HOUSE SPECIAL COMMITTEE ON INTERNATIONAL TRADE & TOURISM April 27, 1993 8:30 a.m. MEMBERS PRESENT Representative Jeannette James, Chair Representative Joe Green Representative Jerry Sanders Representative Cynthia Toohey MEMBERS ABSENT Representative Terry Martin Representative Curt Menard Representative Jim Nordlund COMMITTEE CALENDAR Discuss interim meeting schedule and priorities ACTION NARRATIVE TAPE 93-7, SIDE A Number 000 CHAIR JEANNETTE JAMES called the meeting of the House Special Committee on International Trade and Tourism to order on April 27, 1993, at 8:45 a.m. Referring to the "I.T.T. Work Sheet for Interim Projects" in members' packets, she requested each member to indicate their individual areas of interest to pursue during the interim and to prepare resolutions promoting these activities. Number 070 REPRESENTATIVE JOE GREEN asked if he could have a staff person work on this. CHAIR JAMES said that was fine as long as the committee came back with a lot of ideas for next session. She suggested having a half-day interim meeting in Anchorage in late September or early October to discuss members' drafts of resolutions and hear speakers from the Alaska Visitors Association and World Trade Center. Number 096 REPRESENTATIVE CYNTHIA TOOHEY said her office would be available for the meeting. Number 105 CHAIR JAMES said she would try to get funding to pay for speakers' lunches and room rent if necessary, plus her travel to Anchorage. She said she had copies of all bills and resolutions passed by the 1991-92 House and Senate I.T.T. Committees if any members would like to look through them to get ideas. Number 120 REPRESENTATIVE GREEN asked what the effect of these had been. CHAIR JAMES said she did not know how effective the legislation had been but that she would have her staff person do an analysis. Number 135 REPRESENTATIVE JERRY SANDERS asked how much money the Alaska Pork Project was requesting. CHAIR JAMES replied it was a $300 million project and the developers wanted an Alaska Industrial Development and Export Authority (AIDEA) loan of $150 million, adding that the Danes were a credible group, having set up similar operations in Singapore and Australia, and mainly needed help locating land. She stated they were interested in Alaska because of the availability of land, access to Japanese markets, and disease-free hog production. She also reported that AIDEA had agreed to fund half of the $235,000 for a feasibility study and the Danes would pay half. Number 200 REPRESENTATIVE GREEN asked what Alaska would get from this project. CHAIR JAMES responded benefits would include about a thousand production jobs for the Interior, plus transportation and energy utilization. The hog breeding and birthing would occur in the Delta area, the raising near Nenana, and butchering and processing in the North Pole area. Grain feed would be imported because Delta could not provide the volume needed, and the finished product would be shipped out of Seward or Anchorage. Spin-off industries could include greenhouses utilizing wastes from the operation. Number 280 REPRESENTATIVE TOOHEY noted it all hinged upon whether the project was economically feasible for the developers. CHAIR JAMES agreed and said the feasibility study would be finished by September. If it gets the "go-ahead" AIDEA would come to the legislature asking for a resolution to allow selling bonds for $150 million for the project. She added another benefit would be removing the "black eye" from agriculture due to past projects' failures if this project succeeds. Number 330 REPRESENTATIVE SANDERS suggested having the interim meeting in Fairbanks. Number 340 CHAIR JAMES discussed her letter in the packet regarding the Alaska Tourism Marketing Council, explaining she wanted to see advertising include all aspects of Alaska and not just the pristine wilderness. Number 350 REPRESENTATIVE TOOHEY said she would like to see advertising emphasize aspects other than cruise ships. CHAIR JAMES mentioned Representative Curt Menard's contact with a group from Czechoslovakia interested in developing trade with Alaska. REPRESENTATIVE TOOHEY suggested the Department of Commerce might provide funds for a meeting with them and other international trade and tourism groups. Number 390 REPRESENTATIVE GREEN wanted to invite someone who could explain both sides of the North American Free Trade Agreement. CHAIR JAMES added she would also like to invite someone to discuss the Northern Sea Route and the Circumpolar Conference as well as overlapping areas from the Economic Task Force plus Russian business people living in Alaska. Number 415 CHAIR JAMES mentioned her railroad bills and added that a representative from the Bering Straits Tunnel group would be visiting Fairbanks from Russia, possibly in September, and she would see if he could attend the committee's meeting. She discussed the possibilities of building a bridge across the 59-1/2 mile Bering Straits or using a train ferry rather than building a tunnel. ADJOURNMENT Number 470 CHAIR JAMES adjourned the meeting at 9:10 a.m.