Standing Committee on Public Accounts

Comité permanent des comptes publics

For immediate release

Ottawa, June 21, 2021 -

There were deficiencies in how the federal government managed certain aspects of the National Shipbuilding Strategy, according to a report of the House of Commons Standing Committee on Public Accounts (the Committee) presented today by Kelly Block, Chair of the Committee.

In February 2021, the Office of the Auditor General of Canada released a performance audit whose purpose was to determine whether the large vessel fleets of the Royal Canadian Navy and the Canadian Coast Guard were being renewed in a timely manner. It also examined whether shipbuilding was on schedule and whether the new ships were being delivered in time for the retirement of the old ships. Finally, it also examined how the audited organizations managed the risks of delays, including how they mitigated the potential impact of delays on the navy’s and coast guard’s operations while waiting for new ships.

The audit found that the federal fleet renewal experienced many delays in design and construction. And while key decisions improved the prospects for timely fleet renewal, there is little room for further delay. Finally, although the federal government had taken steps to extend the lives of its aging vessels and acquire interim capabilities to continue delivering essential services, progress was still delayed.

As part of its report on this audit, the Committee has made three recommendations to help ensure that the Government of Canada better manages its national shipbuilding strategy.