National Shipbuilding Strategy annual report: Standing Committee on Government Operations and Estimates—July 23, 2020
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Key messages
- The government is delivering on its commitment to continue to renew the Royal Canadian Navy and the Canadian Coast Guard (CCG) fleets, revitalize the shipbuilding industry across Canada, create middle-class jobs, and ensure Canada’s marine services have the modern ships that they need
- 2019 was marked by important achievements, including the delivery of the first 2 large ships built under the National Shipbuilding Strategy (NSS), the first and second offshore fisheries science vessels, to the CCG
- In 2019, the government announced further investments renewing the CCG fleet, with up to 24 additional large ships to be built in Canadian shipyards and launched a competitive process to add a third Canadian shipyard under the NSS
If pressed on release date:
- the release of the NSS Annual Report is never done at a fixed date
- in its desire to be open and transparent, the Government of Canada allowed plenty of time for the report to be produced with COVID-19 also delaying the production this year
Background
This is the fourth edition of the NSS Annual Report. The 2019 NSS Annual Report covers the period from January 1, 2019 to December 31, 2019.
It is posted on Public Services and Procurement Canada’s National Shipbuilding Strategy reports page.
Socio and economic benefits
- The NSS continues to help stimulate the Canadian economy, with approximately $3.3 billion in new contracts having been awarded to Canadian companies in 6 different provinces in 2019. Of that amount, approximately $186.7 million went to small and medium-sized businesses with fewer than 250 full-time employees
- NSS contracts awarded between January and December 2019 are estimated to contribute more than $4.1 billion ($1.0 billion annually) to Canada’s gross domestic product and will result in approximately 10,365 jobs annually during the period covering 2019 to 2022
- Through the value proposition, shipyards have to invest a value equal to 0.5% of contracts to benefit the domestic marine industry in 3 priority areas:
- human resources development
- technology investment
- industrial development