MCCAIN SUPPORTS BUSH PROPOSAL TO ELIMINATE TITLE XI FUNDING

MCCAIN SUPPORTS BUSH PROPOSAL TO ELIMINATE TITLE XI FUNDING    Sen. John McCain, R-Ariz., chairman of the Commerce, Science and Transportation Committee, on Wednesday supported President Bush's proposal to eliminate federal assistance for the Title XI Maritime Guaranteed Loan Program.
   In a letter to Bush, McCain said Bush's “request to zero out entitlement funding for this program is the best course of action.” The ranking Republican said he found no evidence of Title XI supporters' claims that the program aids the national security policy by keeping down shipbuilding costs and allows for the development of new and improved technologies.
   The Title XI program has cost millions of dollars since it was revived in 193, and so far this year has cost more than $62 million due to the default of the Searex project, which consisted of four offshore lift boats, that were under construction at Northrop Grumman's Ingalls Shipbuilding,” he said.
   While the project was halted due to Searex filing for bankruptcy protection, McCain said “significant questions” remain as to the extent the shipyard's actions led to its bankruptcy.”I have asked the Inspector General of the Department of Transportation to look into what lead to the project's failure.”
   He also noted recent Maritime Administration reports that Northrop Grumman's Ingalls Shipbuilding is having trouble with a commercial project guaranteed through the Title XI program. The shipyard is a year and a half behind schedule on a project for American Classic Voyages to build two 1,900-passenger ships, on which the government holds a guarantee for $1.08 billion.
   “'If this project is not turned around very soon, the taxpayer is going to be left holding the bag for over $1 billion,” McCain said.
   “'While some believe me to be an enemy of our nation's shipyards for express concern about their performance, I assure you nothing could be further from the truth,” he said in the letter to Bush. “Our nation has a strong and proud maritime history that I fear is all but lost due to a dependence on government programs that do not foster a progressive, competitive attitude in what has clearly become a global market.”