Debates of April 24th, 2018

A motion to adjourn the House under Standing Order 38 deemed to have been moved.

Public Services and Procurement

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Mr. Speaker, negotiations begin at 9:00 a.m. tomorrow between the Coast Guard and Davie shipyard, because we need icebreakers. Who said that? The Prime Minister himself did, on January 19, while on a tour. He even added that Davie is first in line for contracts to build the four icebreakers.

We know that the Coast Guard has significant needs. Its fleet is more than 40 years old. Even though Irving and Seaspan have contracts to replace the ships of the Coast Guard and National Defence, they are struggling to replace the fleet. There have been delays and major cost overruns.

Unfortunately, whereas the Prime Minister promised four ships, the people at the shipyard now tell us that there will be no more than three. The promise of four ships has therefore been broken, but there is also a matter of deadlines. The workers at Davie delivered the Asterix, the only ship they have built for the Canadian government to date, right on time, and their reward is to be told to go on EI and wait until they are called.

They are still waiting for this call. They waited on January 17, 18, and 19. Then February, March, and April passed. Spring has now arrived and there is no news. The government is dithering, and no one knows what is going on, but we know that the Coast Guard does not have the icebreakers it needs.

Can the minister's representative tell us that the government has stopped wasting time and that it will award the contracts? That would be a start, because not only does the Coast Guard have needs, but the Royal Canadian Navy does as well. We are not just talking about three icebreakers. We are also talking about the second supply ship, Obelix, the first ship that to be converted at the shipyard. It went very well, and a second ship is wanted.

Can the parliamentary secretary confirm this evening that the ships will be built? The Liberal government has a buddy-buddy relationship with Irving and Seaspan, but we want it to work in the best interests of taxpayers. This means that it must award contracts to top-performing businesses that meet deadlines. This is exactly what the Davie shipyard did for the government and for the private sector. It built the Cecon Pride.

Workers are anxiously awaiting results. It is not complicated. All they want is for the government's negotiations to conclude and for it to award the icebreaker contracts to the shipyard, since there is work to be done and the shipyard has the capacity to do it.

I have another question for the parliamentary secretary, but she is not required to answer this evening. When will the government update the naval strategy? There are cost overruns, and taxpayers are footing the bill.

My question is simple. When will the Liberal government keep its word and award the icebreaker contracts to the Davie shipyard?

[Kamal Khera, Liberal, Parliamentary Secretary to the Minister of National Revenue]

Mr. Speaker, before I respond to the hon. member, on behalf of all the constituents of Brampton West, I would like to offer our sincere condolences to the families of the victims who were killed in the tragic incident that took place in Toronto yesterday. To all the injured, we wish for their speedy recovery. This hits really close to home, and my heart aches alongside those of many Canadians for all affected by this incident. I thank the Toronto Police Service and all the first responders for their courage, bravery, and professionalism. I thank them for all they do every day to keep us and our communities safe. In the face of this tragedy we, as neighbours and a community, pull together and stand united with Toronto.

I am now pleased to respond to my colleague's remarks. The national shipbuilding strategy is charting a new course for shipbuilders across Canada. It is based on the fundamental premise that the future fleets of the Canadian Coast Guard and the Royal Canadian Navy will be built in Canada by Canadians.

As a minister in the previous government, my hon. colleague understands probably better than any of us the procurement process for selecting the shipyards that are now building the large combat and non-combat ships needed by the Canadian Coast Guard and the Royal Canadian Navy. The government of the day announced the successful bids in October 2012.

It is important to note that Chantier Davie competed in this process. Ultimately, Seaspan was contracted to build the non-combat vessels. An umbrella agreement was subsequently signed with its Vancouver Shipyards. A separate agreement for combat ships was signed with Irving Shipbuilding in Halifax.

I also appreciate this opportunity to remind my colleague that there is more, indeed much more, to the national shipbuilding strategy than just building large ships. In fact, the shipyards in Vancouver and Halifax are not allowed to compete for any projects for building small ships, such as search and rescue lifeboats, channel survey and sounding vessels, or hydrographic survey vessels.

The national shipbuilding strategy sets aside $2 billion for building these ships, which provides significant opportunities and benefits for Chantier Davie and other Canadian shipyards. Of course, they also compete for conversion work, as well as repair, refit, and maintenance contracts.

My hon. colleague also knows that Chantier Davie has received a considerable amount of work as a result of the national shipbuilding strategy. Since the launch of the national shipbuilding strategy, Quebec shipyards have been awarded more than $760 million in contracts. Since 2014, Chantier Davie alone has been awarded six contracts for ship repair, refit, and maintenance. This includes the $587-million contract awarded to Federal Fleet Services in November 2015.

As we know, the Canadian Coast Guard needs an interim icebreaking capability pending the delivery of new ships under the national shipbuilding strategy. That is why we reached out to the marine industry and invited them to provide potential options. Our government is now in active discussions with Chantier Davie to fulfill the Coast Guard's requirements for an interim icebreaking capability. We look forward to providing additional information once these discussions are completed.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Mr. Speaker, I concur with my colleague that we honour and share the grief of the people of Toronto and especially that we acknowledge the work of first responders.

There is nothing new in her response. I would have liked something more tangible. She need not give me a history lesson about Davie; I know it well, I was there. What I can tell her is that, to date, Davie was awarded contracts because it was the most qualified. This represents 1% of all contracts awarded by the federal government. They are not asking for charity, they simply want the Prime Minister to keep his word and meet an urgent need, especially since we have learned that the Coast Guard has a $7 billion reserve.

The money is there and the shipyard is ready to start working. What is the government waiting for to put the shipyard workers to work?

[Kamal Khera, Liberal, Brampton West, ON]

Mr. Speaker, there is no doubt that the employees at Chantier Davie have the expertise and skills in shipbuilding, refit, and repair. The process is ongoing with Chantier Davie. We continue to pursue these negotiations in good faith with Chantier Davie. That said, we will not negotiate on the floor of the House of Commons.

Our government is committed to the national shipbuilding strategy and equipping the Royal Canadian Navy and the Canadian Coast Guard with the ships they need to do their job, while creating jobs for middle-class Canadians across our country. We are working extremely closely with Canada's marine industry to maximize the benefits of the strategy. The member can rest assured our government has engaged and will continue to engage with Chantier Davie and other businesses in the shipbuilding sector on future needs and opportunities.

[The Assistant Deputy Speaker, Anthony Rota]

The motion to adjourn the House is now deemed to have been adopted.

Accordingly, the House stands adjourned until tomorrow at 2 p.m. pursuant to Standing Order 24(1).

(The House adjourned at 7:07 p.m.)