Federal Conservatives say N.L. could make billions on shipbuilding

Federal Conservatives say N.L. could make billions on shipbuilding

'Everybody can have a piece of the pie,' says Placentia mayor

N.L. can build navy ships and earn billions doing it, Poilievre says

Conservative leader Pierre Poilievre says he and his party want Newfoundlanders and Labradorians to see more out of the national shipbuilding strategy.

Poilievre has been on a multi-day visit to Newfoundland and Labrador this week. In a press conference at the Alt Hotel in St. John's on Thursday morning, he started by reiterating messages on affordability and included a formal call to see the federal government extend the current suspension of the federal excise tax on fuel.

The 10-cent-per-litre tax break on gasoline and four-cent break on diesel is currently scheduled to be in effect until, and including, Sept. 7. The Conservatives want a longer reprieve at the pumps for Canadians, Poilievre said.

He then made a call more specific to Newfoundland and Labrador, this time referring to Canada's multi-billion dollar shipbuilding efforts.

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"Conservatives are calling for Newfoundland and Labrador to be officially integrated into the national shipbuilding strategy," he said, Newfoundland and Labrador Conservative MPs standing alongside him.

"We need more options to build more across the country," Poilievre said.

N.L. companies already active in ship work

Canada's shipbuilding strategy is a behemoth — "the largest procurement in Canada's history," as Canada's Auditor General described it in a 2013 report.

It's broadly meant to support Canada's marine industries by building more vessels in Canada. The main components of the strategy cover construction of large vessels, small vessels and, separately, a large amount of vessel repair, refit and maintenance.

To date, headlines have focused on procurement decisions on the two main shipyards selected for construction work for the Royal Canadian Navy and Canadian Coast Guard, the Irving Shipbuilding facility in Halifax, N.S., and Seaspan Shipyards in Vancouver.

While not one of the two primary shipyards selected for construction of new vessels, Newfoundland and Labrador companies have been involved, with multi-million dollar contracts within different build programs in the years since the strategy was announced.

Newdock Shipyards in St. John's, for example, has landed a strong share of repair, refit and maintenance work through competitive bids, including a $34.3-million vessel conversion project on the CCGS Judy LaMarsh, completed in September of last year.

Taking questions from reporters, Poilievre was asked about his pitch.

'Projects Newfoundland could compete to win'

He noted the announced plans under current Prime Minister Mark Carney to significantly increase federal defence spending, bringing Canada's NATO spending target up to five per cent of GDP.

He said Newfoundland and Labrador could be considered as a possible location for more work, including on construction of new Continental Defence Corvettes — the name placed on a proposed new fleet to replace the country's existing coastal defence ships. Poilievre also said there might be opportunities in additional supply ships for the Royal Canadian Navy.

"These have all been identified by either naval leadership or the coast guard themselves but have yet to be awarded. These are projects that Newfoundland could compete to win," he said, making passing mention in his comments to industrial sites like the Bull Arm Fabrication Facility, the Cow Head fabrication site and the Port of Argentia, where the West White Rose offshore oil platform was built.

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Poilievre said there's likely more work in refit and repair to consider. He mentioned potential in "components" and "subcomponents" of the larger shipbuilding programs, and possible opportunity in spinoff from the announced purchase of new submarines.

"It could be in the billions of dollars of opportunities for Newfoundlanders and Labradorians," he said.

Conservatives are not asking for work to be awarded outright to Newfoundland and Labrador companies. He said the party doesn't believe in political interference.

He called for "opening up the strategy to Newfoundland and Labrador" — more or less encouraging companies to set their mind to shipbuilding and compete on projects to receive a cut of the record defence spending.

Mayor says local facilities want more

Argentia lands within the Town of Placentia, and Mayor Jamie Neville agreed with the call out.

Work at Argentia has "slowed to a stall," he said, with the tow out of the West White Rose and a pull back on offshore wind power developments in the United States, cutting into need for use of Argentia as a storage site for that industry.

Neville said there are ports around Newfoundland and Labrador with industrial facilities, like Argentia, with experience in heavy industry and the space to contribute more in shipbuilding.

He sees room for landing more at the sites, without having to take anything away from ports in Nova Scotia, or other provinces.

"If we all work together, at the end of the day everybody can have a piece of the pie," he said.

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Ashley Fitzpatrick is a reporter with CBC News based in St. John’s. She can be reached at ashley.fitzpatrick@cbc.ca.