An artist’s rendering of the Type 26 Global Combat Ship, Lockheed Martin’s proposed design for Canada’s $60-billion fleet of new warships. COURTESY LOCKHEED MARTIN CANADA

Feds to buy Arctic ships from Irving to prevent layoffs

The federal government is looking at buying two more ships

Prime Minister Justin Trudeau is expected to announce Wednesday that the federal government is buying two more Arctic patrol ships on top of the six it has already ordered from Halifax-based Irving Shipbuilding.

However, unlike the first six, which are being built for the navy at a total cost of $3.5 billion, a government source tells The Canadian Press that the seventh and eighth will be built for the Canadian Coast Guard.

According to the source, who was not authorized to comment publicly, the move is intended to address the Canadian Coast Guard’s desperate need for new ships as its current fleet is extremely old, which has affected its ability to do its job.

READ MORE: Tribunal orders feds to postpone contract in $60B warship project

That includes everything from search-and-rescue operations and resupplying Arctic communities, to clearing ice for ferries in the St. Lawrence River and Atlantic region.

The source says it’s also to address the threat of layoffs, which Irving has long warned will happen unless the government fills a gap between when the last Arctic patrol ship is finished and construction on the navy’s new $60-billion warship fleet.

The government sought to address that gap in November when it ordered the sixth Arctic vessel for the navy and agreed to slow production on the fleet, at a total cost of $800 million.

Half of that cost was for the ship and the other half was to stretch out the work at Irving.

But federal bureaucrats and Irving both warned at that time more would need to be done as even with those measures, Irving was facing an 18-to-24-month gap — during which time it said it would need to lay off workers.

READ MORE: Justin Trudeau credits immigration for Canada’s growing tech sector

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Woman collapses at Eagle Creek Fair Grounds

A woman was taken to the Lakes District Hospital after she collapsed… Continue reading

First Nations given max compensation for Ottawa’s child-welfare discrimination

2016 ruling said feds didn’t give same funding for on-reserve kids as was given to off-reserve kids

Power restored to 120,000 customers after northern B.C. transmission failure

Lightning is suspected to be the cause of the outage, says BC Hydro

Rattée visits Burns Lake

Claire Rattée, Conservative Party of Canada candidate for Skeena-Bulkley Valley, accompanied by… Continue reading

Construction of water treatment plant begins

Ground work started on Sept. 4 as part of the construction of… Continue reading

VIDEO: Vancouver Island mayor details emergency response after fatal bus crash

Sharie Minions says she is ‘appalled’ by condition of road where bus crashed

B.C. VIEWS: Cutting wood waste produces some bleeding

Value-added industry slowly grows as big sawmills close

Fewer trees, higher costs blamed for devastating downturn in B.C. forestry

Some say the high cost of logs is the major cause of the industry’s decline in B.C.

Federal food safety watchdog says batch of baby formula recalled

The agency says it’s conducting a food safety investigation

UVic president offers condolences after two students killed in bus crash

‘We also grieve with those closest to these members of our campus community,’ Cassels says

Coming Home: B.C. fire chief and disaster dog return from hurricane-ravaged Bahamas

The pair spent roughly one week on Great Abaco Island assisting in relief efforts

Newcomer Ferland lines up with sniper Pettersson as Vancouver Canucks camp opens

Ferland provides more depth and a scoring threat up front, Pettersson says

Intelligence official charged seemed to be ‘exemplar of discretion’: UBC professor

Professor Paul Evans says he served on Cameron Ortis’s doctoral dissertation committee

B.C. company gets licence to test psychedelic drugs for therapy treatment

Salvation Botanicals interested in manufacturing, testing and research and development

Most Read