THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, August 3, 1996 TAG: 9608030316
SECTION: FRONT PAGE: A8 EDITION: FINAL
SOURCE: NEWPORT NEWS DAILY PRESS
DATELINE: WASHINGTON LENGTH: 42 lines
They had not expected the fight, but Newport News Shipbuilding and its allies in Congress won it anyway.
With the help of local lawmakers, the yard once again has secured the blessing of Congress to remain in the submarine-construction business - something lawmakers thought had been settled last year.
The House late Thursday, on a 285-132 vote, approved a $265.6 billion defense authorization bill for 1997 that would make a $700 million down payment on an attack submarine the yard will build in 1999.
The Senate was expected to approve the same bill late Friday or early today before leaving town for a monthlong recess.
``Obviously we're very pleased, and we appreciate all the support we received,'' yard spokesman Mike Hatfield said.
``It had to be done, and we got it done,'' said Rep. Herbert H. Bateman, R-Newport News.
Under the bill, Newport News will build two subs, one in 1999 and one in 2001. Its rival, Electric Boat of Groton, Conn., will build subs in 1998 and 2000.
Starting around 2002, the two yards will compete for the contracts, with the work going to the lowest bidder.
Though it prevailed in a crucial test of support, the yard still has a couple of hurdles to clear before it can bank any sub money.
It is unclear what President Clinton will do with the authorization bill.
The administration has raised several objections to the bill. While Republican lawmakers have conceded some key points, the bill remains about $10 billion higher than Clinton wanted.
Also, Congress and Clinton still must approve a defense appropriations bill, which funds the programs laid out in the authorization bill.
Senate and House negotiators are still working out differences between their appropriations measures and are not expected to produce a compromise until September at the earliest, when Congress returns from its recess.
KEYWORDS: NEWPORT NEWS SHIPYARD SUBMARINE CONSTRUCTION by CNB