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Rob Shaw: Seaspan tour leaves politicians fuming over BC Ferries deal with China

Conservatives say B.C. and federal governments have failed to support local shipbuilding, allowing China to take the work
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An aerial drone shot of Seaspan’s drydock in North Vancouver. Conservative politicians who recently toured the site say B.C. and Ottawa didn’t give the local shipyard a fair shot at a multibillion-dollar BC Ferries deal.

Politicians from different parties toured North Vancouver’s Seaspan shipyards recently, emerging with differing opinions about the ongoing scandal involving BC Ferries’ decision to build new ships in China.

Federal Conservatives concluded their tour lamenting Prime Minister Mark Carney has failed to seize the moment to expand domestic shipbuilding at Seaspan using the BC Ferries contract for four new ferries.

“We’re subsidizing the offshoring of these jobs to China,” said North Island-Powell River MP Aaron Gunn, who visited Friday alongside Okanagan Lake West-South Kelowna’s Dan Albas.

“I don’t think it’s right. And I don’t think it should have ever happened.”

BC Conservatives left the shipyard blaming Premier David Eby for failing to grow Seaspan with a promised 2021 shipbuilding strategy, and for not intervening to block the government-owned BC Ferries from contracting with the hostile, authoritarian Chinese regime.

“Is this the right time to be giving all your money to China, when they are going to turn around and use it against us?” said Harman Bhangu, Langley-Abbotsford MLA and transportation critic, who also toured Friday.

“Or is it time to take this seriously and create some good-paying jobs?”

The BC NDP government came out of its Seaspan tour on Thursday to address the BC Ferries China scandal head on in remarkably candid fashion.

Just kidding.

Deputy Attorney General Niki Sharma posted a short video online that didn’t contain the words ferry, ferries or BC Ferries at all.

“These shipyards are critical to Canada's future, and we are lucky to have world-class shipyards that are so busy right now,” Sharma said. She declined an interview request.

The video failed to acknowledge the sudden visit to Seaspan could be in any way connected to the province’s scrambled, damage control response to the national political crisis, which has left wide swaths of the BC NDP’s organized labour base furious.

Sharma added that “we will keep working with the federal government and all partners to build up our domestic ship building capacity.” The video gave the distinct impression the province has been active on the file, when all evidence appears to the contrary.

Meanwhile, Seaspan that it didn’t bid on the BC Ferries ships because it lacked current capacity, and that it wouldn’t have been able to compete with China anyway.

“The fact of the matter is that their labour costs in their shipyards is probably seven to eight times cheaper than ours,” senior vice-president David Hargreaves told Global.

China saves money by failing to follow laws on forced labour, human rights and environmental standards. Unless BC Ferries, the province and Ottawa are willing to put a premium on local jobs and economic benefits from local work, Seaspan won’t ever be able to compete.

“That does have to include some much stronger preferences for B.C. [and] Canadian content,” Hargreaves told the station. “It can’t just be a competition on price, it has to take into account all the other benefits that accrue from building here … [and] has to be seen as an investment for B.C.”

Gunn said he “wasn’t expecting Seaspan to be as blunt in their commentary about what was going on” but that he was impressed at its ability to build large navy and Coast Guard ships. 

“They were very clear that the contract was structured in such a way they wouldn’t be able to qualify, but were clear they would have liked to build these ships,” said Gunn.

“They want to be part of building ferries in British Columbia. The ships they are building now for the navy are bigger and more complicated than ships they’d have to build for BC Ferries, so it’s not like it’s outside their capabilities.”

The Opposition federal Conservatives intend to recall the transportation committee to ask questions about the BC Ferries deal with China, including demanding answers from Housing Minister Gregor Robertson over why the Canada Infrastructure Bank is providing almost $1 billion in financing.

Eby spoke to Seaspan a week ago, according to his office, though it’s unclear what was said. Eby also pledged to speak to Carney about the issue, but it’s not clear if that happened either.

In the meantime, opponents continue to hammer the B.C. and federal governments over their inaction.

“China is using predatory pricing to corner the market and build up their shipbuilding capacity, and we all know their primary geo-political objective for the next decade or two is to take back Taiwan,” said Gunn.

“So it seems like we are directly funding our adversaries.”

Eby has dismissed concerns about China’s military ambitions, role in fentanyl trafficking, human rights abuses, support of Russia in its illegal invasion of Ukraine, and interference in Canadian elections, saying British Columbians just want the new ferries delivered quickly and cheaply.

Contracting with a European shipyard would cost $1 billion more, he has said. Gunn said doing business with a stable country allied to Canada’s international interests is worth the money.

Bhangu said he emerged from the Seaspan tour confident that if BC Ferries and the province would slightly delay the first of the new ships (from in-service from China in 2029 to completed by Seaspan by 2032), or get the first ship built by an allied shipyard and then the rest by Seaspan, it could help kick-start a new local shipbuilding industry with good jobs and economic benefits.

“They would just love to start making ships here because after 2029 it clears up for them quite a bit,” said Bhangu.

He scoffed at Sharma’s empty video.

“There’s no substance behind those folks,” he said. “I don’t think they are serious about this. It’s like they don’t believe in British Columbians to do amazing things anymore.”

Rob Shaw has spent more than 17 years covering B.C. politics, now reporting for CHEK ÃÛÌÒÊÓÆµapp and writing for The Orca/BIV. He is the co-author of the national bestselling book A Matter of Confidence, host of the weekly podcast Political Capital, and a regular guest on CBC Radio.
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