The provincial and federal Conservatives are renewing their calls to cancel a federal loan for BC Ferries’ procurement deal with a Chinese shipyard, as Beijing announced new tariffs this week on Canadian canola imports.
Federal Conservative leader Pierre Poilievre says Ottawa is failing to stand up for the Canadian industry, and it needs to cancel the loan immediately.
“Given the Chinese Communist Party’s newest round of tariffs, we renew our call for Minister Robertson to cancel the Canadian Infrastructure Bank loan and put Canadian shipbuilders, steel workers, and industry first,” a statement read.
Poilievre says the loan would contribute to the Chinese shipyard industry during a time when Canada is embroiled in a trade war with that country.
“While the federal government says it will stand up for Canadian farmers and industry, it continues to underwrite a $1 billion loan for BC Ferries to buy ships from a state-backed Chinese shipyard,” a press release quotes the Leader of the Conservative Party of Canada.
About a week after BC Ferries announced the deal with the Chinese state-owned shipyard in June this year, the Canada Infrastructure Bank confirmed that it had granted the company a $1 billion loan for the project.
The bank, which is a federal Crown corporation, says the new electric ferries “wouldn’t likely be purchased” without the financing.
BC Ferries has insisted this is the best way to get ferries in the water fast and without breaking the bank.
CEO Nicholas Jimenez has hailed it as “the best deal for British Columbians and getting the best deal for BC Ferries.”
Poilievre, however, claims the reason it is cheaper to build in China is that they undercut Canadian companies on environmental standards, wages, and worker safety.
“This makes no sense,” he emphasized.
“Canadian workers are capable of building world-class ships, with Canadian steel, aluminum, and technology, here at home.”
While BC Ferries claims no local or Canadian shipyards submitted bids for building the vessels on home soil, critics say that Canada needs to prioritize domestic shipbuilding, as it has the capacity for it.
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Eric McNeely, the President of the BC Ferry and Marine Workers Union, argues that those jobs could and should be kept at home.
“This increases tax revenue, increases GDP, which is going to build hospitals, schools, roads, while also investing in the marine highways,” He said.
McNeely also adds that BC Ferry is thinking only in the short term when it says it is the best deal financially, as it does not take repair and maintenance costs into account.
“There is an initial sticker price and then there is ongoing costs as well,” he said.
“When you build a vessel domestically, you have access to a domestic supply chain and domestic workforce to do repairs.”
He says it is likely to be more expensive and time-consuming.
“We hear the Premier say, ‘We don’t want to leave Grandma waiting on the tarmac.’ Well, that’s true. And we also don’t want to leave Grandma waiting on the tarmac in five years when we’re waiting for a special part from China,” McNeely explained.
Backlash started building just hours after the announcement was made back in June, and not only from opposition parties.
First, B.C.’s Transportation Minister, Mike Farnworth, says he raised concerns with BC Ferries about its decision, given the ongoing trade tensions between Canada and China.
Later, federal Transport Minister Chrystia Freeland appeared not to know about the loan when it was confirmed by the Canadian Infrastructure Bank.
She says she was dismayed to hear that BC Ferries was doing business with China while Canada was embroiled in a trade war.
With files from Srushti Gangdev.