Twenty-five years ago this month, the federal government brokered one of the ugliest procurement deals in Canadian history. In October 1986, Brian Mulroney's Progressive Conservative administration awarded a maintenance contract for CF-18 fighter jets. The $100-million project went to a firm in Quebec.
However, internal documents showed a Winnipegbased company should have won the competition. Bristol Aerospace submitted a cheaper, better-supported bid.
But Quebec had some thing to offer that Manitoba did not. The province boasted 60 Tory MPs - almost a third of Mulroney's caucus. Although Ottawa promised to keep politics out of the decision, the fix was in from the start.
A quarter of a century later, B.C. shipbuilders must be wondering if history is about to repeat itself. The Department of Public Works and Government Services is preparing to award several packages of contracts for naval and non-combat vessels. And once again, Quebec is flexing its political muscles.
The bulk of the project, worth $33 billion, will be divided between two yards. Both are guaranteed at least 30 years of work.
Seaspan Marine, based in Vancouver, is one of four competitors. Company officials are confident they have a strong bid. All they need is a fair hearing. But will they get it?
Seaspan is in competition with two other proposals. One is Irving Shipbuilding, based in Halifax. The other two, Davie Shipyards of Quebec and Upper Lakes Industrial and Marine from Ontario, have formed a joint venture with financial backing from the Quebec government.
That means Quebec is now an active participant in the competition. And that means the naval supply contract has become a marker in the sovereignty debate.
Federal officials have gone to great lengths to insulate decision-making from political factors. Each bid is being reviewed by a separate team of officials, with no crosscommunication between them. A consulting firm has been hired to ensure the rules are followed. And the final decision is to be made by a panel of deputy ministers, without input from cabinet.
Yet with stakes this large, even the most rigorous procedure can be swayed by political clamour.
If Seaspan is successful, the contracts will bring 8,000 jobs to Vancouver and Victoria. In the first three years alone, economic spin-offs will match the impact of the 2010 Olympics.
And that's only the direct benefit. B.C. Ferries expects to order seven or eight new vessels over the next decade. Those contracts are worth an additional $200 million.
CEO David Hahn has said it is critical the West Coast get one of the federal contracts, because that would provide a major injection of capital to the yards in Vancouver and Victoria. That would, in turn, make it more likely that B.C. Ferries would build more of its vessels in this province. Under Hahn's stewardship, the corporation chose against dealing with the West Coast marine industry and ordered four of its new ships from a yard in Germany.
With B.C.'s lumber and tourism sectors depleted, the federal contract would be a huge shot in the arm for our struggling economy.
It is no exaggeration to say that the future of Prime Minister Stephen Harper's government could hang on this decision. After the CF-18 fiasco, voters in Western Canada deserted the Progressive Conservatives in droves. The party eventually fell by the wayside, and Preston Manning's Reform movement took over.
If Seaspan is shut out, and there is any indication of political favoritism, there could be a similar upwelling of anger in B.C. We trust the federal government understands this.
Origin
Source: Times Colonist
However, internal documents showed a Winnipegbased company should have won the competition. Bristol Aerospace submitted a cheaper, better-supported bid.
But Quebec had some thing to offer that Manitoba did not. The province boasted 60 Tory MPs - almost a third of Mulroney's caucus. Although Ottawa promised to keep politics out of the decision, the fix was in from the start.
A quarter of a century later, B.C. shipbuilders must be wondering if history is about to repeat itself. The Department of Public Works and Government Services is preparing to award several packages of contracts for naval and non-combat vessels. And once again, Quebec is flexing its political muscles.
The bulk of the project, worth $33 billion, will be divided between two yards. Both are guaranteed at least 30 years of work.
Seaspan Marine, based in Vancouver, is one of four competitors. Company officials are confident they have a strong bid. All they need is a fair hearing. But will they get it?
Seaspan is in competition with two other proposals. One is Irving Shipbuilding, based in Halifax. The other two, Davie Shipyards of Quebec and Upper Lakes Industrial and Marine from Ontario, have formed a joint venture with financial backing from the Quebec government.
That means Quebec is now an active participant in the competition. And that means the naval supply contract has become a marker in the sovereignty debate.
Federal officials have gone to great lengths to insulate decision-making from political factors. Each bid is being reviewed by a separate team of officials, with no crosscommunication between them. A consulting firm has been hired to ensure the rules are followed. And the final decision is to be made by a panel of deputy ministers, without input from cabinet.
Yet with stakes this large, even the most rigorous procedure can be swayed by political clamour.
If Seaspan is successful, the contracts will bring 8,000 jobs to Vancouver and Victoria. In the first three years alone, economic spin-offs will match the impact of the 2010 Olympics.
And that's only the direct benefit. B.C. Ferries expects to order seven or eight new vessels over the next decade. Those contracts are worth an additional $200 million.
CEO David Hahn has said it is critical the West Coast get one of the federal contracts, because that would provide a major injection of capital to the yards in Vancouver and Victoria. That would, in turn, make it more likely that B.C. Ferries would build more of its vessels in this province. Under Hahn's stewardship, the corporation chose against dealing with the West Coast marine industry and ordered four of its new ships from a yard in Germany.
With B.C.'s lumber and tourism sectors depleted, the federal contract would be a huge shot in the arm for our struggling economy.
It is no exaggeration to say that the future of Prime Minister Stephen Harper's government could hang on this decision. After the CF-18 fiasco, voters in Western Canada deserted the Progressive Conservatives in droves. The party eventually fell by the wayside, and Preston Manning's Reform movement took over.
If Seaspan is shut out, and there is any indication of political favoritism, there could be a similar upwelling of anger in B.C. We trust the federal government understands this.
Origin
Source: Times Colonist
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