When Ottawa announced a $1 billion loan guarantee to Marine Atlantic for three new Chinese-built ferries last month, few Canadians outside the Maritime provinces paid much attention. That changed dramatically last week when the House Transport Committee voted unanimously to summon both Transport Minister Pablo Rodriguez and Finance Minister Chrystia Freeland to explain the controversial decision.
The loan, which bypassed Canadian shipyards entirely, has touched a political nerve far beyond the shipbuilding industry. Standing on Parliament Hill yesterday, surrounded by shipyard workers from Davie Shipyard in Quebec and Seaspan in Vancouver, Conservative MP Rick Perkins didn’t mince words.
“This government has taken $1 billion of Canadian tax dollars and shipped it directly to the Chinese Communist Party’s shipbuilding industry,” Perkins told the crowd. “Meanwhile, skilled Canadian workers stand ready and capable of building these vessels right here at home.”
The ferry contract would have sustained approximately 1,300 direct jobs across Canadian shipyards, according to industry estimates from the Shipbuilding Association of Canada. Transport Canada defended the decision, citing a 30% cost saving and faster delivery timeline from the Chinese manufacturer.
Marine Atlantic, the Crown corporation that operates ferry service between Newfoundland and Nova Scotia, maintains the decision was purely practical. “These vessels will replace our aging fleet with modern, efficient ferries that meet our operational needs while respecting taxpayer dollars,” said Murray Hupman, CEO of Marine Atlantic, in a statement released Tuesday.
But the political damage continues to spread. The unanimous committee vote forcing ministerial testimony came after what sources described as heated closed-door meetings within the Liberal caucus itself.
“This isn’t just about ships,” said Annie Koutrakis, Liberal MP for Vimy, who broke ranks to express concerns. “It’s about whether we stand behind Canadian workers and industries when we have the chance.”
Adding fuel to the controversy, newly released documents show the decision was made despite warnings from the Department of National Defence about potential security risks. A classified assessment, partially redacted but obtained through Access to Information requests by the Globe and Mail, flagged concerns about Chinese-manufactured communications equipment aboard vessels serving key Atlantic routes.
The parliamentary committee has also summoned the CEOs of Marine Atlantic and three Canadian shipbuilders to testify about domestic capacity and pricing considerations. Industry experts suggest Canadian yards would have charged between $1.3-1.5 billion for the three vessels, compared to approximately $900 million from the Chinese manufacturer.
“We’re not asking for charity,” said Alex Vicefield, CEO of Davie Shipyard. “We’re asking for a fair assessment that includes the economic benefits of keeping these jobs in Canada, the tax revenue generated, and the strategic value of maintaining our shipbuilding capacity.”
The controversy highlights a broader tension in Canada’s approach to China relations. Recent polls by Angus Reid show 73% of Canadians express concern about economic dependence on China, while 67% believe the government should prioritize Canadian manufacturing even at higher costs.
Seaspan Shipyards in Vancouver estimates the contract would have created work for nearly 500 employees and dozens of local suppliers. “When you build in Canada, that money circulates through our communities,” said Amy MacLeod, Vice President of Corporate Affairs at Seaspan. “Now it’s gone overseas.”
For communities in Halifax, Lévis, and Vancouver where shipbuilding represents a significant employment sector, the decision strikes particularly deep. At Tim’s Coffee Shop near the Halifax Shipyard, I met John Deveaux, a third-generation shipbuilder.
“My grandfather built corvettes during World War II, my father worked here for 35 years, and now I’m watching contracts sail away to China,” Deveaux said, stirring his coffee. “Does Ottawa even understand what these jobs mean to our communities?”
The provincial governments of Quebec, Nova Scotia, and British Columbia have all expressed concerns about the federal decision. Quebec Premier François Legault called it “incomprehensible” during a press conference in Quebec City last Thursday, while B.C.’s David Eby requested an urgent call with the Prime Minister.
As the political storm intensifies, the government appears increasingly isolated in its position. Transport Minister Rodriguez defended the decision as “fiscally responsible” in a brief statement to reporters, promising to provide full details at the committee hearing scheduled for next Tuesday.
For the workers gathered on Parliament Hill, the issue transcends partisan politics. “This isn’t about Liberal or Conservative,” said Marie Chiasson, who’s worked at Davie for eleven years. “It’s about whether Canada still believes in making things for ourselves.”
The ferries are scheduled for delivery in 2027, but the political fallout is happening now. With ministerial testimonies, worker protests, and provincial pushback all converging, the government faces difficult questions about its procurement priorities, China relations, and support for Canadian manufacturing.
As committees convene and ministers prepare their defenses, one thing remains certain – what began as a procurement decision about ferries has transformed into a defining moment for Canadian industrial policy and economic sovereignty.
