On a warm but cloudy afternoon at the beginning of May, PrimeMinister Stephen Harper participated in the unveiling of a newmonument for the Royal Canadian Navy. Erected within sight ofParliament Hill and symbolically surrounded on three sides by theOttawa River, the monument was being dedicated to the hundreds ofthousands of sailors who have served in the navy during its112-year history. "Surrounded as we are by three oceans, it can truly be saidthat Canada and its economy float on salt water," the primeminister said. "Such a nation must have a navy. A navy thatserves, a navy that protects." The Conservative government has committed $35 billion over 20 yearsto the largest and most extensive overhaul of Canada's navy andCoast Guard in more than a generation. It is hoping that massive investment will return Canada to itsglory days as a global shipbuilding power, by transforming Halifaxand Vancouver into world-class production centres. Yet while the Harper government has held up the NationalShipbuilding Procurement Strategy (NSPS), as the $35-billion planis dubbed, as a success in the making, significant problemsthreaten to run it aground. At issue is a three-way struggle pitting the military's desire toacquire as many state-of-the-art vessels as possible against thegovernment-imposed Defence Department budget cuts and industry'sfocus on the bottom line. These competing agendas already have resulted in a number of delays the delivery of one ship has been pushed back by three years.There also are indications the total number of ships to be builtwill be reduced. Some experts worry the political fallout couldmirror the government's difficulties with the F-35 fighter jet. "The costs to industry and government and the Canadian Forcesare so enormous," said University of Ottawa militaryprocurement expert Philippe Lagasse. "This has hugeimplications." The National Shipbuilding Procurement Strategy is regarded as agodsend for the navy and Coast Guard, which operate fleets ofdestroyers, icebreakers, frigates and other vessels that arenearing the end of their lifespans and must be replaced. "We're at a moment of strategic renewal," the navy'sdeputy commander, Rear Admiral Mark Norman, said recently. "Anopportunity that is all but unprecedented in the 110-year historyof the Royal Canadian Navy." The strategy is seen also as a huge winner for Irving Shipyards inHalifax, Seaspan Marine in Vancouver and their respectivecommunities, after a panel of federal bureaucrats announced inOctober that these companies had been selected as the mainproduction centres for $33 billion in work. (The other $2 billionwill go to a number of other shipyards across the country onsmaller projects.) "What this means is we will see thousands of jobs come toBritish Columbia as a result of this federal money thousands ofhigh-paid jobs, people who are going to be able to support theirkids, solid middle-class jobs," British Columbia PremierChristy Clark said at the time. "I'm absolutelydelighted." Amid problems with the F-35 stealth fighter program and othermilitary purchases, the Conservative government has held up theshipbuilding strategy as an important success for militaryprocurement and a means to leverage tax dollars into massiveeconomic spinoffs. "The NSPS embodied all of the three principles that arechanging the way we do business," Public Works Minister RonaAmbrose said at a recent defence industry conference. "I'mvery thankful for the success of this strategy." Yet for all the high expectations, when the Conservative governmenttabled documents in the House of Commons in May that showed themajority of the shipbuilding projects under the strategy facingvarious delays, it set off alarm bells. The most troubling was a three-year delay in the planned deliveryof six to eight armed vessels for the Arctic. These ships,announced by the government in 2007 and to be built by Irving inHalifax, were the furthest along in design and were to be the firstproduced under the strategy. At a naval conference in Ottawa on June 1, Commodore Daniel Singspecifically noted the Arctic vessel delay before warning: "Iwould caution once again that negotiations with Irving Shipbuildingwith respect to this plan are not yet concluded and some things canchange, and I'll leave it at that." Indeed, what seems to have been overlooked is that while IrvingShipyards and Seaspan Marine were selected in October to undertakethe majority of the work associated with the NSPS, no actualcontracts were awarded. "There's this understanding, or sometimes it's reported in themedia, that we've awarded contracts worth $33 billion," saidTerry Williston, who headed the group of senior bureaucratsmanaging the process that selected Irving and Seaspan. "We haven't awarded any contracts yet. We've selected the twoshipyards with which Canada will engage in negotiations for thecontracts that are part of the NSPS work packages. But there's atremendous amount of difficult work to be done in order to get tothose contracts." Retired rear admiral Ed Healey, who oversaw the acquisition ofCanada's Halifax-class frigates in the 1980s, said that "thenext stage is going to be even more difficult in terms ofnegotiating contracts with these shipbuilders, and that's whenindeed the rubber hits the road." Irving spokeswoman Mary Keith said in an email that the shipbuilderis "fully focused on the timely completion" ofnegotiations for the Arctic vessel contract, and all others relatedto the shipbuilding strategy. "The importance of expediency in moving NSPS contracts forwardas efficiently as possible, as well as looking for ways to sustaina skilled and ready workforce, cannot be undervalued," sheadded. There is widespread agreement that the way in which Irving andSeaspan were selected as the primary shipyards ensured theConservative government could not be accused of picking regionalwinners and losers. Yet it also cost the government leverage forthe negotiations that were to follow. "It's not impossible," Healey replied when asked howdifficult it will be to conclude the negotiations. "But nowit's not competitive because you've selected the shipyards." Meanwhile, the cost of many of the ships to be built under thestrategy continues to increase. The Arctic patrol vessels, forexample, will cost $40 million more than expected. The military, asa result, is under pressure to lower its expectations for what itwants built into each ship. "The Royal Canadian Navy, notwithstanding the success to dateof the National Shipbuilding Procurement Strategy and its selectionof preferred shipyards, is not yet able to determine the exactsweet spot between what is desired in terms of capability andcapacity, and the available budget," Sing acknowledged. As Postmedia News recently reported, National Defence officialstold the government as far back as last year that budget cuts hadmade its multi-billion-dollar shopping list of military equipment which includes the shipbuilding strategy "unaffordable." The Conservative government already had been accused, in 2008, ofnot providing enough money to replace the navy's agingProtecteur-class supply ships with three new vessels, which thenavy says is the bare minimum. Instead of increasing the funding, the $2.3-billion project wasscrapped, then relaunched, with the government agreeing to buildtwo new supply vessels with an option for a third. The firstJoint Support Ship, as they are called, isn't due to hit the wateruntil spring 2018. "When any project is initiated, there's an estimate providedfor it," said retired lieutenant-general George MacDonald, nowa defence consultant. "And it's just that, an estimate. "But over time, the cost of materials changes, perhaps thethreat changes and new technology is available. Those sorts ofthings are always evolving, but it very rarely results in lowercosts." While the $35 billion committed to the National ShipbuildingProcurement Strategy is the single largest pot for any militaryprocurement in Canadian history, MacDonald said the figure wasarrived at years ago and is in desperate need of refinement. The Conservative government has confirmed it is reviewing itslong-term plans for the Canadian Forces yet against a backdropof fiscal austerity, it is difficult to imagine more money will beprovided. Instead, the government appears content to let the DefenceDepartment and industry argue over the details of the shipbuildingstrategy which the University of Ottawa's Lagasse said isalready turning the two sides against each other. At a recent naval conference, the navy's deputy commander, Norman,acknowledged the frustration that is threatening to boil over. Headvised all sides to take a deep breath and begin working togetherinstead of against each other or risk scuttling what is in trutha once-in-a-lifetime opportunity. "We're on a PGA course that we've wanted to play all our livesand we're on the first fairway," Norman said. "But let'snot forget the fact that there's 17 more holes to go. "For this NSPS and everything associated with it to succeed,we have to trust each other and we have to move forward together asone team," he added. "If not, this unprecedentedopportunity will fail." Twitter:/leeberthiaume. I am an expert from idaccessory.com, while we provides the quality product, such as Retail Display Hooks Manufacturer , Badge Slot Punch Manufacturer, Retractable ID Badge Reels,and more.
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