Copyright 2002 Journal of Commerce, Inc. Journal of
Commerce - JoC Online
March 15, 2002
SECTION:
OCEAN TRANSPORTATION and PORTS/INTERMODAL; Pg.WP
LENGTH: 302 words
HEADLINE:
Schubert wants $$
BYLINE: BY R.G. EDMONSON - JOC
ONLINE
BODY: The Maritime
Administration is exploring options to renew the Maritime Security
Program, and increase vessel availability for the cargo-preference program.
But the administration still believes in winding down Title XI loan guarantees,
Administrator William G. Schubert told a House subcommittee on Thursday. The
administration's fiscal 2003 budget request includes a proposal to suspend the
requirement that foreign-built ships be registered under the U.S. flag for three
years before they eligible for preference cargo, Schubert told the House armed
services oversight panel on the merchant marine.
The
budget allocates $98.7 million for MSP. The program stays with Marad this year.
The Bush administration proposed shifting MSP to the Defense Department for
fiscal 2002, a move Congress opposed. However, Schubert said MSP authorization
is due to expire in fiscal 2005. He said the agency is meeting with defense and
industry officials to explore options for renewal.
Marad is requesting a $211.5 million budget for the coming fiscal year.
Schubert said the agency is requesting $11.2 million to dispose of ships in the
National Defense Reserve Fleet, and an additional $1.9 million for the U.S.
Merchant Marine Academy at Kings Point, N.Y.
Schubert
said the administration is requesting $4.5 million to administer existing loans
in the Title XI program, but no new money for loans. This is the same as last
year. Congress chose to keep Title XI in the fiscal 2002 budget. Committee
members on Thursday indicated they would continue to support the program.
While the administration proposes no new loan guarantees,
Schubert proposed changes in tax deferrals on "Section 607" deposits under the
Capital Construction Fund (CCF) established under the Merchant Marine Act of
1970.
Document 5 of 21. 