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 shipbuilding 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, 10 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:

• the Government of Canada is proceeding with the construction of the River-class Destroyer fleet, with the first batch of 3 ships being built at Irving Shipbuilding Inc.
• the implementation contract is estimated to contribute close to $719.3 million annually to Canada’s gross domestic product and create or maintain more than 5,000 jobs annually over the 2025 to 2039 period, including impacts from Canadian industrial activity and induced economic activity related to employee spending
• full-rate production on the first ship, His Majesty’s Canadian Ship Fraser, began on April 25, 2025

If pressed on the Polar Icebreakers:

• the Government of Canada is acquiring 2 polar icebreakers to strengthen the Canadian Coast Guard’s icebreaking fleet
• the Polar Icebreaker projects are estimated to contribute close to $545 million annually to Canada’s gross domestic product and create or maintain more than 4,000 jobs annually over the 2025 to 2035 period, including impacts from Canadian industrial activity and induced economic activity related to employee spending
• full-rate production of the future Canadian Coast Guard Ship Imnaryuaq started in July 2025 at Seaspan’s Vancouver Shipyards. Construction of the future Canadian Coast Guard Ship Arpatuuq began with steel cutting in August 2025 in Helsinki, followed by the start of Canadian production in March 2026 at Chantier Davie in Lévis

If further pressed on work being done abroad:

• the exception approved for partial construction in Finland is specific, limited, and justified by the nature of polar icebreaker construction and urgent delivery requirements. Finland has long standing, specialized expertise in building polar class icebreakers
• while initial hull construction is taking place in Helsinki, the majority of construction, including vessel integration, outfitting, accommodations, systems installation, testing, and final completion, will occur in Lévis and elsewhere in Canada
• the contract with Chantier Davie includes both industrial benefits and Canadian content obligations, including the requirement that more than 70% of total working hours be performed in Canada
• Canada continues to work with the shipyard to ensure those obligations are clearly understood, monitored, and delivered throughout project execution

If pressed on the Joint Support Ships project – schedule and costs:

• the delivery of the first joint support ship is expected in 2027, followed by the second ship in late 2027 or early 2028. The schedule reflects the complexity of building a first-in-class vessel and the learning curve associated with developing new expertise, skills, and technologies for the largest warship ever constructed in Canada
• these schedule pressures were compounded by global supply chain constraints, shortages of skilled labour, and rising labour, production, and material costs
• to address evolving cost and schedule realities, the build contract was amended in April 2026, bringing the estimated project budget to $8 billion (taxes included)
• the increase reflects first-of-class construction challenges, COVID-19 impacts, and broader inflationary pressures, including changes in labour rates, materials, and supply chain conditions
• the Government of Canada continues to actively manage costs and timelines in close collaboration with industry partners to deliver capable ships that meet Royal Canadian Navy requirements

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 Inc. in Nova Scotia, Seaspan’s Vancouver Shipyards in British Columbia and Chantier Davie Canada Inc. in Quebec.

The River-class Destroyer Project Implementation contract, with an initial value of $8 billion (including taxes) outlines the terms and conditions for the construction and acceptance of the first 3 ships.

Seaspan’s Vancouver Shipyards was awarded a $3.15 billion contract (excluding taxes) to build one polar icebreaker and 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, Davie’s Nordic Yard Finland. 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 is 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 3 nations, and enhance technical cooperation and information sharing to meet global demand for icebreakers.

• As of March 2026, the Government of Canada has awarded more than $53 billion in contracts under the National Shipbuilding Strategy to businesses across the country and, of these, more than $1 billion went to small and medium businesses with fewer than 250 employees
  • Since 2012, more than $13.6 billion in development opportunities has been provided to Canadian suppliers, including more than $3 billion to small and medium-sized enterprises
  • National Shipbuilding Strategy contracts awarded between 2012 and 2025 are estimated to contribute more than $49.8 billion ($3.3 billion annually) to Canada’s gross domestic product and create or maintain more than 25,000 jobs annually