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Elbows out? Ottawa set to review BC Ferries Chinese shipbuilding contract

BC Ferries is under fire for choosing a Chinese state-owned shipyard to build 4 new ships.
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A rendering of one of four new ferries that are expected to be in service by 2031.

The House of Commons transport committee voted on Monday (July 7) to take a look at the decision by BC Ferries to build four new ships in a Chinese state-owned shipyard, and the Canada Infrastructure Bank's decision to fund the contract.

The motion to study the issue was brought by Dan Albas, the Conservative MP for Okanagan Lake West-South Kelowna and passed unanimously, supported by Liberal, Conservative and Bloc Québécois MPs.

"My focus is largely on getting answers so that people can know whether or not their government — remember the government that said, 'elbows up, Canada strong, we can build it together' — is, in fact, actually financing the outsourcing of Canadian jobs," Albas told the committee.

The committee intends to call four witnesses, including Nicolas Jimenez, BC Ferries president, Chrystia Freeland, minister of transport and internal trade, Gregor Robertson, minister of housing and infrastructure, and Ehren Cory, CEO of the Canada Infrastructure Bank.

BC Ferries announced in June that it had awarded a contract to build four major new vessels at the China Merchants Industry Weihai Shipyards (CMI Weihai). This news prompted outcry from B.C. labour leaders and opposition politicians, as well as a letter from Freeland saying she was "dismayed" by the news that the contract was awarded to a Chinese shipyard.

Freeland wrote in the June 16 letter that she did not want federal dollars used for the ships. Ten days later, a news release from the Canada Infrastructure Bank revealed that it was providing a $1 billion loan to BC Ferries for the ships and to upgrade ferry terminals.

"I find it outrageous that the Crown Corporation known as the Canadian Infrastructure Bank is actively financing the outsourcing of Canadian jobs," Albas said. "This is wrong."

Albas' motion called for the committee to hear testimony on the purchase within 30 days, and for recommendations to be voted on within an hour of the conclusion of testimony.

Liberal members of the committee balked at this timeframe, but were unable to pass an amendment and ultimately voted with the Conservatives and Bloc Québécois to proceed.

Premier David Eby said on Monday that he "wasn't pleased" when he heard the contract was going to China and that no Canadian companies bid on the contract.

Speaking to reporters in Burnaby on Monday, Eby repeatedly tried to steer the conversation to the lack of money that the federal government provides for BC Ferries.

"The challenge that we have is an unequal ferry system, where users in Atlantic Canada are heavily subsidized at a rate of 300 to one compared to users of the BC ferry system," he said. "I certainly hope that's part of the federal conversation."

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Mark Page

About the Author: Mark Page

I'm the B.C. legislative correspondent for Black Press Media's provincial news team.
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