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![handle is hein.gao/gaobadxwr0001 and id is 1 raw text is:
DCCUMENT FESUME
03972 - ( A2834088]
[Cost of Proposed Cargo Preference legislaticn]. October 5,
1977. 9 pp.
Testimony before the Senate Committee on Commerce, Science, and
Transportation; by Harry S. Havens, Director, Program Analysis
Div.
Issue Area: Transportation Systems and Policies (2400).
Contact: Program Analysis Div.
Budget Function: Commerce and Transportatizon: Water
Transportation (406).
Organizaticn Concerned: Maritime Administration.
Congressional Relevance: Senate Cormittee on Ccm.lerce, Science,
and Transportation.
Cargo preference legislation has the cbjective of
assisting the U.S. maritime industry by giving the U.S.-flag
fleet a larger share of the market in transporting imported oil.
Cargo preference costs would be in the form ;jf higher prices fcr
oil and oil products and involve ccoplex market forces and
regulatory actions fnr 8 years in the future. !stimates must
take into account the differential between the transport cost of
U.S.-flag shipping and foreign-flag shipping. Estimates of costs
presented by seven witnesses varied because they were not
developed on a comparable basis. Even when adjusted to a common
time frame, estimates varied by as much as a factor of 10. By
selecting the most realistic estimates froi component parts,
averaging some factors. and making its own estimates of others,
GAO estimated that the legislation would add between 0.15 and
0.23 cents per gallon to the price of imported oil. The total
cost in 1985 will also depend on the amotnt. of oil to be
imported and estimates for this amcunt vary widely. GAO's
fstimptes for total annual costs of the legisletion were higher
than those of the Maritime Administration because of:
differences in calculating inflaticn factors, exclusion of
present subsidy costs, transport price differentials, and the
effect of imported oil prices on dcaestic oil rrices. (HTW)](ViewImageLocal?handle=hein.gao/gaobadxwr0001&div=1&collection=&method=preview&ext=.png&size=3)