Evidence of meeting #35 for National Defence in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
A recording is available from Parliament.
5:20 p.m.
Conservative
Pierre Paul-Hus Conservative Charlesbourg—Haute-Saint-Charles, QC
Thank you, Mr. Chair.
Gentlemen, could you explain what kind of relationship you have with BAE Systems? That company made a bid for the contract for the design of the warships. Now you are asking them to make a bid for the maintenance.
How do you manage the conflict-of-interest risk with BAE Systems?
5:20 p.m.
Vice-President, Programs, Irving Shipbuilding Inc.
First of all, we need to understand the industry in Canada. It isn't a huge shipbuilding and defence industry. Most of the companies involved in the industry have worked together at some point in the past, or work together presently, or are likely to work together in the future. There is certainly nothing unusual or untoward about any arrangements we have in place.
However, to be responsible you have to put measures in place to make sure that there isn't any sense of injustice to anybody. With the surface combatant program, and with all of our dealings, we've put in place all the appropriate firewalls and protections to make sure everybody is treated fairly.
I think it's a result of the size of the industry, but we have dealt with it.
5:25 p.m.
President, Irving Shipbuilding Inc.
Can I also add to that?
Ahead of time, we went to the Government of Canada in our role as the prime contractor for the Canadian surface combatant program. We explained what we were intending to do with one of the bidders from a joint venture basis, explained the protections we were going to implement and the firewalls we were going to put between the programs, and satisfied all of Canada's concerns.
5:25 p.m.
Conservative
Pierre Paul-Hus Conservative Charlesbourg—Haute-Saint-Charles, QC
Okay.
The primary goal of the naval strategy was to eliminate the political side of the industry and to ensure that public sector management was effective in selecting contracts.
Do you consider that the strategy works in this sense and that the political aspect no longer hinders the process?
5:25 p.m.
Chief Executive Officer, Seaspan
We were very fortunate when we saw the NSPS program unfold in 2010 and 2011, because we in industry were as skeptical as the rest of the country that it could be truly transparent and open and that no decisions would be made at the political level. In my career—and lifetime, actually—this process was the first time I'd ever seen that done successfully, so hats off to the government and the government of the time. As mentioned earlier, it was embraced by all parties, as it should be, because it's been a flagship program that's been held up around the world. I know other countries have looked at how the NSPS program was administered and said, “Why aren't we doing that?”
Therefore, yes, I think that clearly there's a way to do procurement, and it was done well in 2011.
5:25 p.m.
Conservative
5:25 p.m.
Liberal
The Chair Liberal Stephen Fuhr
We learned a lot about shipbuilding today and at the last meeting as well. One thing I learned is that we have three great shipbuilding companies in this country. If you include interim AOR and the work that you gentlemen are going to be doing, everyone has a role to play.
I'd like to return to something that Mr. Bezan said earlier and that Mr. Jamieson mentioned. It was about what could happen in the future, especially if we start to get more work from other countries, such as the upgrade to the frigate that we have, which I suspect might actually happen. Given the work we're going to be able to do, there might be an opportunity for you guys, including the company that's not here, to work together at some point. I would encourage everyone to come to the party, because at the end of the day, we want to make sure this thing delivers to the navy on time. If there's an opportunity to work together, I would encourage you all to do that.
Thank you very much for coming.
The meeting is adjourned.