4/4/2013 5:58 PM ET|
Carnival won't reimburse Uncle Sam for ship rescues
After the US spent more than $4 million, a powerful senator calls the cruise operator's response to his call for compensation shameful.
According to Senator Jay Rockefeller, D-W.Va., the U.S. Coast Guard has responded to 90 "serious events" involving Carnival ships over the past five years, including the rescue of the Carnival Triumph (pictured) in February and the 2010 operation to assist the Carnival Splendor. The Coast Guard and Navy spent $4.2 million to assist the Triumph and Splendor, which were both hit with power failures, according to a report in Skift.com quoting Rockefeller.
The Triumph made more news Wednesday after it broke loose from its repair dock during a storm. Sadly, a security guard was knocked into the Mobile River and hasn't been seen since, according to CNN.
In a letter to Carnival, Rockefeller noted that the company should repay the government for its help because the Panama-based operator pays "little or nothing in federal taxes." Carnival rejected Rockefeller's request, arguing its policy is to "honor maritime tradition" to render assistance to those at sea in need of assistance.
Carnival noted that it provides assistance to the Coast Guard when asked. The company also argued that it pays its fair share of fees to local, state and federal agencies.
Rockefeller, the chairman of the Senate's Commerce, Science and Transportation Committee, wasn't satisfied.
"Carnival's response to my detailed inquiry is shameful," he said in a statement to MSN Money. "I am considering all options to hold the industry to higher passenger safety standards."
Officials at Carnival couldn't immediately be reached.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
This is a mess. We as tax payers are paying for a HUGE company to get "help" because of a maritime tradition. Wait, does the tow truck pay for our car to get towed when it breaks down? We will always help out. But, if the ship breaks because of a mechanical issue CARNIVAL, pay for the tow yourself...
This Senator should look at the new budget and all the money our Government is wasting and not worry about this little $hit! We have a huge debt problem with entitlements, Obama Care, the USPS (bleeding us to death) and all kinds of other waste in our Government, and this idiot is worried about a Cruise Co. of so little compared to our National Debt. Like I said this IDIOT, that is what sums it up in Washington.
I forgot to mention all the Whitehouse Parties, the GSA massive Las Vegas spending that blew this Carnival cost out of the water! Carnival helps the Goverment, and has many times! Again goes to show you how stupid these people are that have been elected!
Pay up and quit kicking the cost to somebody else. If yoy do not the USA should put a hold on the ship in Alabama until all bills and a reasonable settlement is reached. These ship folks are not good people. it is all me and not a thing to do with you.
The time to face reality is here.
You couldn't pay me enough to board one of thier crap-cruisers. That is appauling that they sponged off our Coast Guard to rescue people from thier poorly maintained boats.
I`ve been on 5 Carnival cruises,and never a problem. onetime I was booked with a inside room,and because id booked so early they upgraded me to a state room with a patio...Id take another cruise right now.
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Reports say the generous benefactor behind the huge gratuities is a former PayPal executive.
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