Building ferries in British Columbia would help the province weather the harsh economic winds coming from the United States, said a labour economist and co-author of a new report that calls for a reboot of domestic shipbuilding.
"We need to build ships again for economic and strategic reasons," Jim Stanford told a virtual briefing to release the report on Thursday.
"You have to make it a deliberate focus of policy to do that," he said. "You cannot stand back and say, 'We'll let the chips fall where they may.'"
The report from the Centre of Future Work, where Stanford is the director, said building ferries locally rather than purchasing them from abroad would help the B.C. and Canadian economies absorb the blows of steep American tariffs.
A coalition of unions and industry leaders commissioned the report, issued 15 months after BC Ferries announced it had contracted a shipyard owned by the Chinese government to build four major vessels at a cost that's yet to be disclosed.
The ferry operator, which is overseen by the B.C. Ferry Authority, said at the time that no Canadian company had submitted a proposal and the winning bid from China Merchants Weihai Shipyards was at least $1 billion cheaper than others.
But the decision sparked outrage, and Stanford said it was a mistake that must not be repeated, especially in light of tariffs imposed by U.S. President Donald Trump.
Eric McNeely, president of the union representing B.C. ferry and marine workers and a member of the Build Them Here coalition, said the province must follow its own messaging about buying locally as it pushes back against the tariffs.
"If buying local matters, when I go to the grocery store, it has to matter, when BC Ferries is spending billions of dollars, including taxpayers' dollars, on vessels," he said Thursday.
Stanford said the report is not aimed at relitigating the decision to buy Chinese ferries, but to help B.C. realize the economic potential of the shipbuilding industry through domestic procurement guarantees and investments in facilities and labour.
He said major shipbuilding countries such as the United States, China, Japan, South Korea and members of the European Union look beyond cost considerations and treat their industries as strategic assets.
Still, the economist said it would take time to build up capacity in B.C., so the province should act swiftly to spur the growth of the industry, working with the federal government along with private stakeholders.
"There (are) no magic bullets," he said. "We recognize there's a lot of issues about capacity, about skilled labour, about capital."
BC Ferries said in a statement that building major vessels domestically has real economic benefits, but defended its decision to buy from China. The operator said it could not defer replacing vessels while waiting for domestic capacity to develop.
Building locally is also expected to cost significantly more, it said. "Under the current structure, BC Ferries and ferry customers cannot be expected to carry the cost of developing Canada's domestic shipbuilding capacity through fares alone."
The province did not immediately respond to a request for comment on Thursday.
The report recommended a task force be struck to develop a comprehensive shipbuilding strategy for B.C., with representatives from the B.C. and federal governments, shipbuilders, trade unions and BC Ferries, among others.
It said B.C. should also lead the creation of a consortium with shipyards and investors to jointly undertake work on complex projects.
"The goal is to ensure that B.C. shipyards collectively have the capacity to undertake full build and outfitting of BC Ferries' future new ship construction," it said, along with increasing capacity to take on other procurement opportunities.
The province should be prepared to take equity stakes in shipbuilding ventures, while Ottawa must also play a role in strengthening the industry, the report said.
Stanford also called on the province to revise its agreements with BC Ferries to require the company to maximize domestic procurement opportunities.
"(That's) where government needs to first of all look at BC Ferries and how it's operating, and think about its mandate, so that industrial development is part of the picture, when BC Ferries makes these decisions," he said.
Premier David Eby said last year that he was not happy with the purchase of Chinese-made ferries, but refused calls to reopen the process, citing the pressing need for the additional vessels.
Eby also promised the province would work with Ottawa to make sure the next round of major vessels would be sourced domestically.
The province's Look West strategy includes a component to build up the shipping sector, while government leaders have said that B.C. stands to be among the direct beneficiaries of additional military spending.
Stanford welcomed the province's pledge to build ferries domestically, but said it will take a concerted effort, not just well-meaning statements.
"We do need to add to capacity in B.C., if we want to do a good chunk of the federal work, and meet our needs for ferries in the province."
Developing a provincial workforce strategy and expanding training programs and apprenticeships in shipbuilding were also among the report's recommendations.
Adrian Dix, acting minister of jobs and economic growth, said in a statement that he appreciated the report's advocacy.
“We want to see more ferries built in British Columbia," he said. "B.C. is home to world-class maritime expertise, highly skilled workers, innovative manufacturers, and capable shipyards that are well positioned to help meet Canada's growing demand for ferries and other deep marine vessels."
He added that government was working with the federal government and industry to strengthen B.C.'s broader deep marine sector.
Picture Courtesy: THE CANADIAN PRESS/Darryl Dyck
