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Canada’s shipbuilding association urges Ottawa to impose a surtax on Chinese-built ships

The Canadian Marine Industries and Shipbuilding Association (CMISA) commends the recent government decision to impose a 100% surtax on Chinese-made electric vehicles. This bold action underscores the importance of protecting Canadian industries and national security. However, the same decisive measures must be extended to Chinese-built ships, which present an even greater strategic and ethical threat, the industry association declared today, referring in particular to a Chinese-built ferry leased by Marine Atlantic.

“China’s shipbuilding industry operates under the doctrine of Civil-Military Fusion whereby commercial ship exports are subsidized to strengthen the country’s military capabilities,” CMISA said in a press release. “The very shipyards that produce ferries and cargo vessels for the global market are also used to construct warships for the Chinese People’s Liberation Army Navy (PLAN), fueling its rapid and aggressive naval expansion. As China’s navy continues to grow, it increasingly uses its fleet to challenge Canadian interests and those of our allies in regions extending even to our own Arctic waters.”

“Leaving aside the concerns that the working conditions and environmental standards in Chinese shipyards are notoriously poor, I would note that Canada has an exceptional workforce and strong companies who are ready and capable of building high-quality ships for Canadians,” said CMISA President and CEO Colin Cooke. “We owe it to Canadians to ensure that our critical infrastructure is built and maintained domestically, especially in light of the issues that global supply chains have been facing of late.”

Chinese-built Marine Atlantic ferry Ala’suinu

“Indeed, it is more than disappointing that a Canadian government-owned, government-funded Crown corporation, Marine Atlantic, has leased a ferry from the Swedish shipowner Stena, which they purpose- built in Weihai, China, for service on Canada’s Atlantic coast.”

 The dual-fuel Ala’suinu (which means “traveller” in Mi’kmaw) ship was recently delivered and this summer began taking passengers between Cape Breton and eastern Newfoundland on the Argentia route.

The complex lease structure involving an option for Marine Atlantic to purchase the ship at a later date, appears designed to evade public scrutiny and ethical concerns, CMISA charged. “Few Western governments would support the construction of a taxpayer-owned ship in China, yet a Canadian Crown corporation has done so indirectly through this lease. On the positive side, Marine Atlantic now has five years to work with the Canadian shipbuilding sector to ensure that we have a made-in-Canada solution ready to sail when the lease is up. Together, we can make this happen.”

CMISA concluded: “The CMISA calls for immediate and decisive action. We recommend the imposition of a 100% surtax on all Chinese-built ships imported into Canada and demand a clear prohibition on any government entity or Crown corporation from acquiring or leasing Chinese-built vessels. It is imperative that the government takes these steps to protect Canadian industries, uphold national security, and ensure that our economic policies are consistent with our commitment to human rights and ethical business practices. The time to act is now.”

(Marine Atlantic photo of Chinese-built Ala’suinu ferry)

 

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