Procurement minister defends shipbuilding plan amid challenges
Canada's procurement minister is defending the federal government's nearly $100-billion plan to build new coast guard and naval ships as delays, cost overruns and other emerging difficulties raise fresh questions about its long-term viability and worth.
Procurement Minister Filomena Tassi voiced support for the shipbuilding plan at a major arms industry conference on Thursday, one day after a Halifax shipyard publicly warned Canada's new warship fleet could be delayed without additional federal funding.
In a breakfast address to hundreds of industry representatives, military officers and government officials, Tassi said the strategy is starting to deliver much-needed ships to the Royal Canadian Navy and Canadian Coast Guard while creating thousands of jobs.
"This past year, we have had setbacks as all industries have with the fallout from the pandemic," Tassi added. "Despite this, we continue to make progress."
Among the ships so far delivered are the first two Arctic patrol vessels for the navy and three fishery science vessels for the coast guard.
The plan is also supporting about 17,000 jobs across Canada's marine industry, according to the government, and resulted in about $1.8 billion per year in economic activity since 2012.
Yet virtually every remaining vessel is currently behind schedule while the overall cost of the program has skyrocketed since it was launched in earnest more than a decade ago -- with even more delays and cost overruns looming.
The minister did not mention Irving Shipbuilding's request for additional federal funds in her speech, but instead praised the Halifax shipyard and Vancouver-based Seaspan Shipyards for pressing ahead despite the pandemic and other challenges.
She also surprised many by expressing confidence in the government's talks with Chantier Davie, which have dragged on for more than two years after the Quebec-based shipyard was shortlisted in late 2019 to become the shipbuilding program's third yard.
"We are making progress on this complex, multi-step process," she said. "Chantier Davie has proven a valuable partner in the past, and we know they will continue to be an important part of the shipbuilding and ship repair landscape in this country."
In an interview after her speech, Tassi said the government is doing its due diligence to ensure that Davie can meet its requirements and deliver the seven new coast guard icebreakers that it will be tasked with building.
"We don't want to have a situation where we rush through something, we don't get it right, we expedite for the purpose of expediting, but not being accountable to what is actually required," she said.
"At the end of the day, success means that we do take the time to ensure that all the qualifications are met. Chantier Davie has been fantastic in that dialogue back and forth. We are making significant headway. We have worked very closely together."
Officials previously said they expected a final deal with Davie by the end of 2020, but that didn't happen. The last official update last summer said the government had revised that schedule to the end of 2021, a deadline it also missed.
The delay is fuelling fears about the Canadian Coast Guard's aging fleet, which has lost several ships in recent years and whose icebreaker fleet is on its last legs.
Tassi also confirmed the government is in talks with Irving Shipbuilding about its request for federal funds to upgrade its shipyard, but would not provide further details.
Irving Shipbuilding president Kevin Mooney on Wednesday warned the current plan to start cutting steel on the navy's new warship fleet in mid-2024 is contingent on the company getting additional funding by early next year.
"I can't get into details in terms of the discussions that are taking place," Tassi said. "But the discussions have been ongoing. We are monitoring the situation very closely."
Irving Shipbuilding's warning is only the latest in a series of challenges to the shipbuilding plan, which was already facing challenges even before the COVID-19 pandemic and skyrocketing inflation threatened additional costs and delays.
Federal bureaucrats in April told a parliamentary committee that more cost overruns and delays were on the horizon for the delivery as "significant challenges" battered the shipbuilding program.
Tassi acknowledged those challenges in the interview, but insisted the plan is nonetheless delivering on its promise with new Canadian-built ships already in the water and more on the way, all while creating jobs and economic spinoffs.
"Being able to walk on the floor of these shipyards and talk to the workers, see the innovation, see the pride and see what's produced at the end of the day, is something I want Canadians to be able to feel," she said.
"It's just something that we can take pride in."
This report by The Canadian Press was first published June 2, 2022.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
'Happy tears' of victim's sister after prison attack on serial killer Robert Pickton
Cynthia Cardinal said she was 'overwhelmed' with happiness when she received a text message on Monday with the news that serial killer Robert Pickton, who murdered her sister, was attacked in prison. She called it 'karma.'
Thunderstorms with tornado risk in some areas in Ontario, snow elsewhere in Canada
Canadians can expect a mixed bag of weather, with forecasts warning of thunderstorms, heavy rain and snow in some areas across western Canada.
Montreal photographer captures dramatic Canada goose vs. fox fight on video
A Montreal photographer captured the moment a Canada goose defended itself from a fox at the Botanical Garden.
Fish oil supplements may raise risk of stroke, heart issues, study suggests
As an excellent source of heart-healthy omega-3 fatty acids, daily fish oil supplements are a popular way to keep the risk of cardiovascular disease at bay.
opinion Joe Biden uses bully pulpit to bully Donald Trump on debates
Donald Trump had spent weeks needling U.S. President Joe Biden for his refusal to commit to a debate. But Washington political columnist Eric Ham describes how in one fell swoop, Biden ingeniously stole the issue from the Trump campaign and made it his own.
'All hell broke loose': Passengers on Singapore Airlines flight describe nightmare at 37,000 feet
Passengers on a Singapore Airlines flight hit by severe turbulence on Tuesday described a sudden, dramatic drop as 'all hell broke loose' on board the Boeing airliner carrying 229 passengers and crew.
3 people dead after stabbing in Plateau-Mont-Royal: Montreal police
Three people are dead after they were stabbed in Montreal's Plateau-Mont-Royal borough Tuesday evening, police say.
Cybercriminals threaten to leak London Drugs data if it doesn't pay $25M ransom
Last month’s cyberattack on pharmacy and retail chain London Drugs that forced the closure of all its stores in Western Canada was orchestrated by a 'sophisticated group of global cybercriminals' who are demanding a ransom—and say they’ll leak the company’s data if it doesn’t pay up.
How to remove ticks and what to know about these bloodsuckers
Ticks are parasitic bloodsuckers, capable of spreading deadly disease, and they’re becoming increasingly common. Here’s what you need to know about them.
Local Spotlight
Montreal photographer captures dramatic Canada goose vs. fox fight on video
A Montreal photographer captured the moment a Canada goose defended itself from a fox at the Botanical Garden.
Beyond books: Halifax libraries lends instruments, sports equipment, memory kits and more
Public libraries in Atlantic Canada are now lending a broader range of items.
'A special bird': The unbreakable bond between purple martins and humans
Flashes of purple darting across the sky mixed with the serenading sound of songs will be noticed more with spring in full force in Manitoba.
7-year-old Pokémon prodigy heading to Hawaii for world championship tournament
Catching 'em all with impressive speed, a 7-year-old boy from Windsor, Ont. who only started his competitive Pokémon journey seven months ago has already levelled up to compete at a world championship level.
VIDEO Born without front legs, this dog has been inspiring the world for 3 years: Dresden farm owner
A sanctuary dedicated to animals with disabilities is celebrating the third birthday of one of its most popular residents.
From DVDs to rehearsals: Halifax theatre company transforms Video Difference building into arts hub
2b Theatre recently moved into the old Video Difference building, seeking to transform it into an artistic hub, meeting space, and temporary housing unit for visiting performers in Halifax.
'Another pair of eyes watching over me:' How a B.C. woman's service dog saved her from drowning
A B.C. woman says her service dog pulled her from a lake moments before she had a seizure, saving her life.
Starbucks fan on decades-long journey to visit every store in the world
A Starbucks fan — whose name is Winter — is visiting Canada on a purposeful journey that began with a random idea at one of the coffee chain's stores in Texas.
'Sacred work': Sask. First Nation learning how to conduct its own underground searches
Members of Piapot First Nation, students from the University of Winnipeg and various other professionals are learning new techniques that will hopefully be used for ground searches of potential unmarked grave sites in the future.