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.