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.
Carnival (CCL), the world's largest cruise operator, has rejected a request from a powerful U.S. senator that it reimburse the U.S. government for the costs it incurs for rescuing the company's ships when they become disabled.
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.
So, Dear Carnival, you expect the kindness of strangers to keep yer boats afloat, do you? Well, think again. When you've needed 90 rescues in five years, you're running an intentionally underfunded operation. Maritime politesse flies out the window at that point.
We'll be there for you next time, but only when the check clears will you find the Coast Guard not sailing away, leaving you with a kiss for luck . . . and dead in the water.
Why is it when a politician wants his/her own shoddy performance unnoticed, they find something "SHAMEFUL" that has been in the news of late. I'll tell you what is really shameful.....it is the TRILLIONS of OUR tax dollars that are wasted while shills like Rockefeller vie for press time. It is shameful that this country has been FOUR YEARS without a budget, yet the effort in Washington is to divert attention from their colossal failure to do their job by pointing loudly at overblown events in the "news".
Your house is on fire, your elderly mother and your children are trapped on the top floor, and you are screaming about how your neighbor has left his trash cans on the curb. Pathetic.
The Smart Moves continue... Carnival is Stupid ...just added to their Poor Reputation and Complete Arrogance they can't be touched. They don't give a Crap about their Customers only their Money ...when are people going to wake up to that...Watch New legislation pass not allowing to registrar Ships in other Countries..... Hope security Guards Family SUES their ****
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