Page 40: of Maritime Reporter Magazine (September 1993)

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Washington, D.C.:

Maritime Issues Flood House, Senate

As the summer turns to fall, there are several urgent, pending issues which the U.S. government must act on.

Perhaps most pressing is an amendment to a bill, which if passed, will prohibit U.S. flag carriers from flagging out until at least January of 1995.

According to a spokesman for the

Committee on Merchant Marine &

Fisheries, an amendment to H.R. 1964, which is the Maritime

Administration's authorization bill for fiscal year 1994, would prohibit

Secretary of Transportation

Federico Pena from authorizing vessel operators from changing flags (on vessels 3,000-gt and larger) un- til January 1994.

H.R. 1964 passed the House and at press time was pending action in the Senate.

Other news from Washington,

D.C. follows.

House Subcommittee Passes

Maritime Security And

Competitiveness Act

The Maritime Security and Com- petitiveness Act of 1993(H.R.2151) was passed on July 29 by the Mer- chant Marine Subcommittee of the

House Merchant Marine and Fish- eries Committee.

The Maritime Security and Com- petitiveness Act intends to reduce needless government regulation of

U.S. flag carriers and encourage in- vestment in new, efficient and eco- nomical vessels. The bill also ad- dresses vessel operational require- ments. Vessel operators will be pro- vided with payment under the Op- erating Differential Subsidy (ODS) to the tune of $2.3 million a vessel for FY '96, and $2.1 million a vessel for ten subsequent years, which is a cut from the $3-4.5 million the op- erators currently receive under the program. Cargo preference provi- sions are also included in the bill.

These provisions will eliminate the three-year waiting period for eli- gible vessels and make foreign-built ships of 12,000-gt or less eligible for cargo preference if they were con- structed before May 19, 1993. For- eign-built vessels constructed after that date must be built in unsubsidized yards in order to be eligible.

Other bills under consideration by the House include: changes to maritime tax and vessel deprecia- tion laws, which have already been moved by the maritime panel and await action by other committees; a shipbuilding promotional initiative and a separate mechanism to pay for maritime revitalization through new cargo container fees; and in- creased passenger cruise ticketfees.

Navy Vessel Transfer Bill

Approved

The vessel transfer bill, H.R. 2561, has been passed by the Sen- ate and is awaiting the Presiden signature.

H.R. 2561 authorizes the trans] of ten naval vessels and equipme to Argentina, Australia, Chi

Greece and Taiwan, with five vi sels going to Turkey. The U.S. cov stand to obtain about $30 million leasing fees over the next few ye< from the transfers.

The U.S. will be able to obtain additional $180 million in trainii supplies, support and repair co during the lease times, according

Congressman Ben Gilman (R-N

Defense Authorization Bill

Clears House, Contains

Ntl. Shipbuilding Initiative

The FY '94 Defense Authori tion Bill has been cleared by

House Armed Services Commit and includes the National Shipbu ing Initiative.

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