Copyright 2001 Journal of Commerce, Inc. Journal of
Commerce - JoC Online
February 21, 2001
SECTION: OCEAN TRANSPORTATION and PORTS/INTERMODAL; Pg.WP
LENGTH: 588 words
HEADLINE: OMB planning Marad dismantling
BYLINE: JOC ONLINE
BODY: The Office of Management and Budget is developing proposals that would
largely dismantle the Maritime Administration by shifting many of its
responsibilities to other agencies, according to several sources in
Washington.The proposals, developed as part of President Bush's fiscal 2002
budget, would strip Marad of its responsibility for running the Ready Reserve
Fleet and the U.S.-flag operating subsidy system called the Maritime Security Program. They would also scale back or possibly
eliminate funding for the Title XI loan guarantee program that supports U.S.
shipbuilding.
The proposals have not been formally
disclosed and could be shot down within OMB or by Bush Administration policy
staffers before being sent to Capital Hill in the budget proposal.
Yet several sources in Washington said they were aware
that OMB, which is not known to be friendly to maritime polices, was delving
into maritime issues in developing its budget proposals.
The OMB and DOT did not return calls. A spokesman for Marad had no
comment.
The scenario may prove similar to the one that
played out in August, 1993 shortly after the Clinton Administration took office.
A report by a commission on reinventing government chaired by then-vice
president Al Gore recommended an almost complete dismantling of U.S. maritime
policies, including the Jones Act protections for domestic shipping and
anti-trust immunity for international lines. The Clinton administration
immediately backed away from the proposal in the face of powerful opposition
from members of Congress.
There are many reasons to
believe that the same reaction would greet any proposals from the Bush
Administration to dismantle Marad, the advocacy agency for U.S.-flag shipping.
Both Andrew Card, Bush's chief of staff, and Elaine Chao, the secretary of
labor, are known to be familiar with and supportive of maritime policies. The
Bush-Cheney campaign last year issued a strong statement in support of the
maritime industry that said, in part, "Programs that have contributed to the
growth of our domestic fleet, such as the Jones Act, and those that guarantee
intermodal cargo lift and management when needed in times of crisis or conflict,
such as the Maritime Security Program, should be maintained."
In addition, though maritime industry supporters in Congress are said
to be dwindling in number, some of the most powerful senators such as majority
leader Trent Lott, R-Miss., and John Breaux, D-La., are staunch maritime
industry allies.
"Virtually any government program has
certain supporters in the Congress, but those supporters will be loath to see
any big changes unless it's in the changes they are advocating. I don't know if
the maritime industry supporters are any different," said one Republican
Congressional staffer.
The Bush statement, however, was
silent on which agency should manage the MSP program or the RRF. The debate over
whether to shift management of the RRF to the Defense Department has raged for
years with no change in policy. Some believe Defense is better suited than Marad
to run such programs. Yet many others disagree, seeing Marad as the
standard-bearer for U.S.-flag shipping, an agency whose mission is to protect
and enhance what has for years been a dwindling institution.
Many believe that given the doubts that always arise about the
necessity of a maritime policy during peacetime, the industry needs its own
advocate inside government to protect programs such as cargo preference, the
Jones Act, MSP and Title XI.
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