Thank you very much, Mr. Fillmore.
I'm pleased, first of all, that in the estimates that I brought for you today, they include our request for $1.28 billion for the Canadian surface combatant project. This funding is going to be used to support our work with industry to finalize the selected ship design. It also enhances shipyard infrastructure.
In fact, I have some very good news to share with this committee. Starting in July of this year, to ensure that the shipyard in Halifax is prepared to begin full production in 2025, that work will begin in starting to cut the steel for the surface combatant ships. This work, as you have said, is very significant in that it creates, I think, long-term and sustainable job opportunities for workers in Halifax. It also enables the Canadian navy to acquire the ships it needs to replace the Halifax frigates.
I would also take the opportunity, Andy, to point out that in our new budget 2024 and in the new DPU, we've included a substantial amount of money, approximately $1.5 billion, to continue to maintain the Halifax frigates. That will take place in shipyards right across the country and certainly in Halifax. It's a very important place where this work gets done. As the shipyard workers in Halifax continue with the construction of the new surface combatant fleet to replace the Halifax frigate, we are also now budgeting the money that is going to be required to keep the Halifax in service and enable our Royal Canadian Navy to continue to deliver on the missions we ask of them as we proceed with the important work of delivering a new and very exciting platform for them.