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  • Marines Want Missiles To Sink Ships From Shores, And They Want Them Fast

    January 18, 2019 | International, Naval, Land

    Marines Want Missiles To Sink Ships From Shores, And They Want Them Fast

    By PAUL MCLEARY WASHINGTON The Marine Corps has kicked off a rapid development program to begin firing long-range anti-ship missiles from shore-based ground vehicles in an effort to add more punch to the Navy's growing anti-ship capabilities, which are aimed squarely at Chinese and Russian advances. Dubbed the Navy-Marine Expeditionary Ship Interdiction System — that's NEMSIS to you — the program has completed its design phase. For the missile itself, Marines are looking at Lockheed Martin's new Long-Range Anti-Ship Missile (LRASM), with stealthy features to penetrate enemy missile defenses, a 1,000-pound warhead, and a range disclosed only as “over 200 miles”; Raytheon's Naval Strike Missile (NSM) already chosen as an upgrade for Navy Littoral Combat Ships, with a 264-lb warhead and a 115-mile range; and Boeing's venerable Harpoon, whose variants have a 500-lb warhead and ranges between 70 and 150 miles. The program kicked off last year with a request for information (RFI), after which companies signed OTA agreements with the service in September. Final proposals were submitted in December. Full article: https://breakingdefense.com/2019/01/marines-want-missiles-to-sink-ships-from-shores-and-they-want-them-fast/

  • Defence invests in Canada’s Innovation Community for Defence and Security Solutions

    January 17, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

    Defence invests in Canada’s Innovation Community for Defence and Security Solutions

    January 16, 2019 – Ottawa, ON – National Defence / Canadian Armed Forces The Government of Canada recognizes the importance of investing in defence innovation and the future of our Canadian Armed Forces. In support of Canada's defence policy, Strong, Secure, Engaged, Defence Minister Harjt Sajjan today highlighted the successful conclusion of contract awards from the first call for proposals (CFP) for Competitive Projects under the Innovation for Defence Excellence and Security Program (IDEaS) program. The IDEaS program brings innovators to the table to support defence and security. In just nine months since its launch, IDEaS has demonstrated improved access to defence and security innovation by investing $26.8 million for 160 contracts under the first CFP launched in April 2018. Over 600 proposals to help solve some of Canada's most difficult defence and security challenges were received from innovators across Canada, including academia, small & medium companies, large industries, non-governmental organizations and individuals. Areas of focus included surveillance, cyber, space, artificial intelligence, remotely pilot systems, data analytics, and human performance. These efforts will help ensure that our Canadian Armed Forces have the tools and knowledge needed to mitigate new threats, stay ahead of potential adversaries, and meet evolving defence and security needs. Quotes “Through our defence policy, Strong, Secure, Engaged, we are providing the women and men of our Canadian Armed Forces with the tools and equipment they need to do their jobs. The success of the IDEaS first call for proposals is a testament to the importance of investing in Canadian innovation to support the future of our Canadian Armed Forces. These new collaborations will facilitate the flow of innovative ideas and concepts to help deliver the capabilities needed for a strong and agile military. Congratulations to all contract recipients.” – Defence Minister Harjit S. Sajjan “Our Government is committed to providing the women and men of the Canadian Armed Forces with the technology needed to carry out their important work on behalf of Canadians. These contracts not only support our brave members, they also engage Canada's best and brightest innovative minds to address key defence and security challenges.” –Minister of Public Services and Procurement Canada Carla Qualtrough Quick facts The IDEaS program allows the Department of National Defence and the Canadian Armed Forces to access Canadian innovation and ingenuity to help enrich defence capabilities and inform future defence and security decisions. The IDEaS Competitive Projects' CFP was administered by Public Services and Procurement Canada on behalf of the DND. The first CFP with 16 challenges was launched on April 9, 2018 and closed June 7, 2018. The first contracts were announced by the Department of National Defence in August 2018. The second CFP with nine challenges was launched on October 18, 2018 and closed on Nov 27, 2018. The first contract awards from this call for proposals will be initiated in February 2019. Through IDEaS, DND is: Creating networks of innovators (academia, industry, individuals, and other partners) to conduct leading-edge research and development in areas critical to future defence and security needs; Holding competitions and inviting innovators to present viable solutions to specific defence and security challenges; and Implementing new procurement mechanisms that allow DND to develop and test concepts, and to follow through on the most promising ideas. Associated links News Release- First innovation contracts awarded under the Innovation for Defence Excellence and Security (IDEaS) Program Backgrounder – Innovation for Defence Excellence and Security Program (IDEaS) Backgrounder – Government of Canada calls on innovative thinkers to solve defence and security challenges Contract recipients IDEaS website Strong, Secure, Engaged https://www.canada.ca/en/department-national-defence/news/2019/01/defence-invests-in-canadas-innovation-community-for-defence-and-security-solutions.html

  • Canadian military falling well short of its target for recruiting women

    January 17, 2019 | Local, Aerospace, Naval, Land

    Canadian military falling well short of its target for recruiting women

    Murray Brewster · CBC News New statistics also show efforts to bring in more Indigenous, visible minority recruits failing The Canadian military has barely moved the needle on its ambitious plan to recruit more women, just over a year after the Liberal government introduced its gender-focused defence policy, new figures reveal. The stated intention of Chief of the Defence Staff Gen. Jonathan Vance was to have women make up 25 per cent of the Armed Forces by 2025-26. Statistics released by the Office of the Chief of Military Personnel show that while the number of female recruits coming through the door has increased slightly, it has not been enough to boost overall representation. As of the end of April, women made up only 15.4 per cent of both the combined regular and reserve forces. The story is the same for Indigenous Canadians and visible minorities — those recruitment numbers remain just as anemic as they have been for several years. Indigenous Canadians make up about 2.8 per cent of the Armed Forces; DND has set a goal of getting that share up to 3.5 per cent. Visible minorities make up 8.2 per cent; the target percentage is 11.8. But the military and the Liberal government have more political capital invested in the effort to get more women into uniform. It's central to Prime Minister Justin Trudeau's mantra of gender equality, and to Canada's desire to put women at the heart of a reformed international peacekeeping system. The drive to recruit more women comes as the military attempts to overhaul its culture in the wake of a damning report in 2015 by retired Supreme Court justice Marie Deschamps, who said a "sexualized culture" within the military was behind an endemic problem with sexual harassment and misconduct. Female recruitment picking up — but slowly There were 860 women enrolled in the military in the last fiscal year, which ended on March 31 — an increase of eight per cent over the previous year. It's not enough, said the chief of military personnel. "Those are still not meeting the number we need to have in order to meet the 25 per cent target and we're conscious of that," Lt.-Gen. Chuck Lamarre told CBC News in an interview. The slow pace of female recruitment has forced senior brass to take more direct control, he said. "We recognize it's going to take a much more disciplined approach, a much more targeted approach to go get more women, more visible minority and more Aboriginal folks to come join the Canadian Armed Forces," said Lamarre, who insisted the Armed Forces can still hit the target, which was first established in early 2016. The direction from Vance back then had been to increase the representation of women in the forces by one per cent per year over a decade. The new statistics show the military has seen healthy increases in the number of women applying to be officers, or to join the navy or air force. But National Defence is having a harder time convincing women to join the army, and to become non-commissioned members of the rank and file. Defence Minister Harjit Sajjan said it will take time, but there signs of change, notably the desire of women to become officers and leaders, a cultural shift that the DesChamps report said is necessary. "As time goes on, I am confident we will be successful," Sajjan said in a conference call with reporters Tuesday morning from Vietnam. "We are very happy that we are recruiting women into leadership roles." Lamarre said he believes the military is fighting against perceptions about the kind of career being offered. "People have a tendency to self-select out before they give it a shot, and I think that's a mistake," he said, pointing to the military's struggle to get women to consider signing up for trades such as aircraft, vehicle and maritime mechanics. "We are attracting more women into the officer corps, but I think we need to broaden that even more. Part of it is demystifying some of those occupations. Some of them look to be hard and exclusively centred towards men. That's not the case at all. We have some great examples of women who are operating in every occupation." Military's image problem persists Others — DesChamps among them — argue that the perception of the military as a tough place to be a woman hasn't gone away. Despite the military's high-profile campaign to stamp out misconduct — known as Operation Honour — and the increasing number of sexual assault cases being tried in the military justice system, many say that little has changed when it comes to the macho nature of military culture. "In the last three years, in my opinion, more could have been done" to stop harassment and make the military a more welcoming career choice for women, Deschamps told the Senate defence committee last week. "What I have seen is, not a lot of progress has been made." The federal government has faced two class-action lawsuits launched by survivors of sexual assault and misconduct in the military. The cases entered settlement discussions last winter after it was revealed government lawyers filed a statement of defence that said National Defence "does not owe members of the Canadian Armed Forces any duty to protect them from sexual harassment and assault." https://www.cbc.ca/news/politics/canadian-military-falling-well-short-of-its-target-for-recruiting-women-1.4691356

  • National Defence doesn’t know impact of carbon tax on fuel costs

    January 17, 2019 | Local, Aerospace, Naval, Land, Security

    National Defence doesn’t know impact of carbon tax on fuel costs

    By Charlie Pinkerton The Department of National Defence hasn't yet measured how much more it will be paying for fuel under the federal carbon tax. The military spends around $200 million on fuel per year. In response to an order-paper question in mid-December, National Defence parliamentary secretary Serge Cormier said the department “is in the process of determining the broad implications of the price on carbon pollution.” A spokesperson from the department confirmed today it hasn't yet decided how it will assess these costs. The Canadian Armed Forces uses different types of fuel to run its vehicles, aircraft and naval vessels, and for heating, cooking and generating power. While costs follow the ebb and flow of fuel prices in Canada, the military has spent over $183 million in each of the last five years. The highest total was in 2014, when it spent $246 million. Last year, the total came to $195 million. Since it buys fuel in Canada and abroad, it won't have to pay a tax on all purchases. The exact costs will vary by province or territory, but the federal government's fuel charge will be $20 per tonne of carbon emissions in 2019, increasing by $10 per tonne each year until it reaches $50 per tonne in 2022. For a tank of gas, the tax is expected to add 4.4 cents per litre in 2019 and 11 cents per litre in 2022. The federal government says 90 per cent of what it collects will be returned directly to Canadians, which will amount to about $300 per Ontario household, what the government estimates more than 70 per cent of Canadian households will pay. National Defence will eventually have to determine the impact of the carbon tax on its operations and maintenance budget. In its response to Conservative MP Karen Vecchio's order-paper question, the military declined to say how much it expects the price on carbon will cost the department in each of the next five years. It says costs “are not tracked or forecast,” and it couldn't formulate a response in the time allowed. This is typical for order-paper questions, since the government is required to respond in 45 days. According to the Liberals' new defence policy, they plan to invest $225 million in infrastructure projects by 2020. Cormier's response echoes another commitment of Canada's “Strong, Secure, Engaged” defence policy, in that the Armed Forces will transition 20 per cent of their non-military fleet to hybrid or electric vehicles by next year. https://ipolitics.ca/2019/01/16/national-defence-doesnt-know-impact-of-carbon-tax-on-fuel-costs/

  • Facing a sealift capacity collapse, the Navy seeks strategy for new auxiliary ships

    January 17, 2019 | International, Naval

    Facing a sealift capacity collapse, the Navy seeks strategy for new auxiliary ships

    By: David B. Larter ARLINGTON, Va. – The U.S. Navy is moving toward settling on an approach for recapitalizing the nation's aged sealift fleet, moving away from a single common hull for five missions. The sealift fleet, which is facing the prospect of an imminent collapse in capacity due to the ships all reaching or exceeding their hull life according to the U.S. Army, is what the U.S. would use to transport up to 90 percent of Army and U.S. Marine Corps gear in the event of a major conflict overseas. The program, known as the Common Hull Auxiliary Multi-Mission Platform, was envisioned as we way to recapitalize the country's surge sealift force and replace other auxiliary ships such as hospital ships and submarine tenders with a common hull form. But the Navy found after studies last year that one hull simply wasn't going to work for all the disparate functions the Navy was looking to fulfill with the platform. Now, the Navy thinks it has a better answer: Two platforms. “We started out thinking it was going to be one hull ... but what we found from our own examination and from industry feedback is that these missions fall into two basic categories,” said Capt. Scot Searles, the strategic and theater sealift program manager, in a brief at the annual Surface Navy Association's national symposium. “One is a very volume-intensive category where you need large volume inside the ship – that's the sealift mission where you are trying to carry a lot of Marine and Army cargo. The other bucket it falls into is the people-intensive mission. When you talk about a hospital ship or a submarine tender, those are people-intensive, and we found we didn't need as much internal volume. It could be a smaller ship but needed more berthing capability.” The Navy released a request for information this week for industry studies that they hope to award in March that will validate the approach, Searles said. “We believe it's going to be two hulls, but that's still a great savings over designing five hulls,” he said. Congress wants the Navy to start ordering hulls by 2023 to deliver by 2026, something the Navy told Congress in a report last year could be done if it ponies up the cash. The most urgent need in the surge sealift fleet is the ready reserve force, a fleet of ships run by the Maritime Administration that are in reduced operating status and spend most of their time in port on standby waiting to be activated in case of a national emergency. Searles said the plan would be to bring the newly constructed auxiliary sealift ships online and use them as maritime prepositioning ships, then take the current prepositioning ships – which still have plenty of life left in the hull – and move them into the ready reserve force. Prepositioning ships are operated by Military Sealift Command and deploy forward with logistics and equipment that can be used in a crisis on short notice. Developing the new ships will take anywhere from three-to-five years, Searles said, and in the meantime the Navy plans to buy used ships off the open market and modify them for DoD use. They will also extend the lives of the current ships in the sealift force to the best of their ability. Collapse In February, the Army sent a letter to Congress saying that the country's organic sealift capacity would fall below the level required to move the Army's equipment by 2024 if the Navy did not act fast. “Without proactive recapitalization of the Organic Surge Sealift Fleet, the Army will face unacceptable risk in force projection capability beginning in 2024,” the document said, adding that the advanced age of the current fleet adds further risk to the equation. “By 2034, 70% of the organic fleet will be over 60 years old — well past its economic useful life; further degrading the Army's ability to deploy forces,” the document reads. The Army's G-4 also alluded to then-Defense Secretary Jim Mattis' readiness push, adding that even the most prepared forces wouldn't matter if they can't reach the front line. “Shortfalls in sealift capacity undermine the effectiveness of US conventional deterrence as even a fully-resourced and trained force has limited deterrent value if an adversary believes they can achieve their strategic objective in the window of opportunity before American land forces arrive,” the paper reads. “The Army's ability to project military power influences adversaries' risk calculations.” The document reflects the Army's growing impatience with the Navy's efforts to recapitalize its surge sealift ships, which are composed of a series of roll-on/roll-off ships and other special-purpose vessels operated by Military Sealift Command and the Maritime Administration. And Capitol Hill shares the Army's view, according to two HASC staffers, who spoke to Defense News last year on condition of anonymity. The Navy, which is responsible for recapitalizing the surge sealift force, put forward a budget in 2019 that called for about $242 million over the next five years, the bulk of which would go toward designing and developing a new platform that will replace the current vessels. HASC lawmakers considered that amount of funding not enough to make any serious inroads on recapitalization, and certainly not enough to forestall the critical shortfall identified in the information paper, the staffers said. https://www.defensenews.com/naval/2019/01/16/facing-a-sealift-capacity-collapse-the-navy-hones-in-on-a-strategy-for-new-auxiliary-ships

  • Contract Awards by US Department of Defense - January 16, 2019

    January 17, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - January 16, 2019

    ARMY Caddell Construction Co. (DE) LLC., Montgomery, Alabama, was awarded a $143,514,000 firm-fixed-price contract for the construction of an airmen training complex dormitory, a dining and classroom facility, supporting facilities, a free standing equipment building, a weapons cleaning pavilion, running track, exercise pads and parking lots. Bids were solicited via the internet with two received. Work will be performed in San Antonio, Texas, with an estimated completion date of June 8, 2021. Fiscal 2019 military construction funds in the amount of $143,514,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Fort Worth, Texas, is the contracting activity (W9126G-19-C-0001). IICON Construction Group LLC,* Colorado Springs, Colorado, was awarded a $15,179,720 firm-fixed-price contract for construction of a National Guard readiness center. Bids were solicited via the internet with five received. Work will be performed in Fort Carson, Colorado, with an estimated completion date of Aug. 31, 2020. Fiscal 2017 military construction funds in the amount of $15,179,720 were obligated at the time of the award. National Guard Bureau, Arlington, Virginia, is the contracting activity (W912LC-19-C-0001). CORRECTION: The contract announced on Jan. 15, 2019, for $474,084,062 to BAE Systems Land & Armaments LP, York, Pennsylvania, has not been awarded. No award date has been determined at this time. DEFENSE LOGISTICS AGENCY Puerto Rico Apparel Manufacturing (PRAMA) Corp.,** Mayaguez, Puerto Rico, has been awarded a maximum $11,648,229 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for various types of coats and trousers. This was a competitive acquisition with seven responses received. This is a one-year base contract with four one-year option periods. Location of performance is Puerto Rico, with a Jan. 10, 2024, estimated performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1127). Alamo Strategic Manufacturing,*** San Antonio, Texas, has been awarded a maximum $8,550,000 firm-fixed-price, indefinite-quantity contract for knee and elbow pads. This was a competitive acquisition with two responses received. This is a one-year base contract with two one-year option periods. Locations of performance are Texas and Puerto Rico, with a Jan. 30, 2020, performance completion date. Using military services are Army, Air Force, and Marine Corps. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. (SPE1C1-19-D-1122). NAVY Gilbane Federal, Concord, California, is awarded a $10,966,383 firm-fixed-price modification to previously awarded contract (N39430-15-D-1634) to decrease the value of the contract for the cleaning, inspection and repair of Fuel Storage Tanks 305, 307, and 308 at Defense Fuel Support Point (DFSP) Tsurumi, Japan. Work on Tanks 305, 307, and 308 is being removed from the contract due to contractor performance problems. After award of this modification, the total cumulative contract value will be $6,426,985. Work will be performed in Tsurumi, Japan, and is expected to be completed by March 2019. Fiscal 2016 defense working capital (Defense Logistics Agency) contract funds in the amount of $10,966,383 are de-obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity. Sikorsky, a Lockheed Martin Co., Stratford, Connecticut, is awarded $7,026,164 for cost-plus-fixed-fee modification P00017 to a previously awarded fixed-price-incentive-firm/cost-plus-fixed-fee contract (N00019-16-C-0048). This modification provides for Automated Logistics Environment software maintenance operating systems and obsolescence avoidance in support of the low rate initial production CH-53K aircraft. The work will be performed in Stratford, Connecticut, and is expected to be completed in October 2021. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $7,026,164 will be obligated at time of award; none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. *Small Business **Economically disadvantaged women-owned small business in historically underutilized business zones ***Small disadvantaged business https://dod.defense.gov/News/Contracts/Contract-View/Article/1733689/source/GovDelivery/

  • Seaspan Announces Closing of Second $500 Million Investment by Fairfax Financial Holdings Limited

    January 16, 2019 | Local, Naval

    Seaspan Announces Closing of Second $500 Million Investment by Fairfax Financial Holdings Limited

    HONG KONG, Jan. 15, 2019 /CNW/ - Seaspan Corporation (NYSE: SSW) ("Seaspan") announced today the closing of the second tranche of the $1 billion aggregate investment commitment by Fairfax Financial Holdings Limited and its affiliates (collectively, "Fairfax") in Seaspan. As with Fairfax's initial $500 million investment in Seaspan, and pursuant to definitive agreements entered into on March 13, 2018 and announced on March 14, 2018, this second tranche of funding (the "Second Fairfax Investment") is structured as a $250 million issuance of (i) 5.50% senior notes due 2026 and (ii) approximately 38.46 million warrants (the "2019 Warrants"). Pursuant to a definitive agreement entered into and announced on May 31, 2018, Fairfax has agreed to immediately exercise the 2019 Warrants at an exercise price of $6.50per warrant, for additional equity proceeds to Seaspan of $250 million. As a result, Seaspan's aggregate proceeds from the Second Fairfax Investment will be $500 million. This brings Fairfax's total investment in Seaspan to $1 billion, the proceeds of which will be used to fund future growth initiatives, repay debt and for general corporate purposes. With the closing of the Second Fairfax Investment, Fairfax's aggregate shareholdings in Seaspan are 76.9 million Class A common shares or approximately 36% of shares outstanding. Fairfax continues to hold the 25 million seven year warrants, with an exercise price of $8.05, which were issued to it on July 16, 2018. Summary of Fairfax Investments1 Investment Date Issued/Exercised Proceeds to Seaspan 2025 Notes February 14, 2018 $250 million 2018 Warrants July 16, 2018 $250 million 2026 Notes January 15, 2019 $250 million 2019 Warrants January 15, 2019 $250 million 1 Does not include the 25 million seven year warrants outstanding as of the date hereof David Sokol, Chairman of Seaspan Corporation commented, "The closing of this follow-on Fairfax investment bolsters Seaspan's balance sheet for the future. Seaspan's management team and Board of Directors are proud to continue building upon the strong partnership created with Fairfax. This additional investment will enhance Seaspan's ability to execute on our long-term goals of deleveraging, strengthening our balance sheet, and creating value through disciplined and thoughtful capital allocation." Prem Watsa, Chairman and Chief Executive Officer of Fairfax said, "With the closing of this investment, we are excited to expand our partnership with Seaspan, which now represents one of Fairfax's largest investments." About Seaspan Seaspan is a leading independent charter owner and operator of containerships with industry leading ship management services. We charter our vessels primarily pursuant to long-term, fixed-rate, time charters to the world's largest container shipping liners. Seaspan's operating fleet consists of 112 containerships with a total capacity of more than 900,000 TEU, an average age of approximately 6 years and an average remaining lease period of approximately 4 years, on a TEU-weighted basis. Seaspan has the following securities listed on The New York Stock Exchange: Symbol: Description: SSW Class A common shares SSW PR D Series D preferred shares SSW PR E Series E preferred shares SSW PR G Series G preferred shares SSW PR H Series H preferred shares SSW PR I Series I preferred shares SSWN 6.375% senior unsecured notes due 2019 SSWA 7.125% senior unsecured notes due 2027 SSW25 5.500% senior notes due 2025 About Fairfax Financial Holdings Limited Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Investor Inquiries: Mr. Matt Borys Investor Relations Seaspan Corporation Tel. +1-778-328-5340 Email: mborys@seaspanltd.ca SOURCE Seaspan Corporation https://www.newswire.ca/news-releases/seaspan-announces-closing-of-second-500-million-investment-by-fairfax-financial-holdings-limited-848167000.html

  • The Prime Minister announces changes in the senior ranks of the Public Service

    January 16, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security

    The Prime Minister announces changes in the senior ranks of the Public Service

    OTTAWA, Jan. 15, 2019 /CNW/ - The Prime Minister, Justin Trudeau, today announced the following changes in the senior ranks of the Public Service: Marie Lemay, currently Deputy Minister of Public Services and Procurement, becomes Senior Advisor to the Privy Council Office, effective January 28, 2019, prior to an upcoming appointment. Bill Matthews, currently Senior Associate Deputy Minister of National Defence, becomes Deputy Minister of Public Services and Procurement, effective January 28, 2019. Claude Rochette, currently Assistant Deputy Minister of Finance and Chief Financial Officer of National Defence, becomes Associate Deputy Minister of National Defence, effective January 28, 2019. Biographical notes Marie Lemay Bill Matthews Claude Rochette This document is also available at https://pm.gc.ca SOURCE Prime Minister's Office Renseignements: PMO Media Relations: media@pmo-cpm.gc.ca https://www.newswire.ca/news-releases/the-prime-minister-announces-changes-in-the-senior-ranks-of-the-public-service-807255403.html

  • Business group wants National Shipbuilding Strategy reopened for Quebec shipyard

    January 16, 2019 | Local, Naval

    Business group wants National Shipbuilding Strategy reopened for Quebec shipyard

    Murray Brewster · CBC News Association puts pressure on Liberals to direct new projects to Davie yard A Quebec-based business association claiming to represent over 1,000 companies inside and outside the province is launching a high-profile campaign to convince the Liberal government to reopen the oft-maligned National Shipbuilding Strategy. The group is demanding the federal government include the Davie shipyard, in Levis, Que., in the policy and plans to make it a major issue in the October federal election. The Association of Davie Shipbuilding Suppliers, which has been around for about a year, represents companies that do business with the shipyard. It plans an online campaign, beginning Thursday, and will lobby chambers of commerce as well as federal and provincial politicians. It is hoping to use its extensive membership and thousands of associated jobs to put pressure on the government in an election year to direct the building of additional coast guard ships exclusively to the Quebec yard, one of the oldest in the country. The shipbuilding strategy, conceived under the previous Conservative government but embraced by the Liberals, has turned into a giant sinkhole for federal cash with little to show for it, Simon Maltais, the association's vice-president, told CBC News. "We can call it a boondoggle," he said. "It has been seven years in the making. At the moment, there is absolutely no operational ship afloat and working for Canada." The Conservatives under former prime minister Stephen Harper chose two shipyards — Irving Shipbuilding of Halifax and Seaspan in Vancouver — as the government's go-to companies for the construction of new warships and civilian vessels. The Davie shipyard was, at the time, emerging from bankruptcy, and under the strategy it only became eligible for repair and refit work on existing vessels and perhaps the construction of smaller vessels. Delays and cost overruns Irving and Seaspan have invested hundreds of millions of dollars in modernizing their yards and have just begun to produce new vessels. The first Arctic offshore patrol ship for the navy is being outfitted in Halifax and others are in various stages of construction. Three offshore fisheries science vessels, constructed in Vancouver for the coast guard, are undergoing repairs after defective welds were discovered last year. The entire program has been beset with delays and rising cost estimates. Last year, Public Services and Procurement Canada refused to release a revised timeline for the delivery of ships from Seaspan, including construction of a heavy icebreaker and the navy's two joint support ships. Politics and shipbuilding Maltais said it makes no sense to keep excluding Davie from full-fledged ship construction work when much of the coast fleet is over three decades old and in dire need of replacement. Refreshing the strategy would insure the federal government gets the ships it needs and Quebec companies "get their fair share" of the program. "We know it's an electoral year and, yes, we want the federal government and the people in the election to talk about it," he said. Maltais clams members of his association have been talking to federal politicians on both sides of the aisle in the province and they support the idea. "They seem to be on the same page as us," he said. Defence analyst Dave Perry, an expert in procurement and the shipbuilding program, said the political campaign has the potential to make the federal government uncomfortable, but he doubts it will achieve the objective of reopening the strategy to add a third shipyard. "That would certainly be a major change in the strategy," he said. "There had been a view of doing something less than that." The proposal being put forward by the association would not take any work from Halifax or Vancouver, but instead direct all new work, on additional icebreakers for example, to the Quebec yard. Just recently, Davie was awarded a contract to convert three civilian icebreakers for coast guard use, but the association argues the need is greater. The federal government did debate an overhaul of the strategy, according to documents obtained and published by CBC News last summer. The size and scope of the "policy refresh" was not made clear in a heavily redacted memo, dated Jan. 23, 2018. So far, nothing has taken place and government officials have insisted they were still committed to the two-yard strategy. During the last election campaign, the Liberals pledged to fix the "broken" procurement system and invest heavily in the navy. https://www.cbc.ca/news/politics/business-group-wants-national-shipbuilding-strategy-reopened-for-quebec-shipyard-1.4979592

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