Expert: Blocking carrier move requires showing hidden costs

Posted to: Military Virginia Beach

VIRGINIA BEACH

A panel of political leaders and retired military officers considered a strategy Monday for fighting the move of a Norfolk-based aircraft carrier to Florida: demonstrate that the actual cost will be more than the Navy's $500 million-plus estimate.

The actual cost of moving a carrier may be at least $1 billion, said U.S. Rep. Glenn Nye, who led the first session of the Hampton Roads Military Affairs Commission, a group he organized in January.

Retired Rear Adm. Fred Metz told the panel during a meeting in Town Center that the Navy's proposal to upgrade Mayport Naval Station to handle a nuclear carrier doesn't appear to take into account the costs of operations, including the housing, training and manpower needed to support the ship and its crew.

"It's going to have the facility but not a capability," Metz said. "Where is that money going to come from?"

The Navy did not respond Monday to a request for an explanation of its cost estimate.

The panel includes the region's congressional representatives as well as local elected leaders and retired military officers. It was organized by Nye in part to protect the region's military assets.

Hampton Roads' leaders have said losing a carrier would hurt the region's economy because the ship provides about 6,000 jobs locally and injects $425 million a year into the economy.

Leaders of the Navy and the Defense Department have endorsed moving a carrier, saying it is necessary for protection against terrorist threats and possible man-made and natural disasters in Hampton Roads. Norfolk is the only carrier base on the East Coast.

The region's federal legislators have objected, noting that military leaders have not offered any hard analysis to back up their concerns.

The relocation issue is before Congress this spring and summer as representatives consider military budget requests that include funds for Mayport. Congress agreed last year to spend almost $76 million for dredging and wharf repairs at Mayport.

Military leaders said the defense budget proposal being debated includes $2 million for planning the Mayport move. The remainder of the $500 million or more would be allocated in future years.

Hampton Roads legislators want either to block any more funding for the relocation or to convince defense officials to change their minds.

Newport News Mayor Joe Frank, a member of the commission, warned the region has two risks.

"One is losing a carrier," he said. "And the other is fighting for it in a way that alienates our friends in the Navy and future relationships. I think we need to be very thoughtful and careful as we move forward."

Nye, a Democrat whose district includes Virginia Beach and parts of Norfolk and Hampton, said it doesn't make sense to spend hundreds of millions of dollars to move a carrier when the military has so many unfunded needs.

"We know that we have a powerful logic on our side," Nye said. "And I believe that logic is a winning argument."

The group's first act, at Nye's suggestion, will be to send a joint letter to the Navy asking for a deeper explanation of the cost estimate as well as answers to questions about the strategic reasons for moving a carrier.

"Let's move forward now. That's what we've got to do," panel member and former U.S. Rep. Owen Pickett said.

Bill Bartel, (757) 446-2398, bill.bartel@pilotonline.com

 

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Taxpayer says use the harbor that's already built and paid for

While there are always "upgrades' need in Norfolk, as a Taxpayer, I say, no more spending on capabilities we already have. To move the carrier to FL means a rebuild in FL billed to the federal government (my taxes).
Besides the pure local benefit, to move the ship is to spend MORE money we don't have.

money going over seas

The war(s) have put much of the Navy's infrastructure (buildings) into a severe state of disrepair. If this can get money for our boys to have better infrastructure, then so be it, I don't care where it happens.

Lets not forget who these new buildings and piers will be for, and what they have done for us.

logic is wrong

The impact of the ship is the crew's salaries, their wives salaries, local spending, federal impact aid for their kids, contractors who supply services and products as well as the civilian workers who support them on the base.

Local support stays the same

Local base support will not step down when they can barely support the existing carriers. Just less buren, not loss. Navy wifes, if they are working, would help open more jobs up, and help with the empolyment rate in this area.

Cooking the numbers and facts

Quote “the ship provides 6,000 jobs locally and injects $425 million a year into the economy”. You’re joking right, that equals $71,000 per year for each sailor. How many sailors earning $71,000 per year do you know?
Also keep in mind that the carrier group is staying here, so how much training is really going to happen in Mayport. Servicing? Mayport is a base, not a shipyard, which again would happen in Hampton roads (just like all the other carriers).

The multiplier effect non-deficit spending

While I'm not a big Keynesian Economist, the 'Multiplier Effect" says that an injection of "non deficit" spending (the salaries) has a greater effect on the activity in the economy, than just the salaries themselves.
If you want to see EXAGGERATION of this concept, see "economic benefit to the state of Illinois, of moving Gitmo to Thomson IL.

Multiplier Effect, more impact than the exact amount of salaries

While I'm not a big Keynesian Economist, the 'Multiplier Effect" says that an injection of "non deficit" spending (the salaries) has a greater effect on the activity in the economy, than just the amount of the salaries themselves.
If you want to see EXAGGERATION of this concept, see "economic benefit to the state of Illinois, of moving Gitmo to Thomson IL.

The multiplier effect non-deficit spending

While I'm not a big Keynesian Economist, the 'Multiplier Effect" says that an injection of "non deficit" spending (the salaries) has a greater effect on the activity in the economy, than just the salaries themselves.
If you want to see EXAGGERATION of this concept, see "economic benefit to the state of Illinois, of moving Gitmo to Thomson IL.

That cost includes far more than labor.

A ship at the pier uses something like $25,000 a day in shore electricity. It buys provisions from local businesses. It's crew spends money on rent, mortgages, cars, daycare, etc.

not really

Provisions for a carrier are not local purchases. Electricity goes to Dominion, not local. Most of the sailers do not earn that much money, and they do not spend all of thier earnings.

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