To me it represents some bonkers right wing nationalist newspaper going on a campaign about (a) wasting money or (b) leaving the country defenseless (depending on your country you can insert the paper of choice but in the UK this has to be the Daily Mail).
Except this never happened anywhere. The British press was in fact quite vocal in its criticism of the government retaining wood in an age of iron ships. This is evident in the famous 1863 editorial when the brand-new 120-gun screw ship-of-the-line
HMS Victoria sailed to Malta as flagship of the Mediterranean Station. The politically influential London
Times commented acidly that in the event of a war with France,
Victoria's admiral was faced with the choice of "going into port or going to the bottom". The French Navy at that time possessed about five ironclads.
The reality was that countries which aspired to having first-rate navies could not dump their major wooden warships fast enough and this is why I see the penalty as entirely unreasonable.
-C