Contract Is No Carnival For Taxpayers
Contract Is No Carnival For Taxpayers
After Katrina, Bush told the nation, “Our first commitment is to meet the immediate needs of those who had to flee their homes and leave all their possessions behind.”
FEMA’s solution? House evacuees on three Carnival cruise ships (the Ecstacy, the Holiday, and the Sensation) in a $236 million contract criticized by lawmakers for its exorbitant cost and impracticality.
Carnival’s main defense has been that the contract is profit-neutral because it has had to cancel reservations for regular passengers.
Rep. Henry Waxman (D-CA) yesterday sent a letter to DHS Secretary Chertoff, with new evidence calling into question Carnival’s assertion:
This financial data reveals that the federal government appears to be paying Carnival significantly more under the federal contract than the ships earned on their own, while Carnival’s expenses appear to be significantly less under the federal contract than the ships normally incur. The net result is a contract that looks lucrative for Carnival but exceptionally expensive for the taxpayer.
Carnival’s 2002 financial review reveals that its revenue was just $150 million for six months, meaning that the $236 million contract — even accounting for inflation — is significantly more than the company would ordinarily make. Moreover, the ships have 800 fewer employees than usual, creating more profits for the cruise line in salaries, accomodations, and meal costs it won’t have to pay.
Chertoff is a self-proclaimed “not a hurricane expert” and evidently, he is not a contract expert either.
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Do they still offer shuffleboard?
October 21st, 2005 at 9:48 amWhat’s the big deal? Evacuees should be happy to get a free cruise!
October 21st, 2005 at 9:53 amGood Morning America, how are ya.? While they are looking for budget cuts think this should be number one on the chopping block. Just how many people are on these ships.? ……Blessings
October 21st, 2005 at 9:54 amAND Republicans are trying to cut $50 billion from the budget (and mandatory spending), yet Chertoff is wasting all this money. Priorities, right.
October 21st, 2005 at 9:55 am800 fewer employees and a heck of a lot less fuel being burned!
October 21st, 2005 at 9:56 amLOTS less fuel, these things burn tons of fuel each hour between them.
October 21st, 2005 at 9:58 amIsn’t Carnival one of those companies that put its official headquarters outside the US to get out of paying taxes? I guess Jackoff isn’t an expert on that either.
October 21st, 2005 at 10:04 amRepublicans are evil. Visit my website. Buy my stuff. http://tinyurl/iselltshirts
October 21st, 2005 at 10:06 amOff shore headquarters, taxpayer funded profits, in the wake of news of a $50 billion cut in programs for the needy. Every one of these guys is incompetent, negligent of their responsibilities to the taxpayers, and disgusting as human beings.
October 21st, 2005 at 10:24 amWho owns Carnival?
October 21st, 2005 at 10:31 amMight be interesting to know.
Carnival has donated $500K to both Republicans and Democrats, evidently.
October 21st, 2005 at 10:36 amCorrection: Meant to say: The Miami company or its executives have contributed more than $200,000 each to both the Republican and Democratic parties since 2000.
October 21st, 2005 at 10:37 amEqual opportunity bribery, huh?
Sounds so old school these days.
How did DeLay let THAT happen?
I still wonder:
October 21st, 2005 at 10:45 am1) Who are the owners?
2) Who are major stakeholders if public?
#2, kim – surely you are being facetious, right? or are you “happy” to PAY for those “free” cruises…which are probably not going anywhere anyway….
October 21st, 2005 at 10:47 amyea…who DOES own carnival? #12, latern1 link says “miami based”… hmmm…interesting….
Major Holders Get Major Holders for:
BREAKDOWN
% of Shares Held by All Insider and 5% Owners: 24%
% of Shares Held by Institutional & Mutual Fund Owners: NaN
% of Float Held by Institutional & Mutual Fund Owners: NaN
Number of Institutions Holding Shares: 2
MAJOR DIRECT HOLDERS (FORMS 3 & 4)
October 21st, 2005 at 10:49 amHolder Shares Reported
ETERNITY FOUR TRUST 63,099,825 10-Aug-05
TED ARISON 1992 IRREVOCABLE TRUST FOR LIN NO 2 43,452,871 4-Aug-04
ARISON, TED 92 IRREV TR FOR LIN NO 2 43,145,830 31-Aug-04
ARTSFARE 1992 IRREVOCABLE TRUST 4,145,830 29-Apr-05
NICKEL 2003 GRAT 3,622,922 5-Nov-04
i think #2 was a spoof of momma bush
October 21st, 2005 at 10:52 amthe whole issue of giving money to both parties kinda refutes the notion that corporate political donations is an expression of free speech right? i mean, if you have an opinion and you want to give money to people who will push that agenda then you should give money just to them! if, on the other hand, you are just buying influence then you will give money to anyone and everyone.
October 21st, 2005 at 10:54 amWell Andrew,
/sarcasm on
October 21st, 2005 at 10:57 amYou know it just depends what one is arguing AT THE TIME.
Everything MAY change the next time one argues something.
/sarcasm off
When an administration exhibits nothing but contempt for government, you get what you voted for.
We should expect this kind of mismanagement in every enterprise they undertake.
A closer look at the Administration’s contempt for federal programs: “Mismanagement by Objective.”
October 21st, 2005 at 11:01 amthe GOP have taken this country for a cruise in the last couple years… nothing surprising about this…
this seems appropriate:
http://www.bussongs.com/songs/love_boat_tv_theme.php
October 21st, 2005 at 11:12 amI don’t profess to know if this contract really is revenue neutral for Carnival or not, but I do know that the entire industry has significantly increased revenues and profits since 2002 – meaning the 3 year old comparison is completely invalid. Lets look at more current numbers and then make valid judgements.
October 21st, 2005 at 11:16 amIt is also interesting that we refused a humanitarian offer from Greece to supply us with 2 cruise ships free of charge:
The senators also asked Chertoff to explain why the U.S. didn’t accept Greece’s offer to send two ships for free.
http://www.usatoday.com/travel/news/2005-09-30-carnival-katrina_x.htm
October 21st, 2005 at 11:34 amStuff You Should Read
Katrina Cruise Ship Contract Makes Carnival Rich
October 21st, 2005 at 1:06 pmThose evil republicans are housing the homeless on cruise ships!!!! I bet they’re owned by Haliburton…..
October 21st, 2005 at 1:22 pmSo this is a good idea? If they actually bought a cruise it would be just under $600 per person. The rate they charge YOU for them just sitting there is twice the amount.
Again, good idea?
October 21st, 2005 at 1:40 pmHaliburton doesn’t have ships or YES it would be their contract.
October 21st, 2005 at 1:41 pmWhat? The government is wasting our money? Stop the presses! This has never happened before!
Let’s face it people, Government = Waste
We need less government, not more.
October 21st, 2005 at 1:51 pmCC,
What an idiotic conclusion. Had it ever dawned on you that ‘cutting the waste’ might be an option? Of course it hadn’t!
October 21st, 2005 at 1:58 pmThis is just a stupid contract, it will $1,275 a week per evacuee. For that price they could take the first months cost, FLY all of them first class to some city that had housing and pay for actual housing!
That’s just an insanely incompetent decision! Just like ALL of the Katrina mismanagement.
October 21st, 2005 at 2:01 pmCarnival Cruise Lines is owned by Carnival Corp. They are incorporated in Panama.
Micky Arison of Miami, Florida is the principal stockholder.
They used to be P&O Princess Lines.
They are headquartered in Miami and London. There is a spinoff corporation but I forgot the name. It was incorporated in Wales.
They control all of the cruise lines. Their net profit is about 2 billion a year
October 21st, 2005 at 3:23 pmBush and this Republican Congress will go down in history as the most wasteful, corrupt, dissembling, and incompetent, governing body since the birth of the United States.
And we have another three years of these thieves using taxpaypayer’s money to pad their cronies’ bottom line…
October 21st, 2005 at 3:51 pmA Panamanian company which bragged in it’s stock portfolio about it’s exceedingly low federal tax burden. They made $1.9 billion in pretax income but paid just 3 million in federal taxes. They are exempt from the corporate income tax but reap the rewards of nicely dredged port facilities. I don’t think they paid any Florida income tax either in spite of having about 4,200 Floridians working on thier ships.
October 21st, 2005 at 3:57 pmI was to sail on Carnival’s Sensation on 9/5. They called on 9/3 and cancelled our cruise. We were sailing at a deep discount – cheap fares had been offered because in the words of Alexis of Carnival “people are canceling en masse” (presumably because Katrina was in the gulf). Following the cancellation, Carnival sent my money back and said it would not allow me to cruise at a future date at the discounted price. They implied the ships had been pressed into service by FEMA. They said it was a natural disaster. They said it was an act of God. They accused me of trying to take advantage of the situation.
They failed to mention that they had elected to respond to an RFP from Sealift Command. They failed to mention that they had named their own price. They failed to mention that they would profit by scores of millions of dollars. Act of God? Try act of management! And THEY accused ME of trying to take advantage of the situation?
It amazes me that most of the news reports question FEMA’s intelligence without seriously questioning Carnival’s motives. There’s no question that FEMA was swindled. But for that to happen there had to be a swindler!
October 21st, 2005 at 6:24 pmTGIF Part Two
Just the fun and games for tonight. Enjoy.
October 21st, 2005 at 9:25 pmContract Is No Carnival For Taxpayers
When I first saw that Carnival was taking ships to New Orleans to house people I thought it was a brilliant idea. It solves the problem of housing, keeps people close to where they use to live, which would allow…
October 22nd, 2005 at 9:41 amThhis is another prime example of cronyism in our government.
Micky Arison has very, very close ties to bushlandia and to Jeb Bush, hence he was awarded a very lucrative contract.
Nothing more, nothing less, except screw the taxpayer whenever possible and make the rich richer.
October 22nd, 2005 at 10:33 am#2
“What’s the big deal? Evacuees should be happy to get a free cruise!”
As stated by the evacuees, the last thing they want to see is more water.
#28
“We need less government, not more.”
Tell that to Bush and friends. They are responsible for the largest government in history. Very anti-conservative.
October 22nd, 2005 at 3:27 pmPablo- You’re just jealous because you didn’t get a cruise for losing everything you own. Besides, screwing the taxpayers and making the rich richer has been a lefty tradition for decades….
October 24th, 2005 at 12:32 pmTurk has spoken…..
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January 12th, 2007 at 1:24 amygmzi
January 23rd, 2007 at 12:35 pm