TRANSPORTATION MARITIME ADMINISTRATION General and special funds: SHIP CONSTRUCTION For construction-differential subsidy and cost of national-defense features incident to construction of ships for operation in foreign commerce (46 U.S.C. 1152, 1154); for construction-differential subsidy and cost of national-defense features incident to the reconstruction and reconditioning of ships under title V of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1154); and for acquisition of used ships pursuant to section 510 of the Merchant Marine Act, 1936, as amended (46 U.S. C. 1160); to remain available until expended, [$124,900,000 $124,850,000: Provided, That transfers may be made to the appropriation for the current fiscal year for "Salaries and expenses" for administrative and warehouse expenses (not to exceed $3,150,000) and for reserve fleet expenses (not to exceed $700,000), and any such transfers shall be without regard to the limitations under that appropriation on the amounts available for such expenses. (Department of Commerce Appropriation Act, 1965.) 1 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1963, $150,495; 1964, $161,185; The 1966 program provides for construction-differential subsidy and national defense allowances for construction of 16 ships and acquisition of 17 replaced ships. The following table reflects the annual obligational requirements for programs financed from current funds, together with those requested for 1966. 1964 and prior programs. 1965 program. 15,118 110,979 1,625 119.472 -- 106,200 28,457 106,200 9,650 9.057 9,575 1966 program 9.650 3. Retrofitting existing ships.. 4. Reconversion of combination ships.. 5. Fueling-at-sea.... 6. Nuclear ship construction and design. 7. Administrative expenses. Total........ 5,602 9,575 75 3,150 162,029 124,850 137,554 124,850 For the payment of obligations incurred for operating-differential subsidies granted on or after January 1, 1947, as authorized by the Merchant Marine Act, 1936, as amended, and in appropriations heretofore made to the United States Maritime Commission, [$187,500,000 $190,000,000, to remain available until expended: Provided, That no contracts shall be executed during the current fiscal year by the Secretary of Commerce which will obligate the Government to pay operating-differential subsidy on more than two thousand four hundred voyages in any one calendar year, including voyages covered by contracts in effect at the beginning of the current fiscal year. (Department of Commerce Appropriation Act, 1965.) Program and Financing (in thousands of dollars) This appropriation provides for the payments of subsidy to ship operators in order to maintain a U.S. merchant fleet in support of U.S. foreign commerce and capable as serving as a naval auxiliary in event of a national emergency. The program is designed to pay the difference between the fair and reasonable cost of certain expenses (wages and subsistence of crew; insurance; vessel maintenance and repair) and the estimated cost of the same items if the ships were operated under foreign registry. To be eligible for subsidy, an operator must provide regular berth services on an essential trade route, show that Government aid is necessary to place the operation on a parity with its foreign competition, and employ vessels constructed in the United States and manned by U.S. citizens. During calendar year 1963, 15 operators had operatingdifferential subsidy contracts with the Maritime Administration and provided service on 34 essential foreign trade routes. These operators carried 10.7 million deadweight tons of cargo, an increase of 6% over calendar year 1962. The total of vessel operating expenses was $715.4 million of which $293.3 million or 41% represented subsidizable items of expense. The operations for which subsidy support is projected are detailed in the following table. 57,865 138,362 136,983 196,227 191,251 -227 -1,251 1 Annual. The budget estimate reflects contract authority for conduct of 1,845 voyages under approved contracts during 1966. Passenger and freight services.-During 1966, it is anticipated that vessels operating under subsidy will provide approximately the same passenger and freight services as in 1965, except for the passenger vessel, SS America which was withdrawn from subsidy during 1965. In calendar year 1963 the number of subsidized voyages and routes served were as follows: From ports on 56,975 129,651 186,626 Recapture of excess profits..... 186,626 196,000 190,000 To: Northern Europe. 384 186,626 196,000 190,000 133,864 117.453 100,666 -117,453-100,666 -92,666 203,037 212,787 198,000 TRANSPORTATION—Continued MARITIME ADMINISTRATION-Continued General and special funds-Continued OPERATING-DIFFERENTIAL SUBSIDIES (LIQUIDATION OF CONTRACT AUTHORIZATION)-continued Recapture of excess profits. All contracts for operating subsidy provide that 50% of the net profits earned from the contractors' subsidized operations and services which over a 10-year period exceed 10% of capital necessarily employed shall be withheld from payments made by the Government. This recapture is calculated annually based upon cumulative profits earned since the beginning of the recapture period. The estimate for the current and budget years, shown in the program and financing schedule, assumes that the first quarter of calendar year 1964 profit experience of each operator will be continued. Status of unfunded contract authorization.-The computation and approval of final subsidy rates and audit of annual accountings will make it possible to make most payments of 100% of subsidy payable on account of operations prior to December 31, 1961. The $93 million unpaid subsidy, as of June 30, 1966, represents a backlog consisting largely of amounts withheld pending final rate and audit determinations for operations subsequent to calendar year 1961, plus estimated amounts earned in the final quarter of 1966 when bills will not be presented or paid during the year. RESEARCH AND DEVELOPMENT For expenses necessary for research, development, fabrication, and test operation of experimental facilities and equipment; collection and dissemination of maritime technical and engineering information; studies to improve water transportation systems; and supporting services related to nuclear ship operation; [$9,500,000] $10,500,000, to remain available until expended: Provided, That transfers may be made to the appropriation for the current fiscal year for "Salaries and expenses" for administrative expenses (not to exceed $800,000) and any such transfers shall be without regard to the limitation under that appropriation on the amount available for such expenses: Provided further, That transfers may be made from this appropriation to the "Vessel operations revolving funds" for losses resulting from expenses of experimental ship operations. (Department of Commerce Appropriation Act, 1965.) 1. Merchant marine directed research.-This activity is directed toward specific improvements in shipyard construction, ship design and construction, ship operations, port and terminal operations and maritime transportation systems based on preestablished goals and time schedules. 2. Advanced ships and systems.-This activity provides for long-range research directed toward new merchant marine concepts and developments to meet future needs. 3. NS "Savannah" operation.-Servicing, maintaining, and operating the NS Savannah including all related supporting services, and with the operations of the ship funded through the Vessel operations revolving fund and reimbursed through this appropriation. 4. Administrative expenses.-Expenses for personnel services, travel, reporting, etc. of the Office of Research and Development and for the administrative expenses of other offices for work associated with research and development activities. Object Classification (in thousands of dollars) Identification code Stores. 06-70-1716-0-1-502 Unpaid undelivered orders. 1965 1966 1, 137 725 -2, 293 For expenses necessary for carrying into effect the Merchant Marine Act, 1936, and other laws administered by the Maritime Administration, [$15,300,000] $15,650,000, within limitations as follows: Administrative expenses, including not to exceed $1,125 for entertainment of officials of other countries when specifically authorized by the Maritime Administrator, and not to exceed $1,250 for representation allowances, [$9,400,000 $9,628,000; Maintenance of shipyard facilities and operation of warehouses, $500,000; Reserve fleet expenses, [$5,400,000.] $5,522,000: Provided, That this appropriation may be reimbursed from the Federal Ship Mortgage Insurance Fund for necessary lay-up and maintenance expenses of vessels accountable under that fund. (Department of Commerce Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Total selected resources. 1. Administrative expenses.-Shown herein are the expenses of administering most of the functions of the Maritime Administration, including operating-differential subsidy contracts, continuing ship replacement activities, ship operations and chartering, auditing, property management, and State Marine Schools liaison. Administrative expenses in connection with the U.S. Merchant Marine Academy, general agency ship operation, research and development, and new ship construction are provided in other funds. 2. Shipyard and warehouse expenses.-One Governmentowned reserve shipyard will be maintained in a partial state of readiness for defense purposes. Provision is made for four warehouses to store materials and equipment for vessel operations, repair and outfitting of reserve fleet ships, and reserve shipyards. preservation and security of 970 merchant vessels main3. Reserve fleet expenses. Provision is made for the tained for national defense purposes and limited preservation of 400 Liberty ships as a commercial shipping reserve and another 371 ships (Liberty and other) awaiting sale as a source of scrap. Object Classification (in thousands of dollars) 2. Shipyard and warehouse 1. Administrative expenses.. 8,600 9,682 9,628 3. Reserve fleet expenses.- expenses. 5,429 15,611 5,522 11.1 Permanent positions.... 11.3 Positions other than permanent. 30 36 36 15,650 11.4 Special personal service payments.. 2 115 11.5 Other personnel compensation-- Financing: 12.0 Personnel benefits.... 16 Comparative transfers from other accounts. 25 Unobligated balance lapsing--- -26 21.0 Travel and transportation of persons. 24.0 Printing and reproduction... 15,500 15,611 15,650 25.1 Other services.. 25.2 Services of other agencies 26.0 Supplies and materials.. 44 Proposed supplemental due to civilian pay 32.0 Lands and structures.. |