Speaking Points

The Honourable Tony Clement, PC, MP
Minister of Industry

Canadian Shipbuilding Forum

Gatineau, Quebec
July 27–28, 2009

Check Against Delivery

I would like to begin by acknowledging the efforts of my colleagues and their departmental officials in putting this forum together today.

The fact that four ministers from four federal government departments are here today illustrates the importance that this government has placed on the renewal of the fleets for the Canadian Navy and the Canadian Coast Guard.

At the height of the Canadian Patrol Frigate Program, the last major federal procurement, the Canadian shipbuilding industry employed over 10 000 Canadians with shipments of approximately $1.2 billion.

Today, your industry employs approximately 5000 people with shipments in the range of $550 million.

Considering these numbers, it is easy to see the importance of federal procurement to the shipbuilding industry in Canada. More importantly, it shows that major procurement programs alone, such as the Frigate Program, are not enough. How we go about the procurement process is also critical to the long-term sustainability of the industry.

Our government has announced plans for significant fleet renewal for both the Canadian Coast Guard and the Navy. Fleet renewal could see more than 50 large vessels constructed, plus a number of smaller vessels.

This new construction work will be in addition to the ongoing refit and repair work, all of which could create several thousand direct shipyard jobs in Canada over the next 30 years. The Canadian Association of Defence and Security Industries estimated in its recent report that the number of jobs supported could be in the order of 10 000.

Clearly, this is a good time to talk about shipbuilding in Canada.

As we move forward with these new procurements, there are several questions we need to ask:

• How do we do it in a way that builds a sustainable industry in Canada? How do we avoid our historical boom and bust cycle?
• How do we ensure that the Navy gets the ships it needs, when it needs them and at a cost that is fair for Canadian taxpayers?
• How do we ensure that these ships are built with the most advanced technology in the most productive manner?
• How do we ensure that our workforce, a workforce that has not built ships of this type in over 25 years, has the skills to do the job?

We need to come up with a plan that addresses these questions, which is why these consultations are so important.

I am committed, as I know are my honourable colleagues, to ensuring the maximum benefit to the Canadian economy from fleet renewal. We need an ongoing dialogue if we are to achieve our mutual objectives of a strong naval industry in Canada capable of building the ships the government needs at a cost that is competitive internationally. At no time has it been more important to all parties that a strong sustainable relationship be forged.

The fact that so many of you are here today demonstrates that you share this goal.

I look forward to the outcomes of this meeting and to the development of a constructive and ongoing dialogue.

Thank you very much.