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Conservatives Set to Sink BC Shipyards, Fears Union
Who gets $35 billion contract could mean life or death of shipbuilding industry in this province, says union.
Seaspan's shipyards in Esquimalt.
The economy is a hot-button issue this election, with parties focusing on strengthening Canada's tenuous recovery from the global recession. In two British Columbia seaside ridings fears of job loss stem from a move by the Conservatives some see as a gambit to shore up support in Quebec leading into this election.
The concerns arise from a $35 billion contract the Conservatives promised to two shipyards -- a contract B.C. shipbuilders fear they won't get, spelling the end of the province's industry.
The former-Conservative government announced a request for proposals (RFP) in February for two shipbuilding centres of excellence: shipyards that would receive billions in combat and non-combat ship work, which the B.C. shipbuilders union estimates would provide 800 to 900 jobs in B.C. for at least seven to 10 years.
While they received five proposals in total, it's widely believed the competition is between Seaspan, which operates the Vancouver and Victoria yards; Irving Shipbuilding, in Saint John, NB; and Davie Yards, just outside Quebec City, Que. The final decision is schedule for July.
"(That contract is) what's going to allow the industry to grow in the future and it'll allow them to bring new people in, new infrastructure, set up apprenticeship programs," says George MacPherson, president of the B.C. Shipyard General Workers Federation.
Competing with Quebec was seen as a positive sign for B.C. since all companies who responded to the RFP must be solvent, and Davie was in bankruptcy. Until two weeks ago.
"They've just been bought by a large outfit coming out of Italy," MacPherson told The Tyee.
"Quebec has been looked after over the years many, many times, and I would be quite discouraged if I see that the federal government was out there playing games with this thing and they ended up with a contract that they shouldn't be qualified for.
"If the West is cut out of this program, then I believe that we won't have an opportunity to be able to compete going forward with the rest of the industry around the world."
NDP: Policy of fair distribution of work
While shipbuilding only makes up one tenth of one per cent of the province's gross domestic product, it's a big issue in the ridings of North Vancouver and Esquimalt-Juan de Fuca, home to the province's two shipyards. New Democratic Party Leader Jack Layton announced his plans for Canadian defense in Esquimalt-Juan de Fuca on April 8, which includes building two new supply ships for the armed forces.
"Our plan will help Canadian shipyards eliminate the boom and bust cycles, provide stable employment, and keep expertise in Canada," Layton said in a press release.
Instead of centres of excellence, the NDP plan to spread the work around to different shipyards across the country, including B.C.
"We have set out the policy of a fair distribution of the work around the country, and an emphasis on ships as the first priority of procurement, so that means there'll be work available, and I'm very confident that the shipyards here in my riding are certainly going to be competitors for that work," says Randall Garrison, NDP candidate for Esquimalt-Juan de Fuca, who is locked in a race with Conservative candidate Troy de Souza that is too close to call.
Garrison argues the Conservatives have put ships on the back burner in favour of fighter jets for the armed forces. This doesn't fall in line with what the NDP sees as the role of the Canadian Armed Forces: defending Canada, assisting in natural disasters, and participating in peacekeeping and peace building.
Michael Charrois, NDP candidate for North Vancouver, says he was surprised his riding hasn't already been chosen as one of the centres because incumbent Conservative Andrew Saxton was parliamentary secretary to Stockwell Day, former minister for the Asia-Pacific Gateway and president of the Treasury Board.
But while MacPherson is fearful the government won't award the contract to B.C., Charrois suspects the ships won't even be built in Canada.
"It's this move to larger multinationals. I don't know why the C-Class ferries had to be built in Germany. There was supposed to be a tariff involved in building them in Germany and bringing them here, but the Conservative government waived that," Charrois told The Tyee.
"There's just a lot of secretiveness about awarding the contracts and I don't know how it works."
The Tyee contacted Saxton's campaign office, as well as Esquimalt--Juan de Fuca Conservative candidate de Souza, for an interview but did not receive a reply from either candidate by deadline.
Liberal: applying Conservative policy fairly
Shipbuilding isn't part of the federal Liberal platform, but it's on the minds of the local Liberal candidates who like the centre of excellence idea and want to see this province become home to one of them.
"What I'm really looking at is making sure that we're applying this policy that was unveiled by the Conservatives fairly," says Lillian Szpak, candidate for Esquimalt--Juan de Fuca, adding B.C. and Halifax are the best choices because they're home base for Canada's naval fleet.
North Vancouver candidate Taleeb Noormohamed says the Conservatives have a record of only bringing contracts like this to Eastern Canada, accusing the party of dangling contracts "like a carrot" in front of Western Canada without delivering. If elected, Noormohamed says he'll work with industry and environmental groups to make the business case for picking B.C.'s shipyards, because that's the only way to make a convincing bid.
"The history of the shipyards here has been a great success, but we have to couple that historical success with a strong business case, which we will absolutely be able to produce," Noormohamed told The Tyee.
"It's a combined effort, it's never going to be one person working on their own, it needs to be a combined strategic effort to deliver it and bring it home."
Waiting game
But it isn't just federal support MacPherson is looking for. While the governments of both Quebec and Nova Scotia are making the case for their shipyards, MacPherson is wondering where the B.C. Liberals have been during this conversation.
"Provincial politicians have put strong letters of support out and news releases out. Provincial government of British Columbia has been very, very quiet, that's a concern that we have," he says.
A spokesperson for the Ministry of Jobs, Tourism and Innovation, Sheldon Johnson, says the ministry has been in contact with Ottawa and Seaspan about the project, but it's waiting until the outcome of the federal election before doing anything else. He said the ministry is not too concerned, however, about the future of the province's shipyards if the bid isn't successful.
"Shipyards not successful in this package have the opportunity to bid on the small non-combat ships. As well they may also supply the winning shipyards with goods and services as part of the federal Industrial and Regional Benefits program," Johnson told The Tyee in an emailed statement.
But one union source explained that busy shipyards tend to attract more business, while a shipyard that is left out of major government contracts may signal to prospective clients that it's somehow inferior, and over time contracts may wither away.
MacPherson doesn't have an issue with the centre of excellence plan, but says he doesn't understand why it's restricted to two when there's enough work to go around to provide for three. But until a new federal government is formed, all the union can do is wait.
"We're concerned," says MacPherson. "We're watching it very closely." ![]()




21
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Rolf Auer
1 year ago
If Harper is re-elected, do you trust his economic record?
"Why The Harper Government Mismanages The Economy" (article) and more..
My federal politics blog: clearpolitics.wordpress dot com
(Click "About" re reading posts, or on my picture.)
@Rolf_Auer
jim1966
1 year ago
Another Reason To Vote On May 2
Good article by the Tyee but if people are worried about this issue then it's time to change the government. Get out and vote and perhaps this might turn into a good news story in the future, under another political administration of course!
cghzd
1 year ago
I wouldn't hold my hand over
I wouldn't hold my hand over my butt while the decision is happening, it might become a permanent patch.
If Harper ever gets a majority a darkness will descend upon Canada that will be likened to the black plague, will be talked about with horror for generations, and will send the conservative party into oblivion, if we are ever able to kick him out.
VOTE FOR THIS MONSTER AT YOUR PERIL.
Check out this website re voting for any candidate that can beat the conservatives.
http://www.mintzberg.org/
Send it to all your friends.
CGHZG
Bill_Horne
1 year ago
& Harper says he'll keep the Pacific Fleet in Esquimalt :-o
Below is my response to this CBC non-story that appeared here: http://tinyurl.com/3h9266n
"Vancouver Island to remain part of BC" - Harper.
The Conservative government says it will not allow the Island to slide any further along the Juan de Fuca Plate or the North American Plate.
In a written statement released Thursday, Conservative Leader Stephen Harper said: "If re-elected, our government will not cause any tectonic shakeups. I will not allow this move. The Island will stay in BC; I'll tell the RCMP to make sure. And Stanley Park will not be relocated from Vancouver to Toronto."
Buz Cougur
1 year ago
B.C. Shipyards
Awhile back Quebec "The Block" made the choice to have an alunimum smelter or support Canadian shipbuilding. Norway got to build the ship or ships? Quebec got the smelter?
jnewcomb
1 year ago
fed fast ferry scandal?
This is all just a federal equal to the BC NDP's old fast ferry scandal, or before that when Dave Barrett wasted millions trying to start a railway boxcar-making industry. Makes more sense to buy ships from South Korea, but if we need to keep Quebec happy, we'll build them in Davie and just think of the wasted billions as being a cost of keeping Quebec in the federation.
Mangrove
1 year ago
Only the NDP fully support
Only the NDP fully support BC's shipyards. Vote Garrison to keep DeSouza out!
Driftwood
1 year ago
fed fast ferry scandal?
Let me tell you about the 'fast ferry scandal'. Those ships could have been converted for use on the the BC coast, rather than selling them. The cost? 45 million dollars; that's for all of them. And we're talking fuel efficiency, wave control and room for big trucks; which is pretty much everything. Instead the BC Liberal government sent 540 million dollars to a boatyard in Germany for ferries we didn't need and let the faster, better ferries sit at the dock in North Van as a sort of anti-NDP advertisement. Then they sold them at auction without bothering to put in a reserve bid and got a little less than 20 million dollars for the three of them. That is the real fast ferries scandal.
If you have ten spare minutes you can google it and find the actual document with the price to convert those ferries from the company which wanted to do it. It was submitted to the BC Liberal government before they bought the new ferries from Germany. I've posted the link here before.
dave49
1 year ago
Why Italian ownership of Davie?
Very simple, our economy has not tanked like other countries. This is why the Italians have bought a failing shipyard in Quebec. They're prospecting for business.
Look at the construction industry. Because we came out of the Wall Street debacle in good shape, major overseas construction companies are competing with Canadian firms. A Spanish firm is constructing the new RCMP building in Surrey and there are many more examples.
Quebecers would not turn away such a contract from the Harper Government, but a few dumb moves have set back the Conservatives potential in Quebec by a decade. That said, will it get them significant votes? The Bloc has an easy time winning more than 70% of Quebec's seats.
The other scenario: if there is Liberal-led minority coalition, this might become a bit of horse-trading over asbestos. The one thing I really commend Michael Ignatieff for is talking about shutting down the asbestos industry, centred in Quebec. Asbestos cannot be used in North America or Europe, so gets exported to third and fourth world countries. And the Harper Government's envoy scuttled the Rotterdam treaty which would have required us to tell the people buying our asbestos how to use it safely. So, if asbestos was shut down, what would replace it? A newly revitalized ship building industry?
guystone
1 year ago
clearly biased and irrational posts
The people that are telling others to go out and vote against the Conservatives? I assume you are telling Quebecors to vote Conservative - correct?
guystone
1 year ago
NDP
the NDP killed our ferry industry with the fast ferries - we are an international embarassment now
barry warne
1 year ago
The Game Remains the Same
Years ago it was the carrot of the Polar 8 Icebreaker that John Crosby dangled on a stick in front of shipyard workers - with his 'letter of intent' - - which was simply a hollow decoy to gain votes while Quebec (as usual) got the plumb navy contracts.
The Polar 8 was never built but the Conservatives gained (and kept) power with Mulroney. Votes were essentially bought with that cheap, hollow 'letter of intent.'
Afterward, Westcoast shipyards were simply left to crumble (outside of BC Ferries builds and some highly technical off-shore commercial ship builds).
Jobs were lost - even though there was a healthy reorganization and restructuring happening by all local yards.
A superior local industry was ignored and dismissed. Or worse - meddled with by Glen Clark (good intentions but wrong design).
BC Ferries kept the big yards alive until 1993 - which is when I left that industry.
People from Ottawa wonder why there is such distrust and contempt for our Federal Government - here out west. The saga of our shipyards is but one of many reasons.
The game remains the same.
Frank
1 year ago
guystone
You're not biased? Haven't seen you telling people to vote NDP yet.
Frank
1 year ago
By the way it was Campbell
By the way it was Campbell that killed our ferry industry when he built them in Germany so as to purposefully weaken BC Labour.
jwstewart
1 year ago
Without taking sides....
Is one to assume the shipbuilding industries in either BC, QC or NB cannot survive on their own merits? Is gov't support based on location required?
This sure puts excess authority in the hands of political opportunists, deciding where an industry should survive or fail.
G West
1 year ago
helping the shipbuilding industry?
You mean the way the Germans do?
I guess it just depends which union happened to be involved - as long as the unions are in Germany Campbell didn't have a problem with 'their' ships.
Driftwood
1 year ago
@guystone
there's no arguing with you because you don't support your posts with even one fact.
mot
1 year ago
BC Shipyards
Seaspan is wholly owned by WMG(Washington Marine Group) a power house on this coast.
Davie& Irving are lickladle has beens, pushing their waning "Upper/Lower Canada" hysterical rights.
Now the insolvent Italians enter to bail out Davie..... What smells here?
It is after all a corporate "war"....
Harper would have to choose a "winner"....if elected.
He backs "Bigger Business".... that means:
Davie&Irving win, and BC gets stripped by resource(pick the one near you) extraction.
Is this a country or an eco war zone ?
PS, Don't forget about Enbridge.
Camero409
1 year ago
jnewcomb
EDITED FOR PERSONAL INSULTS. WITHOUT IT, IT WOULD HAVE BEEN A GREAT POST. -- MODERATOR When BC rail had the boxcar facility in Squamish they were producing 5 cars a day and wanted to expand. The main reason they located the facility on BC Rail property is because BC Rail's orders for cars had to be tacked onto the backend of orders from CN or CP from manufacturers in the east. They had to wait until those railways put in an order. All railways were purchasing box cars and BC Rails orders were not large enough to produce as a seperate order.
BC Rail was expanding and upgrading their fleet of cars and needed need new ones desperately. Therefore the plant. The excess they sold on the open market. When that happened, they were direct competition with the manufacturers in the east. They were out producing them and at a much better price.
No, it wasn't a boondoogle, they were shut down for political reasons.
realisticman
1 year ago
Thinking of Voting Liberal? Read This
A quote,
"The Chronicle Herald reported on Tuesday that Montreal Liberal candidate Denis Coderre promised on Friday that a Liberal government would extend a deadline for Davie Shipyard."
http://thechronicleherald.ca/Vote2011/1238078.html
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