Ford Urges Ottawa to Boost Ontario Shipbuilding
The Ford government has allocated over $20 million from its contentious worker training fund to Ontario Shipyards, a key player in the province’s shipbuilding sector. Premier Doug Ford is now pressing the federal government to award a significant shipbuilding contract to this company, which has close ties to his campaign manager’s lobbying firm. This push comes in response to Prime Minister Mark Carney’s recent announcement of a new “Defence Industrial Strategy” for Canada, highlighting the need for Ontario to receive its fair share of defense contracts.
Ontario Shipyards: A Key Player in Shipbuilding
Ontario Shipyards, which operates facilities in Hamilton, St. Catharines, and Thunder Bay, is the largest entity in the province’s small shipbuilding industry. The company has received substantial political donations from its leadership to the governing Progressive Conservative Party. Over the past few years, the Ford government has provided Ontario Shipyards with more than $20 million from its Skills Development Fund (SDF) to support modernization efforts and attract lucrative contracts. The company is also poised to benefit from an additional $200 million in grants and loans under the government’s “Protect Ontario” initiative.
As part of a coalition known as “Team Vigilance,” which includes Vard Marine and Italian shipbuilder Fincantieri, Ontario Shipyards is competing for a multi-billion-dollar contract to construct new patrol ships for the Royal Canadian Navy. The partnership aims to enhance the capabilities of the Canadian shipbuilding industry and secure significant federal contracts. Ford has emphasized that the political contributions from Ontario Shipyards’ leadership do not influence his support for the company, asserting that it is a “great company” deserving of employment opportunities.
Revitalizing Ontario’s Shipbuilding Industry
Historically, Ontario’s shipbuilding industry has faced significant decline, with employment dropping from 15-20% of Canada’s shipbuilding workforce three decades ago to just 8% today. Currently, Ontario Shipyards employs approximately 250 workers, primarily focusing on vessel repairs rather than new construction. The Skills Development Fund, launched by the Ford government in early 2021, has provided over $1.3 billion in grants to various organizations, including Ontario Shipyards, which has received $22.4 million across three funding rounds. This funding has reportedly trained around 845 workers, with many transitioning into employment.
Ontario Shipyards’ collaboration with Rubicon Strategy, a lobbying firm linked to Ford’s campaign manager, has been ongoing for several years. The firm has worked to elevate the company’s profile within government and secure procurement contracts. In 2021, Ontario Shipyards secured a significant provincial contract to build a ferry, marking a turning point for the company. As the Ford government develops its “Ontario Marine Transportation Strategy,” Ontario Shipyards has been a key stakeholder in shaping policies to support the shipbuilding sector. The government has committed to exploring financial incentives to bolster Ontario’s shipbuilding industry, aiming to position it as a vital partner in Canada’s National Shipbuilding Strategy.
With the federal government planning to invest $180 billion in defense procurement over the next decade, Ontario Shipyards and its partners are strategically positioned to compete for lucrative contracts. The Ford government views strengthening the shipbuilding industry as essential for building a more competitive and resilient economy, ensuring that Ontario workers and businesses are equipped to meet the demands of the evolving defense landscape.
