Rockefeller noodges Carnival into paying up
Bowing to pressure from US Senator Jay Rockefeller, Carnival Corp. reversed its earlier stance and agreed yesterday to reimburse the cash-strapped federal government for the cost of rescuing its passengers on two foundering cruise ships.
The Triumph had to be towed to Mobile, Alabama, after power problems left it adrift in the Gulf of Mexico for five days in February; the Splendor was disabled by an engine fire in 2010.
Carnival emphasized that the decision to pay up was completely voluntary and that no agency had actually requested payment.
But Sen. Rockefeller, chair of the Senate Committee on Commerce, Science, and Transportation, had sent the company a letter in March asking about its intention to reimburse taxpayers, and he has been vocal about the issue since then. Even as the company agreed to pay, he said he is "glad to see that Carnival owned up to the bare minimum of corporate responsibility."
There are millions of dollars at stake. Sen. Rockefeller said the Coast Guard spent $780,000 on the Triumph incident and $1.54 million on the Splendor, and the Navy spent $1.88 million on the Splendor.
Rockefeller is "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," he said.
By Cheryl Rosen
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