BUSH BUDGET WOULD PLACE U.S.-FLAG SUBSIDIES UNDER DEFENSE

BUSH BUDGET WOULD PLACE U.S.-FLAG SUBSIDIES UNDER DEFENSE    President Bush’s proposed budget for fiscal year 2000 proposes to transfer the U.S.-flag liner subsidy program, known as the Maritime Security Program, from the U.S. Maritime Administration to the Defense Department.
   The program provides about $100 million yearly to support the operation of 47 commercial U.S.-flag liner vessels.
   The MarAd has overseen liner subsidy programs since the enactment of the 1936 Merchant Marine Act.
   The transfer was proposed “to achieve greater efficiencies,” the budget message sent to Congress said. “This transfer will ensure a centralized national security focus in the management of this program.”
   Being touted as “a blueprint for new beginnings,” the budget plan also proposes no new funding for MarAd’s Title XI shipbuilding and shipyard loan guarantee program. The funding freeze is being proposed “to trim corporate subsidies.”
   Senate Majority Leader Trent Lott, R-Miss. and Sen. John Breaux, D-La. both oppose the Bush administration’s Title XI funding freeze and stripping MarAd of the MSP program.
   The administration is proposing a $545-million increase in the fiscal year 2002 budget for the U.S. Coast Guard, which would bring the budget up to $5.1 billion.
   Specific figures for MarAd’s programs are not yet available, and the Department of Transportation has not yet scheduled a formal briefing on the Bush budget. Further details are expected from the White House within a month.