New deal pumps up promise of jobs /Irving Shipbuilding frigate replacement contract adds to hopes for shipyard workers It appears the promise of a generation of good-paying jobs being created at the Halifax Shipyard is about to come true. On Friday, a couple of highpowered federal ministers came to Halifax to confirm that Irving Shipbuilding Inc. will be the prime contractor building the Canadian Surface Combatant project. It seems a logical decision since Irving had already been selected, in late 2011, to build a new fleet of warships for the Royal Canadian Navy, but apparently the process was more complicated. Public Works and Government Services Minister Diane Finley told reporters following a Halifax Shipyard ceremony that although Irving had essentially been chosen as the prime contractor when the vessel procurement plan was first announced, it was reaffirmed only after “they proved their mettle. “We were going to build the ships anyway but now this (prime contractor) role puts us in more of a leadership position, Kevin McCoy, president of Irving Shipbuilding, told a scrum of reporters. “But it also makes us accountable and responsible to deliver the whole package, the ships and the combat systems together, acting as Canada’s trusted agent. The shipyard will first build up to six Arctic offshore patrol vessels valued at $2.3 billion, with steel expected to be cut for the initial icebreaker Sept. 1. That contract is expected to sustain the equivalent of about 1,000 jobs at the Halifax yard for the next five years. McCoy says Irving is hopeful that work will begin almost immediately on the larger warships as the last icebreaker nears completion in late 2020. While some have speculated in the media that it will cost about $26 billion to build the new fleet of naval ships, none of the officials at the ceremony Friday would put a value to Irving’s role as prime contractor, nor would they confirm how much it will cost to build the vessels. The contract to build the ships is still to be determined, says McCoy, who points out that Irving, as the prime contractor, will first need to help define what will be necessary for the ships. It will work with the combat systems integrator, the ship designer and others to create a package to offer to the federal government for approval because Ottawa will make the decision on the final configuration, he says. “Then we’ll have a better understanding of what the cost . . . is going to be, McCoy said. Together, the Arctic offshore patrol ships and construction of the new naval vessels should last for at least 25 years and create an industry that will be sustained through boom-and- bust cycles and give families something to count on, he said. Justice Minister Peter MacKay, the federal minister responsible for Nova Scotia, says the contract is taking “the No out of Nova Scotia. He predicted the shipbuilding work will have many spinoff benefits in areas such as research and academia. While the government contracts are essential for the shipyard, McCoy says Irving Shipbuilding is also investigating the possibility of commercial projects, too, always looking for work.
Posted on: Mon, 26 Jan 2015 13:36:11 +0000
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