Announcement of Funding for the Construction of Large Vessels for the Canadian Coast Guard

Speaking Notes for the Honourable Diane Finley, PC, MP
Minister of Public Works and Government Service

At the Announcement of Funding for the Construction of Large Vessels for the Canadian Coast Guard
North Vancouver, B.C.
October 7, 2013

Check against delivery

Thank you, Brian. Good morning, ladies and gentlemen.

It's a real pleasure to be here in beautiful British Columbia, joining my colleagues Minister James Moore, Minister Kellie Leitch, MP John Weston, and all of you here today at Vancouver Shipyards for this important announcement.

We're here in big numbers because we have big news to talk about.

So let's get to it.

Today, I am pleased to announce that Vancouver Shipyards will be adding to its order books the construction of up to 10 large ships for the Canadian Coast Guard, at an estimated cost of $3.3 billion.

This brings the total amount for the National Shipbuilding Procurement Strategy to $38.3 billion.

Ladies and gentlemen, the Harper Government is delivering on the commitment we made to our shipbuilding industry and to the Royal Canadian Navy and the Canadian Coast Guard.

We are ensuring a long-term view for the industry so that it is sustainable and efficient.

We are making the necessary investments to recapitalize and rebuild our fleet of non-combat vessels.

Workers here at Vancouver Shipyards, as well as workers and companies across the country, will be able to benefit from this additional investment in the National Shipbuilding Procurement Strategy.

And that is happening because of our Government's continued focus on the things that matter to Canadians and their families and their communities: that is, on jobs, growth and economic prosperity.

Those have been our priorities since day one.

To help us fulfil both of these goals, a little over three years ago, our Government announced our intention to proceed with a new National Shipbuilding Procurement Strategy.

This strategy is a broad plan to revitalize Canadian shipyards and generate long-term, sustainable economic growth.

And it is historic in the sense that it also speaks to big ambitions and a bright and sustainable future for Canada's shipbuilding industry.

The projects under the Strategy include non-combat ships that are being built here at Vancouver Shipyards, the combat ships to be built in Halifax by Irving Shipbuilding, and also some smaller vessels that will be competed separately.

With the addition to the non-combat package of the ships we are announcing today, the total estimated value of projects under the National Shipbuilding Procurement Strategy is now $38.3 billion. This also means additional years of work for Seaspan and its employees.

That, ladies and gentlemen, represents a lot of good, stable jobs for Canadians.

The Strategy was designed through a careful and deliberate process in which the Canadian shipbuilding industry played a key part.

We also want to focus on doing procurement in a smarter and more effective way.

So you now see greater engagement with industry, stronger oversight and governance, and the use of third-party experts in decision-making.

In this case, as the Strategy, the procurement process, the evaluation methodology and the umbrella agreements were all developed, the shipbuilding industry was consulted every step of the way.

The end result is a made-in-Canada strategy, a fair and transparent strategy, and one that is transforming the entire Canadian marine industry.

This unprecedented investment by our Government in Canada's shipbuilding industry is already generating significant economic benefits, here in Vancouver, throughout the province of British Columbia, and right across the country.

By economic benefits, what I really mean is good, skilled jobs.

Even better, rather than being a flash in the pan, it is at last bringing some long-term stability to the industry.

With federal ship procurement now much more predictable for the coming years, those boom-and-bust cycles that have long plagued Canada's shipbuilding industry are already becoming a thing of the past.

The Canadian Association of Defence and Security Industries has estimated that, over the next 30 years, projects related to the shipbuilding strategy will create 15,000 jobs, directly and indirectly.

These are skilled jobs in sectors such as steel manufacturing, IT, and defence systems—and not just at large firms, but at small- and medium-sized enterprises, as well.

All told, the shipbuilding strategy is expected to generate $2 billion a year in economic benefits for our country.

And that's good news for every Canadian.

Three years since its inception, the National Shipbuilding Procurement Strategy is rolling out on schedule.

As you can see here today, Vancouver Shipyards is in the midst of a $200-million upgrade to prepare for the projects that lie ahead.

And the day when steel is cut and shipbuilding gets underway is not far off.

The additional Coast Guard vessels that we are announcing today are divided into two classes:

There will be up to five Medium Endurance Multi-Tasked Vessels and up to five Offshore Patrol Vessels.

These are in addition to the other classes of ships in the non-combat package, which includes the Joint Support Ships, the Polar Icebreaker, the Offshore Fisheries Science Vessel and the Offshore Oceanographic Science Vessel.

The Medium Endurance Multi-Tasked Vessels will be used primarily for the deployment, recovery and maintenance of aids to navigation.

They will also be capable of search and rescue, fisheries management, and environmental response.

The Offshore Patrol Vessels will be used primarily for fisheries protection, both in Canadian waters and on the high seas, and will be capable of staying at sea for up to six weeks.

They will also be capable of search and rescue, aids to navigation support, environmental response, and maritime security.

The schedules for designing and building these classes of ships will be developed in consultation with Vancouver Shipyards.

With all these projects, it is easy to see why the National Shipbuilding Procurement Strategy has earned stellar reviews.

It affords:

A bright and stable future for those who work in the shipbuilding industry;
Long-term jobs and economic growth for our communities and our country;
Vital equipment for our men and women in the Royal Canadian Navy and the Canadian Coast Guard; and
Good value for Canadian taxpayers.

I am proud of our Government's achievements—supporting Canada's Coast Guard, building stronger communities, and generating jobs for hard-working Canadians.

And I am proud of how, together with Seaspan and all of our partners, we are working to revitalize a shipbuilding industry, with the best and the brightest, right here at home.

Thank you. Merci.