Ship Repair Revival Plan Outlined By San Francis

As part of a seven-point plan to revive San Francisco's ship repair industry, an amendment has been added to the city's municipal code which would make local ship repairers exempt from payroll taxes.

Because of this new amendment, the Golden Gate Ship Repair Association has received a $500,000 payroll tax exemption which will be in effect from July 1, 1992 and continue until June 30, 1994.

The amendment to the code states that any tenant of the Port whose principal business is ship repair and whose workforce is comprised of at least 30 percent of San Francisco residents is exempt from the tax.

This also applies to subcontractors who receive 70 percent of their revenues from the ship repair industry, and whose workforce consists of 30 percent San Francisco residents.

Carl Hanson, president of the Association and senior vice president and general manager of Southwest Marine, a local repairer, has been instrumental in bringing together city officials, the Port of San Francisco, ship repair executives and labor representatives in an effort to revive the Bay Area ship repair industry.

Once a booming local industry with 10 facilities employing over 20,000 workers, San Francisco's ship repair sector has only two remaining yards—Southwest Marine and Service Engineering, who currently have a combined workforce of approximately 800.

Maritime Reporter Magazine, page 18,  May 1992

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First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.