Ottawa confirms no security review on China-built ferries
Federal officials have confirmed that there has been no national security review of BC Ferries’ new vessel order from a Chinese state-owned shipyard, despite the project receiving taxpayer financing from the Canada Infrastructure Bank.
The admission came during testimony before the House of Commons Transport Committee February 25.
Public safety officials said Ottawa had no mechanism to review the procurement, because the decision was made by the province, through BC Ferries.
A decision that sends work overseas
Last year, BCFMWU President Eric McNeely warned the committee that offshore construction comes with long-term consequences: the loss of jobs, apprenticeships, supply chain work and the industrial capacity needed to build and maintain vessels at home.
Ferry workers deal with the operational challenges that come with overseas-built vessels every day, from specialized parts that require specialized shipping to proprietary systems that need foreign technicians to repair.
No clear accountability
The controversy has also exposed long-standing concerns about BC Ferries’ arms-length governance structure. The company operates like a private enterprise, but relies heavily on public funding, creating a situation where major public decisions can move forward without clear political accountability. During earlier testimony to the committee, McNeely described it as a “jurisdictional game of finger-pointing with public money at stake.”
The province says procurement decisions belong to BC Ferries. Ottawa says it has no authority to review provincial procurement. The result is a billion-dollar project financed with public money, with no clear government responsible for the final decision.
Promises made, and broken
In 2017, the B.C. NDP election platform acknowledged that outsourcing ferry construction had sent thousands of jobs overseas and promised to ensure B.C. shipyards could compete to build new vessels.
The government later announced a Made-in-B.C. shipbuilding strategy and created a Shipbuilding Advisory Committee to rebuild domestic capacity and create jobs.
Yet despite those commitments, the contract for four major BC Ferries vessels was ultimately awarded to a Chinese shipyard and the province has made no move to ensure the next round of vessel procurement will stay in British Columbia.
A bigger question
The debate in Ottawa highlights a larger policy gap. Federal officials acknowledged that Canada doesn’t have clear legislation to review this kind of procurement for national security concerns, particularly when foreign state-owned companies are involved.
For ferry workers, the issue goes beyond jurisdictional finger-pointing. Public infrastructure should strengthen Canadian industry, support skilled trades and keep strategic work here at home.
Canada has the workers, the shipyards and the expertise to build these vessels. The question is whether governments are willing to use public investment to make that happen.
