Correspondence: Commitment to BC Shipbuilding Industry

Re: Commitment to BC Shipbuilding Industry

Institutional procurement is a powerful, and often underutilized, economic development strategy. Over the past three or four years, both the federal government and the BC government have adopted new industrial development strategies aimed at renewal of the BC shipbuilding and repair industry and its skilled workforce.

In a report produced by the Columbia Institute "Made-in-BC Ferries, the economic benefits of local ship procurement", March 2014, economic modeling shows there are significant social and economic benefits of building new ships in BC. In July 2013, BC Ferries announced it will put three new intermediate class ferries into service by 2016/2017. The economic modeling results showed the following direct, indirect and induced impacts of BC shipyard construction of the three ferries:

• A cumulative increase in provincial real gross domestic product (GDP) of $378.5 million (2013 dollars);
• A $200 million increase in consumer expenditure;
• An average annual increase in employment of 1,063 workers over three years;
• A $249.7 million increase in personal disposable income;
• An increase in government tax revenue of $66 million at the federal level and $36 million at the provincial level; and
• For every 100 jobs created in the BC shipyard and repair industry, an additional 135 jobs are created in the province.

As well, the renewal of a skilled shipbuilding and repair labour force is also integral to the BC government's new industrial strategy to rebuild a once burgeoning marine manufacturing sector in BC. One action leading to this renewal would be to mandate the percentage of apprenticeships required on major public projects. The LNG Working Group, for example, recommended that 25 percent of the overall workforce be apprentices on these projects and that government should consider having a minimum number of apprentices on public infrastructure projects. This recommendation was accepted by government.

The federal government has made a commitment to the BC shipbuilding industry. We are asking that the provincial government share the same commitment. Coordination of federal and provincial procurement is essential to bring the full benefits of shipbuilding in British Columbia.

In closing, we ask you to show support by passing a resolution requesting that the provincial government ensure that shipbuilding is done in British Columbia.

Sincerely,

JIM SINCLAIR President B.C. Federation of Labour

GEORGE MACPHERSON President Shipyard General Workers' Federation of BC