Consortium offers Canada a deal on a new fleet of frigates that could save $32 billion
Fincantieri of Italy and Naval Group of France — major forces in international shipbuilding — are offering to guarantee the cost of the ships at a fixed $30 billion
In a surprise twist in Canada’s shipbuilding saga, a foreign consortium is offering the country a way to build a fleet of warships at a guaranteed price of $30 billion — a potential savings of $32 billion.
Fincantieri of Italy and Naval Group of France — major forces in international shipbuilding — don’t believe the current $62-billion Canadian Surface Combatant program, already beset with delays and increasing costs, will be successful, industry sources told Postmedia.
Instead, the French and Italian governments have proposed that Canada’s chosen contractor, Halifax-based Irving Shipbuilding, build 15 ships based on the consortium’s FREMM frigate design, which is proven and is in operation with the French and Italian navies. They are offering to guarantee the cost of the ships at a fixed $30 billion.
The deal would use Canadian technology on board the ships, sources said, and include the transfer of technology to Canadian firms so they could be involved in future sales of FREMM vessels on the international market.
As well as the French and Italian navies, Morocco and Egypt operate FREMM ships. Australia is considering them for its new naval fleet, and they are seen as a serious contender in the competition to outfit the U.S. Navy with modern frigates. – National Post
read full article here
Now this is funny. Will the Canadian Government save the taxpayers $32 billion if the result is the death of the Canadian shipbuilding industry? Of course not. Too many votes are on the line.
Also, the Canadian Military Industrial Complex, which is larger that you might think, is extremely powerful. High paying jobs spread out across the country.
The Canadian Government will spent whatever the ships cost to build here in Canada. Matters not whether it costs $32 billion more or $320 billion more, those ships will be built in Canada.
One positive result is that the price of built in Canada frigates may come down because of this offer.
related previous post here.