Unlike the love fest between the Republican members of Congress and the cruise line representatives at the hearing before the House on Wednesday, the hearing before the U.S. Senate was certainly not warm and fuzzy.
U.S. Senator Jay Rockefeller, D-W. Va., who chairs the Commerce, Science and Transportation Committee, started the hearing off questioning why the highly profitable cruise lines pay virtually no U.S. income taxes although they extensively use the resources of some 40 Federal agencies. Senator Rockefeller continued saying that he was suspicious of the cruise industry which uses antiquated laws and onerous contractual terms to deny fair compensation to families who die or are injured during cruises.
Senator Rockefeller also questioned the ethics of an industry which dumps human sewage just three miles off the coast of the U.S., creating floating islands of untreated sewage.
The exchange between Senator Rockefeller and Christine Duffy, the CEO of the Cruise Line International Association ("CLIA") was remarkable. Ms. Duffy read from a prepared script which touched upon all of CLIA’s "talking points," but she would not respond directly to Senator Rockefeller’s tough questions.
Senator Rockefeller asked Ms. Duffy to admit that Carnival Corporation pays only 1.1% in taxes in the 11 billion dollars in profits made over the course of the last three years. She would not directly respond and she also skirted the question whether she considered that to be fair. Ms. Duffy would also not immediately agree to provide income tax returns to the committee, until he threatened to use the subpoena power of the Senate.
Senator Rockefeller drew an analogy between what happens deep in the coal mines of his state of West Virginia with what happens on the high sea beyond three miles. He questioned Ms. Duffy’s credibility and admonished her to "speak more truth." Referring to the cruise industry, he stated "You are A World Unto Yourselves."
What a difference a day makes, between the Republican party heaping praise on Ms. Duffy the day before at the House hearing, and the tough questions posed by a Democratic Senator the following day.
Don’t forget to read:
Six Lies The Cruise Lines Will Tell You After The Costa Concordia Crash