii by adopting a more open trade policy,

Because Hawaii is unique in its geographic isolation from the other U.S. States, it suffers disproportionate economic damage because of the Jones Act.  John Carroll will be seeking a strategy to gain an exemption for Hawaii that could lead to a major improvement in our local economy and reduction in our cost of living.