Esquimalt Graving Dock (archive).

Budget watchdog says shipbuilding contract not enough

Kevin Page cites Seaspan's lack of naval shipbuilding experience as factor in potential higher costs

Canada’s independent budget officer published a report Thursday saying the $2.6 billion allotted to build two naval supply ships at Seaspan’s shipyards could be short by as much as $1.5 billion.

The supply ships are part of the $8 billion federal shipbuilding contract awarded to Seaspan in July 2011.

In his report, parliamentary budget officer Kevin Page said part of his cost estimate relates to Seaspan’s lack of experience building naval ships.

“Seaspan’s experience has been in the field of barges, ferries, smaller commercial ships,” the report reads. “The company has very little experience in the class of ships that will be produced.”

Jonathan Whitworth, Seaspan ULC CEO, said in a statement the company is on track and on budget and there should be no cause for alarm.

A design contract was secured for the first ships in February, about four months behind the original estimated schedule.

“Yes, we have had delays, but they are measured in weeks and months, which given that we are embarking on a 20 to 30 year shipbuilding relationship with the Government of Canada, is a minor inconvenience,” Whitworth said.

The estimates in Page’s report were subject to independent review by members of the U.S. congressional budget office, U.S. Naval Institute and other international experts.

View Page’s report here.

dpalmer@vicnews.com

Just Posted

Victoria woman selling car halts fraudster in action

VicPD warns public to be on the lookout for bank draft fraud

UVic second best comprehensive university in Canada: Macleans

B.C. schools take top two positions on yearly list

Langford woman charged after allegedly racking up $10,000 in loans using stolen identity

A 32-year-old Langford woman faces theft, fraud, and impersonation charges

Cruise ships leading culprits in rising greenhouse gas emissions at Ogden Point: report

The GVHA released its Emissions Inventory Report just days after City asks for restrictions

Saanich man charged in cross-border drug smuggling operation pleads guilty

William Milton Barnes was charged following a six-month joint investigation

VIDEO: B.C. man’s yard comes alive with grizzlies at night

Malakwa man has captured images of 12 different grizzlies on video

POLL: Do you think the day of the federal election should be a statutory holiday?

Increasing voter turnout has long been a goal of officials across the… Continue reading

A year after pot legalization in Canada, it’s a slow roll

It’s one year into Canada’s experiment in legal marijuana, and hundreds of legal pot shops have opened

ELECTION 2019: Climate strikes push environment to top of mind for federal leaders

Black Press Media presents a three-part series on three big election issues

Tickets available for Greater Victoria Sports Hall of Fame dinner and induction

Ryan Cochrane, Mike Piechnick and Rob Short among the inductees

Suspect hits woman with pipe, jumps into waiting truck in downtown Nanaimo

Police say victim believes ‘vicious assault’ was an attempted purse-snatching

ICBC willing to loosen grip on driver claim data, David Eby says

Private insurers say claims record monopoly keeps them out

B.C. principal suspended for failing to help student who reported inappropriate touching

Principal didn’t remove student from the teacher’s class nor call the parents within a reasonable time

Port Moody mayor goes back on unpaid leave during sex assault investigation

Rob Vagramov said he intends to return as mayor in three or four weeks

Most Read