Ministerial message—National Shipbuilding Strategy: 2016 annual report

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As Minister of Public Services and Procurement Canada and one of the ministers responsible for the delivery of the National Shipbuilding Strategy, I am proud to present this first annual report of the strategy’s progress from January 1 to December 31, 2016.

The government committed to providing the brave women and men of the Canadian Coast Guard and the Royal Canadian Navy with the equipment they need to serve and protect Canadians.

To deliver on this promise, our government has enhanced the National Shipbuilding Strategy in several areas, including streamlining processes, increasing transparency, maximizing economic benefits and ensuring best value for Canadian taxpayers. The strategy has always held tremendous promise for Canada. Now, it is positioned to deliver.

In 2016, under the dedicated leadership of Minister Judy M. Foote, substantial progress was made under the National Shipbuilding Strategy. Small vessel construction began on Search and Rescue Lifeboats at two shipyards and a contract was awarded to build two Channel Survey and Sounding Vessels. For large vessels, significant progress was made on the construction of the first Arctic and Offshore Patrol Ship, and steel has been cut for the second. Construction began on the second Offshore Fisheries Science Vessel. Further, preparations, including design work, progressed to support the upcoming construction of the Joint Support Ships, the Offshore Oceanographic Science Vessel, the Polar Icebreaker and the Canadian Surface Combatant.

Our two primary shipyards, Seaspan’s Vancouver Shipyards and Irving Shipbuilding’s Halifax Shipyard are creating opportunities for Indigenous peoples, women and minority groups to contribute to the renewal of Canada’s federal fleets.

The strategy is helping to grow Canada’s middle class by creating and maintaining good jobs for Canadians. Companies from coast-to-coast-to-coast are providing support with advanced technologies, specialized parts and equipment, and professional services. Through National Shipbuilding Strategy contracts, work for small and medium-sized enterprises is being generated all across Canada. Furthermore, active participation by Canadian companies continues to not only support the development and demonstration of required competence and capability for strategy projects, but also puts them in a position to develop international business opportunities as well.

It is estimated that contracts awarded through the National Shipbuilding Strategy to date will contribute close to $7.7 billion of gross domestic product (GDP).Footnote 1 Furthermore, roughly 7,350 jobs per year on average will be created or maintained between 2012 and 2022. This impact will continue to grow over time as new contracts are awarded by the Government of Canada and by our two National Shipbuilding Strategy shipyards.

The strategy is good for Canada, and it is worth getting right. The enhancements we are making will ensure we realize the full benefits of the strategy. We’re building ships, creating important jobs for the middle class and strengthening vital industries. As this historic fleet renewal progresses, the Government of Canada is committed to keeping Canadians fully informed.

The Honourable Carla Qualtrough
Minister of Public Services and Procurement

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