sa¹ú¼Ê´«Ã½

Skip to content
Join our Newsletter

Editorial: Build ferries for best price

It’s a symptom of the Island’s tempestuous relationship with sa¹ú¼Ê´«Ã½ Ferries that almost the first question about the three planned new ships is: Will they be built in sa¹ú¼Ê´«Ã½? Street-corner crowds are not buzzing about how many cars the vessels will hold.

It’s a symptom of the Island’s tempestuous relationship with sa¹ú¼Ê´«Ã½ Ferries that almost the first question about the three planned new ships is: Will they be built in sa¹ú¼Ê´«Ã½?

Street-corner crowds are not buzzing about how many cars the vessels will hold. Coffee shops are not vibrating with discussions of passenger capacity.

But with years of painful history, the question of where the ships will be built is a hot topic.

The sa¹ú¼Ê´«Ã½ Ferries commissioner has given the go-ahead for three intermediate-sized new vessels. The corporation will issue a request for pre-qualification for shipyards, with a contract expected to be signed in January 2014 and delivery in 2016 and 2017.

The New Democrats — despite the skeletons of the fast ferries rattling in their own closet — have already begun hammering at the government, demanding that Premier Christy Clark stand by her commitment to job creation by forcing Ferries to give the contracts to sa¹ú¼Ê´«Ã½ businesses. As it always does, the government responded that the corporation is an arm’s-length entity, and the best Transport Minister Todd Stone can do is encourage it to think about sa¹ú¼Ê´«Ã½ jobs.

Certainly, CEO Mike Corrigan will have to give serious consideration to the pleas. It would be politically unacceptable to ignore them, but they can’t be the only factor — or even the main factor.

Ferries has to get the best financial deal possible, taking into account not only the capital costs, but also the long-term costs. That’s one reason the corporation hopes to power the vessels with liquefied natural gas, which would be more expensive upfront, but cheaper in the long run.

David Hahn, the previous head of the corporation, endured a torrent of abuse for the decision to send the last major contract to Flensburger Schiffbau Gesellschaft in Flensburg, Germany. The yard built the Coastal Renaissance, Coastal Inspiration, Coastal Celebration and Northern Expedition for $467 million.

The New Democrats and sa¹ú¼Ê´«Ã½ shipyards insisted sa¹ú¼Ê´«Ã½ businesses and workers could have done the job, but Hahn said they couldn’t match what the Germans offered. And the Germans delivered, under budget and on time.

sa¹ú¼Ê´«Ã½ Ferries also contended that in the bad old days it paid a premium to local shipbuilders who knew that a made-in-sa¹ú¼Ê´«Ã½ policy left the corporation with nowhere else to turn.

Perhaps this time, sa¹ú¼Ê´«Ã½â€™s shipbuilders can give the foreigners a run for their money.

They have known for several years that this work was coming. They have lots of experience working on the fleet; Ferries spent $75 million in the last fiscal year on refits and refurbishment in sa¹ú¼Ê´«Ã½ yards. And with the $8-billion naval ship contract awarded to the West Coast, local companies are gearing up to take on big jobs.

Reviving the province’s once-thriving shipbuilding industry would nurture skills and develop capacity to strengthen sa¹ú¼Ê´«Ã½â€™s future. There is a good argument to be made for keeping that revived industry healthy with strategic shots in the arm.

The U.S. Defence Department does that, spreading contracts around to keep individual companies from withering, so the sector remains healthy.

Those considerations must play a role in the decision of sa¹ú¼Ê´«Ã½ Ferries, which, despite its strange, arm’s-length status, is a creature of the provincial government and can serve larger provincial goals.

Its paramount responsibility, however, is to the real shareholders — all the taxpayers of sa¹ú¼Ê´«Ã½, not just those who would benefit from a booming shipbuilding industry.

To serve those shareholders, it must buy the best ships at the best price. If they come from sa¹ú¼Ê´«Ã½, so much the better.