Fixing rust?

[bay local]

I was wondering what would be the best way to fix the rust coming up on the steering. Should I just sand it back and then respray it ? What would be the best paint to use ( kill rust?)Any help would be appreciated.
Thanks.

[bigjimg]

Chip off all bubbles of rust back to base metal then touch up with GALMET and allow to dry.Then hit it with the outboard manufacturers touch up paint.Job done.Jim