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June 19, 2001
Canada gets a shipbuilding policy
Canada's Minister of Industry, Brian Tobin, today unveiled the Government of Canada's new Policy Framework on Shipbuilding and Industrial Marine Industries, describing it as "positive, forward-looking and balanced."
This policy framework comprises more than 20 measures, including:
- a new structured financing facility to provide competitive financing in the form of loan insurance and interest buydowns to both foreign and domestic buyers of Canadian-built vessels;
- the continuation of competitive export financing through Export Development Corporation;
- establishment of a new Energy and Marine Organization in Industry Canada;
- focusing on securing greater Canadian industrial benefits from the development of offshore oil and gas;
- establishing an industry advisory committee to assist in implementing the new framework;
- supporting research and development under the Technology Partnerships Canada (TPC) program;
- recognizing the value of shipbuilders and marine transportation as important parts of Canada's industrial infrastructure, with environmental as well as economic benefits and;
- supporting exports within Team Canada Inc.
These combined measures will support new business of between Canadian $200 and $300 million, double current production. The policy will be reviewed after five years.
The issue of procurement has not been addressed in this policy framework. The Government of Canada will further study and address this issue over the summer.
"It is time to focus on opportunity, growth and innovation in niche markets where Canada can compete," said Tobin. "That is why the Government of Canada's policy framework is pro-innovation and pro-market. Furthermore, the Government of Canada understands that unfair trade practices abroad are deeply hurting the Canadian industry. Actions will be taken to reduce illegal subsidies and protectionist practices."
The Policy Framework on Shipbuilding and Industrial Marine Industries is available on line at http://strategis.gc.ca/shipbuilding.