British Columbia Government Financially Supports Seaspan’s Bid for Multi-Billion Dollar NSPS Program

A $40-million package from the Province will support Seaspan’s bid for a portion of the federal government’s multi-billion dollar National Shipbuilding Procurement Strategy (NSPS), and support marine industry jobs in BC, announced Pat Bell, Minister of Jobs, Tourism and Innovation.

“As promised, our government is helping Seaspan submit the strongest possible bid and this investment focuses on job-creation,” said Bell. “We are investing in our human capital by supporting the creation of marine industry jobs for years to come.”

If Seaspan’s bid is successful, the Province proposes to offer enhanced training or other labour tax credits for eligible marine industry employers in B.C. The proposed tax support would provide up to an estimated $35 million in benefits to Seaspan over the 30-year life of the shipbuilding program.

As well, the Province will invest $5 million to support the productivity and long-term viability of the broader marine sector should Seaspan win a federal contract. As part of selecting a winning bid, the federal government will evaluate these added investments in the British Columbia marine sector. This investment is in addition to, and separate from, the money Seaspan plans to invest as part of their bid response. The federal government is expected to make its decisions this fall.

“Seaspan is both pleased and thankful of the level of support it’s received,” said Jonathan Whitworth, Seaspan CEO. “We’re in it to win it and we’re certainly not alone. This type of support for the future of the B.C. shipbuilding industry will only add to an already stellar bid. I am confident we’ve submitted a winning bid, and we couldn’t have done it without the backing of our provincial and municipal governments, as well as the multitude of organizations, such as BC Ferries, who have provided encouragement and assistance throughout the process.”

Over recent months Seaspan has been working closely with interested parties including BC Ferries, the Township of Esquimalt and the District of North Vancouver to ensure that the many partners that can benefit from jobs and investment related to the bid are engaged to maximize Seaspan’s chance of winning based on selection criteria set by the federal government.

BC Ferries is pledging $20 million toward building the capacity of B.C.’s ship repair and maintenance industry, adding to Seaspan and the Province’s support.

“Nothing will help B.C.’s marine sector better than by securing a long-term federal shipbuilding contract,” said David Hahn , president and CEO of BC Ferries. “A strong shipbuilding and repair sector in B.C. is important for us to receive competitive pricing as we maintain and upgrade our fleet in the future.”

Support from the Province and BC Ferries has been noted in Seaspan’s bid now submitted to the federal government and is dependent on Seaspan successfully being awarded a NSPS work package. Should the bid be successful, the Province intends to finalize the details of the tax support and proceed with seeking approval of the Legislature.

Meyers Norris Penny LLP, a consulting firm commissioned by Seaspan, has estimated that a winning bid could create thousands of jobs and add billions of dollars to the Province’s economy.

Seaspan’s NSPS bid has wide-ranging support from across British Columbia including: the provincial government; the B.C. legislature; BC Ferries; local municipalities; all shipyard labour unions; the Squamish and Tsleil-Waututh First Nations bands; and a multitude of universities, colleges and training centres.

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Source: marketwire, July 26, 2011; Image:seaspan