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Gov. Lynch: New State Report Shows Defense Dept. Analysis of the Economic Impact of Closing the Shipyard is Misleading

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Location: Concord, NH


Gov. Lynch: New State Report Shows Defense Dept. Analysis of the Economic Impact of Closing the Shipyard is Misleading

Urges Citizens to Join Save the Shipyard Rally Tomorrow

As he urged citizens to participate in the Save the Shipyard Rally on Wednesday, Gov. John Lynch today released a new state report that shows the Defense Department analysis of the economic impact of closing the Portsmouth Naval Shipyard is misleading.

"The Department of Defense ignored the military value, the cost-effectiveness, and the proven record of results of the Portsmouth Naval Shipyard and its workers when it recommended closing it. This report shows that it also distorted the true economic impact of closing the Shipyard when it prepared its recommendation," Gov. Lynch said.

"Along with Governor Baldacci and the New Hampshire and Maine Congressional Delegations, I will work to present the facts to the members of the Base Realignment and Closure Commission who are visiting the Shipyard tomorrow," Gov. Lynch said. "I encourage New Hampshire citizens to show their support for the Shipyard by participating in the rally during the BRAC commission's visit tomorrow."

The report was prepared by the Economic and Labor Market Information Bureau of the New Hampshire Department of Employment Security. The bureau's director, George Nazer, is a member of Gov. Lynch's Save the Shipyard Advisory Team.

In analyzing the economic impact on the region, the Department of Defense looked at the Portland-South Portland-Biddeford, Maine county-based metropolitan area - an area that does not represent the commuting patterns of the shipyard and does not include New Hampshire.

Of the three Maine counties - Cumberland, Sagadahoc and York - included in the DOD analysis, only one, York, had a significant number of Shipyard workers. Cumberland County contains Portland, Maine's largest city.

"By spreading its analysis over this large area, and excluding the impact on New Hampshire, the Department of Defense distorts and minimizes the true economic impact on communities in the Shipyard area." Nazer said.

The actual number of direct and indirect jobs lost if the Shipyard closed equals 7.3 percent of jobs in the Shipyard region, according to the report. The Shipyard's closure could raise Maine's unemployment rate by 0.7 percent and New Hampshire's by 0.5 percent.

If the Shipyard closed, nearly 3 percent of Rollinsford, 2.5 percent of Somersworth, and 2.5 percent of Farmington, 2.2 percent of Newington and 2 percent of Rochester residents would lose their jobs, according to the report.

The rally on behalf of saving the yard will take place at 10 a.m. in downtown Kittery, near Gate #1.

The full report is available online at http://www.nhes.state.nh.us/elmi/impact.htm.

http://www.nh.gov/governor/news/053105DefenseDept.Analysis.htm

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