Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 25, 1995 TAG: 9501250056
SECTION: EDITORIAL PAGE: A-11 EDITION: METRO
SOURCE: JACK ROPER IV
DATELINE: LENGTH: Medium
Plus, Virginia's thousands of shipyard workers will be among the biggest winners if Virginians get the chance to vote on this waterway activity.
Thousands of shipyard workers in Tidewater and on the Peninsula are facing possible layoffs as our state's shipyards begin converting from primarily defense contracts to work for the private sector. These thousands of employees and their families recognize what riverboat gaming will bring to Virginia, and comprise one of the main reasons this idea has gained so much support in the past few years.
Total shipyard employment in Virginia has plummeted from 44,574 workers in 1991 to about 33,000. This does not include the thousands of suppliers across Virginia who rely on orders from shipyards for the bulk of their business.
It is estimated that for every shipyard job lost, another job is lost elsewhere in the state as a result.
The advent of riverboat gaming provides the best opportunity for shipyards to move back into commercial shipbuilding for the first time since 1974. Riverboat gaming brings with it the opportunity for Virginia's shipyards to build up to 14 new ships just for operation in Virginia. It is estimated that each riverboat brings with it 300 jobs for shipyard welders, fitters, boilermakers, riggers, machinists, electricians, subcontractors and others involved in the construction of each ship.
That's 1,500 shipyard jobs for Virginians if our state's shipyards can build five boats at a time.
U.S. Coast Guard regulations require that these floating vessels undergo repairs every two years. This continual source of work for Virginia shipyards will give the industry consistent activity that we can bank on in the future.
And The Wall Street Journal recently estimated that 90 riverboats - each costing $10 million to $15 million - will be needed nationwide by 1995 to meet the growing demand. The opportunity for companies like Norshipco, Newport News Shipbuilding and Colonna to compete not only for Virginia ships, but also for riverboat contracts nationwide, cannot afford to be passed up by the legislature.
The shipyard industry needs the opportunity to expand its private-industry market. Thousands of shipyard workers and their families depend on the maritime industry for support, and Virginia's economy is tied to the success of shipyards.
Virginia's shipyard industry has supported riverboat gaming in the past because it generates jobs for thousands of shipyard workers and their families.
But riverboat gaming also adds to Virginia's tourist trade and economic stability, and provides year-round jobs for thousands of Virginians.
Those who doubt the potential brought by riverboat gaming need only look to Illinois, where, according to the Illinois Riverboat Gaming Council, nine operators generated $200 million in tax revenue for the state in fiscal year 1994, 11,673 direct jobs, more than 17,000 indirect jobs, and total capital investment of $496 million.
Virginia's riverboat proponents called last year for fewer than 10 licenses, making riverboat gaming an addition to Virginia's tourist trade, not a major component.
Riverboat gaming would be limited to two- or three-hour excursions, after which visitors would be required to disembark. They would pay a fee to get on, a portion of which would go to the state, and a portion of which would go to the local government. If visitors wanted to ride again, they would have to stand in line again and pay an additional fee to reboard. This discourages compulsive behavior.
This facet of riverboat gaming also encourages visitors to go to other Virginia attractions, such as Colonial Williamsburg, Monticello or Kings Dominion.
Riverboat gaming will bring new visitors to our state and encourage them to visit the whole state, not just one location. Since the boat trips will be only a couple of hours in length, visitors would disembark, eat in an area restaurant and stay in an area hotel.
Members of Virginia's shipyard industry hope the Virginia legislature will allow Virginians the chance to vote on this issue next year. It is only fair that our citizens decide if they want to vote for the 24,000 jobs riverboat gaming will bring to the commonwealth; to vote for the additional $123 million in revenue for state and local governments; and to vote for Virginia's shipyards, the best in the world, which will benefit immensely from riverboat contracts. But the message to Virginians is clear - support riverboat gaming and the jobs and revenue it will provide.
Jack Roper IV is executive vice president of operations for Norshipco in Norfolk.
by CNB