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CANADIAN SHIPBUILDING J.Y. Clarke Nineteen-ninety was not a ban- ner year for Canada's shipyards and maritime industries. The aftermath of the Polar 8 icebreaker cancella- tion was severe to a substantial number of companies, large, medium and small, and its impact is still being felt. The Canadian order book—ves- sels under construction and on or- der, totaled 64,444 gross tons at the end of 1990. This indicates an in- crease of about 13 percent from a year earlier, and is due to the con- struction of two small SAR (Search and Rescue) vessels for the Cana- dian Coast Guard and four small torpedo recovery ships for the De- partment of National Defence. Least anyone think that a 13 percent in- crease is indicative of a newbuilding turnaround, let me put it in some sort of perspective. The national order book total of64,444 gross tons equates to one medium-size bulk carrier, many of which are being built in foreign shipyards around the world. It is noteworthy that 92 percent of this total accrues to Canadian Government contracts, the remain- der being small fishing vessels, tugs, barges and a couple of small ferries to commercial accounts. The value of repairs and conver- sions slumped to about 84 percent of the figure a year earlier, notwith- standing the intense activity in- volved in the modernization of the Tribal Class destroyers (TRUMP). This apportioned to 51 percent commercial activity and 49 percent Government fleet refits. In total, the value of shipyards production at the end of 1990 was 3 percent lower than the value a year earlier, which was, in turn, one of the worst years ever for Canada's shipyards, with respect to the order book. Shipyard employment in CMIA member yards averaged 8,729 dur- Despite Rise In Order Book Prospects Down For Yards By J.Y. Clarke, President, Canadian Maritime Industries Association ing 1990, up by 132, or 1-1/2 percent from 1989, all due to repair work, and most associated with TRUMP. It would be very nice if, following the review of 1990, something very positive could be said about the outlook for 1991 and beyond. Try as I can, I have been singularly unable to "make it so." Starting with predictions of gov- ernment departments for new con- struction, conversions and refits during the next few years, it ap- pears that the forecasts given at the CMIA Procurement Outlook Con- ference last October in Ottawa, which totaled C$525 million plus the value of Major Crown Projects (Patrol Frigates, TRUMP and Minehunting Coastal Defence Ves- sels (MCDV), have suffered some recent reductions due to budgetary constraint. While nothing has yet been announced, press reports and rumor mill "buzzes" seem to be cir- culating. The resignation of Admi- ral Charles Thomas, in protest against, inter alia, his contention that the powers-that-be are "intend- ing to surrender sovereignty over the water column, that is over the undersea water space surrounding our country," is sad in the extreme. The tone and content of the good ad- miral's letter of resignation cast doubt in the minds of thinking mariners, demanding public debate of these issues, and sounding some- what foreboding concerning pros- pects for the much-needed upgrad- ing of the Canadian oceangoing Navy to reverse the 20-year trend. The Canadian Coast Guard's capital plan seems to have rung down for dead slow speed on both engines, with little more coming out to contract beyond the two small SAR vessels being built on the West Coast. The DFO plans look good on paper until one realizes that we are really talking about a few small craft about the size of a poor man's pleas- ure boat. Not much to sustain a national industry that the Cana- dian Government insists must re- main viable and "face the challenges of the future." On the commercial side, a similar situation exists, with no orders for major replacements of the aging Canadian fleets—not in Canadian yards, at any rate—and little be- yond a few small fishing vessels from the once highly prosperous Cana- dian fisheries. One light still shines, which is the construction of a large passenger and car ferry in B.C. (British Columbia) with (perhaps) a second such order to follow. To add insult to injury, 1990 saw 22 ships totaling 40,600 gt imported from foreign sources by Canadian owners. With shipyards all over the world enjoying good order books, Canada's yards and maritime industries are still awaiting action promised years ago to create a business environ- ment within which the industrial sector can become more competitive and survive. Like companies in other manufacturing sectors, Canadian maritime industries have been hard hit by all the emphasis on deficit reduction (which has yet to reduce it). One cannot help wondering at the logic of Canadian Government policy which seems to be telling us that our problems can only be solved by higher taxes, more cuts, and elimi- nation of government support, other than to assist us to close down more yards—it sounds suicidal to me. SHIPBUILDING AND SHIP REPAIRING INDUSTRY STATISTICAL HIGHLIGHTS AS AT DECEMBER 31, 1987-1990 ORDER BOOK Vessels Under Construction or on Order As at December 31, 1990 Commercial (GT) Federal Government (GT) Total (GT) Np. 12 14 26 1987 32,509 56,800 89,309 No. 12 16 28 1988 32,222 52,815 85,037 NQ. 5 20 25 1989 3,004 54,060 57,064 N0. 3 18 21 199Q 5,300 59,144 64,444 NEW ORDERS - Received in 1990 Commercial (GT) Federal Government (GT) Total (GT) 15 7 22 33,818 25,700 59,518 9 4 13 2,872 2,415 5,287 9 4 13 6,932 940 7,872 6 0 6 6,072 0 6,072 DELIVERIES - During 1990 Commercial (GT) Federal Government (GT) Total (GT) 8 2 10 3,615 7,600 11,215 10 3 13 3,272 6,636 9,908 19 0 19 38,870 0 38,870 7 1 8 3,687 857 4,544 VALUE OF NEW CONSTRUCTION Commercial (S000) Federal Government (S000) Total ($000) 21,532 125,406 146,938 109,595 221,873 331,468 80,104 758,524 838,626 14,261 835,919 850,180 VALUE OF REPAIRS AND CONVERSIONS Commercial ($000) Federal Government ($000) Total ($000) 118,010 61,488 179,498 134,133 79,458 213,591 139,803 136,907 276,710 119,194 113,582 232,776 TOTAL VALUE OF SHIPYARD PRODUCTION - New Construction, Repairs and Conversions Commercial ($000) Federal Government ($000) Total ($000| 139,807 558,287 698,094 243,728 759,790 1,003,518 219,907 895,431 1,115,338 133,455 949,501 1,082,956 TOTAL CMIA ALLIED INDUSTRIES GROSS MARINE-RELATED REVENUE Total ($000) 524,488 542,346 507,326 436,000 FOREIGN BUILT VESSELS REGISTERED IN CANADA Total (GT) 7 23,069 21 29,484 26 45,425 22 40,584 EMPLOYMENT - In CMIA Shipyards (Annual Average! New Construction Repairs and Conversions Total 3,171 2,478 5,649 4,939 2,909 7,848 5,509 3,088 8,597 5,193 3,536 8,729 Sources.- CMIA Members and Transport Canada 46 Maritime Reporter/Engineering News
