Question Period Note: Fleet Renewal

How much is the Coast Guard’s Fleet Renewal costing and when will they become operational?

• Fleet Renewal efforts remain a key priority to ensure the Canadian Coast Guard can continue supporting the safety, accessibility, and security of Canadian waters.
• Significant progress has been made:
o To date, the Canadian Coast Guard has taken delivery of three large vessels, 28 small vessels, 23 helicopters and four interim icebreakers.
o Over $22.5 billion in contracts have been awarded under the National Shipbuilding Strategy, however, the Canadian Coast Guard’s large vessel projects have suffered from delays and increased costs, which is a concern for all Canadians.
• Interim measures, such as acquiring four commercial icebreakers and life extensions for existing vessels, are in place to ensure essential services continue until new vessels are delivered.

• Renewal of the Canadian Coast Guard fleet is underway. Funded replacement plans are currently in place for the large vessel fleet, including:
o Three Offshore Fisheries Science Vessels, which were all delivered in 2019 and 2020;
o One Offshore Oceanographic Science Vessel (OOSV);
o Two Polar Icebreakers;
o Up to 16 Multi-Purpose Vessels (MPV);
o Two Arctic and Offshore Patrol Ships (AOPS) (Coast Guard variants) ; and
o Up to six Program Icebreakers (PIB).
• At Vancouver Shipyards (VSY), construction of the OOSV continues following cut steel in March 2021. Ship design work is ongoing for the MPVs and Polar Icebreaker.
• Chantier Davie was formally announced as the third NSS large shipyard, with the signing of an Umbrella Agreement on April 4, 2023. Discussions to advance the PIB and the other Polar Icebreaker are now underway.
• Media attention over the last several years has detailed the increasing costs and ongoing delays with the procurement of Coast Guard’s large vessel fleet. Coast Guard has been working closely with shipyards and internal stakeholders to manage and address ongoing issues.
• The Coast Guard is also renewing its small fleet. To date, 28 small vessels have been delivered to the Coast Guard. This includes a total of 16 vessels under the NSS (14 Search and Rescue (SAR) lifeboats and two Channel Survey and Sounding Vessels), as well as 9 Mid-Shore Patrol Vessels and 3 Near-Shore Fishery Research Vessels pre-dating the NSS.
• An additional six SAR lifeboats will be built between two small shipyards; Chantier Naval Forillon, in Gaspé, Quebec and Hike Metal Products in Wheatley, Ontario
• An announcement is expected later this summer for the construction of a new Near-Shore Fisheries Research Vessel.
• The Coast Guard has completed the renewal of its helicopter fleet with delivery of 16 new light-lift helicopters and seven new medium-lift helicopters. Budget 2023 also recently allocated $14.5M in new funding to replace one of the Coast Guard’s light-lift helicopters that was lost following a crash in September 2022.
• The Coast Guard is putting in place interim measures and investing in vessel life extension work to ensure continued delivery of critical services until new ships are delivered. This includes:
o A comprehensive Vessel Life Extension program to maintain the current fleet operational as new ships are being built, as well as;
o Acquisition of three interim Medium Icebreakers and one interim Light Icebreaker.

Annoncements:
• On May 22nd, 2019, the Prime Minister announced a renewal of the Canadian Coast Guard fleet with up to 18 new large ships built in Canadian shipyards, helping the Coast Guard continue to deliver its important services, and creating good, middle class jobs across the country.
o Total funding for the 18 large ships is $15.7 billion, which represents early estimates of project budgets including construction, logistics and support, contingency, project management and infrastructure costs. The costs of each ship class will be announced following contract negotiations.
o Irving Shipbuilding will build two non-combat AOPS, which will be adapted for the Coast Guard to perform a range of critical mission, including Northwest Atlantic Fisheries Organizational patrols.
o VSY will build up to 16 MPV to support a variety of missions, including light icebreaking, aids to navigation, environmental response, and offshore search and rescue.
o Canada will also proceed through a competitive process with the design of a new class of smaller ships, the new Mid-Shore Multi-Mission ship, which would complement the work of the large fleet in shallow areas and deliver mid-shore science activities.
• On May 6, 2021, Canada announced the procurement of two Polar Icebreakers for the Canadian Coast Guard. One will be built at VSY and the other at Chantier Davie.
• On April 4, 2023, the Prime Minister announced the addition of Chantier Davie as the third shipyard under the NSS.
o Chantier Davie will build six Program Icebreakers and one Polar Icebreaker to support several essential missions, including vessel escorts, community resupply, and arctic science.

If pressed on Chantier Davie
• On April 4, 2023, the Prime Minister welcomed Chantier Davie of Lévis, Quebec into the National Shipbuilding Strategy, as the third shipyard.
• Through this strategic partnership, negotiations are now underway to advance work on the Canada’s critically needed Icebreakers.
• Under the National Shipbuilding Strategy, Davie will build six Program Icebreakers and one Polar Icebreaker for the Canadian Coast Guard.
• The icebreakers will be essential to Canada’s economy, supporting safe, year-round trade, Arctic science and Canada’s sovereignty in the North.

If pressed on icebreakers
• Icebreakers are essential to Canada’s economy by supporting safe, year-round trade and the safe passage of goods.
• Canada is investing in six Program and two Polar Icebreakers to ensure continuation of essential icebreaking services. The Canadian Coast Guard is also procuring up to 16 Multi-Purpose Vessels with icebreaking capability.
• One Polar Icebreaker will be built at Vancouver Shipyards. The Program Icebreakers and other Polar will be built at Chantier Davie, once the third shipyard process is finalized (expected in spring 2023).