Ottawa to announce shipbuilding plan
Thursday, June 3, 2010 at 11:16AM Contracts worth $40B over next 30 years
The construction logjam of tens of billions of dollars in new Canadian navy and coast guard ships is finally expected to break Thursday with the announcement of Ottawa's long-anticipated shipbuilding strategy.
Defence Minister Peter MacKay, Fisheries Minister Gail Shea and Public Works Minister Rona Ambrose will reveal the plan in front of a gathering of defence contractors in Ottawa for an annual trade show and arms exhibition.
The federal government has for a year tried to persuade the often cutthroat competitors in shipbuilding to work hand-in-glove with the federal government as it rolls out 50 large ship projects — worth an estimated $40 billion — over the next 30 years.
Details of the plan are a closely guarded secret, but defence insiders said it is not expected to contain any major infrastructure money to revitalize the once-vibrant construction sector.
There were reports this spring that suggested shipbuilding work would be spread among three major existing yards in Nova Scotia, Quebec and B.C. — a notion that prompted outrage in Newfoundland, which has been lobbying for investment and the revitalization of its facilities.
The country's top military commander told the defence industry on Wednesday that new ships for the navy was his No. 1 procurement need and noted that it has been 14 years since the last major warship was launched in Canada.
"We need to cut steel on new ships," said Gen. Walter Natynczyk, the chief of defence staff.
Buying aircraft and tanks, sometimes off the shelf, is much easier than building warships, which because of their size, complex designs and high-tech machinery often take a decade of planning before the actual construction begins.
To emphasize the need to modernize the Canadian navy, the defence chief pointed to the 38-year-old HMCS Iroquois and claimed the 5,100-tonne command-and-control destroyer will soon be the oldest frontline warship in the western world.
Read more: http://www.cbc.ca/money/story/2010/06/02/shipbuilding-strategy.html?ref=rss#ixzz0pnsUYMwd
Read more: http://www.cbc.ca/money/story/2010/06/02/shipbuilding-strategy.html?ref=rss#ixzz0pnsRg2Gp
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