QUESTION PERIOD — Public Services and Procurement
Icebreaker Fleet--Davie Shipbuilding
December 9, 2020
My question is for the Government Representative in the Senate.
The pandemic poses a serious challenge for the public purse. In order to restart the economy and balance the budget, the government will have to leverage its own procurement activities.
According to a report from the Parliamentary Budget Officer, Ottawa could have saved $2.7 billion by converting the Asterix and Obelix, rather than building two new supply ships. Even if there is a way to do more with every dollar spent, we also need to use government acquisitions to get Canadians back to work.
While the Halifax and Vancouver shipyards are always getting more contracts, Canada’s largest shipyard is not operating at full capacity. Given that Seaspan was still unable to start building the Diefenbaker polar icebreaker eight years after being awarded the contract, Davie told the government that it was willing to take over the order that was rescinded from the Vancouver shipyard in 2019. That contract would create 1,500 jobs and nearly a billion dollars in spinoffs. Unlike Seaspan, Davie, with its pan-Canadian supply chain, is able to begin the work right away.
Does the government recognize that we need to make use of government procurement in order to support the economic recovery and create jobs? Is the government prepared to clearly demonstrate that by granting the contract for the Diefenbaker icebreaker to Davie, the only shipyard that can begin work immediately?
I thank my colleague for his question.
In order to reinforce the Canadian Coast Guard’s capacity to meet growing demand related to its operations in Arctic waters, the government is considering various options to get an icebreaker built quickly, efficiently and in a way that gives Canadians the best value for money.
I’ve been informed that all Canadian shipyards had the opportunity to respond to the request for information that closed on March 13, 2020. No decision has yet been made about which shipyard will construct the polar icebreaker you mentioned. The responses received by Public Services and Procurement Canada and the information collected through this process will enable the government to decide how best to proceed to ensure that the icebreaker is delivered as quickly and efficiently as possible.
Senator Forest, do you have a supplementary question?
Yes, please, Your Honour.
It’s a well-known fact that, when it comes to maritime procurement and the current situation in Canada, order books at the Irving and Seaspan shipyards are full. I don’t understand the approach taken by this government, which wants to continue to analyze the situation and give a contract back to a supplier that already has its hands full.
Thank you for the question. As you know, the Davie shipyard has been awarded $2.1 billion in contracts under the national shipbuilding strategy. That shipyard is currently refitting three icebreakers for the Canadian Coast Guard, and is on its way to becoming the third partner in the national shipbuilding strategy.
That said, no final decision has been made regarding which shipyard will build the Diefenbaker polar icebreaker.
