Policy & Positions Manual
Provincial Issues - Jobs, Tourism And Innnovation
A Level Playing Field for BC’s Shipbuilding Industry (2011)
This century has been deemed the Pacific Century, highlighting the importance that Canada’s relationships in the Pacific Rim will play in our continued economic prosperity and as a focus of our international policy and military operations. The opportunity and challenge presented to Canada will be the country’s ability to capitalize on the new opportunities being presented in Asia, and particularly in China.
China is now the world’s second largest economy after the United States, as measured by the purchasing power of GDP. In 2003 alone, it rose three places in the World Trade Organization’s (WTO) ranking to third with 5.3% of global imports, behind only Germany (7.7%) and the U.S. (16.8%). Within the lifespan of the BC National Shipbuilding Procurement Strategy (NSPS) program, China will overtake the United States as the world’s largest economy,(1) and will continue driving significant activity amongst the ASEAN group of countries. Our ability to maximize these new relationships is contingent on the building the required capacity around transportation, and in particular, marine transportation.
The NSPS program is uniquely positioned to signal Canada’s commitment to fostering these ties and to providing a platform that will help leverage significant additional private sector investment in the marine and ocean space industries. The cluster of companies, capital and human resources it will support will act as a continued catalyst for the province’s technology sector, including such companies as MacDonald, Dettwiler and Associates Ltd, providing new opportunities for knowledge transfer between our post-secondary institutions and fostering the next generation of marine industry and technologies.(2)
With this in mind the Chamber believes it is critical that all parties work towards securing NSPS bid, and the 3,000 jobs and $20 billion in economic activity it will bring to BC. The NSPS is a 30-year, $30 billion federal program to rebuild Canada’s Navy and Coast Guard.
The Provinces of Quebec and Nova Scotia have strongly stated support for their bids. This support includes resolutions in the Provincial Legislatures, public statements of support from the Premiers, and promises of financial assistance to support the bids.
The City and District of North Vancouver, and Esquimalt have supported the bid, and talked with MPs and federal officials.
Responses under the RFP process are due in Ottawa by July 7th, and a decision is scheduled to be made by late summer.
Seaspan Shipyards, owned by Seaspan Marine Corporation, is one of four qualified bidders for the federal government’s NSPS. Seaspan Marine Corporation is a major marine transportation company serving the West Coast of North America. Seaspan also provides shipdocking services to the Port of Vancouver, Victoria Esquimalt and other BC ports.
An independent economic impact study of a successful bid by Seaspan Shipyards shows that 3000 jobs would be created and sustained and the province would benefit from more than $21 billion in economic activity.
This project would have an economic impact on Metro Vancouver, Vancouver Island and the province as a whole. This includes other BC shipyards that will participate with Seaspan Shipyards plus suppliers of everything from pipe to professional services. Seaspan shipyards are experienced in new construction, conversion, repair, and maintenance projects, work for the Canadian Navy, repair and maintenance work on deep sea vessels and containerships as well as new construction and repair work on ferries, tugs, fishing vessels, Arctic Class and research vessels, barges and yachts of various sizes.
BC currently accounts for approximately 25% of the shipbuilding activity in Canada, and this investment would strengthen and grow this vital industry. The Chamber believes this major new capital investment would re-establish shipbuilding on the West Coast as a highly productive, world class industry that will serve the marine industry and British Columbians for the next 50 years. Establishing a new high-tech, high-skill marine industry is possible if Seaspan can deliver a highly competitive bid.
We know from the experience of northern European shipyards that shipbuilding is a significant revenue and employment generating industry that incorporates world class technologies, knowledge, and processes. New shipbuilding facilities can thrive in advanced economies and this opportunity exists for British Columbia.
Moreover, high-tech shipbuilding would enhance the marine sector in BC. This marine sector includes ship builders, naval architects and engineers, academic and training institutions, and the growing number of British Columbian and other Canadian businesses that would form part of the extensive supply chain for this 35-year shipbuilding program.
THE CHAMBER RECOMMENDS
That the Provincial Government:
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maintain and strengthen support for the importance of this project to BC, and the importance of a successful NSPS bid for Seaspan Shipbuilding to the provincial economy;
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communicate this view directly to the Prime Minister and cabinet, and;
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consider supporting the BC bid through vehicles that ensures BC is able to compete on a level playing field with other jurisdictions.
Footnote
