VANCOUVER, British Columbia, January 25, 2005 -- Don Bell, Member of Parliament for North Vancouver, on behalf of the Honourable David L. Emerson, Minister of Industry, today announced that the Government of Canada will make a contribution of up to $4.2 million toward the refit and modernization of the Queen of Oak Bay ferry. The financing support will be delivered through Industry Canada's Structured Financing Facility (SFF) to Victoria-based ferry operator British Columbia Ferry Services Inc. (BC Ferries). The construction contract has been awarded to the Vancouver Drydock Company, a Washington Marine Group (WMG) shipyard. Work has already begun and is scheduled to be completed in June 2005. "We are pleased to be able to support this important project," said Minister Emerson. "Supporting the shipbuilding industry here in British Columbia is an example of how the Government of Canada is promoting the development of key industry sector clusters in regions across the country." "The ferry transportation system on the west coast is a critical service to residents and to the tourist industry," said Mr. Bell. "By supporting this project, the Government of Canada is helping to create and maintain jobs for B.C. shipyard workers." The project is valued at about $40 million, and will provide 214 person-years of employment for the local industry. "This support will allow us to continue to make a mid-life upgrade to one of our major vessels as part of our overall revitalization strategy," said Mike Corrigan, Executive Vice-President of Business Development for BC Ferries. "We are pleased to be working with the Government and a local shipyard on the project." "Vancouver Drydock's highly skilled workforce will ensure a quality product, continuing an unparalleled history of excellence and performance in the shipbuilding industry for local and international customers," said Steve Frasher, CEO of WMG. Industry Canada's SFF program was established in 2001 as part of the Government's shipbuilding policy framework. Designed to stimulate activity in the Canadian shipbuilding and industrial marine industry, the program has supported a total of 19 projects to date, in regions across the country. For more information on the SFF program, please visit http://strategis.ic.gc.ca/shipbuilding For more information, please contact: Stéphanie Leblanc Office of the Honourable David L. Emerson Minister of Industry (613) 995-9001 Media Relations Industry Canada (613) 943-2502 Steve Hardy Office of Don Bell Member of Parliament for North Vancouver (604) 775-6333 ____________________________ Backgrounder Structured Financing Facility Support for Queen of Oak Bay Ferry Project Through the Structured Financing Facility (SFF) program, Industry Canada will provide a non-repayable contribution of up to approximately $4.2 million to British Columbia Ferry Services Inc. (BC Ferries) for the refit and modernization of the company's Queen of Oak Bay ferry. The construction contract has been awarded to the Vancouver Drydock Company -- a Washington Marine Group (WMG) shipyard, with work scheduled to be completed by June 2005. The $40 million project will generate approximately 214 person-years of employment for the B.C. industry: 127 person-years of direct shipyard employment and an additional 87 person-years of employment for direct subcontractors. This is in addition to BC Ferries' work on the project. The mid-life upgrade of the Queen of Oak Bay ferry will prepare the vessel for an additional 20 years of service. This is the third BC Ferries ship to be upgraded out of a total of five similar vessels. BC Ferries operates 35 vessels along coastal British Columbia, from Prince Rupert to Victoria, and employs over 4,000 people. The Queen of Oak Bay ferry runs between Horseshoe Bay and Departure Bay (Nanaimo). Structured Financing Facility The SFF is a key element of the Government of Canada's shipbuilding policy framework, designed to stimulate activity in the Canadian shipbuilding and industrial marine industry. Since its inception in September 2001, there have been a total of 19 SFF projects across Canada -- from British Columbia to Quebec to Prince Edward Island and Newfoundland -- bringing economic benefits to many regions of the country. SFF projects to date are expected to result in approximately $210 million of Canadian shipyard sales and 2,040 person-years of employment. The SFF provides financial assistance to buyers/lessees of Canadian-built ships through a non-repayable contribution, which is used for buying down the interest rate of the loan used to finance the shipyard work. It effectively gives the shipowner a lower interest rate, resulting in lower interest costs. In February 2003, in response to input from the industry, the maximum level of interest rate support under the SFF was increased from 10 to 15 percent of the cost of a Canadian-built vessel, allowing Canadian shipbuilding companies access to a greater number of market opportunities. For more information on the Government of Canada's shipbuilding policy framework, the full report -- Focussing on Opportunities: A New Policy Framework for the Canadian Shipbuilding and Industrial Marine Industry -- is available at http://strategis.ic.gc.ca/shipbuilding Shipbuilding in Canada The Canadian shipbuilding and industrial marine industry consists of firms with specialized capabilities in manufacturing and repairing ships, building offshore oil and gas structures, and supplying shipyard-related services. Key industry drivers include the following activities:offshore oil and gas exploration, development and production; marine transportation; defence and security;tourism and recreation; and aquaculture and fisheries. Shipbuilding and Industrial Marine Advisory Committee Established in November 2002, the Shipbuilding and Industrial Marine Advisory Committee (SIMAC) is the vehicle for partnership and dialogue between industry and the Government of Canada. The committee makes recommendations to the government on policy initiatives to ensure that the Canadian shipbuilding industry continues to be efficient, productive, innovative and competitive. SIMAC is co-chaired by Les Holloway, National Representative of the Canadian Auto Workers' union, and David Reid, Vice-President, Shipyards, Washington Marine Group. The committee is made up of decision-makers, executives and labour representatives from across Canada.
