Legislature(2007 - 2008)BELTZ 211
02/21/2008 01:30 PM Senate LABOR & COMMERCE
Audio | Topic |
---|---|
Start | |
SB153 | |
SB209 | |
HJR16 | |
HB196 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | HB 196 | TELECONFERENCED | |
+ | HJR 16 | TELECONFERENCED | |
+= | SB 153 | TELECONFERENCED | |
+= | SB 209 | TELECONFERENCED | |
HJR 16-OPPOSING MILK TAX 1:34:56 PM CHAIR ELLIS announced HJR 16 to be up for consideration. REPRESENTATIVE BOB LYNN, sponsor of HJR 16, said the milk industry in Alaska is struggling to stay in business and the dairy business is a vital element to Alaska's economic diversification. 1:36:24 PM SENATOR BUNDE asked after the Matanuska Maid debacle, if there is still a dairy industry in Alaska. REPRESENTATIVE LYNN replied barely, but they need to keep the remnants of what is left and a milk tax would have the opposite effect. DIRK MOFFAT, staff to Representative Lynn, explained that the milk tax refers to the mandatory dairy assessment that was imposed by Congress in 1983. The purpose of the tax was to decrease the surplus of milk by increasing the demand. In the past milk over-production was a big problem in the Lower 48 and answer to it was a massive generic campaign that asked "Got milk?" Alaska, Hawaii, and Puerto Rico have milk, but not enough. "We're a milk deficit state." So, he explained that Alaska was excluded from this promotion, but stated that Alaska is still a milk deficit state and should not be forced to promote outside surplus milk from the Lower 48. 1:38:58 PM ILONA RICHEY, Executive Director, Alaska Milk Coalition, said she is also president of the Alaska Chapter of Women Involved in Farm Economics (WIFE), supported HJR 16. They oppose the milk tax because of its impact on consumers. Isolated Bush communities with the highest milk prices will be particularly affected. 1:41:37 PM MARIO CASTILLO, Executive Director, Dairy Trade Coalition, supported HJR 16 said the Alaska Chapter of WIFE and the Alaska Milk Coalition are members of the association. He related that a new dairy was opening up in the Matanuska Valley and that four or five dairies in Alaska will have congressional funds to develop niche products. The Valley Dairy will start to produce some ice cream flavors very soon that will be niche products unique to Alaska. For example, their products are going to feature local ingredients such as wild salmon berries, huckleberries and birch syrup. He said the Alaska Gold Nugget Cheddar plant is already receiving orders. This operation is committed to using all the milk Alaska can produce. MR. CASTILLO said he wrote the language that exempted Alaska in 1983. 1:46:09 PM SENATOR BUNDE asked at $.15 per 100-weight, what would that actually translate to for the consumer per half gallon of milk. MR. CASTILLO answered any time a middle man has an opportunity to mark up a product, it won't be at the lowest level; he all of a sudden take a brand new look at some outside elements including transportation costs, storage or whatever to revisit his current pricing. "There is no way to gauge the level of human greed that could be let loose." CHAIR ELLIS asked what the other milk-deficit states have done. MR. MOFFAT answered that Congressman Young had sent a letter to U.S. Secretary of Agriculture. Others from Hawaii and Puerto Rico signed the same letter. 1:48:42 PM CHAIR ELLIS noted a letter from Department of Natural Resources (DNR) talking about the "Got Milk" campaign and others. It said it might be prudent to wait for the outcome of the Beef Act case. He asked if he had any comments on the natural resources briefing paper about this bill. MR. MOFFAT had no comments. CHAIR ELLIS said he would hold the bill for another hearing.
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