Thank you, Madam Chair.
I'm pleased to be here with my deputy head colleagues to discuss the Auditor General's report 2, “National Shipbuilding Strategy”.
I am joined by Vice-Admiral Craig Baines, commander, Royal Canadian Navy; and Troy Crosby, assistant deputy minister, materiel.
First off, I'd like to thank the Auditor General and her team for their very important work. The NSS is a key element of our work at National Defence and, indeed, throughout the entire Government of Canada, to ensure that Canada can be strong at home, secure in North America, and engaged in the world.
National Defence agrees with the report's findings as they relate to our defence team, and we accept its recommendations. We agree that complete current, reliable schedules are absolutely essential for decision-making in the management of the shipbuilding projects. The review and insights highlighted in the AG report are timely and useful.
As with any massive and long-term capital procurement project, we knew we would need continuous review and likely hone our approach as the NSS progressed. That's a very typical reality of major procurement. As the report notes, DND was already in the process of implementing key improvements as the report was being produced.
Additionally, since the report was released, we at DND have coordinated with our colleagues at PSPC and Fisheries and Oceans Canada on our different management action plans to ensure they achieve an integrated outcome. These action plans will outline how, with what milestones, and by when we will achieve the outcome of the recommendations.
At National Defence, we expect that Q2 of fiscal year 2021-22 is when we will be in receipt of shipbuilding schedules that are complete and reliable.
I would also like to address the fact, noted at the end of the report, that we cannot yet know the full impacts of COVID on shipbuilding timelines. This is another difficult reality of COVID. Until we are over the pandemic, we will not have a complete and accurate picture of what the full impact has been, including anticipated delays on major procurement.
However, I want to reassure the committee and Canadians that we have firm contingency plans in place to ensure that the Canadian Armed Forces has the ongoing capability required to conduct operations, including in relation to the navy's work.
Work continues on the Canadian surface combatant project, with the first of 15 ships expected to be delivered in the early 2030s, and the last ship to be delivered in the 2040s. While we develop these modern, capable ships, we will extend our current Halifax class ships as long as is required. Until the arrival of our joint support ships, we've engaged a third party to help provide those interim services, and we can extend that contract if required in order to keep that capability going.
For our Arctic offshore patrol ships, this vessel offers a new capability. There are other means by which we can and do achieve the same outcome, including having vessels escorted by helicopter or icebreaker. Of course, the first AOPS, HMCS Harry DeWolf, is already conducting training and operations.
In addition to shoring up capabilities, we have other means to ensure our operations are supported, up to and including working with our allies to resource-share if an extenuating circumstance arises.
As with so much else in the federal government, cross-departmental collaboration and timely information-sharing are key, both for overall efficiency and increasingly to manage Canada's evolving threat environment.
National Defence will continue to work with our colleagues in other government departments and in Canada's shipyards, as well as with our industry partners, to keep the strategy moving forward.
This concludes my opening statement, Madam Chair. I'm happy to answer any questions from the committee.