Last updated on April 21, 2014 at 9:21 EDT

Statement from CADSI on One-Year Anniversary of National Shipbuilding Procurement Strategy Agreements

February 28, 2013

OTTAWA, Feb. 28, 2013 /CNW/ – On the first anniversary of the signing of
the National Shipbuilding Procurement Strategy’s (NSPS) umbrella
agreements with Irving Shipbuilding in Halifax and Seaspan in
Vancouver, CADSI re-affirms its support of the Government’s policy
decision to build ships in Canada in order to obtain the vessels needed
by the Royal Canadian Navy and Canadian Coast Guard and to maximize
jobs, innovation, manufacturing and economic activity in Canada from
defence spending.

CADSI agrees with the Government position that the NSPS will take the
boom and bust cycle out of shipbuilding in Canada by creating a more
predictable environment and production schedule over 30 years of
planned construction. In May 2009, in a report on the potential for
Canadian shipbuilding, the CADSI Marine Industries Working Group
estimated that 15,000 jobs and $2 billion could be generated annually
through a strategy that fully engages the Canadian shipbuilding and
marine sector in the construction and maintenance of the new fleets. 
CADSI stands by these estimates, which the government has echoed in its
updates on the strategy.

CADSI supports the government’s commitment to engage with industry
early, often and openly as the essential element of NSPS’ success and
an important determinant in the final analysis of project costs, risk
and domestic industrial participation from the design phase through
construction, mid-life upgrades and decommissioning.

CADSI is also pleased that the Government reaffirmed its commitment to
adopt procurement strategies that enable Canada’s defence and marine
industrial base to be employed to the greatest extent possible through
the work of Seaspan and Irving. At least 50% of the end value of the
projects will come from the equipment that is built into the shipyards’
hulls to produce the final vessels needed by the military and coast
guard to perform their duties as asked of them by Canadians. Canadian
companies from across the defence and marine industrial base have many
of the capabilities required to play a meaningful role to address the
operational requirements of the RCN and Coast Guard. They are lining up
to contribute their value-added products, technologies and services and
thereby contribute directly to the Government’s objective to maximize
jobs, innovation and economic activity in Canada from NSPS.

The NSPS engagement with Canadian industry is consistent with
recommendations from Tom Jenkins in his recent report on reforming
defence procurement, in part, through a focus on domestic Key
Industrial Capabilities (KICs).  In fact, Mr. Jenkins lists “Arctic and
Maritime Security” as the first of his recommended KICs, which presents
clear opportunities both for the government and the Canadian defence
and security sector in each of the NSPS projects.

CADSI fully expects that progress on executing procurements under NSPS
will continue to pick up pace, and that clarity on procurement strategy
expectations for Canadian content will only increase as a result.

CADSI is the voice of Canada’s defence and security industries. CADSI
represents over 950 member companies who are essential contributors to
Canada’s national defence and security. The sector employs 109, 000
Canadians and generated over 12.6 billion dollars to the Canadian
economy in 2011.

For more information on CADSI visit: https://www.defenceandsecurity.ca

SOURCE Canadian Association of Defence and Security Industries (CADSI)

Source: PR Newswire