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Old April 15th, 2013, 07:09 PM
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Default Carnival to Repay Federal Government for Costs

This story from Bloomberg says Carnival has agreed to repay the Federal government for the rescus offorts on the Carnival Splendor and Carnival Triumph during the two cruise ship's separate power failures:

Carnival to Reimburse U.S. for Cruise Ship Incident Costs - Bloomberg

To quote:

Carnival Corp. (CCL), bowing to pressure from U.S. Senator Jay Rockefeller, said it will reimburse the U.S. for costs related to the breakdowns at sea of its Triumph and Splendor cruise ships.

“Although no agencies have requested remuneration, the company has made the decision to voluntarily provide reimbursement to the federal government,” Miami-based Carnival said in an e-mailed statement today.

“Although no agencies have requested renumeration, the company has made the decision to voluntarily provide reimbursement to the federal government,” the Miami-based Carnival Corp. said in an e-mailed statement today.

Rockefeller, a West Virginia Democrat who heads the Senate Committee on Commerce, Science and Transportation, asked Carnival Chairman and Chief Executive Officer Micky Arison in a March 14 letter whether the cruise line intended to reimburse the Coast Guard and Navy for expenses responding to an engine room fire on the Triumph and a similar incident on the Splendor in November 2010.

“I’m glad to see that Carnival owned up to the bare minimum of corporate responsibility by reimbursing federal taxpayers for these two incidents,” Rockefeller said in an e- mailed statement. “I am still committed to making sure the cruise industry as a whole pays its fair share in taxes, complies with strict safety standards, and holds the safety of its passengers above profits.”
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Old April 15th, 2013, 07:15 PM
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I think this is good news...step one, in, earning their reputation back.
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Old April 15th, 2013, 07:51 PM
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As I said in another post, this was a no-win situation for Carnival and it was a business decision to just pay for it and help make the story go away, plus take away a talking point for Rockefeller.

However, this could also set a precedent for cruise lines being expected to pay every time the Coast Guard does something for them, meaning the cruise lines would be treated differently than any other entity, boat, ship, person, that gets helped by the Coast Guard. U.S. Code states the Coast Guard cannot routinely charge for it's services other than specific items listed in the law. As Paul has pointed out previously, the Coast Guard isn't coming to the rescue of the ship, they are coming to the rescue of the passengers, which is largely an American group of taxpayers since these responses are for ships near U.S. territory.
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Old April 16th, 2013, 07:24 AM
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Shall local governments now bill for fire protection Mr. Nero?
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Old April 16th, 2013, 08:28 AM
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Most help from the Coast Guard is for American registered motor boats, sail boats and such. Most cruise lines are not registered in the U. S. so should not expect to be helped without some type of repayment. They help all without payment, but when all clears something should be done for their time and supplies and equipment that our taxes pay for.
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Old April 17th, 2013, 03:52 PM
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Sulruss - Let's not forget that the cruise line do contribute significantly to the US economy. Even though most cruise ships are foreign flagged the cruise lines carry thousands of American tourists, employee hundreds (if not thousands) of US citizens for shore based operations. Purchase millions of dollars in supplies from US vendors that are on and off loaded from ships by US dock workers.
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Old April 17th, 2013, 03:57 PM
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In my opinion, the cruise line took care of itself and the coast guard was assisting the American (and world) citizens onboard - according to the International Maritime Organization treaty this nation is a party to....

However - it is notable that BP was fined a pretty large amount for its oil spill. But in that case there were other US government agencies involved, and there was pretty much a case of proven negligence.

This case is different, but Carnival can always sue the maker of the engines (and don't be surprised if they do).
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Old April 18th, 2013, 11:09 AM
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It will be interesting to know which fund this money gets deposited into.
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