Governor Schwarzenegger vetoes Container Tax Bill

October 7, 2008 by SwizStick  
Filed under Seafreight

Well, well, well, surprise, surprise. Based on information I was reading at the time, it was expected that the Governor would sign the bill in the coming weeks. It turns out the Governor vetoed the bill, apparently at the last minute and without comment. State Senator Lowenthal, the author of the bill, is obviously not pleased:

“The governor has really sold us out to the large business interests,” Lowenthal said. “I will never work with the governor on this bill again. I will wait until there are people who honestly want to work with me on this bill.”

In a veto message issued late Tuesday night, the governor said he rejected the bill in part because it lacked accountability. He also said it failed to direct money to the Central Valley, which has some of the nation’s dirtiest air and gets much of the truck traffic going to and from the ports.

Of course, reading the headlines you would never get the idea that this was a bill about container tax that would add to the costs of goods. Every headline I’ve seen describes it as an “anti-pollution” or “anti-smog” bill, not a container tax bill, which is literally what it was. Here’s more from the Long Beach Press Telegram, “Anti-smog bill vetoed by governor“:

“It’s disgusting that he has sided with polluters over the health and well-being of those here at home,” said Marty Schlageter, campaign director at the Coalition for Clean Air in Los Angeles.

In a veto message, Schwarzenegger said the timing wasn’t right, given the nation’s economic turmoil.

“It is vitally important that the state does not worsen the situation by mandating added costs on business that do not provide any public benefit,” Schwarzenegger wrote. “Careful consideration must be given to any proposed solution as to its potential impact to our state’s economy.”

In my personal opinion, there’s no argument about cleaning up the air, particularly around California ports and the Inland Empire of Southern California. But businesses are already suffering under the various fees and regulations imposed around Southern California ports. Considering the poor business economy in the state of California, it just seemed like yet another straw on the camel’s back. Why add to the burden and risk chasing even more business, particularly business tied to international trade, out of the state?

Related Posts:
More bad news for West Coast shippers: Container tax bill passes State Assembly
Schwarzenegger Vetoes Fee On Cargo Containers
West Coast Ports report container traffic decline
Industry opposes California “Container Tax”

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