J
jollyjacktar
Guest
Wrong thread, but interesting reading.
Colin P said:thanks just liked your page
Chief Stoker said:Irving is in it to make profit nothing more so is all the other shipyards such as Seaspan and Davie. The government is the one who pays the money for the expected product, if Irving can deliver for the specified funds then the public has no business where the money is going as Irving is a private company. If they can't deliver or need more money then yes some transparency is in order. There's also the business of competitiveness between companies as well. Irving will never give that information up, nor would I expect them to. Don't chastise Irving, go after the government who accepted the bid.
sunrayRnfldR said:Chief Stoker: Well said. From what I understand of the progress of the AOPS construction, the Canadian taxpayer is getting what the Government contracted for on their behalf. This was not a cost plus arrangement at its inception.
Colin P said:Except we would all know how Irving would have reacted if they didn't get that bid, you want to suck on the public Teat, get used to the light.
Chris Pook said:I have nothing against profits being earned. I like profits myself.
And, to an extent that Irving, like the scorpion, is only acting according to its nature.
Having said that, and I guess I am agreeing with you to an extent, the biggest issue was the lack of "an informed client". While Irving may, or may not have cause to believe that they are providing value for money, the government bureaucrats who evaluated and negotiated this contract had, in my belief, insufficient background to adequately evaluate the costs of transferring production to a Canadian firm. This is equally true of the Seaspan decision.
I say this secure in the knowledge that many seasoned industry observers have expressed surprise at the costs being considered.
Having said that I would agree that the contract is in place and the ships must be delivered. My only thought is that Irving should not be deciding if it gets to supply 5 or 6 hulls. The expectation should be that they are supplying 6 hulls and will have to justify in detail why they can't afford to build the 6th. Likewise Seaspan should be held to supplying 3 JSS hulls and, again, have to justify in detail why they can't afford to supply the 3rd.
Both of those grey areas can not be solely discretionary for the vendors. If the vendors discover they only have funds to build 5.1 or 2.1 hulls, or 5.9 or 2.9 hulls - who gets the overage in funds and who decides what the overage is?
Those matters need to be a matter of public record. And, I would suggest, can only be answered by detailed costing.
Perhaps[ the government doesn't want the costs to come out.