What a load of political crap. It's a gash along the hanger not a gash 10 feet below the waterline. If the dockyard can't fix that tear in a couple of weeks then they'd better reopen Yarrows because there are no more tradesmen left in H.M. Dockyard.
I've been in 3 collisions at sea and a grounding, with one of the collisions opening up a rather sizeable hole in the After Seamens Head. It was a nice feature being able to have a dump and watch the sunrise.
Other than a severely degraded watertight integrity rating

the thought of decommissioning the ship never came up. Hell had they decommissioned all the west coast ships that had run aground or been in collisions we'd have been defending the west coast with YAG's.
The real reason they want this thing written off is because it's been an albatross around the neck of the Pacific Fleet Staff since it was upgraded with the command and control package. It was the wrong 280 to be upgraded and the Huron, which was in better shape should have been the one to get that upgrade. But money became an issue and the Huron is now a lump of steel on the bottom of the ocean while the Algonquin in a lump of steel on the surface and guess which one is costing the Gov't a ton of money.
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I never understood why they did that to the Huron. Did she get damaged, somehow, during the first Gulf War when she was deployed to the Persian Gulf? If so, I don't remember hearing about it.