An artist’s rendering of the Type 26 Global Combat Ship, Lockheed Martin’s proposed design for Canada’s $60-billion fleet of new warships. COURTESY LOCKHEED MARTIN CANADA

Feds to buy Arctic ships from Irving to prevent layoffs

The federal government is looking at buying two more ships

Prime Minister Justin Trudeau is expected to announce Wednesday that the federal government is buying two more Arctic patrol ships on top of the six it has already ordered from Halifax-based Irving Shipbuilding.

However, unlike the first six, which are being built for the navy at a total cost of $3.5 billion, a government source tells The Canadian Press that the seventh and eighth will be built for the Canadian Coast Guard.

According to the source, who was not authorized to comment publicly, the move is intended to address the Canadian Coast Guard’s desperate need for new ships as its current fleet is extremely old, which has affected its ability to do its job.

READ MORE: Tribunal orders feds to postpone contract in $60B warship project

That includes everything from search-and-rescue operations and resupplying Arctic communities, to clearing ice for ferries in the St. Lawrence River and Atlantic region.

The source says it’s also to address the threat of layoffs, which Irving has long warned will happen unless the government fills a gap between when the last Arctic patrol ship is finished and construction on the navy’s new $60-billion warship fleet.

The government sought to address that gap in November when it ordered the sixth Arctic vessel for the navy and agreed to slow production on the fleet, at a total cost of $800 million.

Half of that cost was for the ship and the other half was to stretch out the work at Irving.

But federal bureaucrats and Irving both warned at that time more would need to be done as even with those measures, Irving was facing an 18-to-24-month gap — during which time it said it would need to lay off workers.

READ MORE: Justin Trudeau credits immigration for Canada’s growing tech sector

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Wolf Creek Public Schools hit by budget cuts, insurance spike

WCPS is facing a $3 million shortfall after a $1.8 million cut and $1 million insurance hike

Sylvan Lake Wranglers earn another win at home

The Wranglers defeated the Ponoka Stampeders 3-1, Nov. 10

PHOTOS: Annual Turkey Supper back in Eckville

The Eckville Community Centre was stuffed on Nov. 9 for St. Paul’s Presbyterian’s annual Turkey Supper

PHOTOS: Eckville gathers to honour Remembrance Day

The service was hosted by the Eckville Legion on Nov. 11 at the Eckville Community Centre

Black Press Extreme Education and Career Fair coming to Red Deer College’s Cenovus Learning Commons

Central Albertans can connect with employers on Nov. 28 from 11 a.m. to 3 p.m.

‘We love you, Alex!’: Trebek gets choked up by ‘Jeopardy!’ contestant’s answer

The emotional moment came in Monday’s episode when Trebek read Dhruv Gaur’s final answer

Petition to ‘bring back Don Cherry’ goes viral after immigrant poppy rant

Cherry was fired from his co-hosting role for the Coach’s Corner segment on Nov. 11.

Imperial CEO says no to Aspen oilsands project until Alberta oil quotas gone

Imperial confirmed a plan to boost production from its Kearl oilsands mine

Three men charged after ‘targeted’ shooting, evacuation at Alberta mall

The accused, who range in age from 25 to 37, were arrested Sunday and remain in custody

VIDEO: Don Cherry says he was fired, not sorry for ‘Coach’s Corner’ poppy rant

Cherry denies he was singling out visible minorities with his comments

Disney Plus streaming service hits Canada with tech hurdles

Service costs $8.99 per month, or $89.99 per year, in Canada

Trudeau’s opponents: One gives him an earful, another seeks common ground

PM meets with Conservative leader Andrew Scheer and Saskatchewan Premier Scott Moe

Rona’s ‘truly Canadian’ ads are inaccurate, watchdog says

Ads Standards points out U.S.-based Lowe’s acquired Rona in 2016

Most Read