January 1977 - Maritime Reporter and Engineering News

Canada Extends Subsidy To Include Conversions

The Canadian Government has announced the extension of the 13-percent shipbuilding subsidy to include ship conversions as well as new construction. The government's action followed a report submitted to the Ministry of Industry, Trade and Commerce by the Canadian Shipbuilding and Repair Association.

Other recommendations in the report included requests not to lower the subsidy level from 13 percent and that more government orders be awarded to boost employment of Canadian yards.

One immediate result of the subsidy extension decision has been the award by Hall Corp. Shipping Ltd. to Davie Shipbuilding Ltd. for conversion of three 20,000-ton vessels into Great Lakes carriers. Davie received the $27-million contract in competitive bidding with British and Japanese shipyards.

Industry Minister Jean Chretian said that extension of the subsidy program to cover conversion work should enable other Canadian yards to bid more competitively on jobs worth up to $40 million a year. He indicated that yards in Ontario and British Columbia are currently bidding on conversion jobs, and that the extension of the subsidy program should ensure successful bidding by these yards.

Other stories from January 1977 issue


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