Ottawa’s talks with Quebec shipyard to build much-needed icebreakers shrouded in fog

OTTAWA - Questions are swirling over yet one more delay in Ottawa’s practically $100-billion plan to rebuild the fleets of Canada’s navy and coast guard — solely this time the delay isn’t because of the stalled building of a ship.

The federal authorities introduced in December 2019 that Quebec shipyard Chantier Davie was the one firm to qualify for a chunk of that work, specifically the development of six much-needed icebreakers for the Canadian Coast Guard.

But whereas that announcement kicked off negotiations towards an settlement Davie and its supporters in Quebec and Ottawa had lengthy demanded, the next discussions stay shrouded in fog greater than two years later.

The delay is fuelling fears in regards to the Canadian Coast Guard’s growing older fleet, which shrunk by one other ship this week with the compelled retirement of a 59-year-old science vessel, leaving Canada and not using a devoted platform for ocean analysis.

“You actually type of surprise what’s happening that it’s been this lengthy after having made such a high-profile dedication,” mentioned David Perry, president of the Canadian International Affairs Institute and one among Canada’s high procurement consultants.

“And supply on all of the work that falls below them has received to be considerably impacted by not having come to an settlement.”

Davie was first excluded from the shipbuilding plan following a contest in 2011 that chosen Irving Shipbuilding in Halifax to construct the navy’s new warships, and Seaspan to construct two new naval assist ships and the brunt of the coast guard’s new fleet.

The Quebec shipyard was in a position to decide up some piecemeal work, together with the development of two federal ferries and the supply of a number of second-hand ships for the navy and coast guard. These included a provide vessel for the navy and three used icebreakers.

But it made no secret of its want for extra and, with assist from allies in Quebec Metropolis and the opposition benches in Ottawa, the Levis, Que.-based firm lobbied the federal Liberal authorities onerous for official inclusion within the shipbuilding plan.

On the identical time, Seaspan was struggling to satisfy its supply schedules due to mismanagement by each the Vancouver yard and federal authorities. All of the whereas, the coast guard’s fleet was turning into more and more decrepit.

The impression of these delays crystallized additional this week when the coast guard introduced it was retiring the CCGS Hudson ocean analysis vessel on the identical time it revealed that Seaspan gained’t ship its substitute till no less than 2025.

It was on this context that the Liberal authorities introduced in August 2019 that it was including a 3rd yard to the shipbuilding plan to construct Canada’s subsequent icebreaker fleet, and formally referred to as for shipyards to point their curiosity.

Ontario shipyard Heddle Marine wasted no time accusing the federal government of stacking the deck in Davie’s favour. But the Canadian Worldwide Commerce Tribunal was blocked from investigating Heddle’s criticism after Ottawa invoked a particular exemption.

In December 2019, the federal government introduced Davie was the one shipyard to satisfy its necessities.

But whereas officers on the time mentioned they anticipated a closing deal ironing out the small print by the top of 2020, that hasn’t occurred. The final official replace in July mentioned the federal government had revised that schedule to the top of 2021, which it additionally missed.

Each side say discussions are ongoing, however have supplied few different particulars.

“It is a advanced, multi-step qualification course of and it's crucial that Canada will get it proper,” mentioned Public Companies and Procurement Canada spokesman Marc-Andre Charbonneau. “Our analysis staff continues to evaluate the proposal Chantier Davie submitted.”

He added that if Davie “was not in a position to efficiently full the method to turn out to be the third shipyard below the (nationwide shipbuilding technique), Canada would want to evaluate the impression throughout all applications meant for the third shipyard.”

A Davie spokesman mentioned the corporate stays dedicated to constructing Canada’s new icebreakers, the supply of which turns into extra pressing with each passing day because the coast guard’s present fleet turns into more and more older and tougher to keep up.

In the meantime, the corporate has but to ship the final of the three second-hand icebreakers ordered for the coast guard in 2018, which had been billed as costing $610 million however whose price ticket is now nearing the $1 billion mark.

The dearth of a proper deal didn’t cease the Liberals from saying in Could plans to have Davie and Seaspan every construct a polar icebreaker, an announcement that some noticed as politically motivated forward of final yr’s federal election.

College of Calgary shipbuilding skilled Timothy Choi mentioned whereas the COVID-19 pandemic little doubt slowed down plans so as to add Davie, the shortage of readability surrounding the talks is each irritating and regarding.

“The precise stage of their negotiations, and certainly what precisely must be negotiated or verified to ensure that Davie to turn out to be the official third yard, have been shrouded in silence,” he mentioned.

This report by The Canadian Press was first printed Jan. 21, 2022.