Friday, May 23, 2014

Loathesome Cronyism Story of the Day

Story is here.  The Costa Concordia was a tragedy, but now it is an economic problem; and the local mafia Italian authorities want to rent-seek off of it.  The most cost-effective way to clean this problem up is the best solution for society at large. Forcing a "local" solution imposes what economists call "dead weight loss" on society.  Ultimately, we all pay that cost.  Tuscan politicians don't care - they see jobs.  Italian shipyards are struggling (except for Fincantieri) because they are Italian and come with all the sclerosis and inefficiency of the statist, union-dominated Italian model.

Local authorities attempt to force $275m demolition contract to be kept in Italy ahead of decisive Rome meeting next week, putting the $30m deal at risk from Boskalis for the use of the semi-submersible heavylift ship Dockwise Vanguard
The wreck of the Costa Concordia.
The wreck of the Costa Concordia.
The president of Tuscany has said he will ban the semi-submersible heavylift ship Dockwise Vanguard from approaching the Island of Giglio in a statement that seems set to make sure that the wreck of the Costa Concordia will be demolished in Italy.
Enrico Rossi says he is ready to physically prevent the Boskalis vessel, the largest of its type in the world, from entering the region to lift and transport the wreck because of environmental hazards. Lifting the stricken cruiseship onto the 117,000-ton-lift-capacity Dockwise Vanguard (built 2012) runs the risk of displacing thousands of tons of water, much of it polluted by the ship’s sewage and other contaminants.
I hope the parties contracted to demolish the Costa Concordia tell these pols to pound sand and that they can enjoy the sight of the rotting hull off their coast for as long as they wish, until they are prepared to honor the terms of the original contract...


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