Despite $60B cost, building warships in Canada good for navy, government official says


Canadians don’t have to look any farther than the navy’s troubled submarines to see the advantage of building warships here, says the head of military procurement at National Defence — even if it costs more.

 A Navy ship undergoes a mid-life refit at the Irving Shipbuilding facility in Halifax on July 3, 2014. The Liberals, and Conservatives before them, have said that building warships and other vessels here will help create a vibrant Canadian shipbuilding industry.
Many taxpayers may have felt sticker shock last month when the Trudeau government’s new defence policy promised 15 new ships to replace the navy’s frigates and destroyers at a cost of around $60 billion.
It represented a dramatic increase from previous estimates the ships would cost between $26 billion and $40 billion, and confirmed its place as the single largest military purchase in Canadian history.
Critics of the shipbuilding plan have long argued that the government could save money by either outsourcing abroad, or buying a complete ship from the U.S. or another ally. A recent report by the parliamentary budget office has suggested building the ships in Canada would add about 16 per cent to the cost of the new warship fleet.


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