Vancouver has been included in the largest round of shipbuilding since the Second World War. North Vancouver-based Seaspan heard Wednesday that its Vancouver Shipyards had been awarded the $8 billion National Shipbuilding Procurement Strategy (NSPS) non-combat contract.
The program is expected to inject billions of dollars into the local economy and create an average of 4,000 jobs over the next eight years.
But as much as the province praised Ottawa’s decision to award a contract to the West Coast, Vancouver missed out on the even bigger prize – a $25 billion contract to replace the navy’s aging destroyers, frigates and other combat vessels. That contract was awarded to Irving Shipbuilding in Halifax.
“While we felt we were more than capable of building the combat ships, we are honoured to have been chosen to provide non-combat vessels for the men and women of the Royal Canadian Navy and Coast Guard,” commented Jonathan Whitworth, Seaspan’s CEO.
“We have a long and established track record of working with the Canadian navy and Coast Guard in building ships on time and on budget. Seaspan is committed to returning B.C.’s shipbuilding industry to its once-thriving roots.”
The non-combat contract includes sciences vessels, joint support ships for the navy and a polar icebreaker.
In recent days, debate has raged as to whether the federal government would favour one shipyard over another for the contract award in order to earn political points.
Quebec’s Davie shipyard lost its bid for the non-combat portion of the NSPS.
In fact, the Conservative government has gone out of its way in recent days to distance itself from the process. A senior Conservative source told Business in Vancouver the NSPS file had been handed over to public servants to avoid political influence, and Ottawa had banned lobbyists from involvement in the file.
“I believe the prime minister was attempting to avoid the perception of political interference that arose following the Mulroney government’s 1986 decision to award the CF-18 maintenance contract to Bombardier in Montreal over Bristol Aerospace in Winnipeg,” the source said.
“That decision was so controversial that it ultimately led to the creation of the Reform party, and so the prime minister is acutely aware of how controversial these defence procurement decisions can be.”
The BC Chamber of Commerce praised Seaspan’s successful bid for the non-combat portion of the NSPS.
“This successful bid is a good example of a partnership between the private sector and government producing jobs and making a very positive contribution to the provincial economy,” said John Winter, president and CEO of the Chamber.
Joel McKay
@jmckaybiv