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Erc

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Mr. Speaker, I humbly request your permission to be seated in this august body as a member (associated with the ENP caucus).
 

J. Passepartout

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Prof. Talbott, I imagine that there are no objections. Welcome.

I am announcing that although I am returned from my trip, I will be sharing much of my work with the Deputy Speaker. He has done a relatively good job during my absence, and I think that between the two of us we can do well.

I see the suggestion from Reverend Park has some support, and I essentially agree with it, so if the Assembly is willing to accept it as standing proceedure?
 

Craig Ashley

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"I'll accept the proposed changes for the sake of moving things along, but I would strongly prefer you change the wording regarding the role of the senior legislators to include the qualifications that they be both a majority of the senior legislators and that their parties represent a majority of the GA. Since you find my wording unclear or contrary, please feel free to come up with your own, since you are apparently an expert on the subject."

"Per Minister, as soon as you can provide a clarification of your numbers and perhaps provide some of the information that has been requested, we can move to vote on your proposed budget amendment."

"Other than that, we are currently lacking any bills with a second, though several have been introduced and have published ECB impact reports."
 

unmerged(33865)

Eutopian Chess Champ
Sep 2, 2004
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"Thank-you Mr. Leary. As the wording now stands, given the number of GA members in each party, agreement between any two of the Senior Legislators from the three largest parties can overrule the Speaker on a procedural matter. Next term, the members per party may be different, so the numbers could change. If any legislator believes that results in a decision that is incorrect or unfair, they could still raise a point of order, so I believe there is adequate protection for every member, no matter what party they are from. I understand why you would like it changed, but as it is currently written, it allows the will of the majority to be expressed in a convenient fashion, without needing to go through the time consuming process of a lengthy vote on every procedural matter. Full votes are still required for the most important matters, the legislation. I would like to thank-you for drafting the original version of the rules. In the version we appear to be adopting, most of the language is yours."

Woody bows in Mr. Leary's direction and then sits back down.
 

unmerged(33865)

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Sep 2, 2004
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Before we discuss the Infrastructure bill related to the highways, I was wondering if the commentary provided by the ECB about the routing to Erikshamm had caused you to amend your proposal? In the campaign I had suggested a highway to the west coast, passing through the major inland oilfields, and terminating at a potential new port site or loading facility through which we could export the surplus portion of our interior production. I believe former President Al'Aeshir, back when he was campaigning for the MRP, in one of his last lucid moments, also advocated building a new port facility on the west coast of Western Eutopia. I am not certain, but I thought Erikshamm was a bit far north for that, and, of course, such a development would totally destroy the current character of that lovely hamlet as well as severely negatively impact the pursuit of the traditional livelihoods of the current residents.
 

unmerged(33865)

Eutopian Chess Champ
Sep 2, 2004
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Mr. Leary, When I went to vote, I noticed that I had failed to amend one portion to be consistent with the rest.
6. Debate can end by one of three means:

- The Speaker rules debate has ended.

- A majority of the senior legislators representing parties that comprise a majority of the General Assembly move to end debate.
Is indeed what I wrote, so it is my mistake, for which I apologize to you and this body. What I had intended, consistent with the rest of rules was:
6. Debate can end by one of three means:

- The Speaker rules debate has ended.

- Senior legislators representing parties that comprise a majority of the General Assembly move to end debate.
Could you kindly incorporate that change? Sorry to have put you to this extra work.
 

Craig Ashley

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Since the Minister has not seen fit to respond, I suggest we move on to discussing other matters until the Minister of Social Services clarifiies his figures and replies to our inquiries.

ECB has recently published several impact reports. In light of their findings, I would like to make a few minor changes to the Infrastructure Expansion Act.

Infrastructure Expansion Act

I. Freeway Expansion

The following routes shall be added to the national freeway system in phase one: Uxbridge-Kirby-Harton-Farpoint, Harton-Dunwich-Gilford, Dunwich-Erikshamm, Chateauvallon-Villefrancha-Castellar-Rochefort-Grandeville-Hurteau. Phase two shall add the route of Kirby-Douglas-Nuewestbaden-Eauze.

Phase one's construction is authorized to begin immediately. Phase two shall begin in Term XV.

II. Airport Expansion

Chateauvallon International Airport shall be expanded by 35%. Eutopia City International Airport shall be expanded by 25%

III. Port Expansion

The port facilites in Eirkshamm by 50% and Hurteau's facilities shall be expanded by 25%. Additional funds will be made available to assit in upgrading local infrastructure needed to handle the expected increase in traffic. These additional funds shall not exceed 50% of any projects total costs, unless specifically exempted by the Minister of Interior.

IV. Finance

The Ministry ofthe Interior is authorized to oversee the expansions outlined above. The freeway expansion shall be financed by a 1% increase in the Land Transportation budget of Term XIII and an additional 1% of the federal budget under Land Transportation for Term XIV. Phase two will be financed by 0.4% of federal budget under Land Transporation in Term XV.

The air expansions shall be financed by the Air Transportation budget and begin immediately. In the event of any shortfalls, the MoI is authorized to create local taxes and levies of businesses that will gain from the expansion. These taxes and levies must be temporary in nature and not cause undue harm to the local economy.

The port expansion and the qualifying local infrastructure expansions shall be funded by the Sea Transportation budget and begin immediately. In the event of a shortfall, the MoI is authorized to create local taxes and levies of businesses that will gain from the expansion. These taxes and levies must be temporary in nature and not cause undue harm to the local economy.

ECB Impact Report said:
The ECB generally agrees with the MGA's assessment of the air-related expenditures, and the Hurteau-related section of the sea-related expenditures. However:

- Several of the freeway routes suggested are quite remote, and the government is likely to incur substantial cost getting crews to those areas and conducting construction there. In addition, these regions contain several mountain ranges of note (specifically on the Dunwich - Eirikshamn leg, the Harton - Dunwich - Gilford leg, the Douglas - Neuwestbaden leg, and the Villefranche - Castellar leg) as well as several major river crossings, all of which are likely to increase the cost of construction substantially. The ECB estimates 2% of the budget for Phase One and .4% of the budget for Phase Two. The ECB would suggest extending the time of construction over several terms to reduce the immediate cost.

- Regarding the Eirikshamn port expansion, the ECB would point out that the population of Eirikshamn is presently only a few thousand, the majority of whom are poor fisherpers. It is essentially impossible for local taxation to provide any noticeable fraction of the cost of the port expansion for Eirikshamn in the event of a budget overrun.

Conversely, the ECB agrees with the MGA's conclusions regarding short and long-term impacts. In addition, the ECB anticipates that the increased demand for many products most easily produced locally (including gravel, steel, concrete, and lumber) may result in a small but noticeable short-term increase in governmental revenues.

The changes were in regards to the funding of the freeway expansion and the time table set. I'd also like to address that the Eirikshamm situation of not being able to fund overruns with local taxes. Since that solution is not possible, in the event of an overrun, the minister would simply have to submit a revised budget for his portfolio to meet the additional needs. I feel the increase in funding Sea Transportation recieved should be adaquete to fund the entire expansion at both locations.

Also, I'd like to alter the Shipping, Transportation, and Maritime Construction Stimulus Bill slightly to reflect the ECB report.

Shipping, Transportation, and Maritime Construction Stimulus Bill

I. Taxes

All companies in the shipping, transportation, and ship building or repair sectors shall be subject to 70% of existing corporate tax rates for the next two terms. The following term, they shall be taxed at 85% of the existing rate. After which, they shall pay the full tax

MoF shall decided what companies are eligible for the tax break through a standard application process.

II. Grants and Training Programs

The Federal government shall adminster job training programs to qualified applicants in order increase the available pool of workers with the necessary skills for these industries.

Furthermore, MoF shall be authorized to issue grants to qualified companies in these sectors for start up or capital expansion. No company shall recieve a grant larger than 250 million dollars, and the total grants issues shall not exceed 0.5% of the budget. These grants and programs shall be administered by MoF and be available for the next three terms.

III. Finance

The Industry and Labor section of the budget shall be increased 0.75% to fund the grants and training programs.

ECB Impact Report said:
The ECB agrees with the MGAs estimated costs, but believe the anticipated results to be overly optimistic. The ECB anticipates no more than a 2.5% boost in growth, and this optimum figure is only likely if this legislation is timed to take full advantage of other incentives (such as those contained in the Infrastructure Expansion Act.) The short duration of benefits under this act is expected to limit its impact.

I lengthened the duration of the training and grant programs to three terms to better coincide with the infrastructure expansion.

Per Park, regarding the Eutopian Federal Mortgage Guarantee Corporation Establishment Act, I assume you will alter your bill to include the start up funding and place under the appropriate minister portfolio. That said, with the potential passage of the Economic Recovery and Tax Reform Act, the Infrastructure Expansion Act, and the Shipping, Transportation, and Maritime Construction Stimulus Bill I feel our economy will be well on the road to recovery and the EFMGC should have little trouble attracting investment. Provided you make those changes, I would be ready to second your bill.
 
Last edited:

unmerged(33865)

Eutopian Chess Champ
Sep 2, 2004
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I had thought that the investment by the financial institutions in the preferred stock would have covered the start-up costs, but agree to amend the impact assessment to incorporate the 0.1% of the budget for one term, just in case. This would be an increase in expenditures for the Minister of Finance. I will away for a couple of days, and so will post the revised version when I get back provided the GA is then ready to hear it. In the meantime, I would second the Shipping, Transportation, and Maritime Construction Stimulus Bill to get the debate going, but I would be hestitant to vote for it in its current form. I would ask whether there shouldn't be some growth in employees required to qualify for the tax reduction, so we don't give a tax break for just being in the right industry. Shouldn't they have to do something to qualify? Hiring more workers would be something that I could support as a reason.
 

Craig Ashley

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"I could agree to some reasonable qualifications to ensure the benefits of the tax breaks are not simply pocketed, though an increase in employees should not be the only possible way to qualify. Investment in modernization, expansion, or other capital improvements would also be qualifiers."

"Obviously, any start up companies would not have to meet these to be eligible for the tax breaks - since by virtue of starting up they are expanding their workforce and expanding their operations."

"Per Park, just for the record is that an official second?"
 

unmerged(33865)

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Sep 2, 2004
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Yes it is an official second.

Would you consider amending your bill to make the tax cuts contingent on having more employees, measured as FTEs (full time equivalents) on average that the prior year, and/or that that the amount of the tax break is limited to the amount of additional investment?
 

Craig Ashley

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"Thank you, Per Park."

"I'd consider including some sort of qualifiers for the tax break, but it would not be limited to merely expanding the work force. I don't think tying the tax break to amount invested is a good idea, just for the sake of simplicity. Qualifiers should be enough to ensure the money is being spent to expand the economy."

"How does this look for a revised version?"

I. Taxes

All companies in the shipping, transportation, and ship building or repair sectors shall be eligible for tax relief in the form of 70% of existing corporate tax rates for the next two terms. The following term, they shall be taxed at 85% of the existing rate. After which, they shall pay the full tax.

All new companies formed are automaticlly eligible for the tax relief. Existing companies must show they have made significant investments in internal capital investments for expanding or modernizing of operations and/or expanding their work force. MoF shall decide the specific details of qualification, subject to review by the General Assembly.

....
 

unmerged(33865)

Eutopian Chess Champ
Sep 2, 2004
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That looks quite good, except I wouldn't want us to get into the details of approving or disapproving tax cuts for individual companies. Therefore I would suggest leaving it to MoF and delete the part "...subject to review by the General Assembly".
 

Craig Ashley

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"The reason I included that clause was in case the MoF used his power to decide the exact qualifers to pursue a personal agenda. For instance, if he made the qualifiers for capital improvements so low anyone could reach them, but made the labor qualifiers so stringent they were punitive and impossible to reach. That clause allows us to overrule a minister who clearly is not acting in the best interest of the economy."

"I have no interest in individually approving every qualifying company."
 

unmerged(33865)

Eutopian Chess Champ
Sep 2, 2004
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Subject to your explanation that the review would be rarely if ever used, except in the case of misfeasance by a minister, then I can live with your wording of the amendment, and would be willing to support a bill that was so amended. Could you circulate an updated draft?
 

Craig Ashley

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"Certainly, Per Park. Here is an updated version. If there are no further comments, I believe we can bring this to a vote."

Shipping, Transportation, and Maritime Construction Stimulus Bill

I. Taxes

All companies in the shipping, transportation, and ship building or repair sectors shall be eligible for tax relief in the form of 70% of existing corporate tax rates for the next two terms. The following term, they shall be taxed at 85% of the existing rate. After which, they shall pay the full tax.

All new companies formed are automaticlly eligible for the tax relief. Existing companies must show they have made significant investments in internal capital investments for expanding or modernizing of operations and/or expanding their work force. MoF shall decide the specific details of qualification, subject to review by the General Assembly.

II. Grants and Training Programs

The Federal government shall adminster job training programs to qualified applicants in order increase the available pool of workers with the necessary skills for these industries.

Furthermore, MoF shall be authorized to issue grants to qualified companies in these sectors for start up or capital expansion. No company shall recieve a grant larger than 250 million dollars, and the total grants issues shall not exceed 0.5% of the budget. These grants and programs shall be administered by MoF and be available for the next three terms.

III. Finance

The Industry and Labor section of the budget shall be increased 0.75% to fund the grants and training programs.
 

Craig Ashley

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Very well then, we'll move to a vote on the Shipping, Transportation, and Maritime Construction Stimulus Bill.

Next order of business is the Eutopian Federal Mortgage Guarantee Corporation Establishment Act. Per Park, since it is your bill, I assume you have a few words. The floor is yours.