Announcement of a Definition Contract for the Arctic/Offshore Patrol Ships

Speaking Notes for Rona Ambrose
Minister of Public Works and Government Service and Minister for Status of Women

At the Announcement of a Definition Contract for the Arctic/Offshore Patrol Ships
Irving Shipbuilding
Halifax, Nova Scotia
March 7, 2013

Check against delivery

Thank you, Ross, for that warm Halifax welcome, despite March temperatures. It's always a pleasure to visit Halifax, no matter what time of year.

Good morning/afternoon, ladies and gentlemen, and thank you all for joining us.

My friends, our Government created the National Shipbuilding Procurement Strategy, or NSPS, in order to support the marine industry while bolstering the economy from coast to coast to coast. It is with great pride that I am here in Halifax today to celebrate an important milestone in that strategy.

Over two years ago, our Government made a strategic but historic decision to support the Canadian marine industry—to revitalize Canadian shipyards and to build ships for the Canadian Coast Guard and the Royal Canadian Navy here in Canada.

That strategy, which emerged from consultations with the Canadian shipbuilding industry, is about using our own shipyards to meet Canada's shipbuilding requirements.

This strategic relationship with Canadian shipyards will help to deliver on our commitment in the Canada First Defence Strategy and enable us to provide our Royal Canadian Navy with the modern ships they need to defend Canada's interests at home and abroad.

We are revitalizing our marine industry and making it internationally competitive like never before.

Just a couple of weeks ago, in Vancouver, I had the pleasure of announcing contracts for the non-combat ships package at the Vancouver Shipyards Company. I am proud of our investments on Canada's Pacific coast, as I am of the investments I'm about to announce today.

My friends, as every Nova Scotian knows, Canada's marine industry is a key economic driver and the lifeblood of many communities—not just here, but as I just mentioned, in the west too.

The benefits of this strategy to the Canadian economy are staggering and impossible to ignore. Analysts have estimated that our Government's ship projects will contribute, both directly and indirectly, to 15,000 jobs from coast to coast to coast.

And additionally, they will contribute $2 billion in annual economic benefits over the next 30 years. In fact, we plan to place our first order for the first ships by the end of this year.

Our Government remains focused on what matters to Canadians—jobs and economic growth—and we know that the NSPS investments will create millions of hours of work for the Canadian shipbuilding industry for years to come.

I am therefore very pleased to announce that a definition contract has been awarded to Irving Shipbuilding Inc. with a total estimated value of $288 million (taxes included).

My friends, I know that everyone here understands the complexities of shipbuilding. The contract I am announcing today reflects that reality.

It is, in fact, the second in a series of three contracts for these ships. The first, issued on July 10, 2012, was an ancillary contract. The third, to be issued in 2015, will be a build contract.

And today's definition contract will enable Irving Shipbuilding Inc. to refine the Arctic/offshore patrol ship design to production-ready levels. It will provide more precise cost estimates for the construction of these ships.

In short, it will take the design of the ships and determine exactly what is needed to build them. After the definition contract is complete, Irving Shipyards Incorporated. will know exactly what to build, what is needed, and where to find it.

It will ensure that once the build contract is signed, construction of the ships will begin immediately.

Those will be big steps forward. While work to prepare the yards to construct these ships will begin before 2015, the end of the definition phase, will trigger the major construction work on the vessels themselves in that year.

In other words, we are doing exactly what we should be doing—negotiating deals and establishing strategic relationships that will benefit the shipbuilding industry.

We're proud of our decision to build those ships right here in Canada. The National Shipbuilding Procurement Strategy continues to move forward and we look forward to further progress and the awarding of other contracts, as they pave the way for job creation and economic growth.

My friends, I'm proud to be part of a government that is delivering on a promise to create good jobs in a variety of industries across Canada. And we are doing that while providing much-needed ships for the Royal Canadian Navy and the Canadian Coast Guard. Just as importantly, we are delivering on all these commitments through a transparent and arm's length process.

Our Government will continue to take action to protect and create jobs in Canada.

Thank you very much for having me here today and congratulations to Irving Shipbuilding Incorporated, and all of the workers here today.

Thank you.