Federal transport committee to study B.C. Ferries’ Chinese ship contract

The House of Commons transport committee has announced that they will be conducting a study on B.C. Ferries’ recent decision to purchase four electric-diesel vessels from a Chinese-owned firm. This purchase was made possible with the help of $1 billion in funding from a federal Crown corporation.

B.C. Ferries made the announcement last month that they had selected China Merchants Industry Weihai Shipyards to build the new ships after a lengthy procurement process that did not include any Canadian bids. This decision has raised concerns, with Federal Transport Minister Chrystia Freeland expressing her dismay over the deal and urging B.C. Ferries to address any potential security risks.

In a letter sent to her B.C. counterpart on June 20, Freeland also requested confirmation from the B.C. government that no federal funding would be diverted to finance the purchase of the ferries. The Canada Infrastructure Bank played a significant role in the deal, contributing $1 billion to the project. They stated that the new ferries would not have been purchased without this financing.

As part of the study, the committee plans to call on key figures such as Freeland, Infrastructure Minister Gregor Robertson, and the CEOs of B.C. Ferries and the Canada Infrastructure Bank to testify. These hearings are expected to take place within the next 30 days.

Dan Albas, the Conservative transportation critic and committee co-chair, initiated the request for the meeting. He raised concerns about the use of public funds to finance overseas shipbuilding, especially during a time of trade tensions with the U.S. and Chinese tariffs on Canadian agricultural products. Albas emphasized the importance of understanding why Canadian jobs are being outsourced in this manner.

On the other hand, Liberal MP Will Greaves of Victoria supported the decision to study the purchase but cautioned against jumping to conclusions prematurely. He stressed the significance of B.C. Ferries as a vital service for the province’s coastal communities and urged his colleagues to refrain from using it as a political tool.

Once the testimony is complete, the committee will discuss the next steps in their study. It is essential for all parties involved to provide transparency and clarity on the decision-making process surrounding the purchase of the new ferries. The outcome of the study will have significant implications for the future of B.C. Ferries and the transportation industry as a whole.