Official Statement: IRVING SHIPBUILDING RESPONSE TO FLAWED IMC REPORT

Halifax, NS, September 18, 2013:  Irving Shipbuilding Inc.’s priority is to deliver real value to Canadians by designing and building good quality, affordable ships that will protect and serve Canadians for many years to come.  In doing this Irving Shipbuilding has committed $300 million to develop the most modern shipyard in North America – all at no cost to the Federal Government. This investment will ensure we ready ourselves and do the right things now to facilitate a successful 30-year run of re-equipping Canada’s Navy.  Irving Shipbuilding is fully committed to doing this in a fair, open and transparent manner.


The continued reports by CBC, using inaccurate information, are disappointing and fail to recognize the complexity of the Arctic Offshore Patrol Ship (AOPS) Definition Contract – the scope of which goes way beyond the simple initial design of a ship. The approach taken under this contract will ensure the most efficient and cost-effective build possible while re-establishing significant shipbuilding capability in Canada for the long term.   Undertaking this Definition Contract work now will save Canadians money over the rest of the shipbuilding programs.  In addition this contract will generate and continue to sustain significant employment across Canada.

At no time during the research and preparation of this report did International Marine Canada (IMC) meet with Irving Shipbuilding.   There was no apparent effort to seek clarification or accuracy.  Many misconceptions and inaccurate conclusions in the report could have been cleared up had IMC undertaken a more thorough approach.

Irving Shipbuilding welcomes and encourages third party review and challenge. However in this case many of the report’s conclusions were inaccurate or unsubstantiated.

• The ships the report uses for comparison are much simpler than AOPS, built up to 30 years ago with a very different approach to designing and de-risking shipbuilding projects.
• The comparisons made in the report are general, subjective and do not reflect a real understanding of the full scope of work requested by Canada.  The IMC report ignores the mandated requirements from Canada’s recognized international experts regarding the efficient building of the ships and delivery of best value to Canada.
• Many of the costs included in our proposal were established through competitive bidding and reflect current market costs for this work being undertaken. The report does not appear to address this. Specifically, the report does not consider or acknowledge the assessments by four highly experienced, independent shipbuilding and engineering professionals who validated Irving Shipbuilding’s Design Agent Proposal, including the approach and the expected reductions in construction costs.

In the interest of an accurate report, Irving Shipbuilding requested an opportunity to review and respond in accordance with the established process.  The IMC report, commissioned by Canada, was not ours to release or suppress.   CBC’s suggestion that Irving Shipbuilding suppressed the report is inaccurate.

Finally, in full compliance with the NSPS program, Irving Shipbuilding provides full transparency on all cost incurred to Canada on a regular basis. Canada only pays for what is actually spent and Irving Shipbuilding is incented to continually reduce costs.

The AOPS Definition Contract will deliver real value to Canadians and ensure we build excellent, cost-effective ships in Canada that will protect and serve Canadians for years to come.

For more information contact:
Mary Keith
Vice President, Communications
J.D. Irving, Limited
Phone: 506-632-5122
Cell: 506-650-8209
Email: keith.mary@jdirving.com

Deborah Page
Senior Advisor of Communications
Irving Shipbuilding
Phone: 902-484-4552
Cell: 902-499-7975
Email: page.deborah@irvingshipbuilding.com