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Decentralized Democracy

House Hansard - 75

44th Parl. 1st Sess.
May 19, 2022 10:00AM
Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 6:49:42 p.m.
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Madam Chair, we are really proud of our national shipbuilding strategy. The investments we make into that strategy pay off. The economic benefits pay off, and it is not just for the large shipyards. Small businesses benefit as well.
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Context: House Hansard - 75 - May/19/22
Mr. Pierre Paul-Hus
  • May/19/22 6:51:00 p.m.
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Madam Chair, I have another point that was raised by officials from Public Services and Procurement Canada. On April 7, these bureaucrats told the committee that we can expect further cost overruns and delays regarding the delivery of new ships for the navy and the Coast Guard, and that the multi-billion dollar shipbuilding program faces significant challenges. Will the minister admit that billions of dollars in cost overruns are already expected?
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 6:52:23 p.m.
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Madam Chair, just so that we are aware, I want to point out some of the benefits that the national shipbuilding strategy and the investments that we are making are having on Canadians. First, there is the creation of jobs, which includes the creation of over 18,000 jobs per year that are created or maintained. In terms of the economic benefit, it is $1.54 billion annually to the economy. With respect to overruns, I have already mentioned that COVID has had an impact and that does impact some of the overruns that have been faced.
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Context: House Hansard - 75 - May/19/22
Mr. Pierre Paul-Hus
  • May/19/22 6:53:54 p.m.
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Madam Chair, about the construction timeline, the Parliamentary Budget Officer estimates that construction of the first polar icebreaker will begin in the 2023-24 fiscal year, and the second in the following year. The ships should be delivered in 2029-30 and 2030-31, respectively. How can they even have a timeline when the Davie shipyard is still not an approved partner in the national shipbuilding strategy?
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Context: House Hansard - 75 - May/19/22
Mr. Pierre Paul-Hus
  • May/19/22 6:58:04 p.m.
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Madam Chair, let us talk about transparency. I will give the minister an opportunity to say more. The committee recently heard from representatives of Irving Shipbuilding. For the contract to build the 15 new frigates, the president mentioned that Irving's bid was under $60 billion and added that the government had announced that it would cost $60 billion. However, the Parliamentary Budget Officer estimated that the frigates would cost $77.3 billion to build. Given that Irving's figure was less than $60 billion, the government's figure was $60 billion, and the Parliamentary Budget Officer's figure was more than $77 billion, could the minister, in the name of transparency, tell us the projected cost of building these frigates?
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 6:59:58 p.m.
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Madam Chair, we are going to be open and transparent. When those figures are able to be shared, we will share them. We will continue to work with the PBO and all parties, because at the end of the day, we are proud of our national shipbuilding strategy. We know that at the end of day it is creating jobs and contributing to the economy, which are very important for Canadians. We will be open and transparent with the numbers.
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Context: House Hansard - 75 - May/19/22
Mr. Pierre Paul-Hus
  • May/19/22 7:01:21 p.m.
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Madam Chair, I will come back to the issue of the polar icebreakers. We currently have the cost estimated by the Parliamentary Budget Officer. I understand that the minister is in negotiations. I would like to know who she is negotiating with. Is the Davie shipyard included in these negotiations, because it is not yet a partner in the national shipbuilding strategy?
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 7:01:44 p.m.
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Madam Chair, again, we are going to continue to work with the PBO. In terms of the difference in numbers, it is an issue of taxes being included or not included. It is a different methodology. Again, when we are able, we will share all of that information so that the member and all others are aware of what we are investing. At the end of the day, we know these investments are important, and that is why we are making them. We will continue to monitor the shipbuilding as it takes place.
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 7:23:13 p.m.
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Madam Chair, I would repeat what I said earlier, which is that I believe that we are strong in defence procurement. In fact, members can look at what we are involved in right now: The most significant investment in the air force in 30 years is the purchase of 88 fighter jets. The first five ships have been delivered under the national shipbuilding strategy. Two-thirds of the projects under Strong, Secure and Engaged have been either implemented, completed or are near completion. That is a pretty strong record. In terms of defence procurement, I think we have a strong record.
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Context: House Hansard - 75 - May/19/22
Mrs. Julie Vignola
  • May/19/22 7:30:21 p.m.
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Madam Chair, in August or September 2019, it was announced that the Davie shipyard had pre-qualified for the national shipbuilding strategy. What is the current status of negotiations? What is holding them up?
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 7:31:58 p.m.
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Madam Chair, I would like to thank Chantier Davie for its hard work on the national shipbuilding strategy. We have invested $2.1 billion with Chantier Davie, and we want to thank it for what it has produced in this regard.
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Context: House Hansard - 75 - May/19/22
Mr. Kelly McCauley
  • May/19/22 8:08:53 p.m.
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Madam Chair, when does the government expect to sign a contract with Irving Shipbuilding to begin construction of the surface combatants?
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Context: House Hansard - 75 - May/19/22
Mr. Kelly McCauley
  • May/19/22 8:09:14 p.m.
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Madam Chair, that is funny, because in a previous OGGO meeting, years ago, we were actually given a date, and now it is being decided. An Order Paper delivered by the government stated that the costs for the Coast Guard AOPS would be $750 million per ship. Irving Shipbuilding testified just last week it would be considerably less. Who is telling the truth?
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 9:10:50 p.m.
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Madam Chair, I strongly support the national shipbuilding strategy. We are creating jobs here in Canada. I had the opportunity to visit one of the shipyards, and I can tell the member that the work being done there by Canadians is absolutely phenomenal.
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 9:11:29 p.m.
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Madam Chair, I can say that I saw workers in action. The national shipbuilding strategy is putting Canadians to work, and I am happy about that.
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 9:11:51 p.m.
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Madam Chair, I am happy to support the national shipbuilding strategy, and they are going to provide us with the ships that we—
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Context: House Hansard - 75 - May/19/22
Mr. Luc Berthold
  • May/19/22 9:19:39 p.m.
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Madam Chair, Mr. Kendrick, who worked for the Government of Canada from 1981 to 2020, said that what concerns him about the whole shipbuilding process is that the government has lost control of situation. Does the minister agree?
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Context: House Hansard - 75 - May/19/22
Mr. Luc Berthold
  • May/19/22 9:20:01 p.m.
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Madam Chair, Mr. Kendrick also says that Canada's national shipbuilding strategy is not delivering the ships that the Canadian Navy and Coast Guard need. According to him, the few ships that the strategy has delivered have cost an indecent amount of money, and Canada has become an international laughingstock. Is the minister okay with being a laughingstock?
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 9:20:23 p.m.
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Madam Chair, again, what I would say is that I am proud of the national shipbuilding strategy. I think the economic benefits for Canada, the jobs that it creates, and the amazing work that is taking place are something that we as Canadians should all be proud of.
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Context: House Hansard - 75 - May/19/22
Hon. Filomena Tassi
  • May/19/22 9:21:36 p.m.
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Madam Chair, DND tells PSPC what it needs, and we procure what it needs. I would just add that the national shipbuilding strategy contributes $1.54 billion annually to the economy, and it creates and maintains 18,000 jobs per year.
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