Canadian Shipbuilders Slam Tug Leasing Proposal

By Mark Edward Nero

Canada’s shipbuilding industry is expressing concerns over recent reports that the Canadian government may lease foreign-built tugboats rather than build replacement tugs for the Royal Canadian Navy domestically.

“Canada’s shipbuilding and maritime industry is fully capable of supplying all of Canada’s shipbuilding needs,” Shipbuilding Association of Canada President Peter William Cairns said Feb. 16. “In the current economic climate, when the priority should be to put Canadians back to work, the Canadian government mustn’t use Canadian tax dollars to support foreign shipyards.”

Under the previous federal administration’s National Shipbuilding Procurement Strategy, Canada’s smaller shipyards were supposed to build small vessels, like tugboats. However, last November reports of escalating costs associated with the program resulted in the administration of the country’s newly elected Prime Minister, Justin Trudeau, saying that the entire strategy would be re-evaluated.

“While everyone agrees that major reforms are needed to ensure that the government gets the type and number of ships it needs at a reasonable price and on time, buying foreign-built ships does nothing to help build a strong Canadian maritime industry and puts Canadian jobs at risk,” said Cairns, a former vice admiral.

The Shipbuilding Association of Canada represents Canadian shipyards, marine equipment suppliers, commercial ship operators, ship designers, marine engineering firms and major marine defense industry suppliers and has been the voice of the Canadian marine industry for over 25 years.

Canadian Government Announces Shipbuilding Contracts

The Canadian government, as part of its National Shipbuilding Procurement Strategy, or NSPS, has agreed to about $15 million in preliminary contracts for joint support ships, the CCGS John G. Diefenbaker polar icebreaker and offshore fisheries science vessels.

The joint support ships will replace the Royal Canadian Navy’s auxiliary oiler replenishment vessels. The CCGS John G. Diefenbaker is a Canadian Coast Guard icebreaker being built by Seaspan Marine Corp. It’s expected to join the fleet in 2017, with delivery coinciding with the decommissioning of the Canadian Coast Guard’s heavy icebreaker, the CCGS Louis S. St-Laurent.

The offshore fisheries science vessels are intended to replace the CCGS Teleost, the Alfred Needler and the W.E. Ricker.

“The joint support ships will be a critical tool for achieving success in both international and domestic Canadian Armed Forces missions,” Kerry-Lynne D. Findlay, Associate Minister of National Defense and Member of Parliament for Delta–Richmond East, said in a statement. “We are committed to the complex work of rebuilding our Royal Canadian Navy’s surface fleet, creating high-quality marine sector jobs and to getting the job done right.”

As part of the NSPS, Vancouver Shipyards Co. will assist in the progression and assessment of the joint support ship design options; initiate a review of the polar icebreaker design and refine the offshore fisheries science vessel design and specifications; and produce construction plans and determine requirements for material, subcontractors and labor.

“The (Canadian) Government created the National Shipbuilding Procurement Strategy to support Canadian jobs and industries, while bolstering the Canadian economy by building ships right here in Canada,” Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, said in a statement. “Industry analysts have estimated that our shipbuilding strategy will contribute 15,000 jobs from coast to coast to coast and over $2 billion in annual economic benefits over the next 30 years.”