Economic development and job creation...
(for whom)

Promising Economic development and job creation?

Over half a Billion Dollars sent to the German economy.

THE FUTURE OF SHIPBUILDING

Commercial pressures were also exposed in a session examining the imbalance of newbuilding supply and demand. Capt Trafford Taylor, executive vice-president for new vessel construction at Canada’s BC Ferries, said global ferry markets were ‘superheating’ and required 55 ships a year to be replaced at a cost of more than $5 billion.
“We’re looking for big value and small environmental footprint,” he stressed. With little prospect of building in Canada, the company had contracted Germany’s Flensburger yard for three new vessels due in service in 2008 – in addition to a small cruise ferry - and saw Korea as the next big player in the ferry market. Meanwhile a request this year for expressions of interest regarding deliveries in 2011 had attracted responses from 20 pre-qualified yards worldwide. “There is huge competition for yard slots, a three-year wait for main engines and the quality of components has slipped dramatically due to sub-contracting,” he went on. “If you want a ship today you’re not going to get one until 2012 at the earliest and every year we think it’s going to increase 10-15% in price.”

Interferry 2007 – Conference Stockholm Sweden

With so many shipbuilding opportunities, why isn't the provincial government investing in shipbuilding here in BC?

Click here to go to the Interferry website to see this and other articles from the Conference in Stockholm Sweden

“Blatantly Stupid”, to build ferries outside of British Columbia.” - 2004
Dan Jarvis, Liberal MLA

Victoria Times Colonist
By Lindsay Kines

July 23, 2004
A Liberal government MLA has said it would be "blatantly stupid" for BC Ferries to build two new ships in Europe rather than here at home.

In a letter to the editor published Thursday in North Shore Outlook, North Vancouver-Seymour MLA Daniel Jarvis said he has contacted his colleagues in the provincial cabinet and many agreed with him.

"To me it doesn't make sense, and would be blatantly stupid," he wrote. "There are no valid reasons to indicate that B.C. shipyards are not capable.

"The two biggest ferries that we have, and for that matter the whole B.C. Fleet, were built by the private sector and organized labour in B.C."

B.C. Ferry Services Inc. revealed this week that no Canadian shipyard made the shortlist for a pending order of two and possibly three super C-class ferries worth as much as $500 million.

The Shipyard General Workers' Federation said the decision to give the contract to shipyards in Germany or Finland could mean the loss of 2,000 jobs in B.C. over three years.

Jarvis said in an interview Thursday that the decision "just made my blood boil.

"Why are we spending the taxpayers' money and shipping it into Germany or Finland or someplace like that?" he asked.

Jarvis said he never alerted anybody in government of his plans to go public about his concerns. But he said the response from colleagues has been positive.

"Most of my colleagues basically feel the same way," he said. "We're losing too many jobs everywhere and we certainly don't need to have it when I know we've got a pretty healthy shipbuilding industry."

Transportation Minister Kevin Falcon, who spoke to Jarvis Thursday afternoon, tried to downplay the comments, saying the Liberal backbencher didn't have all the facts.

"To be honest, it doesn't trouble me too greatly," Falcon said. "I think that Dan represents a riding that has some shipyard workers, and I think that, candidly, in a perfect world both Dan and I would like to see the local shipyards win every contract. But the reality is they don't win every contract."

Falcon noted that local shipyards have won about $60 million worth of work with B.C. Ferries in the past 18 months, and will get more work in the future.

"It's not like they're not capable of winning the business," he said. "What we're not going to do is guarantee them every single piece of business, because once you start doing that, you automatically take away any desire to have to be competitive."

Falcon said that interfering in BC Ferries' decisions and forcing the company to pick a losing bidder could wipe out huge cost savings and result in higher fares for passengers.

"That's exactly how we ended up with the fast ferries disaster" under the previous NDP government," he said.

Falcon declined to say whether the matter was discussed at a cabinet meeting Wednesday, but said he was puzzled by Jarvis' suggestion that many ministers agree with him.

"I'm not familiar with other cabinet colleagues who have expressed concern," he said.

But Jarvis showed no sign of backing down Thursday afternoon.

The MLA said he hopes his comments will make "everyone smarten up a bit and think about it.

"You know, we have to look after the people that elect us and are paying our salaries."

Jarvis said the government can't go in and tell BC Ferries what to do. "But we've got to suggest that by some way or means we gotta look at B.C. first."

Jarvis' comments hit the news the same day the Shipyard General Workers' Federation published large clip-out advertisements in the Victoria Times Colonist, Vancouver Sun and The Province asking readers to send a note to Falcon or Premier Gordon Campbell telling him to "build B.C. ferries in B.C. shipyards."

Federation president George MacPherson said he hopes Jarvis' statements will prompt others in the Liberal government to come forward and "apply the pressure that needs to be applied to Kevin Falcon and to [Premier] Gordon Campbell to reverse this thing."

"It means that we do have some MLAs in government that know how to think for themselves," he said. "I'm absolutely amazed, and I applaud Daniel Jarvis for the statements that he made. I think it's just great."

MacPherson said it's still possible to stop the deal, because the contract has yet to be awarded.

Victoria Times Colonist – July 23rd, 2004

More then 2000 jobs are involved in the construction of a large ferry.

2000 direct jobs lost by building the new ships in Germany.
3500 indirect jobs lost by building the new ships in Germany.

The following is a material list that could be supplied by B.C. Businesses, not just union shipyard workers, in the construction of a C-Class Vessel:

Steering gears, Bridge & Engine Room Consoles & Controls, Canadian steel, Strainers, Electrical Power Plant, Integrated Machinery Automation System & Alarms, HVAC, Bow & Stern Doors, Anchor Windlass Capstans, Mooring Fittings, Galley Equipment, Food Service Refrigeration, Stores System, Shepherd Boats (3 Zodiacs), Boat Davits, Life Jackets, Elevators, Windows, Weathertight Hatches & Doors, Fire Doors, Weathertight Bulkheads Doors, Vehicle decks Pneumatically Operated Sliding Fire Doors, Seats, Galley Floor System, Furnishings, Thermal & Fire Insulation, Exhaust Insulation-Main & Auxiliary Engines, Draught Monitor System and Echo Sounder, Navigation Whistles, Searchlights, Electrical Cables, Paints & Coatings, Ship Chandlery.