Question Period Note: National Shipbuilding Strategy

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

Note: All questions related to budget, requirements, timelines, international comparisons, and project management should be directed to the Minister of Fisheries or the Minister of National Defence.

• The National Shipbuilding Strategy is about Canadians and Canadian businesses working together to strengthen and renew our Naval and Coast Guard fleets
  • So far, 8 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 the River-class Destroyer project:

• On March 8, 2025, we announced the Implementation (build) contract award to Irving Shipbuilding Inc. for the River-class Destroyer project, with an initial value of $8 billion (including taxes)
• In June 2024, construction began on the Production Test Module to test and streamline production processes with a goal of a full-rate production by April 2025

If pressed on the Polar Icebreakers:

• The Canadian Coast Guard is acquiring 2 polar icebreakers which will strengthen their icebreaking fleet
• They will also support critical scientific research and environmental protection efforts, and ensure national security in the Arctic
• This investment enhances Canada’s maritime infrastructure and safeguards our sovereignty in the Arctic

The National Shipbuilding Strategy is a long-term plan to renew the Royal Canadian Navy and Canadian Coast Guard fleets. It aims to eliminate the boom and bust cycles of vessel procurement that have slowed Canadian shipbuilding in the past. Canadian shipyards involved are Irving Shipbuilding in Nova Scotia, Vancouver Shipyards in British Columbia and Chantier Davie in Quebec.

The River-class Destroyer project contract outlines the terms and conditions for the construction and acceptance of the first 3 ships. Proceeding in batches provides us flexibility to adapt to technological advancements, address evolving operational requirements, and respond to emerging threats. This approach helps ensure that the fleet will remain modern and capable throughout its lifecycle.

As part of the Definition contract, the River-class Destroyer project is presently in the third of 4 design stages. While the primary purpose of the Definition contract is finalizing the design, it also includes work that is essential for a seamless transition into construction.

On March 7, 2025, Seaspan’s Vancouver Shipyards was awarded a $3.15-billion contract (excluding taxes) to build one polar icebreaker. On March 8, 2025, Chantier Davie Canada Inc. was awarded a $3.25-billion contract (excluding taxes) to build the other polar icebreaker.

The Davie icebreaker will be built using a hybrid domestic-international build strategy, with work split between Davie’s facilities in Quebec and its Finnish shipyard. With the evolving global climate, it is essential more than ever that we deliver ships to the Canadian Coast Guard in a timely manner so they can continue to work to protect Canadian sovereignty and ensue our security. This is why Canada has approved an exception to the Buy-in-Canada policy so that part of the Davie polar icebreaker could be built offshore.

The National Shipbuilding Strategy continues to evolve and will be strengthened by the Icebreaker Collaboration Effort (ICE) Pact, a partnership between Canada, Finland, and the United States that was signed into effect in November 2024. This collaboration seeks to accelerate Arctic and polar icebreaker production, boost the marine industries of all three nations, and enhance technical cooperation and information sharing to meet global demand for icebreakers. For Canada, the ICE Pact presents new opportunities for the shipbuilding sector by leveraging shared expertise and capabilities developed under the NSS, while promoting a key role for Canadian shipyards and supply chains.

• As of February 2025, we have awarded approximately $36.35 billion in contracts under the National Shipbuilding Strategy to businesses across the country and, of these, $1.17 billion went to small and medium businesses with less than 250 employees
  • In 2024 alone, the Government of Canada awarded approximately $6.1 billion in new contracts to Canadian companies under the Strategy, including approximately $82.53 million to small and medium businesses
  • National Shipbuilding Strategy contracts awarded since 2012 are estimated to contribute close to $38.7 billion ($2.8 billion annually) to Canada’s gross domestic product and to create or maintain approximately 21,400 jobs annually