[Congressional Record Volume 141, Number 196 (Monday, December 11, 1995)]
[Extensions of Remarks]
[Pages E2334-E2336]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     MARITIME SECURITY ACT OF 1995

                                 ______


                               speech of

                            HON. GREG GANSKE

                                of iowa

                    in the house of representatives

                      Wednesday, December 6, 1995

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill H.R. 1350, to 
     amend the Merchant Marine Act, 1936 to revitalize the United 
     States-flag merchant marine, and for other purposes:

  Mr. GANSKE. Mr. Chairman, I am opposed to H.R. 1350, the Maritime 
Security Act of 1995. I am disappointed that the House approved this 
legislation which will literally give away over $100 million a year to 
the domestic ship building industry. This measure is corporate welfare 
at its worst. As we move towards a balanced budget by 2002, we should 
not undertake this wasteful initiative.
  The Maritime Security Act of 1995 is an attempt to lengthen the 
phase-out of subsidies for the American shipbuilding industry. The 
Merchant Marine Act of 1936 created the Operating Differential Subsidy 
[ODS] Program. This program provided payments to carriers on specified 
trade routes to offset the higher cost of operating under the U.S. flag 
and was intended to maintain a U.S. merchant fleet. Unfortunately, 
rather than stimulate a vibrant domestic fleet, subsidies have resulted 
in an aging fleet of uncertain quality and reliability. Time has proven 
that this program was ill advised. Wisely, these contracts were set to 
expire over the next 3 years.
  Unfortunately, instead of allowing the free market to reinvigorate 
and revitalize this sector of our economy, supporters of the U.S. 
shipping industry have developed a new program which will effectively 
extend the subsidies until the year 2005 at a potential cost of over 
$1.2 billion. Adoption of this legislation will force the taxpayers to 
pay each U.S. ship more than $2 million each year.
  Perhaps even more amazing, the Maritime Security Act would remove the 
requirement that obligates U.S. shipping companies to make their 
vessels available to the Government in time of national emergency. 
Incredibly, the bill allows these companies to substitute similar size 
foreign-registered, foreign-crewed ships. The result, Mr. Chairman, is 
that U.S. taxpayers get virtually nothing for their tax dollar. Because 
of continued subsidies, the domestic shipping industry will remain 
inefficient and uncompetitive. Companies like Cargill or Con Agra 
shipping products like Iowa corn and grain will continue to face 
uncompetitive rates higher than the world average.
  At this point, Mr. Chairman, I would like to submit for the Record a 
letter I received from Citizens Against Government Waste that 
summarizes the serious flaws in this legislation and makes the case why 
it should be defeated.
                                              Council for Citizens


                                     Against Government Waste,

                                 Washington, DC, December 5, 1995.
       Dear Representative: The 600,000 members of the Council for 
     Citizens Against Government Waste (CCAGW) urge you to reject 
     a new subsidy in H.R. 1350, ``Maritime Security Act of 
     1995.''
       The current subsidized maritime system is set to expire in 
     1997, and in this time of fiscal restraint, it should not be 
     renewed. Instead, for the first time in maritime subsidy 
     history, U.S.-flag vessel operators will be able to collect 
     both cargo preference and direct subsidies. Earlier this 
     year, CCAGW applauded Appropriations Subcommittee on 
     Commerce, Justice, State, and the Judiciary Chairman Hal 
     Rogers, for refusing to fund H.R. 1350. Today, the Department 
     of Defense relies upon a variety of resources to meet its 
     sealift objectives. For example, according to 

[[Page E2335]]
     the General Accounting Office, during Operation Desert Shield only 15 
     percent of the 206 ships chartered by the Military Sealift 
     Command were privately owned U.S.-fag vessels.
       Since the 1930s, under the protectionist Jones Act, nearly 
     $10 billion has been spent on operating subsidies for the 
     merchant marine industry. In addition, a handful of U.S.-flag 
     vessel operators have annually reaped $500 million in cargo 
     preference subsidies. Members of Congress have supported 
     these subsidies under the illusion that they ultimately help 
     maintain a healthy U.S.-flag fleet. Instead, the industry is 
     hopelessly dependent on taxpayer subsidies.
       Strengthening our national defense is a goal that CCAGW 
     strongly supports, but it is not an excuse to extend maritime 
     subsidies that waste scarce tax dollars. We urge you to vote 
     against H.R. 1350 and prevent the enactment of a new wasteful 
     maritime subsidy. This vote will be among those considered 
     for our 1995 Congressional Ratings.
           Sincerely,
                                                       Tom Schatz,
                                                        President.
     
[[Page E2336]]


                       SENATE COMMITTEE MEETINGS

  Title IV of Senate Resolution 4, agreed to by the Senate on February 
4, 1977, calls for establishment of a system for a computerized 
schedule of all meetings and hearings of Senate committees, 
subcommittees, joint committees, and committees of conference. This 
title requires all such committees to notify the Office of the Senate 
Daily Digest--designated by the Rules Committee--of the time, place, 
and purpose of the meetings, when scheduled, and any cancellations or 
changes in the meetings as they occur.
  As an additional procedure along with the computerization of this 
information, the Office of the Senate Daily Digest will prepare this 
information for printing in the Extensions of Remarks section of the 
Congressional Record on Monday and Wednesday of each week.
  Meetings scheduled for Tuesday, December 12, 1995, may be found in 
the Daily Digest of today's Record.

                           MEETINGS SCHEDULED

                              DECEMBER 13
     9:30 a.m.
       Environment and Public Works
         To hold hearings on proposed legislation authorizing 
           funds for the Clean Water Act, focusing on municipal 
           issues.
                                                            SD-406
       Labor and Human Resources
         Business meeting, to mark up proposed legislation to 
           authorize funds for the Older Americans Act, and to 
           consider pending nominations.
                                                            SD-430
     10:00 a.m.
       Armed Services
         To hold hearings on the nomination of H. Martin 
           Lancaster, of North Carolina, to be an Assistant 
           Secretary of the Army, Department of Defense.
                                                            SR-222
     10:30 a.m.
       Special Committee To Investigate Whitewater Development 
           Corporation and Related Matters
         To resume hearings to examine certain issues relative to 
           the Whitewater Development Corporation.
                                                            SH-216
     2:00 p.m.
       Select on Intelligence
         To hold closed hearings on intelligence matters.
                                                            SH-219
     2:30 p.m.
       Energy and Natural Resources
       Forests and Public Land Management Subcommittee
         To hold hearings on S. 901, to authorize the Secretary of 
           the Interior to participate in the design, planning, 
           and construction of certain water reclamation and reuse 
           projects and desalination research and development 
           projects, S. 1013, to acquire land for exchange for 
           privately held land for use as wildlife and wetland 
           protection areas, in connection with the Garrison 
           Diversion Unit Project, S. 1154, to authorize the 
           construction of the Fort Peck Rural Water Supply Sytem, 
           S. 1169, to amend the Reclamation Wastewater and 
           Groundwater Study and Facilities Act to authorize 
           construction of facilities for the reclamation and 
           reuse of wastewater at McCall, Idaho, and S. 1186, to 
           provide for the transfer of operation and maintenance 
           of the Flathead irrigation and power project.
                                                            SD-366

                              DECEMBER 14
     9:30 a.m.
       Energy and Natural Resources
         To hold hearings on S. 1271, to amend the Nuclear Waste 
           Policy Act of 1982.
                                                            SD-366
       Governmental Affairs
         To hold hearings to examine Federal Government financial 
           management.
                                                            SD-342

                             CANCELLATIONS

                              DECEMBER 12
     10:00 a.m.
       Armed Services
         To hold hearings on the nomination of H. Martin 
           Lancaster, of North Carolina, to be an Assistant 
           Secretary of the Army.
                                                            SR-222