Mr. President, let me address a question to the distinguished chairman of the committee because I thought his remarks were very well done and answered a number of questions that have been put out in the discussion of this language in the…
Mr. President, let me address a question to the distinguished chairman of the committee because I thought his remarks were very well done and answered a number of questions that have been put out in the discussion of this language in the media. But I think it is important to clarify a few of those points.
The first point you are making is that this is not an additional or added expenditure. This will come out of the $2.7 billion that has already been requested to go into this shipbuilding recovery effort; is that correct?
Well, Mr. President, I thank the chairman for that clarification and for making that point. I might also ask this question: The Senator was a very capable young lawyer in our State years ago, president of the young lawyer's section, and I think he understands this sort of issue. Are you satisfied that this language is such that when and if there is an insurance recovery, those funds will come back to the Federal Government?
One final point that the Senator made that I think is a very important one. If we do not allow this provision to remain in this legislation, the net cost is going to be twice as much or more.
I believe the questions that have been posed have been answered correctly and appropriately by the chairman of the committee. This provision does not require additional funds. Payments will come out of funds that have already been earmarked for shipbuilding recovery. It is not going be a process where the shipbuilder will be relieved of trying to recover from the insurance company and, if they recover, they get to keep it. It is important to emphasize those points.
Let me confess to my colleagues, this is personal with me. I admit it. This is my hometown. I grew up in the shadow of this shipyard where 13,000 men and women make their livelihood, the biggest single employer in the States of Mississippi and Louisiana and at one point of Alabamians, a critical component of our national security. They build some of the most sophisticated ships in the world--destroyers, cruisers, LHAs, LHDs, LHARs. And that shipyard got hammered by hurricane Katrina. My dad was a pipefitter in that shipyard and was in the pipe department when he was killed in an automobile accident. I don't just see statistics and numbers; I see neighbors, classmates, men and women who believe in what they do and build quality product. They have been hit a grievous blow.
I understand the effort of the Senator from Oklahoma. On many similar occasions, if I didn't know all the facts or if I weren't as intimately involved, maybe I would be doing something similar to what he is. I understand. But I don't think he has all the facts. Maybe the clarification that my colleague from Mississippi made will help him.
The magnitude of what we were hit with is the most devastating thing we have ever seen. I won't bring out a lot of charts, but so you will get some idea of the destruction, here is a picture of the shipyard right after the hurricane. This whole shipyard had a direct hit. It is right on the mouth of the river. It got hammered. Five hundred men and women put their lives at risk that night trying to keep ships that were moored there from sinking. This is what we were dealt. Everything in that shipyard was under water. And by the way, just so you will get some idea, there in the background of this picture, those cranes are actually on the water. This photo was actually taken a distance inland, and you see the kind of destruction that was brought on us.
One of the things we did in the aftermath of the hurricane was to say: OK, let's rescue people. Let's get them the basics. Then we sat down and said: What is the order of what we ought to do? No. 1, we need to get our people back to work first. Because if we can get them back in their jobs, even if they don't have a home or a truck, that will begin the return to normalcy. They will have income. Then let's get our schools open. Then let's remove the debris. So we had an order. We have not done this haphazardly.
This provision was not stuck in the bill as an afterthought. It was carefully done. It was done after looking to see what the actual impact was going to be.
Several shipyards in my area--three of them, as a matter of fact-- owned by VT Halter had ``only'' 20 or 30 feet of water. But this shipyard was completely shut down. They made a valiant effort to feed people, get people back to work. Now the shipyard is back up to probably 11,000 people working there.
Talk about getting insurance. Let me put the shipyard in my place. My wife and I lost our home. It is totally gone. I had flood insurance. I also had a household policy. My insurance company said: You had no wind damage. We will pay you nothing. After that house sat there for 4 to 6 hours being hammered by winds of 140 miles an hour with gusts at 160 and 170, they came back and said: No, you didn't have any wind damage. It is not credible. So what am I going to do? I guess I could hock everything and rebuild on that site before I get any insurance, but the ``no payment'' or the ``slow payment'' of insurance companies is retarding the entire gulf coast. They are like me; I can't rebuild until I get some insurance proceeds.
They have the problem of how much can they put into this situation without getting the plant back up to operation. They have spent $550 million to clean up this shipyard, repair the facilities, repair the ships, and cover the cost of business interruption not caused by them. They have done their part. In fact, of that $550 million, less than one-third, about $175 million, has been recouped so far from the shipyard's insurance companies. They are going to continue to pursue these insurance claims. I hope they are going to get a good settlement and they will be able to go forward with business.
But this shipyard had a billion dollars of damage. This matter is about national security. It is about the Navy. It is about the world's best ships. It is about men and women who have busted it to get that shipyard back on line.
The same thing has happened in Louisiana, where a lot of work is done on the LPDs and where they went back to work before they had a bed to sleep in. So this provision is the right thing to do for Gulf Coast recovery and to help the Navy maintain the cost and schedules for its ships.
Let me give you a couple of examples of quotes after the hurricane. After the hurricane, Assistant Secretary of the Navy John Young recognized the significant impact of that storm on Navy shipyard building and national defense. In a letter to Navy and Defense Department leadership, Secretary Young wrote that:
The Navy [should] take an aggressive and proactive approach
in helping restore shipyards and returning workers to
shipbuilding tasks. Importantly, this approach has the short-
term benefit of contributing in a significant way to the
restoration of jobs and the economy in the Gulf Coast.
Yard restoration delays, loss of the skilled workforce, and
ship delivery delays will translate directly into creation in
future years of significant new prior year completion bills
on Navy shipbuilding programs.
That was very thoughtful. He was looking at it realistically in the immediate aftermath of this terrible storm. He recommended an action that was appropriate.
Some people say it wasn't in the President's budget. Presidents' budgets don't come down from heaven. They sometimes don't include everything that should be included or maybe it will include something that should not be included. We are a coequal branch of government. We do have a say in these issues. Sometimes we can help. When it came to getting Medicaid for the States affected, we had to take the lead. When it came to getting tax incentives for businesses and industry to create new jobs, we took the lead. When it came to finding a solution for the people who had a home that was not in a flood plain--after the hurricane all they had left was a slab, no insurance, no way to rebuild, and nobody had a solution--Senator Cochran came up with a solution and the administration signed it. They didn't do it; we did it in the Congress. We are from there. We are of this situation. We understand the problems.
We are trying to be reasonable. We told our colleagues months ago about what we would need to recover. We have not exceeded that estimate. We are way under that estimate. In some categories we are not even going back and saying we need more, even though we were somewhat shortchanged. We are trying hard to help the people who have been dealt a grievous blow. If we don't do this, the people in that shipyard will be hurt, the Navy will be
hurt, and it will cost us more. I want to make sure we get the insurance recovery.
I am a plaintiff for the first time in my life. I didn't want to do that. When I met with shipyard officials immediately after the hurricane, I went out there, and they were feeding the people on a ship that was moored. There was no electricity. I said: What about insurance? They said: We are fortunate. We had insurance. We even had a clause in there so we feel we are going to get a good recovery.
Well, it hasn't happened. So we can deal with this realistically and in a sensible and thoughtful way, the way Senator Cochran has outlined, and I think we will get through it. We will keep the jobs, build the ships, help the Navy, help the workers. And we won't lose money in the end. The disruption cost, if we don't do this, will be much greater than by going ahead and doing this right now.
I beg my colleagues, bear with us. I know you are beginning to say: How much is enough? I don't know in every instance, because we are still dealing with the magnitude of this disaster. But we are going to try to be honest with you. We are going to try to be thoughtful. I believe this language is crafted well. I am proud to be a part of the effort to defend the language that is in this legislation.
I yield the floor.
Mr. President, I call up amendment No. 3727.
Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.
Mr. President, I understand that this amendment has been cleared on both sides. I am pleased to join Senator Dodd, who is a cosponsor of this amendment.
Speaking of elections in Iraq, we also hope to have effective and fair and open elections in America.
In the Katrina area, we had significant damage to polling places and to voting machines. We lost all of them in many areas--in New Orleans, South Louisiana, and Mississippi.
This amendment would provide $30 million, through the Federal Elections Commission, for replacement of those losses.
I have checked on both sides of the aisle. I find no objection. I know that our managers have cleared it.
I, therefore, urge my colleagues to accept it. The amendment is certainly very worthwhile. It is needed, and it is needed right away in order to prepare for elections this fall.
I yield the floor so my colleague, Senator Dodd, can further elucidate.
I move to lay that motion on the table.
The motion to lay on the table was agreed to.
I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, is the amendment pending now and open for debate by Senator Coburn with regard to the Armed Forces Retirement Home?
If I may speak on this subject, I would plead with my colleague from Oklahoma to bear with me and work with us on this. I have a feeling this is something he would like to see done. I think he wants to make sure it is done in the right way. That is my goal, too. I would ask him to hear me out a minute. Let's see if we can work this out and perhaps not force this to a vote, take up the Senate's time, see if we can accommodate everybody's concerns.
Again, this is a place that I have direct personal familiarity with. I was there when it was a high ground on the Mississippi gulf coast beach area with 200-year-old oaks, a beautiful site. In the 1970s, through the good offices and efforts, probably of Senator Stennis, an 11-story retirement home for old sailors was built on that magnificent site in 1976. I was there when the ribbon was cut, and I was so proud of that facility. It was such an exciting thing to see the look in the eyes of those at that time sailors, but it has since become, of course, the Armed Forces Retirement Home. So it is a place of last resort for retirees from all the military branches. That is how far back my history goes with this facility.
In preparation for the storm, to the credit of the leaders there, 300 of the residents were temporarily evacuated to the Armed Forces home in Washington. The rest moved in with friends and family. The facility is capable of holding as many as 500, and there was always a waiting list. When Katrina came in, the entire first floor was flooded. The exterior of the building was blasted with 150-mile-an-hour winds. The entire electrical room located below ground level was flooded from floor to ceiling.
But from that time to this, I continue to hear from the residents saying: We want to come back; we want to come home. Nothing against the Washington, DC, area, but their family, quite often, what little family they have, lives in that area and they feel so comfortable there, they want to go back.
By the way, the Gulfport facility, unlike the one in Washington, didn't lose money. It was always a moneymaker. But the rooms they had were 90-square-foot rooms, and sometimes it was a retiree and his or her spouse in this very small room. I realized several years ago that whoever designed the building had made some mistakes in terms of the size and the options of those retirees.
I don't know if my colleagues are familiar with black mold, but it is bad stuff, and it comes quickly after a hurricane. You begin to see it on the walls, and it will make you sick. If you don't get it out of there, your building will be sick. You have to go in and basically take everything out but the two by fours. You have to take out the walls in the building--just everything--and replace it with new material, or you are going to have this black mold.
I have really been embarrassed by the way the Defense Department has handled the Gulfport facility in the aftermath of the hurricane. I understand we have had a lot of things on our minds, but basically they haven't done anything to mitigate further decay. They haven't gone in there and repaired that first floor. They have not gotten the ventilation system going to dehumidify the rest of the building. They have not done anything to repair the exterior facing. They have not removed the black mold. And to make matters worse, other then some volunteer work initially done by the Navy Seabees, they basically will not let anybody else come in to try to mitigate the decay that is occurring.
Remember, this hurricane was August of last year and that 11-story building stands there today basically like it was the day after the hurricane. They are letting it just sit there. They even initially refused to let the electric company come through the gate to help restore power. This has not been one of our better moments.
Then we started asking: What can we do? I want to do the right thing for our retired veterans at this site. There have been proposals: Let's just go in and put a Band-Aid on it, clean it minimally, move things off the basement and the first floor up to the second floor. There are questions about how feasible that is. Let's just patch it up. But the projection of the costs for even that is not good.
The second alternative is to go in and do a major overhaul and make these 90-square-foot rooms bigger--knock a hole in the wall and have two-room suites, really a major overhaul. The amount of money they are talking about, again, is very high.
Then, of course, the last one is to raze the building and build something more modern, safer in hurricanes, more pleasing to the retirees and everybody involved.
My attitude has been, OK, somebody who is an expert tell me what is the right solution. I can go with any of these alternatives, but let's make sure we do it responsibly and let's not have to do it again in 3 or 4 years. And, by the way, is there some way we can control the costs? A novel idea. So that is where we are.
I met with the Pentagon officials, and I think they are trying to come up with an alternative solution. $64.7 million in appropriated funds was previously provided to study options to rehouse evacuated veterans. Mr. President, $64 million to study options? Do we need that?
What I am saying and what Senator Cochran is saying is let's take the balance of that prior money that can be reprogrammed, and let's couple that with another, I believe, $176 million and go forward.
My colleague from Oklahoma has said he wants a facility put back in Gulfport. He wants to know what it is, and he wants to know what it is going to cost. Some of the numbers I have been hearing--I don't know if I can put my finger on it right here--are proposals of $589 million for renovating it or $389 million to rebuild it. Good gravy. That is real money. I don't like either one of those.
I believe we can repair it or we can come up with this modified proposal Senator Cochran has, about which we had some input, that would be a better, more aesthetically pleasing, more livable, cheaper facility to build.
Look at the report. The report makes it clear what the committee is talking about doing: combined with prior unobligated balances, taking the $176 million the committee has recommended, which shall be used to construct a new, multi-building, campus-style facility on the site occupied by the former Armed Forces Retirement Home.
I think Senator Cochran envisions more of a three-story, military- style retirement facility, perhaps with some surrounding dormitories.
I don't want to say how this is going to be done, but the hurricane was 8\1/2\ months ago, and we are still waiting. The costs are going up, by the way. Try to get a contractor down there now and see what it costs.
So we are trying to get this done. We are making recommendations because
we haven't gotten one from anybody else. But keep in mind, this modified plan makes more sense. I think it would please everybody, and it is a heck of a lot cheaper.
If my colleague from Oklahoma has something he would like to suggest we include--I am not chairman of the committee, I am not on the committee, but I am saying, this was not designed in perfection, but I think it is a positive move that deals with the realities of a pitiful situation.
I talked with the mayor of Gulfport, MS, recently, Mayor Brent Warr, and he told me a story that breaks your heart. He picked up on the streets of Gulfport, MS, one of the former residents who was walking along the side of the road after he had made his way from Washington, DC, to Gulfport. He got tired of waiting. He went home--this is his home--to a mold-infested, mildewed, improperly air-conditioned facility.
I don't think we should do this to these retirees and these veterans. I think we need to move ahead and do the right thing to get our veterans home to Gulfport. I will be glad to yield to my colleague from Oklahoma if he has some additional suggestions. I know this is an area about which he cares.
If the Senator will yield, Mr. President, taking my time back, look, I on occasion have thought of myself as a cheap hawk, too. When you see what I have seen--and the President of the United States and Senator after Senator and Congressman after Congressman looked these people in the eye and said: We are going to make you whole; we are not going to give you everything you want, but we are going to help you get back on your feet. And we said that to these old veterans, too.
I don't want to build a Taj Mahal. Unfortunately, quite often that is what we get when the Government does it. I would like to do it for less. I would like to have more for less. I would prefer the Pentagon had developed a plan 4 months ago and said let's do this. But here we sit on the sideline.
I can't speak for the chairman of the committee, but the Senator can see this is something I have paid attention to. It is something I care about. But I would be open to suggestions and working with the Senator to see if we can come up with a plan that the Pentagon, hopefully, would help us with that would do more and maybe do less. I am amenable to that.
I yield the floor.