Minister’s message: Canada’s National Shipbuilding Strategy—2020 annual report

Navigation for Canada’s National Shipbuilding Strategy: 2020 annual report

I am pleased to present the fifth annual report on Canada’s National Shipbuilding Strategy (NSS), covering 2020.

Along with my colleagues, the Honourable Harjit S. Sajjan, Minister of National Defence, the Honourable Bernadette Jordan, Minister of Fisheries, Oceans and the Canadian Coast Guard, and the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, I am proud to be leading Canada’s efforts to renew and maintain the Royal Canadian Navy (RCN) and Canadian Coast Guard (CCG) fleets.

In 2010, the Government of Canada created the NSS to help rebuild our marine industry by having ships built in Canada, ensure our sovereignty and protect our interests at home and abroad.

The early days were not always easy. Expertise in Canada was still developing, having grown weak during the boom and bust cycle of shipbuilding before the NSS was launched. Early progress was slower than planned. Initial NSS projections were overly optimistic and not yet informed by actual build experience at the shipyards. In addition, entirely new classes of ships were being built by new workforces in new shipyards. However, as the NSS has matured, both the shipyards and Canada have gained experience and the NSS has made important progress. Today, the NSS has produced 4 large vessels and numerous small ships, and many more are under construction across Canada.

NSS projects continued to stimulate the Canadian economy in 2020, with approximately $3.5 billion in new contracts awarded to Canadian companies in 7 different provinces and 1 territory throughout the year. Overall, it is estimated that from 2012 to 2020, NSS contracts have contributed approximately $20.1 billion ($1.82 billion annually) to Canada’s gross domestic product, and will have created or maintained over 16,930 jobs, annually, through the marine industry, its Canadian suppliers and consumer spending by associated employees, between 2012 and 2022.

In July, Irving Shipbuilding delivered the first of 6 new Arctic and offshore patrol ships (AOPS), Her Majesty’s Canadian Ship (HMCS) Harry DeWolf, to the RCN, making it the first large ship to be built for the RCN under the NSS.

In October, Seaspan’s Vancouver Shipyards Ltd. (VSY) delivered the third and final offshore fisheries science vessel, the Canadian Coast Guard Ship (CCGS) John Cabot, to the CCG, marking the completion of the first full class of large vessels built under the NSS.

In November, Chantier Davie completed conversion work on the second medium interim icebreaker, the CCGS' Jean Goodwill, and delivered it to the CCG.

And most recently, we announced that VSY will build 1 of the polar icebreakers. The other polar icebreaker will be built by the third shipyard, pending the successful completion of the ongoing selection process as the third strategic partner for large ships construction under the NSS. The process for the selection of a third shipyard under the NSS was ongoing throughout 2020, and an umbrella agreement is expected to be in place in 2021.

This work we are undertaking under the strategy is complex, and we continue to make improvements to ensure we meet the important objectives of the NSS. To this end, in 2021, important work was conducted by the Auditor General and the Parliamentary Budget Officer that offered recommendations and perspectives that will guide our work going forward. As with all large-scale procurement projects, the cost and timelines for NSS projects will be closely managed, and we will continue working closely with industry to ensure the best value is provided to Canadians throughout the duration of this project.

Important progress has been achieved during the first decade of the NSS. Looking forward, we have important work on the horizon, and I am confident that the strategy is on the right course to deliver the right ships to the Navy and Coast Guard. The NSS will see the progression of projects for up to 26 additional large ships for the CCG, including up to 16 multi-purpose vessels and 2 adapted AOPS. We expect 6 new program icebreakers to join the federal fleets. A full build contract was awarded in February 2021 for the offshore oceanographic science vessel and construction started in March 2021. We will also continue to respond to emerging shipbuilding needs and to work collaboratively with shipyards and suppliers throughout the supply chain to ensure that the strategy continues to support the needs of the government’s fleets, while delivering important economic benefits for Canada and jobs for Canadians.

The Honourable Anita Anand
Minister of Public Services and Procurement

Navigation for Canada’s National Shipbuilding Strategy: 2020 annual report

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