This week, the Ontario government shared its plans to invest an additional $215 million in support of the local shipbuilding industry.
The big announcement comes as both Ontario and Canada seek to increase supply chain resiliency, boost free trade among the provinces, get natural resources to market, and rebuild defence capabilities.
One of the beneficiaries of the new funding will be Ontario Shipyards, which has located one of its comprehensive manufacturing facilities in St. Catharines.
“On behalf of Ontario Shipyards, I want to thank Minister Sarkaria, Premier Ford and the entire Ontario government for their investment of $215 million into the shipbuilding and marine sector,” said President and Chief Executive Officer of Ontario Shipyards Shaun Padulo.
“At a time when industrial jobs are under pressure across North America, Ontario has taken bold, strategic action to support a growing sector critical to our economy and national security.”
The announcement also ran parallel to a crucial meeting of the North Atlantic Treaty Organization (NATO), of which Canada is a founding member. Here, member states, including Canada, agreed to set an ambitious benchmark for defence spending at five per cent of GDP by the year 2035.
In addition, the Canadian government is joining efforts to rearm Europe, while also continuing strategic partnerships with the United States.
With these key developments, domestic defence procurement and a military industrial base are set to become big drivers of Canadian economic growth in the coming years.
“With our North Atlantic Treaty Organization allies meeting this week, Ontario workers are ready to step up and build the ships that will protect Ontario and Canada,” explained Ontario Minister of Transportation Prabmeet Sarkaria.
“As the federal government increases its defence commitment to meet our treaty spending targets, our government is ensuring Ontario workers and businesses have the skills and equipment they need to help. Now, it is up to the federal government to ensure Ontario shipbuilders are included in its National Shipbuilding Strategy.”
Also included in the initiative is the creation of an innovative Ontario Shipbuilding Grant Program worth $15 million, which is targeted at facilitating growth in national shipbuilding capacity, following the National Shipbuilding Strategy.
This cutting-edge plan of action will provide shipbuilders access to non-repayable grants, funding up to fifty percent of eligible project costs. The grants aim to boost the industry’s competitiveness, growth, and long-term capacity.
The announcement was celebrated by local representatives, including St. Catharines Mayor Mat Siscoe and Niagara West MPP Sam Oosterhoff.
“Today’s announcement is a major win for St. Catharines and the entire marine sector,” said Siscoe. “The Ontario Shipbuilding Grant Program will bring new investment and good jobs to the Port Weller Dry Docks – support we have long advocated for through our work on the Ontario Marine Transportation Strategy,” he continued.
“This funding secures a stronger future for Ontario Shipyards and helps keep our province competitive on the water.”
Oosterhoff complimented the rich history of local shipbuilding and expressed a belief that the industry will once again prove to be a vital component of the local and provincial economy.
“Niagara has a strong legacy of building ships with workmanship and skill,” said Oosterhoff.
“This provincial investment through the Ontario Shipbuilding Grant program will provide opportunities for good jobs and careers with bigger paycheques for Niagara workers as our provincial shipyards build world-class commercial vessels.”
Applications for the Ontario Shipbuilding Grant Program, which will be accessible through Transfer Payment Ontario, are expected to open in the latter part of July.
Nick Redekop completed his Honours Bachelor of Arts Degree in Labour Studies at Brock University. He has previously served in municipal and federal politics. In his free time, Nick enjoys following sports, taking part in outdoor activities, and reading biographies. Nick resides in Niagara Falls
