Controversial cruise ship proposal rejected

(AP) —A federal agency has failed to justify a proposal targeting foreign cruise ships visiting Hawaii that critics say would have altered cruise ship itineraries and imperiled tourism dollars and jobs, both in Hawaii and on the mainland, the White House ruled.

U.S. Customs and Border Protection filed the proposal late last year aimed at protecting U.S.-flagged cruise ships operating from Hawaii by reducing foreign ships' time in the islands, but critics said it would have led to fewer cruise ship visits at mainland ports as well.

Following public comments, a modified proposal was crafted, but it was rejected this week by the White House Office of Management and Budget.

The OMB said Customs and Border Protection failed to demonstrate a compelling need for the changes. The agency also failed to show the cost and benefits of its proposal or show that it analyzed regulatory alternatives, OMB said.

It appeared that the matter was put to rest for the remainder of the Bush administration after OMB notified the Department of Homeland Security in a letter. All regulatory matters were to be submitted to OMB by June 1 "except in extraordinary circumstances." There was no immediate comment from DHS on Friday.

The decision was greeted with relief by the American Association of Port Authorities and Cruise Lines International Association, which contended the sweeping change would have forced cruise ships to spend more time in foreign ports at the expense of U.S. ports that depend on tourism dollars from the ships and their passengers.

"There really wasn't an economic justification for it and we're very happy to see the letter," said Susan Monteferde of the American Association of Port Authorities.

Portland, which opened a $21 million cruise ship terminal this year, said the number of its cruise ship visits could have been cut by up to 80 percent under the original proposal. Amy Powers, director of CruiseMaineUSA, a coalition representing 12 Maine ports, said Maine officials and congressional delegation sent letters objecting to the proposal. READ MORE