N.S. closely watching shipbuilding costs

HALIFAX – Premier Stephen McNeil’s government is closely watching any decisions from Ottawa on the budget for the next phase of the shipbuilding contracts.

A meeting between officials in Halifax and Ottawa didn’t lead to any solid information following media reports that the costs of the shipbuilding contracts could skyrocket over the long term.

However, McNeil said he expects the federal government to keep its election promise.

“I’m very confident that the prime minister will keep the commitment he made during the election campaign here in September and that we will see at least six of those ships built,” said McNeil.

Tweet This Click to share quote on Twitter: "I'm very confident that the prime minister will keep the commitment he made during the election campaign here in September and that we will see at least six of those ships built," said McNeil.

In September, Justin Trudeau made a campaign stop at Pier 21 where he announced his government would stick to the original number of ships promised by the Conservative government in 2011. That means six Arctic Offshore Patrol Ships and 15 Canadian Surface Combatants will be built at Halifax’s Irving Shipyard.

A contract is already signed, detailing the construction of the six patrol ships, so it’s unlikely that project is at risk. In May, the government said the surface combatants would cost $26.2 billion, however, when asked on Thursday what the budget is for the ships, the government didn’t give a direct answer.

“The NSPS Secretariat will continue to seek third-party advice where appropriate to inform decisions and review costs,” said an emailed statement from Public Services and Procurement Canada spokesperson Pierre-Alain Bujold.

The uncertainty around the budget for the surface combatants and other ships stems from a lack of clarity on what the ships will be expected to do, said Ken Hansen, a resident research fellow with Dalhousie University’s Centre for Foreign Policy Studies.

“Those questions of policy and capability need to be answered, so that we can say ‘right, with a fair degree of certainty we know these ships need these physical characteristics and these military capabilities.’ That drives costs,” said Hansen.

With several years still to come before the surface combatants are built, Hansen said there’s still time to pin down the budget and timeline for construction.