Premier expects Ottawa to stick to shipbuilding deal

Premier Darrell Dexter says he's not worried about the $25-billion shipbuilding contract shrinking as the federal government tries to cut $2 billion from the Defence Department's budget.

Analysis predict the contract with Irving Shipyard in Halifax will have fewer ships or be delayed as the feds scale back defence spending.

"Of course we expect, and I'm sure they expect, to fulfill the terms of that procurement strategy," Premier Dexter told reporters at Pier 21 Tuesday. "I have heard nothing that would suggest otherwise."

The comments were made following the Premier's address during the Atlantic Provinces Economic Council's (APEC) major projects event.

APEC research analyst Patrick Brannon told the audience that  the shipbuilding project is already being set back by two years.

"Initially, in the early stages of talking about the contract, there was an outlook to 2013 to start cutting steel," Brannon told the breakfast crowd. "That's moved back to 2015. That moves the timeline for the ramp-up of activity, as well as the peak of activity."

Original Article
Source: news957
Author: Desiree Finhert