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, [$64,200,000, of which not less than $4,300,000 shall be available for the reconversion of combination vessels] $112,500,000: 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 [$500,000] $700,000), and any such transfers shall be without regard to the limitations under that appropriation on the amounts available for such expenses. (76 Stat. 1092; Department of Commerce Appropriation Act, 1968.) The 1964 program provides for construction-differential subsidy and national defense allowances for construction of 17 ships, and acquisition of 21 replaced ships. The following table reflects the annual obligational [In thousands of dollars] requirements for programs financed from current funds, 2. Acquisition of replaced ships............ together with those requested for 1964. 1962 and prior programs.. [In thousands of dollars] 1963 program.. 1964 request.. 3. Nuclear ship construction and design. 402 402 1964 1963 1964 1. Construction-differential subsidy.... 111,562 95,700 111,562 95.700 Ship replacement, 1962 and prior programs. 4,557 Ship replacement, 1963 program.. 102,400 4,557 102,400 5. Fueling at sea.... 266 Reconditioning vessels.. Conversion of passenger ships.-- 39 4,300 266 39 4,300 Contract authorization.. ization (-)... Unfunded balance carried forward (—). Appropriation to liquidate contract authorization -5,460 -146,125-125,725 -110,725 202,000 220,400 225,000 This appropriation provides for payment of subsidies to ship operators in order to maintain a U.S. flag merchant marine in support of U.S. foreign commerce and capable of serving as a naval auxiliary in time of national emergency. 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. The operations for which subsidy support is projected are detailed in the following table: OPERATING-DIFFERENTIAL SUBSIDIES (LIQUIDATION OF CONTRACT AUTHORIZATION) 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, [$220,400,000 $225,000,000, 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. (46 U.S.C. 1171; Department of Commerce Appropriation Act, 1963.) Program and Financing (in thousands of dollars) repair Insurance expense 27.7 31.8 106.8 Subsidy accrual. 145.1 3.5 9.2 14.5 73.0 29.2 33.1 45.6 84.2 2.0 5.3 8.5 Passenger and freight services.-During calendar year 1961, 30 passenger or passenger/cargo ships and 272 cargo ships were engaged in subsidized voyages over routes detailed in the following table: Recapture of excess profits. All contracts for operating subsidy provide that 50% of the net profits earned from the contractors' subsidized operations and services incident thereto which over a 10-year period exceed 10% of capital necessarily employed shall be withheld from payments made by the Government. This recapture is effected annually based upon the 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 past year 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 payments of 100% of subsidy payable on account of operations prior to December 31, 1959. The $110.7 million unpaid sub sidy, as of June 30, 1964, represents a backlog consisting largely of amounts withheld pending final rate and audit determinations for operations subsequent to 1959, plus estimated amounts earned in the final quarter of 1964 for which bills will not be presented or paid during the year and the increase required to meet wage increases resulting from the 1961 negotiations between labor and management. The amount of unpaid subsidy was greatly reduced by the authority granted in Public Law 87-243 increasing payments based on estimates from 75% to 90%. 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; [$3,550,000] $8,250,000, 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 $600,000), 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 fund" for losses resulting from expenses of experimental ship operations. (76 Stat. 1092-1093; Department of Commerce Appropriation Act, 1963.) For expenses necessary for carrying into effect the Merchant Marine Act, 1936, and other laws administered by the Maritime Administration, [$14,950,000] $15,752,000, 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, [$8,173,400] $9,000,000; Maintenance of shipyard facilities and operation of warehouses, [$1,000,000] $707,000; Reserve fleet expenses, [$5,776,600 $6,045,000. Department of Commerce Appropriation Act, 1963.) Program and Financing (in thousands of dollars) 3. Operation of warehouses.-Four warehouses store materials and equipment for vessel operations, repair and outfitting of reserve fleet ships, and reserve shipyards. 4. Reserve fleet expenses. Provision is made for the preservation and security of 974 merchant vessels maintained for national defense purposes and limited preservation of 400 Liberty ships as a commercial shipping reserve. Object Classification (in thousands of dollars) (76 Stat. 1093; Other personnel compensation.. 107 95 192 23 Rent, communications, and utilities. 394 381 389 40 637 87 749 976 953 129 105 114 2. Maintenance of shipyard facilities. 32 Lands and structures.. 285 400 5 11 22 250 476 Total costs.. 4. Reserve fleet expenses. 5,095 5,938 6,152 Change in selected resources. 125 -237 -134 15,265 15,818 136 15,952 -134 15,818 Personnel Summary New obligational authority....... -66 139 Average salary, grades established by Secretary of Commerce (61 Stat. 715).. Average salary of ungraded positions.. 8.7 9.0 $7,756 $8,389 $8,441 1,609 1,669 1.666 1,655 1,778 1,771 8.7 MARITIME TRAINING For training cadets as officers of the Merchant Marine at the Merchant Marine Academy at Kings Point, New York; not to exceed $2,500 for contingencies for the Superintendent, United States Merchant Marine Academy, to be expended in his discretion; and uniform and textbook allowances for cadet midshipmen, at an average yearly cost of not to exceed $300 per cadet; [$3,300,000] $3,495,000: Provided, That, except as herein provided for uniform and textbook allowances, this appropriation shall not be used for compensation or allowances for cadets: Provided further, That reimbursement may be made to [the] this appropriation [for the current fiscal year for "Maritime training",] for expenses in support of activities financed from the appropriations for "Research and development" and "Ship construction". (76 Stat. 1093; Department of Commerce Appropriation Act, 1963.) Program and Financing (in thousands of dollars) Program by activities: Operating costs: 1. Merchant marine cadet training. 3,005 STATE MARINE SCHOOLS For financial assistance to State marine schools and the students thereof as authorized by the Maritime Academy Act of 1958 (72 Stat. 622-624), [$1,375,000] $1,405,000, of which $250,000 is for maintenance and repair of vessels loaned by the United States for use in connection with such State marine schools, and [$1,125,000] $1,155,000, to remain available until expended, is for liquidation of obligations incurred under authority granted by said Act, to enter into contracts to make payments for expenses incurred in the maintenance and support of marine schools, and to pay allowances for uniforms, textbooks, and subsistence of cadets at State marine schools. (76 Stat. 1093; Department of Commerce Appropriation Act, 1963.) Program and Financing (in thousands of dollars) Accrued annual leave (−) 1962 adjustments 1962 1963 1964 -269 -269 -269 -41 -103 -100 This program provides for the training of officers for service in the maritime industry. 1. Merchant marine cadet training.-The Merchant Marine Academy at Kings Point, N.Y., is a permanent institution (70 Stat. 25). A 4-year course of training is provided, including 1 year of sea duty, designed to qualify graduates for licenses as merchant marine officers. The Academy provides subsistence, quarters, tuition, uniform, and textbook allowances and medical care for the cadets. 2. Cadet training office.-Provides staff assistance to the Maritime Administrator on training matters, assists in the selection and appointment of cadets, and maintains liaison with the State marine schools. Object Classification (in thousands of dollars) |