Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE Release #096-00
Thursday, March 16, 2000

Release #096-00

Contact: Sunny Mindel/Edward Skyler 212-788-2958
   

MAYOR GIULIANI VETOES BILL THAT WOULD
EXPOSE PUBLIC MARKETS TO ORGANIZED CRIME

-Remarks By Mayor Rudolph W. Giuliani At Public Hearing On Local Laws-

The first bill before me today, Introductory Number 459-A, sponsored by Council Members O'Donovan, DiBrienza and Fisher, amends the administrative code of the City of New York, in relation to the regulation of public wholesale markets.

This legislation represents a significant step backward in the City's fight to keep organized crime and corruption out of the public markets and to ensure that the markets are run in a safe and efficient manner. It undermines my Administration's efforts to rid the public markets of corruption and coercion in four significant ways.

First, this bill would redefine the markets as "public property." This change could sacrifice the City's ability to control access to market property and to require information from individuals seeking access to markets, which has been one of the most effective means of keeping organized crime out of the markets. This provision would also be legally indefensible to the extent that it interferes with the property rights of market tenants. Declaring privately leased property to be public may promote efforts to deprive unfairly and irresponsibly these tenants of rights guaranteed in their leases.

Second, Intro. 459-A attempts to expand areas of permissible picketing by providing that employees have a right to picket within the markets. This right, combined with the reclassification of markets as public property, would result in a disruption of market activities. By allowing picketing in front of individual stalls at the markets, this bill attempts to prevent the City and market regulators from placing reasonable controls on picketing activity. Such obstructive picketing in the tight confines around market stalls would create management, safety, health and theft problems. More importantly, it would permit undue influence and potential threats against market businesses, as corrupt individuals are able to make their presence felt at target locations.

The bill would also immunize employees for violations committed at the behest of a supervisor or even a co-worker. Such immunity can only serve to reduce individual accountability and result in diminished compliance with market rules. Under current law, employers are already liable for the violations of their employees. There is no sound reason to provide a defense for employees who may share personal culpability for violations.
-over-
Finally, the provision seeking to amend the arbitrator-selection process is unnecessary and premature, as the current arbitration process has never even been tested. Therefore, there is no evidence that the current process does not work in a fair and equitable manner. In addition, this provision breaches the negotiated compromise regarding arbitration that was previously agreed to by my Administration, the City Council and the unions.

Because of my Administration's successful efforts to rid the City's public markets of the pervasive influence of organized crime, law-abiding businesses can now operate free from corruption and violence in the markets. Under Local Law 50 of 1995, and Local Law 28 of 1997, healthy and open competition has returned to our markets. As a result, costs for wholesalers, retailers and consumers alike have been lowered, and the markets are safer, more efficient and economically vibrant than they were in years past, providing thousands of jobs and valuable services to the residents and businesses of New York City.

Accordingly, it is beyond comprehension why the Council would seek to weaken oversight of the public markets with this legislation. In October of 1999, eight U.S. Department of Agriculture inspectors -- more than half the assigned inspection team --together with thirteen individuals associated with wholesalers operating at the Hunts Point market were arrested on racketeering and bribery charges. Less than three months later, in December 1999, a complaint was filed against five fish dealers, two of whom were operating in the Fulton Fish Market, after thousands of pounds of fish illegally caught in polluted waters passed through market wholesalers. These incidents should remind us what the public markets once were, and what they could be again, if oversight and enforcement in the City's public markets is not maintained.

It should be noted that the legislation also includes two provisions that my Administration believes would be helpful with regard to our efforts in the markets. One provision provides for the forfeiture of a vehicle or other property used in connection with a violation of law. The second requires applicants for registration under the Fulton Fish Market law to demonstrate financial responsibility. However, given the problems created by the other provisions of this bill, it is impossible for me to support this legislation.

It is imperative that the City remain vigilant in its fight against organized crime and disruptions of public market activities. This legislation would re-open the door to criminal activity, and frustrate the City's ability to ensure integrity, lawfulness and fairness in our public markets.

 

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