160 



have provided additional capital in special 

 situations, as have State programs for in- 

 dustrial development. 



As the rate of ocean development increases, 

 the capital requirements will increase accord- 

 ingly. It is anticipated that witii a few excep- 

 tions the existing supply of private capital in 

 the United States will be adequate to finance 

 this expansion without relying on special 

 arrangements or direct Government subsidies. 



The Commission recommends that since 

 direct Government subsidies are not re- 

 quired at this time to induce industry to 

 generate capital for marine investments. 

 Government policy should instead be di- 

 rected to providing the research, explora- 

 tion, basic technology, and services (as 

 recommended elsewhere by the Commis- 

 sion) to encourage private investment in 

 the exploration and exploitation of marine 

 resources. 



Legal and Regulatory Framework 



Large-scale tecluiological applications sim- 

 ply cannot be undertaken in marine indus- 

 tries if property rights, market access, labor 

 regulation, taxation, and the many other ele- 

 ments of the legal and regulatory environ- 

 ment remain in tiieir present uncertain 

 condition. 



A framework of laws and regulations that 

 permits forward planning, simplifies day-to- 

 day operations, and creates confidence in the 

 Nation's determination to move ahead is a 

 key area in which government can gi\e sup- 

 port to ocean industry. Neverthele&s, this is 

 now lacking in many areas pertaining to the 

 ocean. 



The Commission recommends that a 

 framework of policies and laws be estab- 

 lished that will allow predictability and, 



therefore, increased confidence and invest- 

 ment activity by industry. An important 

 responsibility of the National Oceanic and 

 Atmospheric Agency should be to work on 

 a sustained basis with other agencies of 

 Government and in consultation with the 

 private sector to achieve these aims and 

 to ensure that the policies are published 

 periodically. 



There are several general implications of 

 such a policy : 



• The number of agencies and authorities 

 which confront marine interests must be 

 reduced. 



• The unique characteristics of the marine 

 environment must be recognized in formu- 

 lating administrative rules and policies. 



• The respective roles of Federal, State, and 

 local governments in regulating marine in- 

 dustry must be clarified. 



• Contracting procedures should be simpli- 

 fied. 



• Every effort should be made to keep all 

 regulations current — that is, adapted to 

 present technological conditions. Tlie Com- 

 mission is aware that this task is very diffi- 

 cult, but it is also vei-y important. 



• Such economic and financial measures as 

 taxation and leasing policies should be an- 

 uoimccd as far in advance as possible so 

 that industry can plan for the future. How- 

 ever, the measures should not be so in- 

 flexible as to preclude the modifications 

 that will be necessary as development 

 progresses. 



• Channels are needed for industry to advise 

 Government on the adequacy of present 

 services and the need for new ones. 



• Insofar as possible. Government should be 

 explicit regarding its intentions and should 

 periodically update and publish its plans 

 for a national marine program. 



