Chantier Davie won’t take ‘no’ for an answer
Chantier Davie in Lévis, across the St. Lawrence from Quebec City, will be forced to lay off 800 shipyard workers before Christmas without a new contract to build a second supply vessel for the Canadian navy.
“We’re not taking no for an answer on that,” Davie CEO Alex Vicefield said in a telephone interview on Thursday, after Defence Minister Harjit Singh Sajjan told Le Journal de Québec last week through his press attaché that the government does not plan to buy a second supply ship.
In an email response Thursday, Sajjan’s press attaché Bryne Furlong reiterated that, “Navy and Coast Guard supply requirements have been extensively studied and are subject to long-term planning, which does not include a second supply vessel.”
The layoffs have begun, now that the Davie workforce has completed — on time and on budget — conversion of the German-built container ship Asterix into a supply ship to deliver fuel, water, food and supplies to the ships of the Royal Canadian Navy.
Davie’s plan now is the $600 million conversion of the Obelix, a sister ship to the Asterix, into the navy’s second supply ship. Vicefield said Ottawa’s plan calls for paying $2 billion each for two new supply vessels, the first of which will only be available 10 years from now.
“Why do we need to build these ships for $2 billion each?” Vicefield asked, noting the Asterix and Obelix cost $600 million each and are superior vessels.
“I’m not a political activist but we believe in the project and we delivered,” Vicefield said.
In 2011, the Harper government unveiled its National Shipbuilding Procurement Program, awarding $38-billion in contracts to build ships for the Navy and Coast Guard to Irving Shipbuilding Inc. of Halifax and Seaspan Shipbuilding of Vancouver.
Davie, emerging from bankruptcy at the time, is Canada’s largest shipyard and was excluded.
Cost estimates have risen since then, Vicefield noted, with the cost ballooning to over $100 billion. And in the six years since the plan was announced, the two winning shipyards have delivered no ships.
Officially, Seaspan is to launch its first replacement supply ship in 2021.
But Vicefield noted that Andy Smith, the official responsible for shipbuilding in the federal department of fisheries and oceans, told a Commons committee Nov. 7 that Seaspan has a backlog of three ships to build before work on the first supply ship can begin in 2023, for delivery in 2027 [emphasis added]...
Vicefield regards the Harper government’s plans, renamed by the Liberal government as the National Shipbuilding Strategy, as “mind-boggling” and “a bit of a joke.”
And he believes Canada can have three shipyards, including Davie, to build and maintain naval and Coast Guard vessels.
“There are about 50 large ships that need replacing,” he said, noting the average age of the Coast Guard fleet is 40 years [emphasis added]. “So there is enough work for sure for three shipyards for the next 30 years.”
“We haven’t been pushing against the National Shipbuilding Strategy,” Vicefield said. “I think it is going to fall on its own.”
Irving, which is now building ships in Romania, and Seaspan, which has ordered two ferries to be built in Turkey [!!! emphasis added], are defending the plan, and so far have political support [Quebec is giving Davie loud political support too, and Liberals want more seats there]....
https://ipolitics.ca/article/chantier-davie-wont-take-no-answer/