08.11.2017

Quebec Calls on Prime Minister to Reform NSS

Quebec Calls on Prime Minister to Reform NSS

Davie Shipbuilding thanks the Members of National Assembly of Quebec, and Premier Couillard specifically, for passing a unanimously adopted motion today calling on the Trudeau government to amend the faltering National Shipbuilding Strategy to include Quebec and save 1200 middle-class shipbuilding jobs.

"The federal government is going to invest almost $100 billion dollars over the next 20 to 30 years on its fleet renewal.  Quebec represents 50% of Canada's shipbuilding capacity and 23% of Canada's tax base yet it is receiving less than 1% of federal spending on shipbuilding," said Alex Vicefield, Chairman, Davie Shipyard.  "Today, Quebec is at risk of losing a significant number of middle-class jobs due to bureaucratic intransigence and roadblocks within a broken procurement system, despite the clear and obvious need for Canada to urgently renew the entirety of its fleet."

"We are pleased that Premier Couillard and all parties within Quebec's National Assembly are unanimously imploring Ottawa to include Canada's largest shipbuilder in its long-term shipbuilding strategy in order to add desperately needed capacity to renew the federal government's fleet in a more expeditious and cost effective manner," said Spencer Fraser, CEO Federal Fleet Services. "This is a critical step in securing the 1200 highly skilled jobs at Davie and supporting its 996 suppliers in the province of Quebec and throughout Canada for the next 20-30 years."

Background:

As the federal government's own reports clearly state, most notably in the 2016 Emerson Report, the federal government's fleet is 'rusting out' faster than it can be replaced. The National Shipbuilding Strategy has delivered no new ship in 7 years and is costing middle class taxpayers significantly more than budgeted.  Additionally, there are no new icebreakers on the horizon for at least another decade.

By adding the required capacity, an expanded NSS will permit:

1.            Faster fleet renewal thereby reducing the overall impact of inflation,

2.            Decreasing the mounting costs to maintain aging vessels beyond their designed economic lifespan,

3.            Equitably sharing regional economic benefits across the country by doubling the shipbuilding capacity;

Over the past five years Davie has contributed $2.74 billion to the Canadian economy; it employs 3004 people directly and indirectly; and it pays an average salary of nearly $70,000 per annum. 96.4% of Davie's employees are the main breadwinners in their family.

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