National Small Vessel Security Summit Recreational Boating Industry Views

1. National Small Vessel Security SummitRecreational Boating Industry Views NMMA Government Relations Cindy Squires, Esq., Regulatory Counsel

2. Who Is the National Marine Manufacturers Association? • Nearly 1,700 boat builders, engine manufacturers, marine accessory manufacturers • Eight affiliates including the Association of Marina Industries (AMI) and the National Marine Bankers Association • NMMA members produce over 80 percent of all recreational marine products sold in the U.S. • AMI membership includes over 1,500 marinas, boatyards, yacht clubs, and public/private moorage basins across the United States and worldwide • NMMA is the largest producer of boat shows in the United States with 25 consumer shows

3. Overview • Why do people boat? • Look at the numbers – the majority of boats are small in size but big in economic impact • A balanced approach -- look first to beefing up existing programs before turning to new invasive, burdensome, or untested approaches • USCG needs to engage stakeholders beyond this summit

4. Let’s Remember Why People Buy or Rent a Boat • Boating ImprovesQuality of Life • Boating is an Affordable Recreation Alternative • Water Access is Closer than you Think • Boating Fun Helps you Bond with Friends and Family • Boating Helps Reduce Stress • Boating is Convenient • Boating is an Engaging and Rewarding Activity • You can Enjoy the Outdoors and Go Fishing • Boating is FUN

5. Boating’s Economic Impact is Large • Recreational boating is a major consumer goods industry generating $39.5 billion in sales and services during 2006 • Spending by recreational boaters is responsible for 855,000 U.S. jobs of which, 373,000 jobs are direct and 482,000 are indirect

6. The Universe • 12.98 Million Registered Recreational Boats • 4.97 Million Non-Registered Recreational Boats • Total: 17.95 Million Boats

7. The vast majority of boats are under 26 feet in length… • 17.95 Million Recreational Boats 4,970,000 Non-Reg. 5,221,276 Under 16 ft 6,221,554 16 – 25 ft 478,869 26 – 39 ft 77,029 40 ft or more • Average price of a new boat, engine and trailer package in 2006 • $26,085

8. Balanced Approach is Critical • It is NMMA’s strongly held view that any additional effort to address small vessel security by the Coast Guard or the states should ensure that boating remains a fun and easy activity • People have more demands on their time than ever and there is intense competition for consumer’s recreational dollars • If boatingbecomes an activity filled with inspections, checkpoints, blocked access and high costs -- boaters will simply turn to other recreational activities

9. Build on Existing Programs First • Adequate funding is critical – there must be a full complement of U.S. Coast Guard and state boating enforcement personnel on the water to ensure the safety of our shores • NMMA supports the National Association of Boating Law Administrators (NASBLA) “Partners on the Water” proposal to enhance the current homeland security program with a new federal-state partnership and $60 million dollar grant program for maritime security and emergency response • Coast Guard should fully support the U.S. Coast Guard Auxiliaryand theAmerica’s Waterways Watch Program

10. Engage Stakeholders Beyond this Summit • Expand outreach for America’ Waterways Watch program • NMMA offers to publicize the program in its Boat Show Directory which reaches 1 million boaters annually • NMMA offers to add a Waterways Watch Element and invite local Coast Guard representatives to our National Marina Day events (August 11) • Coast Guard should seek out other partners • USCG should work with AMItoeducate marina operatorsabout the security risks and to ensure marina and boater cooperation in programs designed to find threats and preserve access

11. Look in New Places for Stakeholders • Engage non-traditional stakeholders such as themarine bankers who currently play a gate keeping role by checking all buyers against the Office of Foreign Asset Control's list of “specially designated nationals” • NMMA urges USCG to ensure that bankers can access the Vessel Identification System so that they can work as partners in identifying stolen boats and suspect purchasers

12. Avoid Boater Burdens That Will Not Improve Security • Recreational boaters should not have to procure any new type of ID or be treated any differently than automobile drivers • If carriage of a state or foreign ID is adopted – boaters should be given additional time to produce any ID after a stop and exemptions for children should be included. (e.g., a tourist will not bring a passport with them when riding a personal watercraft) • Security zones (public or private) should be limited only to critical areas, be well marked, charted, and patrolled. • Unequivocally, the Automatic Identification System (AIS) should not apply to recreational boats

13. In Conclusion • The USCG must find a fair balance and not confuse boaters with unnecessary red tape, new restrictions or expensive equipment • We all must deal with airport security to travel by air. No one likes the lines or searches, but we do it in order to get to our destination. • Boating is about the journey

14. “Boating is about Relaxation, Stress Relief, Spending Time with Family and Friends, Fishing and Fun… …lets keep it that way