Question Period Note: Fleet Renewal

• Fleet Renewal efforts remain a key priority to ensure the Canadian Coast Guard can continue supporting the safety and accessibility of Canadian waters. To date, the Coast Guard has taken delivery of three large vessels and 18 small vessels under the National Shipbuilding Strategy, as well as 23 helicopters, and four interim icebreakers.
• In May 2023, we announced further investments of $2.5 billion to fully renew our small vessel fleet, which will generate economic benefits across the country. In total, approximately $23 billion in contracts have been awarded under the National Shipbuilding Strategy.
• While some projects have suffered from delays, 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.

BACKGROUND
• 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), final outfitting of the OOSV is advancing well. Harbour Acceptance Trials began in July 2024 and the official launch occurred on August 17, 2024. Delivery of the OOSV is expected in 2025. The construction engineering and long-lead items contracts were awarded for the MPV on February 9, 2024, announced on March 26, 2024, and work under those contracts has commenced. On February 8, 2024, work was successfully completed on the Polar Icebreaker prototype block, marking an important step towards increasing Canada’s presence in the Artic to support Northern Canadians and assert our sovereignty, and full rate construction is expected to begin in 2025.
• Chantier Davie was formally announced as the third National Shipbuilding Strategy (NSS) large shipyard, with the signing of an Umbrella Agreement on April 4, 2023. The Ancillary Contract for the Program Icebreakers was awarded to Chantier Davie on March 25, 2024 and announced on March 26, 2024; work on the project has now commenced at the shipyard.
• In 2019, it was announced that the Canadian Coast Guard would purchase two modified AOPS from Irving Shipbuilding. Work is underway on the two AOPS adapted for the Canadian Coast Guard. Steel cutting on the first AOPS took place on August 8, 2023 and the keel laying occurred on July 31, 2024. Steel cutting on the second Coast Guard AOPS also occurred on July 31, 2024. As of November 2022, an overall budget of $2.1 billion was approved for the Coast Guard's two AOPS.
• Media attention over the last several years has detailed the increasing costs and ongoing delays with the procurement of the Canadian Coast Guard’s large vessel fleet. The Canadian Coast Guard has been working closely with shipyards and internal stakeholders to manage and address ongoing issues.
• The Canadian Coast Guard is also renewing its small fleet. To date, 30 small vessels have been delivered to the Canadian Coast Guard. This includes a total of 18 vessels delivered under the NSS (16 Search and Rescue (SAR) lifeboats (the most recent (CCGS Baie des Chaleurs) was accepted by Canada on October 30, 2023), and 2 Channel Survey and Sounding Vessels), as well as 12 vessels pre-dating the NSS (9 Mid-Shore Patrol Vessels and 3 Near-Shore Fishery Research Vessels).
• An additional four SAR lifeboats will be built between two small shipyards: Chantier Naval Forillon in Gaspé, Quebec, and Hike Metal Products in Wheatley, Ontario.
• On May 25, 2023, Canada announced an investment valued at $2.5 billion to fund the completion of the renewal of the Canadian Coast Guard’s small vessels fleet for up to 61 vessels. This represents a significant opportunity for regional economic development, as construction contracts will be openly competed amongst Canadian shipyards (excluding the three strategic partner yards) under the NSS.
• Budget 2024 included investments of over $397M over five years for the necessary training capacity, seagoing crew, support staff and provisions to operate the new Canadian Coast Guard vessels that will be delivered over the next 10 years.
• The Canadian Coast Guard completed the renewal of its helicopter fleet with delivery of 16 new light-lift helicopters and seven new medium-lift helicopters. Budget 2023 also allocated funding to replace one of the Canadian Coast Guard’s light-lift helicopters that was lost following a crash in September 2022. A contract for its replacement was awarded in December 2023.
• The Canadian Coast Guard continues to implement interim measures and investments 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.

If pressed on the Budget 2024 announcement on the future fleet
• Investments of $397 million over five years have been announced in the Budget 2024 to ensure the Coast Guard has the necessary training capacity, seagoing crew, support staff and provisions to operate the new vessels being delivered over the next 10 years.

If pressed on Chantier Davie
• On April 4, 2023, the Prime Minister welcomed Chantier Davie of Lévis, Québec into the National Shipbuilding Strategy, as the third shipyard.
• Under the National Shipbuilding Strategy, Davie will build up to six Program Icebreakers and one Polar Icebreaker for the Canadian Coast Guard.
• Through this strategic partnership, a contract was awarded in March 2024 to the shipyard to commence initial design work on the Program Icebreakers and work is underway.
• The icebreakers will be essential to Canada’s economy, supporting safe year-round trade, Arctic science and Canada’s sovereignty in the North.