MARAD loans are supposed to support American shipbuilding and shipping companies — not foreign.

A deal was brokered whereby NCL would create an American company, take over the MARAD loans and finish building the ships (I think not even in the US). In return they got discounted dock fees and other perks.

I wouldn’t be surprised if there was a clause saying they had to operate in the US for X amount of time and that time is up. Which is why they are taking their American-taxpayer funded ships and leaving. (To clarify the Taxpayers guaranteed their loan but didn’t fund them although I think the whole deal lost us a lot of money what with the default and subsequent deal)

Now NCL reflags their ships in the Bahamas, quits paying even US miniumum wage to their people and takes them elsewhere.

This is not a bad thing because cruise ships cause a lot of problems and bring tourists who spend very little on the island compared to tourists who fly in (source Hawaii Tourism Board). In the end they are harder on our island’s infrastructure than the small amount of money that actually comes back to the island (despite all the VERY SUSPICIOUS claims they make)

But it does point out what a bad program the MARAD loan program is and how it is gouging the U.S. taxpayers to shore up one or two businesses that are so financially unsound that they couldn’t get a regular loan. (like the Superferry)

Hawaii should follow the lead of Scandanavia and start charging $400 per head instead of a measely $1.50 that doesn’t even cover the security costs we incur. Then we’ll see whether the cruise ships can be profitable to our islands.

MARAD loans are supposed to support American shipbuilding and shipping companies — not foreign.

A deal was brokered whereby NCL would create an American company, take over the MARAD loans and finish building the ships (I think not even in the US). In return they got discounted dock fees and other perks.

I wouldn’t be surprised if there was a clause saying they had to operate in the US for X amount of time and that time is up. Which is why they are taking their American-taxpayer funded ships and leaving. (To clarify the Taxpayers guaranteed their loan but didn’t fund them although I think the whole deal lost us a lot of money what with the default and subsequent deal)

Now NCL reflags their ships in the Bahamas, quits paying even US miniumum wage to their people and takes them elsewhere.

This is not a bad thing because cruise ships cause a lot of problems and bring tourists who spend very little on the island compared to tourists who fly in (source Hawaii Tourism Board). In the end they are harder on our island’s infrastructure than the small amount of money that actually comes back to the island (despite all the VERY SUSPICIOUS claims they make)

But it does point out what a bad program the MARAD loan program is and how it is gouging the U.S. taxpayers to shore up one or two businesses that are so financially unsound that they couldn’t get a regular loan. (like the Superferry)

Hawaii should follow the lead of Scandanavia and start charging $400 per head instead of a measely $1.50 that doesn’t even cover the security costs we incur. Then we’ll see whether the cruise ships can be profitable to our islands.