American Shipbuilding Association

CONTACT:
Cynthia L. Brown
202-544-8170

(Washington, D.C.) – On Friday, June 23, 2006, Senators Susan Collins (R-ME); Jack Reed (D-RI); Trent Lott (R-MS); Jim Talent (R-MO); Olympia Snowe (R-ME); Christopher Dodd (D-CT); Lincoln Chafee (R-RI); Mike DeWine (R-OH); Lindsey Graham (R-SC); Daniel Akaka (D-HI), David Vitter (R-LA); Frank Lautenberg (D-NJ); Bill Nelson (D-FL); Joe Leiberman (D-CT); Maria Cantwell (D-WA), and; Mary Landrieu (D-LA) sent a letter to Secretary of Defense, Donald H. Rumseld, asking him to increase the Navy’s top line budget for the purpose of increasing the ship procurement budget in fiscal year 2008. The request comes on the heels of a letter sent by members of the House of Representatives Congressional Shipbuilding Caucus urging support for the Chief of Naval Operations (CNO), Adm. Michael C. Mullen, stated budget need of $14.1 Billion for shipbuilding in FY ’08.

The letter asked the Secretary of Defense to increase the Navy’s budget from $8.9 billion to $14.1 billion to meet national security requirements that must be met by the Navy. Citing an overall Department of Defense (DOD) budget increase of over 50% since 2001, the Senators explicitly note that the ship procurement account has shrunk approximately 17% over the same time frame, resulting in a contraction of the Navy from 341 ships in 2001 to 280 today.

The Senators emphasize the necessity for a large blue water Navy capable of power projection to protect United States security interests across the globe. This emphasis on power projection follows the release of DOD reports quantifying the rapid expansion of China’s Navy and estimates that China’s Navy will be larger than the U.S. Navy by 2015. The Senate acknowledges that U.S. naval ships are the most capable ships on the ocean but note that no ship can be in two places at one time. The joint letter --- sponsored by Senators Collins and Reed --- underscores the Senators convictions that the time to reverse the decline is now.

The American Shipbuilding Association is the national trade association of the shipbuilding industry. ASA members include the nation’s six largest shipyards and more than 70 companies engaged in the manufacture of ship systems and components. A copy of the letter is attached

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Dear Mr. Secretary:

As you prepare the fiscal year 2008 budget for the Department of Defense, we write to urge that you increase the Navy’s top line allocation in order to provide the necessary resources of $14 billion for new naval ship procurement.

Admiral Mullen, the Chief of Naval Operations, has submitted a 313-ship plan to Congress, and the 2006 Quadrennial Defense Review endorsed building a larger fleet. According to the CNO, approximately $14 billion is needed annually to finance the ship construction outlined in the Navy’s long-term plan. While the top line budget of the Department of Defense has increased over 50 percent since the terrorist attacks of September 11th, the ship procurement budget has been reduced by 17 percent, shrinking our naval fleet from 341 ships in 2001 to 280 ships today. Capability is important to be sure, but numbers also matter because of the need for continued global presence.

Our national security requires that a high priority be placed upon providing sustained funding to maintain and build up our naval fleet to counter existing and emerging threats. DoD’s own reports have highlighted the rapid expansion of China’s blue water Navy. Some experts have projected that China’s Navy will outnumber the U.S. fleet by 2015—less than one decade from now. Intelligence reports have also underscored the fact that China is rapidly improving the capability of the naval ships it is building. A robust U.S. fleet, and the funding required to build and maintain that force, is essential to our nation’s security.

Your support of the budget requirements outlined by our Navy leadership is critical if the decline of our fleet is to be reversed. Thank you for your leadership in this important area to strengthen our homeland and national security.