Premier David Eby says he won’t interfere with BC Ferries’ decision to hire a Chinese state-owned shipyard to build four new vessels, a move that has been panned by opposition critics and unions.
The premier faced questions from reporters about the controversial contract for the first time Tuesday, upon return from a trade mission to Asia that did not include a stop in China.
Read more: Minister flags concern over BC Ferries’ deal with Chinese state-owned shipyard
BC Ferries operates independently, but the province, as the B.C. Ferry Authority, is its sole shareholder and it is funded by the provincial and federal governments. That hasn’t stopped calls for the NDP to step in and reverse the plan.
Eby said he’s “not happy with the result” of BC Ferries’ five-year procurement process, but the need to replace the former Crown corporation’s major vessels—most of which are 50 years old and frequently break down—is the more pressing matter.
“The decision to reopen…is not just a billion-dollar decision, it is well in excess of that when you’re re-tendering again in an inflationary environment,” Eby told reporters in Victoria. “In addition, the amount of time that would take – it took five years to get to this process, and I will not leave families sitting on the blacktop waiting for a ferry that is broken down in the strait somewhere when they need to get to see grandma.”
No Canadian companies placed a bid to build the ferries. B.C.’s main shipbuilder Seaspan said it’s currently too busy building for the military, and even when it has time down the line, the company argued last September, it won’t be able to compete with countries that pay lower wages and have lower safety standards.
Read more: BC Ferries union upset Chinese company was hired to build new vessels
Transportation Minister Mike Farnworth said earlier it would cost more than $1 billion extra if BC Ferries were to build in Europe, but he too expressed concern over the contract going to China.
The exact value of BC Ferries’ contract with China Merchants Industry Weihai Shipyards has not been revealed, with officials citing the need to protect future procurements. Terms include payment tied to delivery, refund guarantees and a fixed price.
Read more: Business leader says BC Ferries’ hiring of Chinese shipyard is ‘informed decision’
When the deal was announced, BC Ferries CEO Nicolas Jimenez said CMI Weihai “was the clear choice based on the overall strength of its bid” and noted the shipyard has built ferries for several major western corporations including Canada’s Marine Atlantic.
Nevertheless, the decision created a stink in the era of “Buy B.C.” and “build, baby, build,” not to mention China and Canada’s ongoing trade dispute.
“I agree it’s not ideal that the ferry award went to China, but reopening would mean a delay in delivering ferries for British Columbians who are desperate for them. It would mean significantly increased costs, and at this point, I’m not prepared to do that,” Eby said.
The premier insisted there’s an opportunity to work with the federal government to make sure there’s capacity for the next round of BC Ferries vessels, expected after the latest four, to be built in B.C., or at least in Canada.
“It’s important to me that wherever we can, we’re building Canadian, we’re creating Canadian jobs. but it’s equally vital to me that when there’s no Canadian company willing to bid on a contract, that we don’t leave families sitting on the tarmac waiting,” Eby said. “We need the ferries urgently, and we’ve got to go. That doesn’t excuse either our government or the federal government from the work that we need to do ahead to make sure that the next round of ferries is built right here at home.”
