Ottawa's talks with Quebec shipyard to build much-needed icebreakers shrouded in fog
Questions are swirling over yet another delay in Ottawa's nearly $100-billion plan to rebuild the fleets of Canada's navy and coast guard -- only this time the delay isn't due to the stalled construction of a ship.
The federal government announced in December 2019 that Quebec shipyard Chantier Davie was the only company to qualify for a piece of that work, namely the construction of six much-needed icebreakers for the Canadian Coast Guard.
Yet while that announcement kicked off negotiations toward an agreement Davie and its supporters in Quebec and Ottawa had long demanded, the subsequent discussions remain shrouded in fog more than two years later.
The delay is fuelling fears about the Canadian Coast Guard's aging fleet, which shrunk by another ship this week with the forced retirement of a 59-year-old science vessel, leaving Canada without a dedicated platform for ocean research.
"You really kind of wonder what's going on that it's been this long after having made such a high-profile commitment," said David Perry, president of the Canadian Global Affairs Institute and one of Canada's top procurement experts.
"And delivery on all the work that falls under them has got to be significantly impacted by not having come to an agreement."
Davie was first excluded from the shipbuilding plan following a competition in 2011 that selected Irving Shipbuilding in Halifax to build the navy's new warships, and Seaspan to build two new naval support ships and the brunt of the coast guard's new fleet.
The Quebec shipyard was able to pick up some piecemeal work, including the construction of two federal ferries and the provision of several second-hand ships for the navy and coast guard. Those included a supply vessel for the navy and three used icebreakers.
Yet it made no secret of its desire for more and, with help from allies in Quebec City and the opposition benches in Ottawa, the Levis, Que.-based company lobbied the federal Liberal government hard for official inclusion in the shipbuilding plan.
At the same time, Seaspan was struggling to meet its delivery schedules thanks to mismanagement by both the Vancouver yard and federal government. All the while, the coast guard's fleet was becoming increasingly decrepit.
The impact of those delays crystallized further this week when the coast guard announced it was retiring the CCGS Hudson ocean research vessel at the same time it revealed that Seaspan won't deliver its replacement until at least 2025.
It was in this context that the Liberal government announced in August 2019 that it was adding a third yard to the shipbuilding plan to build Canada's next icebreaker fleet, and formally called for shipyards to indicate their interest.
Ontario shipyard Heddle Marine wasted no time accusing the government of stacking the deck in Davie's favour. Yet the Canadian International Trade Tribunal was blocked from investigating Heddle's complaint after Ottawa invoked a special exemption.
In December 2019, the government announced Davie was the only shipyard to meet its requirements.
Yet while officials at the time said they expected a final deal ironing out the details by the end of 2020, that hasn't happened. The last official update in July said the government had revised that schedule to the end of 2021, which it also missed.
Both sides say discussions are ongoing, but have provided few other details.
"This is a complex, multi-step qualification process and it is imperative that Canada gets it right," said Public Services and Procurement Canada spokesman Marc-Andre Charbonneau. "Our evaluation team continues to assess the proposal Chantier Davie submitted."
He added that if Davie "was not able to successfully complete the process to become the third shipyard under the (national shipbuilding strategy), Canada would need to assess the impact across all programs intended for the third shipyard."
A Davie spokesman said the company remains committed to building Canada's new icebreakers, the delivery of which becomes more urgent with every passing day as the coast guard's existing fleet becomes increasingly older and harder to maintain.
Meanwhile, the company has yet to deliver the last of the three second-hand icebreakers ordered for the coast guard in 2018, which were billed as costing $610 million but whose price tag is now nearing the $1 billion mark.
The lack of a formal deal didn't stop the Liberals from announcing in May plans to have Davie and Seaspan each build a polar icebreaker, an announcement that some saw as politically motivated ahead of last year's federal election.
University of Calgary shipbuilding expert Timothy Choi said while the COVID-19 pandemic no doubt slowed down plans to add Davie, the lack of clarity surrounding the talks is both frustrating and concerning.
"The exact stage of their negotiations, and indeed what exactly needs to be negotiated or verified in order for Davie to become the official third yard, have been shrouded in silence," he said.
This report by The Canadian Press was first published Dec. 21, 2021.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government鈥檚 three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party鈥檚 popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn鈥檛 be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Canada will cut its permanent immigration levels by at least 20 per cent
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, 愛污传媒 confirmed Wednesday.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
Trudeau says Liberals 'strong and united' despite caucus dissent
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
'Canadians can breathe a sigh of relief': Bank of Canada governor on interest rate cut
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
Canada's discount airline is suspending operations to and from Saskatoon.
A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.
Local Spotlight
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.
Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.
A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.