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Cruise Ships Katrina Contracts Under Scrutiny

POSTED: 10:10 am EDT September 28, 2005

U.S. lawmakers are requesting documents from a $192-million deal that would allow Hurricane Katrina evacuees to be housed in three luxury cruise liners.

The deal is between the Federal Emergency Management Agency and Carnival Cruise Lines.

Republican Representative Marilyn Musgrave from Colorado plans to order a congressional investigation into the deal. Democratic U.S. Rep. Henry Waxman from California is requesting a copy of Carnival's contract and documentation supporting its cost from Homeland Security Secretary Michael Chertoff.

The Navy's Military Sealift Command negotiated the contract for FEMA. It promises Carnival $192 million for the use of three ships through February. It also agrees to reimburse Carnival $44 million for fuel and other costs.

FEMA could house about 7,100 people who lost their homes in Katrina on the three ships.

Having cruise ships serve as hurricane evacuee housing is not cruise liners' only alternative use.

Several cruise ships were used as floating hotels during Super Bowl 39. Jacksonville paid $11.5 million to rent the ships to accommodate some of the more than 100,000 people who came for the game.

Cruise ships also doubled as floating hotels at events such as the 1992 Barcelona Olympics and the 2004 Athens Olympics.


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