Shipbuilding scheduling conflict means taxpayers on the hook for an extra $55-million
Lee Berthiaume, Postmedia News
OTTAWA — Canadian taxpayers will be forced to shell out an extra $55-million due to a scheduling conflict in the federal government’s national shipbuilding strategy, senior officials have confirmed.
At the same time, Canada’s navy will be forced to rely on its allies for up to two years to provide it with “essential” resupply capabilities, during which time its ability to conduct independent maritime operations will be dramatically reduced.
The Royal Canadian Navy and Canadian Coast Guard have been in fits in recent months as each has major shipbuilding projects scheduled to be ready for construction at the same time in the coming years.
But the Vancouver shipyard slated to build them can only handle one project at a time, meaning work on either the navy’s new resupply ships or the coast guard’s new heavy icebreaker will have to be delayed.
On Friday, the government announced the resupply ships will be built first, and that construction of the icebreaker will be pushed back several years.
As a result, the government will have to spend an additional $55-million to keep the coast guard’s existing heavy icebreaker, the CCGS Louis S. St-Laurent, in the water until its replacement is in the water in 2022.
The 44-year-old St-Laurent was due to be retired in 2017.
“We’re going to have to do some work on her pretty well every year to keep her operational through the summer seasons in the Arctic and the winter seasons during our icebreaking season in the south,” an official said of the St-Laurent during a technical briefing.
Despite going with the new resupply ships first, officials also confirmed that the navy’s existing resupply vessels, HMCS Protecteur and Preserver, will be retired around 2017 — two years before their replacements are ready.
That will leave a gap of 18 to 24 months during which the navy will be forced to rely on its allies when it comes to carrying extra fuel, spare parts and even extra helicopters on overseas missions.
That will essentially eliminate the navy’s ability to conduct extended naval operations on its own.
Exacerbating the problem is another delay — described by one official as “a bit of a slip” — that will push back construction of the resupply ships from 2015 to late 2016, at the earliest.
The officials, who cannot be named because of Conservative government rules, said they knew several years ago there might be a scheduling conflict between the new resupply vessels and icebreaker.
However, they sought to avoid responsibility for any mismanagement, though they did not say what led to the scheduling conflict in the first place.
“We did everything possible to eliminate any conflict,” one said. “It was a known risk. As it became a fact, we started to work on it.”
Plans to acquire new resupply ships were initially announced in 2004, with an expectation that a contract for three ships would be awarded in 2008 and the first delivered in 2012.
However, the plan was scrapped in 2009 after industry reported the $2.1-billion budget set aside by the Conservative government was insufficient.
The budget is now $2.6-billion, and officials say they only expect to be able to purchase two new vessels.
The new icebreaker, which has been christened the CCGS John G. Diefenbaker, is expected to cost $720-million. Officials said they are confident that budget will be sufficient despite the delay in construction.
The Conservative government has held up the $38-billion national shipbuilding plan as a glowing success story that will re-energize Canada’s Navy and Coast Guard, while simultaneously creating thousands of jobs on both coasts and transforming Canada into a world-class shipbuilding nation.
However, an auditor general’s report to be released this fall on the federal government’s vaunted national shipbuilding plan is expected to raise concerns about the way the overall budget was set, and argue the money is not nearly enough to do what the government has promised.
That will again put the Conservative government’s reputation for being strong fiscal managers and champions of Canada’s military under the gun — though this time with thousands of jobs in Vancouver and Halifax on the line.