Ottawa renewing subsidy for Canadian-built ships

The Canadian federal government is keeping afloat a subsidy program for buyers of Canadian-built ships. Foreign Affairs Minister Peter MacKay and Industry Minister Maxime Bernier said Thursday that Ottawa will renew and add $50 million over three years to the Structured Financing Facility, which reduces the interest cost of loans used to buy Canadian-built ships.

“Canada is a maritime nation, and a viable shipbuilding industry supports our security and our sovereignty,” MacKay stated. Thursday’s statement noted that the government is also proceeding with more than $3 billion in ship procurement, including the $2.9-billion Joint Support Ship program and $324 million for six new Coast Guard vessels.

The government “will also examine ways to address one of the key challenges faced by Canada’s shipbuilding sector – fluctuations in demand, with a view to reducing the traditional boom-and-bust cycle experienced by the industry.”