| Invest in American Shipbuilding
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| The United States needs a larger,
more capable power projection Navy to defend America’s security and
economic interests. |
| The
United States Naval fleet is at a 91-year low of 279 ships. Since 2001,
the Department of Defense budget has increased by 80%, but the Navy’s
new construction budget has increased only 12%. The Navy fleet and our
skilled shipbuilding labor force will continue to decline if
shipbuilding budgets are not increased to provide for 12 new naval ships
a year. This rate will provide the level of work needed to reduce the
unit cost of ships, and stop industry wide job losses. |
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| The Department of Defense is engaging
in the de facto purchase, via long term lease, of foreign-built ships. |
| The Budget Enforcement Act of 1990
placed a limit on the duration of leasing contracts for capital
equipment. However, DOD has been circumventing these restrictions by
entering lease contracts of 59-months, one month shy of Budget
Enforcement Act scoring requirements. The House included language in the
report accompanying the FY 2008 Defense Appropriations expressing
concern over the military’s reliance on the leasing of capital assets
and its harm on the U.S. shipbuilding industrial base. |
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| Replacement of our nation’s aging
Jones Act fleet is critical to America’s economic and security needs. |
| The Title XI Ship Loan
Guarantee Program provides small and medium sized ship owners with
affordable finance rates at reasonable terms to allow ship owners to
replace and expand their fleet. Commercial shipbuilding creates and
sustains good jobs in U.S. shipyards, strengthens and defense industrial
base, and provides modern sealift capability for national security.
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| Status: The Armed Services and
Appropriations Committees in the House and Senate have not yet
considered their annual legislation. |
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| Boilermakers’ Message to
Senators and Representatives: |
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Increase the Navy’s FY10
Ship Procurement Budget to recapitalize the fleet to a 313-ship
battle force.
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Support an amendment to the FY10 Defense
Appropriations bill to prohibit funding for new leases of
foreign-built ships that extend longer than 24 months.
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Support an FY10 authorization and appropriation of
$60 million for the Title XI Ship Loan Guarantee Program.
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| Back to Politics Page |
| Information provided by:
International Brotherhood of Boilermakers · Department of Government
Affairs 703-560-1493 office ·
www.boilermakers.org |
