By Canadian Press

More cost overruns, delays coming for delivery of new navy, coast guard fleets

Apr 6, 2022 | 11:52 AM

OTTAWA — Federal bureaucrats are warning that more cost overruns and delays are on the horizon for the delivery of new ships to Canada’s navy and coast guard.

The warnings come as the Liberal government is facing pressure from the NATO military alliance and others to spend more on defence, raising one possible area for large new investments.

Yet they also mean higher costs to taxpayers and added difficulty for the Royal Canadian Navy and Canadian Coast Guard.

Both have already been forced to retired a number of old ships before replacements are ready, and each passing day increases the threat that another will break down permanently.

Federal officials are blaming the COVID-19 pandemic, supply chain problems, labour shortages and rising costs for steel and other materials for the latest setbacks.

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They say they are now assessing the specific impacts with Irving Shipbuilding in Halifax and Seaspan Shipyards in Vancouver as they continue work to officially add Quebec-based Chantier Davie to the program.

This report by The Canadian Press was first published Apr. 6, 2022.

The Canadian Press