Page 20: of Maritime Reporter Magazine (February 1986)

Editorial (continued) services per dollar, the U.S. tax- payer would be better served. 7) The essential shipbuilding mo- bilization base, which has proven invaluable in past emergencies and conflicts, would be maintained at least cost to the taxpayer and at peak efficiency for the Navy.

Other Considerations

Privatization would, of course, re- quire certain guarantees and agree- ments, between government and in- dustry to cover sensitive areas.

These would include: 1) The means whereby legal dis- putes over excess costs, such as occurred in the 1970s, could be minimized and quickly adjudi- cated. 2) Assurance that the Navy's needs would have priority over com- mercial work. 3) The negotiation of labor and management agreements that would be compatible with national securi- ty and defense requirements.

Privatization is an option that should be carefully considered and acted upon. Such an action need not be disruptive to the U.S. shipbuild- ing industry which, as a vital de- fense resource, must be allowed to meet its commitments without con- straint or interruption. A well- planned, phased approach to the effort, combined with positive gov- ernment/industry cooperation, could certainly overcome potential difficulties and, at the same time, minimize job losses, maintain Navy delivery and work completion schedules and result in a more cost effective operation, thereby creating a stronger defense posture. • 300- 250" 200- 150 100- 50- • CUMULATIVE TOTAL 1980 1981 1982 1983 1984

Source: Private - BIS

Public - \AVSEA i • PUBLIC j •

FY 1980 1981

Source: KAVSEA/HARAD 1982 1983 1984 | 1 Atlantic

H Gulf

I | Pacific m Great Lakes

Fig. 4 U.S. SHIPBUILDING & SHIP REPAIR INDUSTRY EMPLOYMENT:

Public and Private Shipyards (31 December Totals)

Fig. 6 THE ACTIVE U.S. SHIPBUILDING BASE:

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