World Business Press Online, OTTAWA - Over the upcoming 30 years, the federal government envisages $40 billions on building 50 large ships, on top of the 70 ships under 1,000 tonnes, which have been singled out to be refurbished.

"There is going to be enough work with 50 ships on order for every shipyard in the country to be going full steam, and that's good news in terms of the economy," said Defence Minister Peter MacKay.
Canada's shipbuilders agreed on a radical change in the way contracts are assigned by the federal government. This agreement will, in theory, allow the government to pick and choose in a more direct way which Canadian shipyards will build which ships. It probably means the end of often bitter arguing that killed some government contracts. A long term plan with stable funding should save money, improve marine safety and the environment, and boost the economy. The Marine Sector, which includes Shipbuilding and Ship Repair, contributes more than $20 billion to Canada's economy and generates more than 350,000 jobs. But if the program (the deal having been called 'historic' by some experts) is not managed properly, it could become a disaster.

In the past, Canada's shipbuilders were annoyed at missing government's policy covering navy sector. The government policy supported the so-called "boom and bust" cycle. After building a large numbers of vessels in a short period of time, shipyards had to go for lay-offs until the next contract emerged. They wanted to ensure that domestic shipyards had a steady inflow of work. A ship or two built each year would do the trick. And now they essentially got what they wanted.

Some Canadians hope the new deal will finally boost Canada's self-confidence as a maritime nation and will play a part in strengthening the country's presence in the Arctic. But others argue that "competitive bidding" will not make Canada's taxpayers share their enthusiasm. Critics of the deal are worried that building ships to a pre-defined budged will result in specced-down vessels, not the ones the Navy or Coastguard need. That's the government needs to make the process transparent in order to ensure that tax dollars are spent reasonably.

Miroslava Hospodarova