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.

Note: Questions on budget, requirements, timelines, international comparisons, and project management should be directed to the Minister of Fisheries and Oceans and the Canadian Coast Guard or the Minister of National Defence, as appropriate

• The National Shipbuilding Strategy is about Canadians and Canadian businesses working together to strengthen and renew our Naval and Coast Guard fleets
  • So far, 6 large vessels and numerous small ships have been delivered, and many more are under construction across Canada
  • We will continue working closely with industry to manage costs and schedules, and ensure the best value is provided to Canadians throughout the duration of these projects

If pressed on contract amounts

• As of September 30, 2022, we have awarded approximately $22.48 billion in contracts under the National Shipbuilding Strategy to businesses across the country and of these, $1.07 billion went to small businesses with less than 250 employees
• National Shipbuilding Strategy contracts awarded between 2012 and 2021 are estimated to contribute close to $21.26 billion ($1.93 billion annually) to Canada’s gross domestic product, and create or maintain 18,239 jobs annually between 2012 and 2022
• The National Shipbuilding Strategy is a long-term investment that is delivering results now: ships for the Navy and the Canadian Coast Guard and jobs and economic growth for Canada

If pressed on economic benefits:

• The National Shipbuilding Strategy is generating economic benefits
• In 2021 alone, the Government of Canada awarded approximately $2.86 billion in new contracts to Canadian companies under the Strategy, including approximately $106 million to small and medium businesses with fewer than 250 full-time employees
• Contracts awarded in 2021 are estimated to contribute approximately $1.987 billion annually to Canada’s gross domestic product, and will create or maintain close to 9,280 jobs annually, during 2021 and 2022

If pressed on the Third Yard:

• Canada is currently negotiating with Chantier Davie to become the third strategic shipbuilding partner. Pending successful negotiations, an Umbrella Agreement is expected to be in place with the shipyard by the end of winter 2023
• The third shipyard will build 1 of 2 Polar Icebreakers and 6 Program Icebreakers for the Canadian Coast Guard, and 2 Ferries for Transport Canada will be negotiated following the signature of an Umbrella Agreement
• This is a complex, multi-step qualification process and it is imperative that we get it right, therefore we are making every effort to finalize this process while ensuring value for the Government of Canada and all Canadians

If pressed on the Polar Icebreakers:

• On May 6, 2021, the Government of Canada announced its intention to move forward with the construction of 2 Polar Icebreakers
• Seaspan’s Vancouver Shipyards will engineer and construct one vessel while the other vessel will be engineered and constructed at Chantier Davie, pending the successful completion of the selection process for the third strategic partner under the National Shipbuilding Strategy

If pressed on Esquimalt Graving Dock:

• The Government of Canada is committed to renewing vital marine infrastructure to support the long-term growth and development of our coastal communities in British Columbia and across Canada
• Esquimalt Graving Dock is a strategic asset that serves the federal fleet as well as supporting and strengthening the west coast industrial marine sector in a secure, public-owned, open-access, multi-user facility
• The Government has no plans to build vessels at the facility
• Planning is underway to assess a potential expansion of the facility so that it can continue to accommodate existing and future federal fleet vessels under the National Shipbuilding Strategy, as well as other tenants that lease space for repair, refit, and maintenance
• The facility supports about 3,000 full-time highly-skilled, high-paying trades jobs, and is an economic generator for the local and regional economies, contributing close to one billion dollars of economic output and over $30 million in taxes to all levels of government

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