Latest news with #MikeFarnworth
Vancouver Sun
10-07-2025
- Business
- Vancouver Sun
Opinion: Canada must build to rebuild
Many Canadians are understandably frustrated by B.C. Ferries' $1.2-billion decision to buy four new vessels from China. The situation seems absurd. Canada boasts more ocean coastline and more fresh water than any country. It has a long-standing shipbuilding industry. Yet it has no shipyards able to bid on a domestic procurement contract for B.C. Ferries? The unfortunate truth, we now know, is that the tender was simply not viable for Canadian shipbuilders. B.C. Ferries structured the bidding process to emphasize lowest cost over other considerations that would favour Canadian shipbuilders, such as domestic content requirements. Questions have also been raised about the capacity of B.C. shipyards to bid and compete on one major project without the promise of continuous work. A daily roundup of Opinion pieces from the Sun and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Informed Opinion will soon be in your inbox. Please try again Interested in more newsletters? Browse here. To make matters worse, Canadians later learned that the Canada Investment Bank (CIB), a federal Crown corporation, provided $1 billion in low-interest financing for the purchase of the foreign-made vessels, without any binding commitments concerning domestic content. No one was more surprised about this than federal Minister of Transportation and Internal Trade Chrystia Freeland, who wrote to Mike Farnworth, B.C.'s Minister of Public Safety, about her 'great consternation and disappointment' over B.C. Ferries' decision. Apparently, Freeland was unaware the CIB had already committed in March 2025 to finance the purchase. It is essential that Canadians know the reasons behind this procurement policy debacle. On Monday, the federal Transport Committee voted to have cabinet ministers and the chief executive of the CIB explain themselves. We should also use this moment to take a deeper look at Canada's enduring and structural industrial decline and failure to pursue a comprehensive industrial strategy. For decades, an unqualified faith in the free market has hollowed out Canada's industrial base, leaving its manufacturing sector less competitive and dependent on foreign supply chains. At the same time, global overcapacity, dumping and aggressive subsidization of foreign producers by their governments have undercut Canadian producers' ability to compete globally. For example, Seaspan, Canada's major West Coast shipyard, has stated that Canadian companies simply cannot compete for commercial shipbuilding contracts against low-wage countries with lower employment standards, lower environmental standards and lower safety standards. Yet, amid a trade war, with Canadian exports facing punitive tariffs and leaders pledging revitalize domestic supply chains, $1 billion in federal financing goes out the door, no strings attached. The government of Prime Minister Mark Carney, for its part, promises a policy of domestic procurement prioritizing Canadian steel and aluminum in nation-building projects and defence. But surely we cannot call for self-reliance while outsourcing critical infrastructure to countries that undercut domestic industry and supply chains through overcapacity, dumping, subsidies and unfair trade. The answer is to start now — strategically, deliberately, and urgently — to rebuild and renew Canada's industrial foundations. That means sustained investment and expansion of manufacturing, building energy sovereignty in conventional and clean energy sources, including long-term order pipelines, enforcing Buy Canadian and Buy Clean procurement policies and, most importantly, developing a national industrial strategy that treats economic resilience and domestic industrial capacity as a matter of national public interest. Canada must also get serious about protecting its domestic market. Critics who naively argue that trade barriers do more harm than good ignore the strategic policy context. Targeted tariffs and other actions designed to insulate and promote domestic industries are key trade policy tools that are most powerful when paired with a broader industrial strategy promoting key sectors and good jobs. In the U.S., under the Biden administration, tariffs were combined with targeted financial support for key sectors under the CHIPS and Inflation Reduction Acts, which spurred billions in investments in new industrial capacity and good union jobs. Canada can no longer sit idly by as the global economy shifts. In a world of rising protectionism and fragile supply chains, building at home is imperative. The next billion-dollar infrastructure project should invest in Canadian capacity, Canadian jobs and Canadian communities — not subsidize foreign competition. Marty Warren is national director of the United Steelworkers union.
Vancouver Sun
02-07-2025
- Business
- Vancouver Sun
Opinion: B.C. Ferries' China deal exposes the cost of fiscal weakness
Would you spend an additional $1.2 billion to avoid handing a major contract to a geopolitical rival? B.C. chose not to, and that decision says more about fiscal posture than foreign policy. B.C. Ferries' decision, announced on June 10, to award a major shipbuilding contract to a Chinese shipyard isn't just about ferries. It's about how fiscal vulnerability is increasingly dictating Canada's foreign and economic decisions. Mike Farnworth, the province's public safety minister, offered a predictably political response. He expressed concern and 'disappointment' that domestic shipyards weren't more involved, while emphasizing B.C. Ferries' independence, calling it 'an independent company responsible for its own operational decisions.' A daily roundup of Opinion pieces from the Sun and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Informed Opinion will soon be in your inbox. Please try again Interested in more newsletters? Browse here. But that claim of arm's-length independence is contradicted by the government's own history of intervention. The provincial government has repeatedly stepped in to influence B.C. Ferries when it suited their priorities. In 2022, it amended the Coastal Ferry Act to assert strategic oversight of the board, then quickly replaced the CEO and appointed a new board chair. This is not a government that shies away from exerting control when it wants to. Farnworth knew about the Chinese contract a month before it became public. Had he truly objected, he had ample time to stop it. Instead, he let it proceed because, despite the poor optics, the fiscal rationale was overwhelming. His public concerns were political cover for a decision he understood to be economically necessary. Security analysts have raised two concerns. First, that Chinese involvement could introduce cybersecurity vulnerabilities or facilitate technology theft. Second, that working on roll-on, roll-off ferry designs might help China develop vessels usable for transporting troops, such as in a hypothetical Taiwan invasion. But those fears are overstated in this case. The Chinese shipyard is only building bare hulls. All critical technology, software, and onboard systems will be installed domestically . While China could theoretically gain some insight into vessel design, the strategic value is negligible. This specific contract was the right decision under the circumstances. It was a pragmatic choice driven by fiscal constraints. The troubling part is that it wasn't made from a position of strategic strength, but from a lack of financial flexibility. This episode illustrates a broader problem. When governments lack the fiscal discipline to preserve options, their foreign policy becomes reactive, not deliberate. Values get sidelined not by choice, but by necessity. Canada's ongoing structural deficits and high spending have narrowed our room to maneuver, diplomatically and economically. Achieving sound fiscal governance means moving away from ad hoc spending increases and toward a multi-year budgeting framework that prioritizes economic growth by lowering barriers for entrepreneurs, streamlining regulations, and letting market signals guide investment — rather than relying on ad hoc political direction. Critics of the deal have focused on national security risks and the symbolic message of awarding a major contract to a strategic rival. But they are missing the point. The core issue is not whether this specific contract was right or wrong. The deeper concern is that it wasn't made from a position of strategic strength, but under pressure from a lack of fiscal flexibility. Minister Farnworth's carefully worded statement may have offered short-term political cover. But it also revealed a deeper vulnerability. When fiscal constraints force decisions that run counter to strategic objectives, it weakens a country's ability to act consistently in matters of international concern. Jerome Gessaroli is a senior fellow at the Macdonald-Laurier Institute and leads the Sound Economic Policy Project at the B.C. Institute of Technology.
Yahoo
22-06-2025
- Business
- Yahoo
Federal Transport Minister Freeland slams B.C. Ferries deal with Chinese company
B.C. Ferries has drawn the ire of federal Transportation Minister Chrystia Freeland for its decision to contract a Chinese state-owned shipyard to build four new vessels for its passenger fleet. Freeland also expressed concerns about security risks related to the contract. In a letter to B.C.'s Transportation Minister Mike Farnworth released Friday afternoon, Freeland expressed her "great consternation and disappointment" with the ferry operator. "I am dismayed that B.C. Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context," Freeland wrote. Earlier this month, B.C. Ferries said the winning bidder on the contract is China Merchants Industry Weihai Shipyards. No Canadian companies bid on the ships, according to B.C. Ferries. But Freeland said, given the value of the contract and the amount of taxpayer money provided to B.C. Ferries' operations, she would have expected Canadian companies to be involved in the bid process. "I am surprised that B.C. Ferries does not appear to have been mandated to require an appropriate level of Canadian content in the procurement or the involvement of the Canadian marine industry," she wrote. Freeland said China has imposed "unjustified tariffs" on Canadian goods, including 100 per cent tariffs on canola oil, meal and pea imports and a 25 per cent duty on Canadian aquatic products and pork. She asked her provincial counterpart to share what it will do to address potential threats to security, including cybersecurity, and determine how B.C. Ferries will lessen "the risks that vessel maintenance and spare parts may pose." "I would like your assurance that B.C. Ferries conducted a robust risk assessment, and I expect them to engage with the relevant provincial and federal security agencies and departments to mitigate any security risk." WATCH | Farnworth worries about B.C. Ferries contract: Freeland said the federal government has a long record of providing financial support to B.C. Ferries, including a federal subsidy of $37.8 million in 2025-26 dating back to a 1977 agreement. The letter went on to say the Canada Infrastructure Bank is providing the ferry operator with a $75-million loan to finance the purchase of four zero-emission ferries and install charging infrastructure Freeland asked Farnworth to confirm "with utmost certainty" that no federal funding would be used to acquire the new ferries. In an emailed statement late Friday, Farnworth said he has spoken to Freeland about the need to bolster the province's shipbuilding sector. "B.C. has the skilled labour — a partnership with the federal government, provincial governments, and industry is essential for Canadian shipyards to expand physical capacity to build commercial vessels on both coasts," he said. The B.C. Ministry of Transportation said it is reviewing Freeland's letter. Jeff Groot, executive director of communications with B.C. Ferries, said Weihai Shipyards was selected following a rigorous and transparent procurement process. "It was the strongest bid by a significant margin," he said in an emailed statement. Groot said Canadian companies have acquired around 100 vessels built at Chinese shipyards over the last decade. "Globally, only a few shipyards have the capacity to deliver complex passenger ferries on the timelines and budgets required." Groot said B.C. Ferries has been working with Transport Canada since before the contract was signed, and with Public Safety Canada on safety and security issues. "Also, sensitive systems will be sourced separately and independently certified before the vessels enter service. B.C. Ferries intends that all of our IT networks will be procured from within Canada and installed on the ship by B.C. Ferries' own personnel," Groot said. He added a full-time B.C. Ferries oversight team will be on site at the shipyard.
The Province
21-06-2025
- Business
- The Province
Transport Minister Chrystia Freeland 'dismayed' about B.C.'s choice of Chinese shipyard
Freeland says in a letter sent to provincial Transportation Minister Mike Farnworth that she expects B.C. Ferries to inform her about all measures that it plans to take to "mitigate any security risks Published Jun 20, 2025 • Last updated 10 hours ago • 2 minute read An aerial view of the China Merchants Industry Weihai Shipyards in Weihai, Shandong. Photo by China Merchants Industry Canada's transport minister says she is 'dismayed' B.C. Ferries contracted a Chinese state-owned shipyard to build four new vessels in the current geopolitical context that includes 'unjustified' tariffs on Canada. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Chrystia Freeland, in a letter to her B.C. counterpart Mike Farnworth, said she expects B.C. Ferries to inform her of all measures it plans to take to 'mitigate any security risks,' including cybersecurity problems that might arise. B.C. Ferries announced this month it had contracted China Merchants Industry Weihai Shipyards to build four new major vessels, following a five-year procurement process that did not include a Canadian bid. In her letter, Freeland said she was surprised B.C. Ferries does not have a mandate for an 'appropriate level' of Canadian procurement, given the value of the contract, although the dollar figure hasn't been made public. A statement from Farnworth's ministry said it was reviewing the letter, adding that Farnworth had spoken with Freeland about bolstering B.C.'s shipbuilding industry. Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. B.C. Ferries, in a statement, said the Chinese bid was the strongest by a 'significant margin' and that security was a top priority and added all sensitive systems would be sourced separately and independently certified before the vessels enter service. Farnworth's comments echo those of B.C. Premier David Eby, who has promised to work with Ottawa to build up capacities in B.C. for future vessels. Eby also has said the province wouldn't interfere in B.C. Ferries' decision, citing the needs of coastal communities and BC Ferries' operational independence. B.C. Ferries is an independent company, with the province being its sole shareholder. Freeland said she expects 'assurances' that B.C. Ferries conducts a 'robust risk assessment' and that it engages with the relevant federal and provincial security agencies and departments. This advertisement has not loaded yet, but your article continues below. The letter also asks B.C. to 'verify and confirm with utmost certainty' that no federal funding will be diverted to support the purchase of these new ferries. Freeland said the federal government has a long record of providing financial support to B.C. ferries, including a federal subsidy of $37.8 million in 2025-26 dating back to a 1977 agreement. Other forms of federal financial support have included $308 million to cover operational losses caused by COVID-19 and to limit average fare increases, Freeland said. She added the Canada Infrastructure Bank has given B.C. Ferries a loan of $75 million to help purchase four net-zero emission ferries and install the necessary infrastructure. The existence of Freeland's letter came to light earlier this week during Question Period in the House of Commons, when she faced questions about the BC Ferries' purchase from B.C. MP Dan Albas. '(I) share the concern and anger of other member of this House about the purchase of Chinese ferries,' Freeland said during debate. 'I have written to the Province of B.C. to make it clear that the federal government's support for BC Ferries, which is explicitly for operating support, must not be used for anything other than the operation of ferries.' Read More
CBC
21-06-2025
- Business
- CBC
Canada Transport Minister Freeland slams B.C. Ferries deal with Chinese company
B.C. Ferries has drawn the ire of federal Transportation Minister Chrystia Freeland for its decision to contract a Chinese state-owned shipyard to build four new vessels for its passenger fleet. Freeland also expressed concerns about security risks related to the contract. In a letter to B.C.'s Transportation Minister Mike Farnworth released Friday afternoon, Freeland expressed her "great consternation and disappointment" with the ferry operator. "I am dismayed that B.C. Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context," Freeland wrote. Earlier this month, B.C. Ferries said the winning bidder on the contract is China Merchants Industry Weihai Shipyards. No Canadian companies bid on the ships, according to B.C. Ferries. But Freeland said, given the value of the contract and the amount of taxpayer money provided to B.C. Ferries' operations, she would have expected Canadian companies to be involved in the bid process. "I am surprised that B.C. Ferries does not appear to have been mandated to require an appropriate level of Canadian content in the procurement or the involvement of the Canadian marine industry," she wrote. Freeland said China has imposed "unjustified tariffs" on Canadian goods, including 100 per cent tariffs on canola oil, meal and pea imports and a 25 per cent duty on Canadian aquatic products and pork. She asked her provincial counterpart to share what it will do to address potential threats to security, including cybersecurity, and determine how B.C. Ferries will lessen "the risks that vessel maintenance and spare parts may pose." "I would like your assurance that B.C. Ferries conducted a robust risk assessment, and I expect them to engage with the relevant provincial and federal security agencies and departments to mitigate any security risk." WATCH | Farnworth worries about B.C. Ferries contract: Transportation minister concerned over B.C. Ferries' construction deal with Chinese shipyard 9 days ago Duration 2:06 Freeland said the federal government has a long record of providing financial support to B.C. Ferries, including a federal subsidy of $37.8 million in 2025-26 dating back to a 1977 agreement. The letter went on to say the Canada Infrastructure Bank is providing the ferry operator with a $75-million loan to finance the purchase of four zero-emission ferries and install charging infrastructure Freeland asked Farnworth to confirm "with utmost certainty" that no federal funding would be used to acquire the new ferries. In an emailed statement late Friday, Farnworth said he has spoken to Freeland about the need to bolster the province's shipbuilding sector. "B.C. has the skilled labour — a partnership with the federal government, provincial governments, and industry is essential for Canadian shipyards to expand physical capacity to build commercial vessels on both coasts," he said. The B.C. Ministry of Transportation said it is reviewing Freeland's letter. B.C. Ferries' response Jeff Groot, executive director of communications with B.C. Ferries, said Weihai Shipyards was selected following a rigorous and transparent procurement process. "It was the strongest bid by a significant margin," he said in an emailed statement. Groot said Canadian companies have acquired around 100 vessels built at Chinese shipyards over the last decade. "Globally, only a few shipyards have the capacity to deliver complex passenger ferries on the timelines and budgets required." Groot said B.C. Ferries has been working with Transport Canada since before the contract was signed, and with Public Safety Canada on safety and security issues. "Also, sensitive systems will be sourced separately and independently certified before the vessels enter service. B.C. Ferries intends that all of our IT networks will be procured from within Canada and installed on the ship by B.C. Ferries' own personnel," Groot said. He added a full-time B.C. Ferries oversight team will be on site at the shipyard.
