Government and Irving Commit $55 Million Each for Shipyard Conversion and New Development

News Release

MONCTON, N.B., June 27 - The Government of Canada announced today that it will provide up to $55 million to help redevelop the Saint John shipyard site and to generate new industrial opportunities for New Brunswickers.The announcement of the Saint John Shipyard Adjustment Initiative was made today by Claudette Bradshaw, Minister of Labour and Member of Parliament for Moncton-Riverview-Dieppe."After laudable efforts to try to diversify the Saint John shipyard in a highly competitive international environment, the owners made the difficult decision to permanently close the yard," said Minister Bradshaw. "The Government of Canada is aware of the impact of this closure on New Brunswick's economy, and that is why we are participating in this $55 million package for the redevelopment of the shipyard site and to help create new industrial ventures in the province."Minister Bradshaw added, "Today we need to look forward and focus on these new opportunities for Saint John and New Brunswick. We are pleased to work with Irving to assist in the transition of the shipyard site so that it may be used to attract alternative industries to Saint John."The Government of Canada will invest one dollar for every dollar invested by the shipyard owner, Irving Shipbuilding Inc., up to the established ceiling of $55 million. This represents at least $110 million for new industrial opportunities in New Brunswick.Overcapacity has been a recurring problem faced by Canada's shipyards. Between 1986 and 1993, the federal government provided $197.9 million in assistance to an industry-led rationalization initiative, whereby capacity was reduced by some 30 percent in Ontario, Quebec and British Columbia.The Atlantic Provinces did not participate in the rationalization during that period, as the region's shipyards, including Irving Shipbuilding Inc., were operating at near full capacity to supply federal government requirements related to the Canadian Frigate Program. The initiative announced today represents an extension of the Government's assistance to the rationalization of the shipbuilding industry in Canada and is complementary to the Shipbuilding and Industrial Marine Industries Policy.-30-

Search for related information by keyword

Government of Canada Government and Politics Economics and Industry

Page details

Date modified:: 2003-06-27

We have archived this page and will not be updating it.

We have archived this page and will not be updating it.

Government and Irving Commit $55 Million Each for Shipyard Conversion and New Development

News Release

Page details