Davie Shipbuilding and Seaspan Shipyards both criticized the bidding process, claiming the focus on finding the lowest price effectively ruled out Canadian companies.DARRYL DYCK/The Canadian Press
The Liberal government was asked Monday to explain why political advisers were strategizing over how to defend a $1-billion federal loan to BC Ferries for four large Chinese-made ships rather than finding a way to cancel the purchase.
Conservative MP Dan Albas raised the issue during the first Question Period after the summer recess in reference to an exclusive report Monday by The Globe and Mail revealing how Liberal strategists planned to manage the looming announcement of the loan.
“Newly uncovered documents show senior Liberals were only concerned about their political interests. They did nothing to cancel the contract and ensure that our shipbuilders could participate. When will this Prime Minister stop rewarding Beijing, cancel this loan and buy Canadian?” he asked.
Throughout the final days of sittings, before the House of Commons broke for summer on June 20, Transport Minister Chrystia Freeland told the House that Ottawa had nothing to do with the purchase.
She did not mention that the Canada Infrastructure Bank, a federal Crown corporation that reports to Housing and Infrastructure Minister Gregor Robertson, had loaned BC Ferries $1-billion for the ferries and related infrastructure.
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At the time, the CIB’s involvement had not been formally announced. Ms. Freeland has not directly answered questions as to when she became aware of the CIB loan.
Mr. Robertson responded Monday to Mr. Albas, saying all MPs in the House are disappointed by BC Ferries’ procurement decision.
“It’s really unfortunate that no Canadian companies bid on this contract with BC Ferries. That’s something that we have to all rectify. We have to change that by buying Canadian,” he said.
“That’s right, we do,” shouted Ms. Freeland, who sits next to Mr. Robertson in the Commons. The Housing and Infrastructure Minister then said Ottawa is bringing in a comprehensive buy Canadian program “to make sure all of our agencies and departments are focused on buying Canadian.”
The Globe first reported on the loan on June 26 and the CIB posted a related news release later that day.
During the summer recess, opposition parties requested a special hearing of the Commons transport and infrastructure committee, which heard testimony from Mr. Robertson, Ms. Freeland, CIB chief executive Ehren Cory and BC Ferries chief executive Nicolas Jimenez.
Ms. Freeland told MPs during the hearing that she was “dismayed by this procurement,” but did not directly respond when asked when she became aware of the CIB loan to BC Ferries.
Mr. Jimenez told MPs that new ferries are urgently needed and that no Canadian companies had bid for the work. He also said that even if there had been a Canadian bid, the ships would have cost more and taken up to a decade longer to build.
Representatives of two Canadian shipyards, Davie Shipbuilding and Seaspan Shipyards, have criticized the bidding process, saying the heavy focus on finding the lowest price effectively ruled out Canadian companies.
The Globe obtained internal e-mails involving senior Liberal political aides, including one sent on June 18 just as the daily Question Period was about to start. That day in the Commons, Ms. Freeland said she shared “the concern and anger” of other MPs, but brushed off the suggestion that the issue had anything to do with Ottawa.
That same hour, senior Liberal aides in the Prime Minister’s Office received an e-mail with the subject “FLAG – BC Ferries” from Mohammad Hussain, Mr. Robertson’s director of communications, about the coming CIB loan announcement.
“My immediate instinct is that we can move forward with this announcement as a paper release and refuse to wear any of the procurement choices,” Mr. Hussain wrote, under a section titled “political opinion.”
“The main challenge here is that the Conservatives hate CIB and I think they will run with this. The project is likely not viable without our loan,” he wrote.
The e-mail was forwarded to Ms. Freeland’s office later that day.
Mr. Albas, who moved the committee motion that requested the documents, said in an interview that it appears the government hasn’t provided all of the documents requested by the committee and that he plans to raise the issue at future meetings.
“There does seem to be another shoe to drop,” he said.