Nova Scotians Benefit as Shipyard Work Begins

Published by the Premier's Office

Wednesday, Aug. 21, 2013

Site preparation and preliminary construction is underway in the Irving Shipyard in Halifax, as the province gets ready to build Canada's next fleet of combat ships. Major demolition and construction will begin soon.

Quotes

“ Building these ships here means jobs for Nova Scotians -- jobs for those who are already here, and those who for so long have had to work away. It means work for local businesses, and a better economy for Nova Scotians to raise their families. ” Premier Darrell Dexter

“ We can be very proud of the work we are doing to strengthen the Canadian economy while building a world-class facility that will ensure the men and women in our Canadian Forces go to work on the best ships possible. As we have already proven -- Nova Scotians are up to the task. ” Premier Darrell Dexter

“ We're a remediation company, and while we wouldn't have any involvement in the actual shipbuilding, we can be heavily involved in getting the yard ready to build those ships. This contract gives us the resources and exposure to deliver on this opportunity and to expand our business to serve Quebec and Ontario, and hopefully the rest of Canada. I would encourage other businesses to consider whether there may be opportunity for them too. ” Glenn Clark, president of Clean Earth Technologies

“ The selection of suppliers for our modernization program is the result of a rigorous procurement process where we assess quality, reliability, experience and cost to select the company that will help us deliver the best value to Canada. ” Jim Irving, co-CEO, J.D. Irving, Limited

“ Throughout the NSPS contracts, as well as the preparations leading up to them, we are committed to maximizing opportunities and benefits for Canadians and Nova Scotians through subcontracting, employment and the generation of investment and benefits within the broader marine industry. ” Jim Irving, co-CEO, J.D. Irving, Limited

Quick Facts

• Contracts worth $127.7 million have already been awarded, creating around 733 full-time direct and indirect positions within selected suppliers and subcontractors, 370 of those in Nova Scotia.
• The contracts for the yard modernization program awarded to date will generate $26 million worth of employment income within the province over the two year period leading up to the beginning of production in 2015, with an additional $32 million across Canada over the two years
• Irving Shipbuilding will invest about $300 million in yard upgrades, designed to ensure facilities are ready for the production of the Arctic Offshore Patrol Ships (AOPS), scheduled to start in 2015, and the larger combat ship contract scheduled to begin production between 2020 and 2022.
• There are close to 80 Nova Scotia suppliers involved to date.
• Based on an economic impact assessment prepared by Jupia Consultants Inc.,the yard upgrades alone are expected to boost Canadian gross domestic product (GDP) by $235 million, create about 1,720 full time equivalent positions across Canada and generate $136 million worth of employment income in the country over the two-year period.
• It will also lead to more than $102 million worth of consumer spending. In addition, the economic activity is expected to provide about $50 million worth of taxes for federal, provincial and local governments over the two year period.
• Upon completion, the modernization project will result in one of the most modern shipyards in North America.
• The Conference Board of Canada says the shipbuilding contracts will mean an additional 11,500 jobs for Nova Scotians and will increase the province's GDP by almost $900 million during peak production years. The Canadian economy is expected to grow by $1.5 billion, and 4,500 jobs will be created outside of Nova Scotia.

Learn More

• Premier's Office
• Irving Shipbuilding Inc.
• Ships Start Here
• National Shipbuilding Procurement Strategy
• CleanEarth Technologies Inc.

Media Contact

Jennifer Stewart

Premier's Office

902-424-0007

Cell: 902-497-7198

E-mail: stewarjl@gov.ns.ca

Tina Thibeau

Economic and Rural Development and Tourism

902-424-5836

E-mail: thibeatd@gov.ns.ca