To build or not to build in Canada ? that is the $1.5billion dollar question

Despite assurances from the Canadian government, local shipbuilders and unions fear that a combination of politics and timing will send the $1.5billion order for three navy supply ships to foreign yards. This would leave thousands of workers unemployed and create an embarrassing situation for the federal government.

The federal department of national defence stated in a document accompanying the announcement of the supply ship contract last week that “The government is committed to building these ships in Canada. This commitment will help build a strong economy, create high-quality jobs and encourage regional development.”

However, there are only two yards in Canada that are large enough to build the ships, i.e. Quebec-based Davie Maritime and Washington Marine Group yards in Vancouver, British Columbia. Davie, which has struggled financially in recent years, has yet to publicly show interest in building the supply ships. Washington Marine however, is preparing to bid on the project since it has the physical capacity here as well as the management and work force. The Vancouver-based shipbuilder has during the last four or five years built large ferries and ships for the Canadian Coast Guard.

The new ships, the first of which is scheduled to be commissioned in 2011, will replace the current 35-year-old navy supply ships.