Good morning and thank you, Madam Chair. I am pleased to join my colleagues to speak to the committee as it studies the Auditor General's 2021 report on the national shipbuilding strategy.
Despite the global pandemic, Public Services and Procurement Canada continues its important work to serve its clients. The national shipbuilding strategy work is one such example.
The national shipbuilding strategy is a multi-decade commitment, launched in 2010 with three objectives: to renew the fleets of the Royal Canadian Navy and the Canadian Coast Guard, to create a sustainable marine sector, and to generate economic benefits for Canadians.
With the projects already undertaken, the shipbuilding industry is now growing in Canada, and there will be sustained work on this front for many years to come. In all, work from the strategy is contributing more than $1 billion to Canada's gross domestic product every year, and it is sustaining thousands upon thousands of jobs. Most importantly, Madam Chair, the work being done here is helping to support the brave members of the Royal Canadian Navy and the Canadian Coast Guard.
So far, the strategy has produced four large vessels and a number of small ships. Many more ships are currently under construction across the country. We are making important progress, but shipbuilding is complex, and we acknowledge the need to continuously improve. This is why we welcome reviews and recommendations, such as those from the Auditor General.
Madam Chair, to fully understand the Auditor General's report and the important observations therein, we must go back to the time when shipbuilding nearly ceased to exist in Canada.
When the national shipbuilding strategy was conceived over a decade ago, in 2010, Canada was still caught up in the boom and bust cycle of shipbuilding that has historically plagued the industry. Over the years, experience and expertise in shipbuilding had weakened. In those very early days, work and cost projections were not yet informed by actual build experience in our Canadian shipyards. Specialized marine supply chains also needed to be re-energized.
Expertise in Canada was nascent at a time when entirely new classes of ships were set to be built in completely revamped and retooled shipyards. This has led to challenges in planning and schedule delays. We have openly acknowledged these, and several key risks are being managed. The government has made real efforts to better streamline the work required under the national shipbuilding strategy. Indeed, the Auditor General highlights that during the period covered by the audit, the government made key decisions to put the national shipbuilding strategy on a more viable path.
Over the years, both the shipyards and Canada have gained valuable shipbuilding experience. We now have a much more reliable understanding of the time, effort and expenditures required to build world-class vessels. We are applying this knowledge every day, particularly as we closely monitor and manage the work of our shipyard partners.
Madam Chair, we have tabled with this committee our detailed action plan to help ensure shipbuilding schedules are more evidence-based, to improve our risk-management tools and to develop approaches that build on our lessons learned, specifically as we engage a third shipyard in the national shipbuilding strategy. As you will see, we plan to address all of the Auditor General's recommendations within this fiscal year.
Before I close, I will make brief mention of the replacement of polar icebreakers. With so much of our coastline located in the Arctic, icebreakers are an essential part of the Canadian Coast Guard and Royal Canadian Navy fleets.
Earlier this month, the Government of Canada announced plans to construct two polar icebreakers at two different shipyards, in order to ensure that they are built in the most timely and efficient manner. Following a rigorous evaluation of all available options, the simultaneous construction of two polar icebreakers in two shipyards was chosen, as it offers four key advantages: the fastest delivery of icebreakers, optimized economic benefits, minimal disruption to other projects and reduced production gaps.
To conclude, Madam Chair, in order to secure the future of Canadian shipbuilding and to ensure that we have a modern and effective Canadian Coast Guard and navy fleet for decades to come, the Government of Canada is applying lessons learned and putting to use the expertise that Canada has developed over the past decade.
Thank you, and I look forward to your questions.