The Canadian Broadcasting Corporation released the results of an investigation this week alleging that Canada may be overpaying for its newest Arctic vessels.
They’re currently being designed by Irving Shipbuilding. But in an interview with CBC yesterday Ross Langley, vice-chairman and interim president of Irving, called the report “a classic case of comparing apples to oranges.”
“The scope of the work that we’re doing under this definition contract – which is much broader than a design contract –involves much more than what has been described by the CBC as preparing blueprints,” he said.
The Canadian government announced in March that it is paying Irving Shipbuilding the equivalent of €288 million to design the new ships. Irving will eventually build the ships under a new contract for more money.
The CBC’s report compares the cost for designing the new Canadian patrol ships with prices paid by other countries for similar vessels.
The report says other countries paid “a fraction” of the amount to have their ships built and also paid much less to have them designed.
It also reported that the new ships are to be based on the Norwegian ship KV Svalbard, a patrol ship owned by the Norwegian Coast Guard. Canada has already bought the design for almost €4 million.
Irving and the Canadian government both say the CBC’s report was inaccurate.
