For Immediate Release: February 1, 2012

WASHINGTON, DC – Today, Congressman Jim McDermott (D-WA) argued that current law needs to be changed to increase the uses of a federal maritime trust fund to benefit deep-water ports like the Port of Seattle. As things stand, the “Harbor Maintenance Tax” (HMT) is imposed on cargo owners when they arrive at U.S. ports and that money is held in a trust and is primarily used for port dredging – something that the Port of Seattle doesn’t need because of its natural depth.

“The Port of Seattle gets one cent back for every dollar that we put into the trust fund – that’s not fair and the definition of what the HMT money can be used for should be expanded,” McDermott said at a congressional hearing that focused on a shipping bill and the HMT.  “Seattle has a Seawall that has been there for 100 years, and its wooden platforms have significantly deteriorated. We also live in an earthquake zone and we know what the seismic impacts could be on one of the big ports in this country. This is not a partisan issue, it’s an economic issue and we can’t get anyone to agree that the HMT money should be used to study the Seawall and repair it.”

Surprisingly, the Commissioner of the Louisiana Department of Agriculture and Forestry, Dr. Mike Strain, who was called by the Republicans to testify at the hearing, agreed with McDermott. Over the last 10 years, Louisiana’s ports alone received 20% of the HMT funds.

Strain responded to McDermott’s statement by saying, “There is $6.1 billion in this trust fund and we need to do everything we can to protect and expand our ports, including allowing the funds to be used for the Seawall, dredging, rebuilding the inland waterways and those lock systems… And, we have a way to generate the dollars…when we talk about growth in shipping, there is going to be more money coming [into HMT funds].”

Due to the limited nature for which the HMT funds can be used, there is an uncommitted balance that continues to grow and reached an estimated $6.1 billion at the beginning of fiscal year 2012. McDermott is currently working on legislation that would change the definition of how HMT funds can spent so that the Port of Seattle, and other deep-water ports, can improve their infrastructure and access the HMT funds they currently pay, but see little benefit from.

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Follow McDermott on Twitter: @RepJimMcDermott.