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 Hospice named in top 100 Canadian charities list

Society honoured for transparency of donated funds

Victoria fundraiser looking for menstrual products

The Period Posse is running a 10-day campaign to help people who can’t afford pricey necessities

Trapped Vancouver Island crash survivor celebrates second chance at life

“Life is good now. It’s good to be alive.”

More affordable housing for Indigenous residents coming to Langford

40 units will be added to Station Avenue development

Rickter Scale: Of mushrooms and creepy creatures

The Rickter Scale is a weekly column that appears in the Gazette

VIDEO: Ballet Victoria’s take on the The Nutcracker tours Vancouver Island and the Mainland

Performances in Revelstoke, Coquitlam, Chilliwack and Victoria

POLL: Are you dreaming of a white Christmas?

The rain Vancouver Island is famous for is coming down in buckets,… Continue reading

Greater Victoria Crime Stoppers wanted list for the week of Dec. 11, 2018

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Sissons scores OT winner as Predators beat Canucks 4-3

VIDEO: Vancouver battles back to earn single point in Nashville

High streamflow advisory in effect across the Island

River Forecast Centre issues advisory as Pacific storms batter the coast

Lions announce seven members of coaching staff not coming back for 2019

The operational moves come two days after the Lions announced DeVone Claybrooks as the team’s new head coach

Man in his 60s dies in ATV accident north of Parksville

BC Coroners Service investigating the death

VIDEO: Kitten rescued from under school bus in Duncan

School staff have affectionately called kitten “Axle”

$12K awarded to atheist family who oppose Christmas, Hanukkah in B.C. classroom

Gary Mangel,May Yasue said holidays, Remembrance Day and Valentine’s Day not appropriate in preschool

Most Read