Category: Amrita Dhindsa
Safety at Nuclear Power Plants
WASHINGTON-In a move aimed at increasing security in the nation’s nuclear plants, Sen. Joseph Lieberman D-CT) joined with Senators Harry Reid (D-NV), Hillary Rodham Clinton (D-NY) and James Jeffords (I-VT) to unveil a plan Thursday to federalize all security personnel at those plants.
The legislation also outlined other security measures for America’s nuclear facilities. Lieberman said new legislation to protect the country’s nuclear facilities was needed because the events of Sept. 11 awakened America to a new range of terrorist threats. “While the NRC [the Nuclear Regulatory Commission] and the nation’s nuclear facilities-including Millstone 2 and 3 in my home state of Connecticut-have taken some steps to improve security,” Lieberman said at a press conference, “much needs to be done to reduce the vulnerabilities of our nuclear plants to terrorist strikes.”
Lieberman said the legislation would fill the emergency planning and security gaps at the nuclear plants and protect “these critically important energy sources and the people who live near them.”
According to the industry’s Washington-based Nuclear Energy Institute, 45 percent of Connecticut’s electricity is derived from nuclear power, making it one of the states most dependent on this energy source.
“Considering our dependence on nuclear energy, we owe it to the people of Connecticut and the rest of the nation, as well as the nuclear industry,” Lieberman said, “to take every necessary step to keep this technology safe and available.”
The proposed Nuclear Security Act would federalize security personnel at nuclear facilities, require updated threat assessment plans, enhance evaluation of each facility’s preparedness with the use of “mock terrorist teams” and create sufficient stockpiles of potassium iodide, the substance that protects people from some of the most serious effects of radiation poisoning.
Lieberman noted that measures to prevent terrorist attacks must also be coupled with efforts to treat victims of a nuclear incident if one should occur. The legislation contains a provision that would require the NRC to work with the Federal Emergency Management Agency to ensure that schools, hospitals and other public facilities in close range of sensitive nuclear facilities have enough stockpiles of potassium iodide.
Joe F. Colvin, president and chief executive officer of the Nuclear Energy Institute, said his institute opposed the “well-intentioned but misguided concepts of the Reid-Clinton-Lieberman bill.”
In a statement, Colvin said “this proposal is a reflexive political response to a problem that does not exist, given the fact that nuclear power plants are private facilities protected by a paramilitary force of highly trained, well-armed, dedicated professionals.”
Colvin said there was no reason to believe that replacing proven security forces at nuclear power plants with NRC security employees would result in security beyond the high levels that he said already exist.
“Unlike any other industry, security forces at nuclear power plants already are highly regulated by the federal government through the NRC,” Colvin said. “And all of our security professionals already are subjected to strict hiring standards, comprehensive FBI background checks and other appropriate reviews before and during employment at our plants.”
Edwin Lyman, scientific director of the Washington-based Nuclear Control Institute, an independent research and advocacy center specializing in problems of nuclear proliferation, disagrees with Colvin. “Facts speak for themselves,’ Lyman said in a telephone interview. In only 6 of the 11 mock terrorist attacks, “personnel were unable to repel the attackers. The intruders were successful in simulating conditions to force a meltdown of the plant.”
Lyman also said federalizing employees would raise disturbing questions about how the NRC would administer and regulate these employees. “The NRC is susceptible to industry pressures and does not have the expertise to monitor security,” Lyman said. He added that the NRC had the authority to impose fines on companies responsible for lapses in security but had made a policy decision not to take any enforcement action.
Rep. James Maloney, D-5th District, questioned Lyman’s conclusions and said that though nuclear power plants have had some problems, they have been well run. “This legislation talks about protection about the outside,” Maloney said.
He said the new legislation would adequately safeguard nuclear facilities. “Connecticut is downwind from New York [where the Indian Point Nuclear Power Plant is located], and Indian Point is something to be concerned about,” Maloney said.
Federalizing employees is a good thing, he said, because vital security functions need to be under the jurisdiction of public officials. “It’s appropriate that security be a public function,” Maloney said.
In the Senate, Jeffords is the chairman, and Lieberman, Reid, and Clinton are members of, the Environment and Public Works Committee, which has jurisdiction over the NRC and the commercial nuclear power industry. In the House, Reps. Edward Markey (D-MA) and Nita Lowey (D-NY) announced that they would also introduce companion legislation in the House Thursday.
The Nuclear Security Act would require the federalized security personnel at nuclear facilities to undergo stricter qualification standards, background steps and training requirements within 270 days. It would require the NRC to develop realistic and updated threat assessment plans within 90 days and to update them once every three years. The bill would also mandate that site-specific security plans be developed within 80 days and implemented within 180 days. Federal mock-terrorist attacks would have to be conducted once in every two years.
Anthrax Found in Sen. Dodd’s Office
WASHINGTON - Connecticut Sen. Christopher Dodd confirmed Tuesday that his Senate office in the Russell Senate Office Building had been contaminated with traces of anthrax but said the Capitol Physician had assured him that the anthrax posed no health risks for his staff. Anthrax spores were also found in the office of Sen. Edward Kennedy (D-MA). Both offices were to be shut down at the close of business Tuesday for further testing and decontamination.
"I've been informed by the Sergeant at Arms that very small, trace amounts of anthrax have been detected in my mail room," Dodd said in a statement. "I understand that after additional testing, the EPA [Environmental Protection Agency] will conduct a thorough cleaning and decontamination," he added.
In Connecticut, 94-year-old Ottilie Lundgren, a widower and Oxford resident is suspected of having inhalation anthrax. Lundgen was admitted to Griffin Hospital last Wednesday with symptoms of pneumonia, according to Governor John Rowland.
Rowland said three tests done at both the hospital in Derby and in state health labs indicated that the lady had anthrax and said that Clinical samples were being flown to the Centers for Disease Control and Prevention in Atlanta to ascertain further results.
Frederick Pommer, a fire marshal in Oxford, said he had served on the Board of Education with Lundgren's husband in the late 1950's and that her husband "died a couple of years ago." He said he hadn't seen Lundgren in many years and said she lived on Edgewood Road towards Seymour.
Back in the capitol, Dodd said the trace spores were found during testing of the Russell Building last weekend. Officials say anthrax was found in the Russell office mailroom that delivers letters to Dodd's office. Both the Russell and Dirksen buildings were shut down over the weekend for extensive environmental testing after a letter believed to contain anthrax addressed to Senator Patrick Leahy was found late Friday at a Virginia facility where congressional mail was taken after the first anthrax letter was discovered almost a month ago.
"My office has been briefed on this matter, and has been told that most likely the source comes from cross-contamination from another letter in the postal system," Dodd said.
Dodd said his staff would not need medical treatment as a result of the contamination because the amounts of anthrax were low. "Thankfully, the Capitol Physician has determined that due to a variety of factors there is no health risk to my staff or visitors to my office, and for that I'm grateful," Dodd said in a statement.
Officials suspect the anthrax got to the two Senate offices through contact with anthrax-bearing letters mailed to Sen. Patrick Leahy (D-VE) or Senate Majority Leader Tom Dachle (D-SD). The FBI announced last week that it was believed the Leahy letter was sent by the same person who mailed an anthrax-tainted letter to Daschle. Both were postmarked Oct. 9 in Trenton, N.J.
Sen. Joseph Lieberman's office is located in the Hart building, which was shut down after the letter was discovered in Senator Daschle's office there. EPA officials say it will take two to three more weeks to decontaminate the Hart building and some Senate aides believe the building may not reopen until next year.
A Day in the Life of Katie Levinson
WASHINGTON - These are no ordinary days for Katie Levinson, press secretary to Rep. Christopher Shays (R-4th). But her friends and colleagues say Levinson is more than capable. Over the past month and a half, Levinson has had more on her plate than she imagined. With the anthrax cases at the Capitol, the deluge of press calls for Shays, and preparing for numerous meetings and committee hearings on terrorism, Levinson juggles many things in a span of 24 hours.
Shays says he values Levinson's work and finds her very intelligent and helpful. "I value her integrity, intellect and her counsel, Shays said in a telephone interview. "I feel her work isn't out of self-interest. She has two concerns: to serve our constituency and to ensure that I'm doing the job that I'm doing."
Betsy Hawkins, Shays' Chief of Staff said Katie was "very efficient, dedicated, and result oriented." Levinson's work days can start as early as 8 a.m. and usually go on until at least 6 p.m. On busy days, Levinson can be seen working in her office as late as midnight.
"There's a lot of work to do and we work long hours and she's one of them," said Hawkins in a telephone interview.
As press secretary to Shays, Levinson's job includes fielding phone calls from the press and setting up interviews for Shays as well as helping to formulate his positions on health care policy and acting as liaison between Shays and the health care community.
"She anticipates what my needs are and does it very intelligently," Shays said in a telephone interview.
Levinson is a 26 year-old New Canaan native who has worked in Shays' Washington D.C office for over three years. She started as a Front Office Coordinator, answering phone calls, sorting mail, and supervising interns. But just a few months after arriving in the office, she was made a Legislative Assistant. For two years, she learned about healthcare, Social Security, energy, veteran affairs, Indian affairs, and animal rights.
Levinson has been Shays' press secretary since last January. She said she loves the fourth district in which she grew up and decided to work in Shays' office to "help community organizations, help improve lives and give back to the community." "I really admire Chris," she added.
On a recent weekday morning, Levinson weaves her car through traffic, leaving her Dupont Circle apartment behind to head three miles to the Capitol. After parking her car in the basement, she walks into the warm corridors of the Longworth House Office Building.
Levinson first checks her mail and phone messages. Her small cubicle is tucked away in the back of the Shays office with books and photographs lining her desk. She sorts her agenda for the day and skims through some national and local newspapers to clip relevant articles for different staff members. If a hearing is scheduled which Shays is chairing or attending, she grabs her cell phone and heads toward the committee room. Levinson's role is to make background information available for Shays to refer to and be around if he needs anything.
"She is able to counsel me with a great deal of knowledge and I value her wise counsel," Shays said of Levinson. "She has a solid grasp on issues," Hawkins added in another telephone interview. "She learns things quickly. In our office, you have to digest large amounts of information quickly and present the salient points. Chris has a certain way he likes things done. He's quality oriented and she understands that."
"She is very busy, said Elizabeth Went, a close friend of Levinson's and press secretary to Rep. Mike Castle (R-DL). "Reporters and Chris [Shays] need her time so she's torn between all of them. She handles herself with grace and works late hours or weekends. Others might get flustered but Katie takes it all in her stride."
Levinson grew up and studied in New Canaan public schools. She moved to Norwalk with her mother and stepfather while she was in college. Her major at Skidmore College in New York State was American Government after which she pursued a Master's degree in Public Policy at the London School of Economics in the United Kingdom. Levinson said she has always been fascinated with the "internal working of politics."
On being asked how she landed this job, Levinson said she called Shays' then Chief of Staff, Peter Carson, from London to inquire about job opportunities. Carson asked her to get in touch after she graduated and she did.
Following the September 11 terrorist attacks and the anthrax cases on Capitol Hill, Shays has become more involved in investigating the threat of chemical and biological weapons, and Levinson's duties increased as well. As chairman of a Government Reform Subcommittee, Shays has held more than 20 hearings on bio terrorism.
He has also been in demand for national interviews and appearances on CNN's Larry King Live, Nightline on ABC, and others. As a result, Levinson's job expanded to include scheduling Shays on numerous TV shows, preparing background information on issues so she could brief Shays, and accompanying him to the shows. Shays said Levinson had been extremely helpful to him on these trips. "On night, I was invited on four TV programs and we had to go from place to place," Shays said. "Katie was able to make sure that I was briefed each time and made me feel relaxed."
When the Capitol was evacuated after the September 11 attacks, Levinson worked out of her home. Everyone in the office was sent home while Shays stubbornly stayed on answering the office phones himself. When anthrax was discovered in some Senate buildings and all buildings were closed, Levinson worked out of her home again for the second time. The press got in touch with her on her cell phone and her laptop at home was connected to the servers at the capitol.
"It forced us to realize that we're living in a different world," Levinson said. "We faced some inconveniences but its shows how quickly our office responded in continuing to function."
Levinson visits Connecticut at least once a month when she accompanies Shays on meetings in the district. Shays goes to Darien every weekend to live with his family and interact with his constituents.
On being asked where she sees herself in five years, Levinson laughingly answered, "Ask me in four years." And to whether she would run for office someday, Levinson replied, " I wouldn't rule it out."
Sharing Information Between Local and Federal Agencies
WASHINGTON - The police chiefs of Westport and Norwalk say they support a congressional initiative to improve communications between federal and local law enforcement agencies in the light of the Sept. 11 terrorist attacks. Both chiefs say the FBI and the agencies must trust each other with shared information that is essential to the effective defense of the country.
"We need to get information in a quick and timely fashion," Norwalk Police Chief Henry W. Rilling said. He added that federal authorities "are not always able to get it [information] out as fast as local authorities would like."
"Three months ago, we didn't think like this." Rilling said. "But now, we need a collaboration-a task force of International Association of Chiefs of Police, the FBI, the CIA to develop a protocol to facilitate the rapid flow of information."
Westport Police Chief William J. Chiarenzelli said information was not flowing back to the local jurisdictions and something had to be done about it. It's been a one-way street," Chiarenzelli said. "We're hoping that it is handled better. Something had to be done because the FBI has the most information available transcending our nation. They can share information that will impact our region."
Rep. Christopher Shays (R-4th) is a member of the Government Reform Committee's National Security, Veterans Affairs and International Relations Subcommittee that held a joint hearing with two other subcommittees Tuesday to discuss the efficiency and effectiveness of the flow of information between federal, state, and local law enforcement agencies. Officials from the FBI, the Immigration and Naturalization Service and the Baltimore and Philadelphia police departments testified.
An effective flow of information between federal and local state agencies has acquired increased importance since the Sept. 11 terrorist attacks. Shays said cooperation in sharing information "proved inadequate to prevent the tragic events of the last two months." Protecting national security against global threats requires interagency cooperation and coordination on an "unprecedented scale," he said.
"Before the terrorists acquire the means to inflict catastrophic losses on our nation and our people, we need to be assured our first line of defense, the eyes and ears of the intelligence community and law enforcement at all levels, are seeing and hearing the same things."
For most agencies, Shays said, "intergovernmental cooperation has become a self-defeating game of 'I've Got A Secret.' " He added that "critical data sharing·. is often the product of good luck and happenstance of personal relationships."
A concern expressed at the hearing was over who should be given sensitive security information and how much.. Shays said many people did not need to know about sensitive security matters because it could constitute a potential security risk. "The more people know, the less secure the information is," he said. "Terrorists could infiltrate a small community and get access to information that is destructive. So in that sense, it would be stupid to share information. Where do you draw the line?"
Chiarenzelli said there had to be a clear understanding of trust between federal and local law enforcement agencies. "I certainly am not going to challenge someone if the information is sensitive.", Chiarenzelli said. "If information is sensitive, don't share it. On the flip side, I know where the first line of responsibility lies. It lies with us. I don't want my people injured because we didn't have the information."
Rilling said safeguards and a protocol need to be developed to make sure that all agencies cooperate to get information across quickly and substantially. "I think everyone need to come to the table. We must find safeguards and make sure that the information is not misused. "We need to make sure we're all on the same page."
Rilling added that trust between agencies was of utmost importance. "We must open the doors of trust at the federal level to bring us information, Rilling said in a telephone interview. "The worst thing for us is if a law enforcement agency doesn't give us information because they don't trust us. We need to tighten up on our security so that information is not released. This has been done in the past and has sent up the red flag among federal law enforcement agencies. We need to find a comfort zone. Police Chiefs must be trusted to disseminate information."
Rep. James Maloney (D-5th) said that local officials "should be given information on a need-to-know basis." He added that "a chief of police will be as responsible with security information as an FBI agent."
In his view, he said, "There is a need for greater coordination between the FBI and local law enforcement agencies. It's clear now that they need to change they way they work together."
Public Servants in Needed
WASHINGTON - Marlene Lacher, a 21-year-old senior majoring in international business at Fairfield University, says the terrorist attacks of Sept. 11 "made me take a step back and look at how I want to live my life and pursue my career."
The Guilford resident said she changed her mind after her boyfriend, who worked at the Federal Home Loan Bank in New York, survived the collapse of a building near the World Trade Center site. "That put everything in perspective," Lacher said. "Before Sept. 11, I wanted a job with a lot of money where I could put my whole life into work.
But after Sept. 11, I took a step back to think about life and values and family. I want to now see if I can have an impact on someone else's life. My decisions will no longer be made on money and materialism. I want to do something that will be of service to the public."
Lacher said that she would not rule out a career in the federal government but she would prefer to work for a non-profit organization. Her experience at an internship at the U.S. embassy in London made her realize the federal government can be "too bureaucratic, very inefficient, and it's hard to work in that environment."
"You tell yourself that you are working for a good cause, but there are so many internal interferences. The main focus is not really clear," Lacher added.
In an effort to recruit more young people as well as mid-career professionals into public service work, a newly formed non-profit organization called The Partnership for Public Service has launched a nationwide campaign.
The organization was created after Westport native Samuel J. Heyman, a former Justice Department attorney who is now the chairman and chief executive officer of New Jersey-based GAF Corp., pledged $25 million over five years to fund the effort. Heyman's commitment to public service also prompted him to donate $5 million to his alma mater, Harvard Law School, to encourage more of the school's graduates to enter public service.
The creation of the Partnership for Public Service assumes urgency in the light of a potential human capital crisis that the federal government will face because nearly 50% will be eligible to retire in the next three years, including 70% of its senior managers.
The Partnership for Public Service's board includes Sen. Joseph Lieberman (D-CT). Lieberman joined the board because he believes "the human capital crisis is a serious concern for the government and because he wants to be part of that solution," according to Leslie Phillips, Lieberman's communications director.
Rep. Christopher Shays (R-4th) was a Peace Corps volunteer three decades ago. After Shays finished his studies at Principia College in Elsah, Ill., he married his high school sweetheart, Betsi, and the two served together in the Peace Corps in Fiji from 1968 to 1970.
"I spent two of the best years of my life when I was in the Peace Corps in Fiji. I realized that even when people have different cultures, there's so much that binds us as humanity. Helping others is the most satisfying work you can do. You go to bed at night feeling good that you did some service and you wake up feeling good in the morning."
Mathew Jasinski, a 20-year-old political science major from the University of Connecticut and a Ridgefield resident is now serving as an intern in Rep. Shays' Washington office. Jasinski says he's always been interested in public service and in government and that the events of Sept. 11 have exposed the tremendous responsibility that goes with such service.
"I could have a little impact on the world. I feel this way is how I can do it best. For me, that's what I'm supposed to do in life. Ultimately, I see myself as an elected public servant, a lawmaker."
Jasinski's duties include writing letters to constituents, opening mail, answering the phones, assisting the staff if it needs anything and attending congressional hearings and briefings. He says his internship in Washington has "developed my appreciation for how government works." "I have learned things about politics and the political process that I couldn't learn in school, and for that I'm grateful," Jasinski added.
Bradley Schwarzenbach, an English major at the University of Connecticut and a resident of Stonington, said he believes that following the Sept. 11 terrorist attacks and the patriotism they have generated, students will now be more inclined to go into public service. "If a student wants to make a difference, this is the time," Schwarzenbach said in an e-mail letter. "Working for these organizations when their help is needed most can make a much greater impact on society."
"We need doctors. We need lawyers. We need researchers. We need analysts. We need scientists. We need teachers," Kay Coles James, director of the U.S. Office of Personnel Management, said in a statement, "We need people who will rise to the occasion and respond to the need for public service now."
Students visiting career and ROTC centers at their schools over the past few months have shown more interest in careers in public service, according to school officials.
Lt. Col. Paul Veilleux, who in charge of the Army ROTC program at the University of Connecticut, said "There may be increased attendance and enrollment but we're not sure. Students are asking about the program and about the military in general. They are more attentive to our cadets and have a better understanding about the difficulty the military faces. They are making a point to thank people in uniform - whether the police, fire, military. They are saying, 'Thanks for your work and all the sacrifices you are making for your country."
Dennis Amrine, Associate Director of Fairfield University's Career Planning Center, said "Students are looking a little more carefully. They are looking at priorities differently. They are looking at public service opportunities, opportunities in non-governmental organizations like the Jesuit Volunteer Corps and the Peace Corps." But Armine also added, "Who knows if people will act on them?"
One possibility for service is AmeriCorps, a domestic Peace Corps initiative that enables people to help their communities. According to the AmeriCorps website, there is an opportunity for more than 900 individuals to spend a year serving in Connecticut communities. In return, participants receive an education award of up to $4,725. To date, more than 2,400 Connecticut residents have qualified for education awards totaling more than $8 million, according to the website.
According to Sandy Scott, a spokesman for AmeriCorps in Washington, inquiries from people interested in joining the Corps have increased 30 percent. "Before Sept. 11, we were getting 1,100 inquiries a week, and after Sept. 11, we are getting about 1,400 a week," Scott said.
Some experts say that these changes in interest might not automatically translate into an upswing in public service. Patricia McGinnis, president and CEO of the Washington-based Council for Excellence in Government, said a poll taken for the organization shows that "more than 80 percent of college-educated Americans reject government as a potential employer."
Jasinski said he thinks one problem is that government is not as active as private companies in campus recruitment. "Private companies go out and recruit," he said. "The government doesn't do that. It's difficult for them. I think its up to agencies to recruit."
Max Stier, the president and CEO of the Partnership for Public Service, said certain problems needed to be addressed for more people to go into public service. "We opened the door but did not complete the sale." The principal barrier to people going into public service, Stier said, is that they are not familiar with the opportunities. "On the civilian side, the federal government is not an active recruiter. It does not reach out to talented people," Stier said in an interview." People are also unfamiliar with the application process for government jobs. "Even if someone is interested, the process is often "lengthy, difficult and dissuades people," Stier said in a telephone interview.
The group wants to: launch an communications effort to improve public understanding and the perception of government service; create a program so that government agencies can be performance based and better retain talented workers; create a program for student-loan forgiveness for federal workers and also conduct a study on the attitudes toward public service.
Heyman said he believed that the most critical national issue today had to do with government's increasing inability to attract and retain a sufficient number of the brightest and best. "The federal government has done an inadequate job when it comes to educating Americans about federal job opportunities," Heyman said.
"This has been a quiet crisis, which has gradually taken place over the last 35 years," he said in a telephone interview. "In short, too many of our best senior government executives are ready to leave government service, while not enough of our most talented young people are willing to join."
Airline Security Legislation Root of Bitter Partisan Debate
WASHINGTON - A bitter partisan debate rages between House Democrats and Republicans over the fate of 28,000 airport baggage screeners, currently employed by private contractors to monitor security in our airports. While democrats want all baggage and passenger screening to be federalized, many republicans support Bush's proposal of making private contractors institute baggage and passenger checks.
"This is not an issue of whether they are federal employees or not," according to Rep. Christopher Shays (R-4th), It's an issue of whether they are professionals or not. What I'm concerned about is that they are paid well and trained well. The Senate has passed a good bill and we [the House] will pass a better bill," Shays said in an interview.
Similarly, James H. Maloney (D-5th) said the issue for him was not whether baggage screeners should be federalized or remain under private contractors, but whether adequate standards in terms of hiring, training and screening, were in place for security personnel. " The Republican version is woefully deficient in that regard," Maloney said. "Their version is watered down."
Maloney called the aviation security bill, that was passed by the Senate unanimously last week, "a good and strong bill and said he would vote for the Senate version of the bill."I will vote 'No' on the watered down version offered by the House Republicans."
The Senate version of the bill bolsters security in our nation's airports. Measures include placing federal air marshals on domestic flights, allowing tighter passenger and airport employees background checks and increased training, reinforcing cockpit doors and federalizing baggage screeners.
The Senate bill also requires all baggage screening equipment and procedures to be in place by 2002. House republicans set that date for 2003. Shays and Maloney both agree that that getting a system in place in one guy is better than in two years, as suggested by some House republicans. "Our amendment will put in place procedures that would screen baggage for weapons and bombs," Shays said. Similarly Maloney said, "In order to give assurance to the people that it's safe to fly, it is important to screen all baggage and the lesser times it takes, the better it is."
Some Democrats blamed senior Republican leaders for going with the plan saying they were rewarding private contracting companies, indicted and fined for security violations in airports. House Minority Leader, Richard Gephardt (D-MO) accused the Republicans at a press conference Thursday of "trying to please" special interests who did not want to lose their contracts.
Maloney said, "The House Republican bill has been watered down by the work and impact of private contracting companies, who want to achieve as little as possible." Maloney said one key difference between the Senate and the House Republican version of the bill was that the Senate version requires all hired baggage screeners to be trained extensively and to get continuing training every year. The House Republican bill, on the other hand Maloney said, has a check for proficiency for baggage screeners and leaves those rules to the Department of Transportation to institute.
"Proficiency is not an issue," Maloney said. The Department of Transportation can be pressures by private agencies. Having an annual evaluation of employees will tell us whether the employee has been pressured under blackmail or extortion for some reason by terrorists."
Some House Republicans opposed the federalizing of employees on the grounds that they couldn't be fired on the spot. "You have to have the flexibility that if a screener like the one in New Orleans a week ago, you can fire him on the spot," Majority Whip Tom DeLay said I an interview. You can't do that with a federal employee."
But Maloney said the Senate bill, which he supported "wholeheartedly", would make exceptions to security employees who like other security personnel, would be subject to termination.
Maloney, Shays Address Issue of Terrorism Insurance
WASHINGTON - Two Connecticut House members agreed on Wednesday that something needs to be done to assure that businesses obtain terrorism insurance without driving insurance companies into bankruptcy.
Reps. James H. Maloney (D-5th) and Christopher Shays (R-4th) spoke out as the Bush Administration and influential members of Congress continued to try to develop legislation to meet the problem.
Sen. Christopher Dodd (D-Ct.), for his part, is working with the Treasury Department and leaders of the Senate Banking, Housing and Urban Affairs Committee on a compromise.
Maloney and Shays are both members of the House Financial Services Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises, which met with leaders of business and the insurance industry yesterday on the subject.
Many in the insurance industry say they never anticipated a terrorist attack of the magnitude of what the country faced on Sept. 11. Until that day, insurance companies covered damage that might be caused by terrorist attacks, but found the risk too small to affect premiums. Now, industry officials say that they will either withdraw terrorism coverage for fear of bankruptcy or sharply increase premiums as most such policies come up for renewal in two months.
Congressional leaders and Bush administration officials acknowledge that the insurance industry is rapidly approaching a crisis that would have an adverse impact on the national economy. Treasury Secretary Paul O'Neill told the Senate Banking Committee on Oct. 24 that it was "urgent" that Congress enact a plan. "Leaving this problem unresolved threatens our economic stability," O'Neill said.
Dodd, a member of the committee, said at the hearing that the events of Sept. 11 brought into sharp focus a number of urgent priorities for the United States. "Among them, I believe, is the need for the federal government to ensure that American consumers and businesses can obtain insurance against the risk of terrorism," he said.
"Nothing is more important to the health and recovery of our economy than terrorism insurance." Dodd said.
"Insurance is integral to nearly every segment of our economy. Available, affordable insurance against the risk of terrorism is a critical component to the continued health of virtually every business and household." Insurance companies have told the government that they can pay the $40 billion in expected claims from the Sept.11 attacks, but they have warned that unless the government intervenes to limit their potential risk, they will exclude coverage for future terrorist acts when existing policies come up for renewal on Jan. 1.
"The insurance industry is being asked to insure against an immeasurable risk." Dodd said. "That is something they cannot be expected to do alone. These terrorist acts are not directed at a single person or company, they are directed at the American way of life. The threat of terrorism to our nation demands and warrants a national response."
"We are rapidly approaching the end of the calendar year, at which point nearly 70 per cent of all commercial and personal property casualty policies will be renewed." Dodd continued. "In order for cars, homes and businesses to remain covered for future acts of terrorism, the insurance industry and the federal government must share a commitment to address this urgent need."
Businesses, on the other hand, warn that not having terrorist coverage could be prohibitively expensive for them and say they would find it impossible to build and operate in areas considered to be high-risk terrorist targets.
Maloney said in an interview after the subcommittee hearing Wednesday that small business owners and property owners expressed major concern when insurance companies told them that "unless something is done legislatively by the beginning of next year, acts of terrorism will not be covered in premiums."
Shays, also speaking after the hearing, said he was convinced that the terrorists "still on our soil" would attack again. "There is no point in having our heads in the sand," he warned. The terrorists "put us on notice when they attacked us. The government has to do something soon to help businesses get terrorist coverage."
One of the proposals being floated and supported by insurance companies is the creation of a government-backed insurance company, which would pool premiums from all insurers and cover 95 per cent of war and terrorism claims. If that premium pool is exhausted, the federal government would cover the rest.
Maloney said he does not support this plan because it would call for too much government involvement in business.
Shays, on the other hand, said: "It's an issue of allowing industries to build up enough capital. These reserves should be large, significant and be there forever. The government needs to step in at the beginning to ensure that the industry has enough reserves."
"As reserves build with more capital, the smaller the obligation of the government. We need to be involved because there is no reserve," he added. "The insurance has been hit badly, and building up reserves is the challenge."
Under another proposal, advanced by the Bush administration, the government would pay 80 percent of the first $20 billion in claims and 90 percent of the next $80 billion for any terrorism that occurred next year. The proposal would also limit the industry's liability from terrorist claims to $23 billion in 2003 and $36 billion in 2004, the final year of the program. Insurers would pay all of the losses on the first $10 billion in claims in 2003 and on the first $20 billion in 2004.
Dodd, along with Secretary O'Neill and Senate Banking Committee chairman Paul S. Sarbanes (D-Md.) and senior minority member Phil Gramm (R-Texas.), settled on an outline last week under which the government would pay most terrorism claims after insurers covered the first $10 billion each year. But the committee has made no final decision on the legislation.
Dismantling the Financial Infrastructure of Terrorists
WASHINGTON - House Financial Services Committee member Rep. James H. Maloney (R-5th) said Thursday that proposed legislation to track and obliterate the money trail that terrorists use would be a step in the right direction but would result in only "incremental improvements."
"You don't always know how much more you have to do with anything until you make the improvements at hand," Maloney said. "What we can do is pass the best bill that we possibly can, see to its implementation, evaluate it and see if it's working. And to the extent that it isn't, find ways to strengthen it."
After listening on Wednesday to Treasury Secretary Paul H.O'Neill, testimony, Committee chairman Michael G. Oxley (R-Ohio) and senior Democrat John J. LaFalce of New York proposed to allow enforcement agencies to eliminate the financing of terrorist organizations, track terrorist money funneled into secret offshore havens inside and outside the United States and facilitate increased foreign cooperation with U.S. efforts.
Their bill would make it a crime to smuggle currency in excess of $10,000 or to falsify a customer's identity knowingly when making a transaction with a bank or other financial institution.
The aim of the bill, Oxley said at the hearing, was to "dismantle the financial infrastructure of terrorism and to starve terrorists of funding." He acknowledged that current money-laundering laws were inadequate to deal with terrorist financing but said the bill would produce "effective, targeted solutions to the immediate problems we encounter following the events of Sept. 11."
Congress had scuttled money-laundering bills several times in the past because of "concern in the financial community that they would have a great deal of additional bureaucratic requirements imposed upon them," Maloney said. "What is different now is that they are acknowledging now that there is not really an alternative to this kind of legislation."
Committee members said they were committed to updating the money-laundering laws and wanted the government to track down money that fuels narcotic-traffickers and large criminal organizations as well as international terrorists.
"The current money-laundering regime," Oxley told committee members, "does not appear to be particularly well-suited to catch an unconventional terrorist operation. And this [legislation] will be the first important step on money laundering but it will by no means be our last."
LaFalce said, "The bill will close the gap in O'Neill's authority to respond to money laundering regimes."
Maloney added the measure "attempts to get a stronger hand around transactions that aren't known to be related to terrorists and that might be related to them."
Spencer Bachus (R-AL), the chairman of the Subcommittee on Financial Institutions and Consumer Credit, said, "We must place a much higher priority on non-traditional or underground systems that fall largely outside the scope of the formal reporting and record-keeping requirements that have been the backbone of the government's anti-money-laundering efforts for the last three decades."
Maloney said that in advanced nations with formal banking systems, it is easier to monitor and regulate financial transactions and root out underground financial activity than in less-developed countries, where many of these arrangements are not only informal but sometimes also illegal.
"I think it's very difficult," Maloney said. "If you didn't have a sophisticated tax system, accounting system and a legal system, it would not have been possible, even in the U.S., to curtail illegal activities. So in parts of the world where there are informal underground relationships for moving money, it is a major challenge. I would say it is one of the biggest difficulties facing any country who wants to work with us in clamping the financial resources of terrorist organizations."
O'Neill, in his testimony, said, "Additional legislative tools to enhance the Treasury's capability to track, block and seize those assets, to secure our borders and to freely share information about terrorist activity between law enforcement and U.S. intelligence services are what is needed."
"Our goal is to drain the financial lifeblood that allows terrorists to finance and accomplish their deadly goals, and in doing so we aim to shackle their ability to strike again," O'Neill said. He added that the Treasury Department had identified 27 accounts it wants frozen and that in the next few days, additional accounts would be added to the list.
President Bush said Wednesday that as of Oct. 1, $6 million had been blocked and 50 bank accounts frozen as other countries joined the American effort.
When Rep. Maxine Walters (D-CA.) expressed concern about banks in the United States that laundered money for terrorists, O'Neill replied: "Our banks have to stop taking money from bloody dictators, drug traffickers and terrorists. If we find evidence that banks are aiding terrorists, you have my reassurance that President Bush will shut it down."
Maloney said he found it highly unlikely that any U.S. bank was knowingly or intentionally involved in money laundering but that there are already massive criminal sanctions on the books.
"There may be some inadvertent flow of money that may come from either terrorist organizations or go to them," Maloney said, "and that's precisely what the legislation attempts to deal with."
Maloney concluded by saying, "The opposition that existed to tightening the money-laundering rules has very much dissipated because of Sept 11. I think as a result, we will see successful passage of this legislation."
War Bonds Legislation Passes the House
WASHINGTON - Americans may soon be able to demonstrate their patriotism and help in recovery efforts by buying the first U.S war bonds to be issued since World War II. But some fiscal analysts say the government has enough money to fight terrorism and does not need to raise money by selling war bonds.
The House passed legislation Tuesday night authorizing the Treasury Department to issue war bonds to the public. The Senate has already passed similar legislation. Supporters said the move would boost the country's morale and allow Americans to display their patriotism.
"The war bonds are an alternate way to help the war effort," Treasury spokeswoman Betsy Holahan said.
Henry J. Aaron, a Senior Fellow in the economic studies division of the Brookings Institution, disagreed. "It is political idiocy," he said. "It may be a symbolic appeal, but substantively it has nothing."
Chris Edwards, director of fiscal policy studies at the Cato Institute, agreed with Aaron. "It's ridiculous," Edwards said. "The government does not need any more money. We have a surplus that we should use for national security." Issuing war bonds, he said, "strikes me as an empty political gesture."
Some economists said the legislation was only a symbolic gesture and that it would depress the economy instead of stimulating it. The concern, Aaron said, is that people are not spending enough, and issuing war bonds, he warned, would only aggravate the problem by spurring saving rather than spending. "There is no need to curtail consumption right now," Aaron said. "In a recession, encouraging consumption makes more sense than discouraging it."
Rep. Christopher Shays (R-4th) said in an interview that he didn't disagree with the view that the government doesn't need more money, but added: "I want to give the people the opportunity to go out and buy bonds if they want to. We're not forcing people to go out and buy them."
Rep. James Maloney (D-5th) said he agreed "that we need more consumer spending. But consumers are not people who tend to buy bonds. Bonds tend to be bought by institutions and substantial investors. If we borrow money from war bonds and we spend it, spending that money will stimulate the economy."
He added that "the developments of Sept, 11 and subsequent developments are putting unprecedented financial demands on the government. If we are going to avoid invading the Social Security trust fund as a financing vehicle for those demands, we need an alternate for borrowing money during a national emergency. There is no surplus unless you invade social security. There will be a surplus only if they use the Social Security trust fund. That money doesn't belong to the Treasury Department. They are only trustees of that money."
The Treasury Department's Holahan acknowledged that war bonds were "not intended to do anything for the economy," but stressed that buying them would be an alternate way for people to help the war effort. She said the Treasury Department encouraged people to continue their normal consumer spending while contributing to charities and buying bonds.
War bonds were last sold during the Second World War when the government tried to raise money for the war effort. The move kept inflation down by removing money from circulation.
Robert Chandross, economic consultant and former chief economist for HSBC Bank USA/ Republic National Bank of New York, agreed with Aaron and said that selling war bonds to finance anti-terrorism efforts "doesn't mean anything at all."
"It's not that we [United States] have large financing needs at the moment as we did during World War II, when the government was cash-strapped for money," Chandross said. "We're not running a large fiscal deficit, and the Treasury does not have an enormous need for money."
Office Dislocation
WASHINGTON - On a typical Tuesday morning, Reps. Christopher Shays (R-4th) and James Maloney (D-5th) would be fielding telephone calls in their offices, rushing to committee hearings and holding meetings with their staffs. But this Tuesday was anything but typical, as members of Congress remained dislocated from their offices for the sixth consecutive day after House and Senate office buildings were closed for an environment sweep for anthrax.
Every House member and three of their aides have been given office space in the General Accounting Office building, located about a mile away from the Capitol. The offices were equipped with temporary phone lines, computers and television sets, and shuttle transportation connected the GAO building with the Capitol. Senate leaders are being housed in the former central post office on Massachusetts Avenue.
Maloney and his staff decided to work out of their homes because they found utilities in the GAO offices to be insufficient to suit their needs. Maloney, in an interview, said he sent his legislative director, Tom Santos, to the GAO building, and Santos found that too many people were using each phone and each computer. So, Maloney said, he and his staff decided to work out of their homes. Moreover, according to Betsy Arnold, his press secretary, phone calls from their office in the Longworth House Office Building could not be forwarded to the new office.
"It's been a substantial disruption for me," Maloney said. "It's impossible to work effectively without staff having access to computer databases and physical files they were working with before the buildings were closed." For Congress as a whole, he added, "it's a logistical nightmare to relocate thousands of people."
Shays is also unhappy about the situation. "It stinks!" he said. "I don't like this. I don't like being sent out of my office. You take as much as you could, but how much can you really take? Some of the stuff in my office may be contaminated."
He said he was also concerned that "we're not getting any mail. Our mail is our life to our constituents. I haven't got any mail in two weeks.
Three of his employees, he said, are in the district offices and shuttle back and forth between Bridgeport and Stamford. Others work from home.
Shays said he was on a CNN broadcast in the morning and then in a hearing from 10 A.M. to 3:30 P.M. After that, "I went home and I did something I haven't done in three years: I took a nap from 3:30 p.m. to about 5:15 p.m.", Shays said.
Maloney remained in his apartment 5-10 minutes from the Capitol for most of the day, Arnold said, but was ready to vote in the House on measures that came up for consideration. He was in close contact with his staff, she added, and was being updated by his legislative director and chief of staff through the day.
"However, we are ready to go back," Arnold said. "We knew last week that this would be temporary and that we'd be out of our office for only a few days. The staff tried to take as much with them [as they could], but there's always something that you forget." Arnold said that nobody was allowed into the House office buildings, even to retrieve files or pick something up.
At the moment, Maloney said, the Capitol is the most secure building in Washington. "The chances of anything happening to the Capitol are remote," he said. Nevertheless, Maloney said, the House Administration Committee was making contingency plans if the Capitol ever became inaccessible. On the other hand, he added, for the thousands of House employees who work in the House office buildings, "no contingency plan is in place to relocate [them] effectively on a temporary basis."
Senators Joseph Lieberman and Christopher Dodd spent Tuesday with some of their aides in their so-called hideaway offices in the Capitol itself. Most of their staffs, according to Lieberman's communications director, Dan Gerstein, and Dodd's press secretary, Tom Leonard, worked from their homes.
Dodd's legislative aides have been meeting, in one case at a coffee shop, to discuss legislative matters, including terrorism insurance, and to work on a hearing that Dodd will chair on bio-terrorism and children," Gerstein said in an e-mail response to a reporter's questions. "I also know our scheduler has been quite busy working from home. Obviously these are difficult times, but the senator is committed to ensuring that we can continue to work for the people of Connecticut."
The hearing on bio-terrorism that Shays attended was conducted by the Government Reform Subcommittee on National Security, Veterans Affairs and International Relations in the Health and Human Services Office Building instead of the Rayburn House Office Building, where the committee usually holds its hearings.
Larry Holden, Shays's chief of staff, and another aide set up a temporary office in the General Accounting Office building. Eight other members of Shays's staff, according to Katie Levinson, his press secretary, worked out of the district office in Bridgeport and from their homes in the Washington area.
