Question Period Note: National Shipbuilding Strategy

The National Shipbuilding Strategy (NSS) is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy (RCN) and Canadian Coast Guard (CCG), create a sustainable marine sector, and generate economic benefits for Canadians.

• The Government is delivering on its commitment to continue to renew the RCN and the CCG fleets, revitalize the shipbuilding industry across Canada, create middle-class jobs, and ensure Canada’s marine services have the modern ships that they need

Progress on current work

• At Seaspan’s Vancouver Shipyards (VSY), the first 2 Offshore Fisheries Science Vessels have been delivered to the CCG, with delivery of the third vessel expected in summer 2020. Work is ongoing on the first Joint Support Ship (JSS)
• At Irving Shipbuilding, 4 Arctic and Offshore Patrol Ships are under construction with the first to be delivered to the RCN in spring 2020. Design work on the Canadian Surface Combatant is advancing

Third yard

• Chantier Davie has pre-qualified to become the third strategic partner under the NSS and has moved on to the Request for Proposal and evaluation stage of the process
• The third yard will build 6 Program Icebreakers for the CCG
• The entire Invitation to Qualify process was overseen by an independent fairness monitor

Opportunities for other yards / Chantier Davie

• Across the country, opportunities exist for Canadian shipyards and businesses to win contracts for small vessel construction, repair, refit and maintenance
• Since 2012, Chantier Davie has been awarded $05 billion in NSS contracts. They are presently converting 2 icebreakers for the CCG, and are undergoing a process to become the third shipyard under the NSS

If pressed on the Polar Icebreaker:

• The government is exploring procurement options for construction of the Polar Icebreaker. No decision have been taken
• A Request for Information was issued on February 28, 2020 to obtain information on domestic shipyard capability and capacity to build a Polar Icebreaker

If pressed on Interim Icebreaker capacity for CCG:

• The Government awarded $817 million in contracts to Chantier Davie for the acquisition of 3 medium commercial icebreakers and conversion work. The first vessel began operations in December 2018, with the second vessel CCGS Jean Goodwill and third vessel CCGS Vincent Massey available by Fall 2020 and Spring 2021 respectively

If pressed on JSS:

Note: Questions related to the budget for the project and technical requirements (including the design requirements) should be referred to the Minister of National Defence.

• The Government of Canada is committed to the NSS and providing members of the RCN with the equipment they need to ensure their future operational effectiveness
• Under the Strategy, we are building whole new classes of ships, in new shipyards, with new workforces. The construction of a new class of ships is a complex endeavour and cost and schedule estimates are prone to fluctuations as the design of the JSS is finalized
• Construction of the first JSS that began in June 2018 is ongoing

Contracts under the National Shipbuilding Strategy

From 2012 to the end of 2019, the Government signed approximately $13.78 billion in new NSS contracts throughout the country. These contracts are estimated to contribute over $17.04 billion ($1.54 billion annually) to gross domestic product (GDP), and create or maintain more than 15,521 jobs annually, through the marine industry and its Canadian suppliers between 2012 and 2022.

National Shipbuilding Strategy contracts awarded 2012 to end of 2019

Irving Shipbuilding Inc.: $4.74 billion
VSY: $1.84 billion
Davie: $2.05 billion
Other shipyards/companies: $5.14 billion

Project budgets and delivery dates

Vessel: Offshore Fisheries Science Vessel (OFSV) 1
Delivery date: June 27, 2019
Budget: $687 million

Vessel: OFSV 2
Delivery date: November 29, 2019
Budget: $687 million

Vessel: OFSV 3
Delivery date: Summer 2020
Budget: $687 million

Vessel: Joint Support Ship (JSS) 1
Delivery date: 2023
Budget: $3.4 billion (under review)

Vessel: JSS 2
Delivery date: Fall 2025
Budget: $3.4 billion (under review)

Vessel: Offshore Oceanographic Science Vessel (OOSV)
Delivery date: Spring 2024
Budget: $331 million (under review)

Vessel: Arctic and Offshore Patrol Ship (AOPS) 1
Delivery date: Spring 2020
Budget: AOPS 1 to 6 $4.3 billion

Vessel: AOPS 2
Delivery date: Late 2020
Budget: AOPS 1 to 6 $4.3 billion

Vessel: AOPS 3
Delivery date: Fall 2021
Budget: AOPS 1 to 6 $4.3 billion

Vessel: AOPS 4
Delivery date: Fall 2022
Budget: AOPS 1 to 6 $4.3 billion

Vessel: AOPS 5
Delivery date: Summer 2023
Budget: AOPS 1 to 6 $4.3 billion

Vessel: AOPS 6
Delivery date: Winter 2024
Budget: AOPS 1 to 6 $4.3 billion

Vessel: AOPS 7
Delivery date: Winter 2025
Budget: AOPS 7 and 8 $1.5 billion (estimate)

Vessel: AOPS 8
Delivery date: Fall 2025
Budget: AOPS 7 and 8 $1.5 billion (estimate)

Vessel: Canadian Surface Combatant (CSC)
Delivery date: 15 CSCs between 2020s to 2040s
Budget: $56 to 60 billion (estimate)

Vessel: Multi-Purpose Vessel (MPV)
Delivery date: Up to 16 MPVs starting in late 2020s
Budget: $14.2 billion (estimate)

None