Copyright 2001 Journal of Commerce, Inc.  
Journal of Commerce - JoC Online
April 4, 2001
SECTION: OCEAN TRANSPORTATION and PORTS/INTERMODAL; Pg.WP

LENGTH: 222 words

HEADLINE: Mineta: U.S. flag subsidies to Defense "done deal"

BYLINE: BY R.G. EDMONSON AND PETER TIRSCHWELL - JOC ONLINE

BODY:
The proposed transfer of the U.S.-flag ship subsidy program from the Maritime Administration to the Defense Department is "a done deal," Transportation Secretary Norman Mineta said on Wednesday.Mineta made the statement about the Maritime Security Program in a press conference following his first testimony before his old committee, the House Committee on Transportation and Infrastructure. Mineta is a former House member.

President Bush proposed transferring the program in an outline of his budget request for upcoming fiscal year, but some believed there would be resistance to the idea in Congress. Under the MSP program, 47 ships are subsidized with $2.1 million per ship, per year to remain under the U.S. flag and be available in a national emergency. The program expires in 2005 and there will likely be opposition to its renewal.

There has been concern expressed that the program is best administered by Marad, whose mission it is to promote the U.S.-flag merchant marine and would be expected to strongly fight for the program's renewal. Others, however, have remarked that the Pentagon would not necessarily be an inhospitable home for MSP because the Defense Department in coming years will be looking for any possible way to save money, and MSP might provide an opportunity for inexpensive sealift.

LOAD-DATE: April 5, 2001