Committee Cuts $250M from Navy’s Hurricane Aid Request

Friday, March 31, 2006
The House appropriators’ decision to slash $250 million from the Navy’s funding request to aid Gulf Coast shipyards ravaged by Hurricane Katrina is worrying Navy officials who fear the move can result in shipbuilding delays and cost increases, The Hill reported. But House appropriators will likely have to debate with their Senate counterparts during conference negotiations over supplemental spending bills for the war on terrorism and disaster assistance. The House passed the supplemental March 16. The Senate Appropriations Committee is scheduled to take up the bill on April 4. The $250 million would have gone mostly to Northrop Grumman shipyards in the region. The shipbuilder’s yard in Pascagoula, Miss., sustained significant damage. The company has another facility in Mississippi and two shipyards in New Orleans and Tallulah, La. House appropriators decided to cut $250 million from President Bush’s request, to $775.2 million. Those cuts were made because “estimates and possible reimbursements for damage to shipbuilding facilities from private insurance companies have not yet been determined,” according to the committee’s release. The White House has already protested the cut in a statement of administration policy issued before the House voted on the bill. While the Navy does not directly comment on Capitol Hill decisions, service officials have pointed out that it is critical to have the shipyards up and running as soon as possible. The concern is not only about delays and price increases but also about losing skilled engineers and workers, who may find jobs in other areas if the shipyards they were working in can’t recover fast enough. The Navy will pay for any damage to its own equipment — ships either being built or in the shipyard for maintenance, as well as equipment and tools used specifically for Navy requirements. The shipyards are insured, and the insurance would pay for the company’s facilities. But it could take years until the insurance claims would pay out. The company would reimburse the government for any insurance money overlapping with the supplemental. Northrop Grumman has already used $350 million of its own money to get the yard up and running again. (Source: The Hill)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

BWTS Refit for Netherlands Naval Vessels

The Defense Material Organization has awarded three contracts to Goltens Worldwide’s Green Technologies business unit for the engineering and turnkey installation

Seaspan Responds to Canada’s NSS Announcement

In response to the Government of Canada’s announcement of a series of enhancements to strengthen the National Shipbuilding Strategy, Seaspan Shipyards’ president

This Day In Naval History: May 26

1943 - USS Saury (SS 189) attacks a Japanese convoy south of Kyushu and sinks transport Kagi Maru, about 10 miles north of the Nansei Shoto. Also on this date,

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1017 sec (10 req/sec)