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 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, 9 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 3, 2025, the Government of Canada awarded the Implementation (build) contract for the River-class Destroyer Project to Irving Shipbuilding Inc., with an initial value of $8 billion (including taxes)
• This contract supports the construction and delivery of the initial three ships as well as the development and delivery of necessary training, spares, and maintenance products required to operate and support the ships in service
• The River-class Destroyer project is expected to create or maintain over 5,000 jobs over the next 15 years, many of which will be in Halifax, Nova Scotia
• Full-rate production on the first ship, His Majesty’s Canadian Ship Fraser, began April 25, 2025

If pressed on the Polar Icebreakers:

• The Canadian Coast Guard is acquiring 2 polar icebreakers which will strengthen its 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
• Construction of both polar icebreakers is underway. Full-rate production of the future CCGS Imnaryuaq started in July 2025 at Seaspan’s Vancouver Shipyards, while steel cutting for the future CCGS Arpatuuq took place in August 2025 at the Canadian-owned Helsinki Shipyard in Finland, marking the start of its construction phase

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 Implementation contract outlines the terms and conditions for the construction and acceptance of the first 3 ships. Proceeding in batches provides Canada with 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 four design stages As design completion progresses in parallel with construction, Canada’s Definition contract and Implementation contract with Irving Shipbuilding will be open concurrently for a period of time.

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 Canada delivers ships to the Canadian Coast Guard in a timely manner so they can continue to work to protect Canadian sovereignty and security.

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 September 2025, Canada has awarded approximately $54 billion in contracts under the National Shipbuilding Strategy to businesses across the country and, of these, $1.19 billion went to small and medium businesses with less than 250 employees
  • In 2024 alone, the Government of Canada awarded approximately $6.5 billion in new contracts to Canadian companies under the Strategy, including approximately $85.2 million to small and medium businesses
  • National Shipbuilding Strategy contracts awarded between 2012 and 2024 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 over the 2012 to 2025 period