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Navy sets sail again on plan to buy 2 new ships

The navy supply ship HMCS Preserver sits at dry dock while undergoing refit in Halifax on Wednesday, July 14, 2010. Defence Minister Peter MacKay announced a $2.6-billion plan to replace Canada's aging vessels with the purchase of two new joint support ships after previous efforts to do so collapsed. (Andrew Vaughan / THE CANADIAN PRESS) Defence Minister Peter MacKay heads from the podium at a news conference in Halifax on Wednesday, July 14, 2010. MacKay announced a $2.6-billion plan to replace Canada's aging vessels with the purchase of two new joint support ships after previous efforts to do so collapsed. (Andrew Vaughan / THE CANADIAN PRESS)
The navy supply ship HMCS Preserver sits at dry dock while undergoing refit in Halifax on Wednesday, July 14, 2010. Defence Minister Peter MacKay announced a $2.6-billion plan to replace Canada's aging vessels with the purchase of two new joint support ships after previous efforts to do so collapsed. (Andrew Vaughan / THE CANADIAN PRESS)

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Date: Wednesday Jul. 14, 2010 4:45 PM ET

HALIFAX — Ottawa has restarted a plan to purchase two new support ships for Canada's navy after previous efforts to do so were scuttled.

Defence Minister Peter MacKay announced the plan to design and build the new vessels was back on track after it was shelved two years ago.

"We're back in business," he told a news conference Wednesday at a naval reserve base in Halifax. "The government and industry in Canada are very serious about proceeding with shipbuilding in the country."

In announcing the $2.6-billion project, MacKay said the ships would be built in Canada, though he added there will be a two-year design process before it's determined which yards will do the work.

NDP MP Peter Stoffer noted the procurement project has stalled in the past, giving rise to questions on whether this schedule will be met.

"What have you (the government) been doing for the previous two years?" he said in an interview.

The Liberals first announced the plan to replace the navy's 40-year-old supply vessels in 2004.

After the Tories took power in 2006, they announced three new supply ships would be designed and built for $2.1 billion.

The project was shelved in the summer of 2008 -- amidst the global economic downturn -- when the federal Public Works Department said the industry bids came in over budget and didn't meet project requirements.

The lack of progress was highlighted this winter, when one of the two existing supply vessels was laid up for repairs, and the navy didn't send a support ship to assist with its mission helping victims of the Haitian earthquake six months ago.

MacKay said he doesn't expect the plan to collapse this time.

"We're absolutely determined to see this project through."

But unlike the proposal announced in 2006, the purchase of a third ship is optional, the government said.

"That's part of the negotiations that will occur after the design is picked," said Public Works Minister Rona Ambrose.

Eric Lerhe, a retired Canadian navy commodore, said he doesn't believe the third ship can be constructed for the proposed budget.

"There's only going to be two vessels I suspect because of the key requirement that the navy must live within its means," he said.

He said that's unfortunate because when one of the two supply vessels is undergoing repair, either the East or West Coasts will be without a supply ship. However, Lerhe says the navy's top brass will be content if they receive the ships over the next five to seven years.

"We've lost five years, and the navy is carrying the cost of aging ships. The navy is saying, 'We can't afford another five-year delay,"' he said.

The Defence Department says the ships will have limited sea-lift capabilities, referring to the ability of the ships to carry cargo and deliver it to shore.

Lerhe, who was in the navy when the first proposals were drawn up, said it appears the Defence Department is scaling back its original plans for the ships.

But MacKay said the requirements for the new ships aren't less ambitious than previous specifications.

"Our intention is to have at least as good as or better capability," he said. "That's why we left open the option for a third vessel, and that's why we're going through this process very carefully in consultation with industry."

Bidders in the past were expected to come up with features such as a stern ramp that could load and offload containers, and 1,000 metres of space to park vehicles such as army trucks and tanks.

It's not yet clear whether those specifications will be part of this bidding process.

Louise Mercier-Johnson, a spokeswoman for the Navy League of Canada, said the announcement is an important first step in Ottawa's plan to restart shipbuilding through a 30-year program of replacing navy and coast guard vessels.

"The joint support ships could create momentum to work with industry and continue full speed ahead ... to ensure the timely replacement of Canada's aging federal fleets," she said.

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