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Colin P said:Going back to cost, the costs to rebuild the industrial capacity should be cleaved off the cost of actually building the ships, so everyone know what is what. That industrial rebuilding should be costed against Public works or a similar department and the actual ship construction and outfitting costs to the DND.
This is what Europe does, and is why their ships are often so much cheaper. Also you need to include the discount from subsidizing weapons industries/programs directly which we also don't do here in Canada. Hence why I'm sure it costs more to by FCS in Canada than it does in France.
Chris Pook said::bravo:
But wasn't there some debate a while back about how that would play with WTO rules? Could a publicly funded shipyard compete internationally for commercial contracts? If it were a nationalized shipyard devoted to military procurement could it sell to anybody other than its own and other national governments? I believe that is part of the weird calculus that sees up building a capability on the back of very small Navy.
Take a look at the AORs. Davie, Seaspan and Irving all have yards that could manage the conversions, and I am willing to bet, increase the delivery rate once the kinks have been worked out, but the government is only willing to supply the cash to build 1 to 2 ships a year. That burn rate has permitted ISY and Seaspan to figure out a business plan that will amortize their initial capital outlay over the life of the NSPS.
They could build more, faster, if the money was there faster. But the money is/was coming at the planned rate and that rate had to accommodate the need to create the industry.
Don't get me wrong. No sarcasm here. I agree entirely with the sentiments. I am just not sure about the practicalities after the international trade lawyers and the government accountants get through describing the rules of the game.
This may very well be true as most other countries major subsidized yards were created and put on the dole well before these WTO rules came into place.