Union Report Details Economic Fallout of Overseas Ship Building

A contract to construct four massive hybrid-electric BC Ferries vessels in China will mean a loss of approximately $1.5 billion in gross domestic product for Canada, according to a report released Thursday by the labour coalition Build Them Here.

The analysis, authored by Jim Stanford of the Centre for Future Work, calculates that building the ships abroad surrenders roughly 10,000 person-years of employment. Additionally, the study estimates that local construction would have generated $413 million in government tax revenues to help offset public costs.

Crown Corporation Defends Overseas Contract Decision

BC Ferries awarded the deal to a Chinese state-owned shipyard in May 2025, maintaining that no domestic shipbuilders submitted a final proposal. The Crown corporation stated that while two Canadian shipyards pre-qualified after criteria were adjusted to encourage participation, neither completed a bid.

Representatives for the ferry operator explained that the company could not delay replacing aging vessels until domestic capacity expanded, nor could it expect ferry passengers to bear the full financial burden of developing Canada’s shipbuilding industry through higher fares alone. The corporation also noted the ongoing local economic benefits generated through domestic maintenance contracts.

Labour Group Calls for Policy Reforms and Transparency

The report argues that provincial leaders had adequate notice over the past decade to prepare local manufacturing for the replacements. It points out that between 2003 and 2018, only two of 11 new vessels were constructed in British Columbia. Seaspan, the sole B.C. shipbuilder with facilities large enough for the job, withdrew from competing due to strict price and scheduling constraints.

Using economic modeling, Stanford’s team estimated the contract’s total value at $1.6 billion and criticized BC Ferries for withholding exact cost details. The coalition, representing 19 labour organizations, recommended seven policy changes, including provincial equity stakes in shipbuilding projects and new legal mandates requiring BC Ferries to maximize local economic returns.

Municipalities Push Back Against B.C. Government Policies

Municipal representatives from across British Columbia are preparing to confront the provincial government during the annual Union of B.C. Municipalities (UBCM) convention, scheduled for Sept. 14 to Sept. 18 in Vancouver. Local leaders plan to present three special resolutions targeting what they describe as an expanding “climate of secrecy” and the loss of critical community funding streams.

A primary point of contention is the provincial ministry’s widespread application of non-disclosure agreements. UBCM president Cori Ramsay stated that municipal employees are increasingly required to sign NDAs prior to discussing routine matters with provincial counterparts, sometimes before the subject of the meeting is even disclosed.

While acknowledging that non-disclosure agreements are appropriate at specific stages to safeguard cabinet confidentiality, Ramsay noted that current practices prevent transparent discussion on subjects of public interest. The executive’s resolution requests that the province restrict NDA requirements during local consultations to exceptional circumstances only.

Funding Reversals Cause Financial Strain

Local governments are also challenging the cancellation of $775 million from the Community Housing Fund, an intake suspended without advance warning during February’s provincial budget announcement. Ramsay indicated that 89 communities experienced lost investment on projects already underway, highlighting that developments in Parksville and Squamish had each spent approximately $1 million prior to the decision.

Wildfire preparedness represents another key area of friction. Concerns emerged early in the year when communities including West Kelowna reported diminishing FireSmart resources. The province subsequently limited the remaining $25 million by excluding fuel management and recovery initiatives, roughly six months before declaring a provincial state of emergency for wildfires. Municipalities are advocating for a predictable, long-term funding framework to enable multi-year wildfire mitigation efforts.

Upcoming Political Engagement

The upcoming convention takes place one month prior to local government elections set for Oct. 17. Despite the timing, Ramsay expects robust attendance from mayors and councillors, whether they intend to retire or seek re-election.

In addition to debating resolutions, delegates are scheduled to hear from provincial figures including Premier David Eby and B.C. Conservative Leader Kerry-Lynne Findlay. Agenda topics also include discussion on the local impacts of the Declaration on the Rights of Indigenous Peoples Act (DRIPA) and modern treaty implementation.

Expanding New Party Becomes B.C.’s Third-Largest Caucus

Richmond-area MLA Teresa Wat has joined the newly formed provincial political party established by former Opposition finance critic Peter Milobar. Wat becomes the sixth member to join the still-unnamed group, which will form the third-largest caucus in the British Columbia legislature behind the NDP and the Conservatives when the assembly reconvenes next month.

Milobar, who serves as the interim leader, stated that Wat’s addition on Friday demonstrates growing momentum for a serious right-of-centre alternative aimed at addressing concerns over government spending and sector declines under the current New Democrat administration.

Tensions Lead to Conservative Departures

The party’s membership is composed entirely of former provincial Conservatives who left the caucus in recent weeks amidst dissatisfaction with party leader Kerry-Lynne Findlay. Nine legislators in total have resigned from the Conservatives following Findlay’s narrow leadership victory in May, with some critics suggesting the party has moved too far to the right and imposed rigid political purity tests.

Wat originally announced her resignation from the Conservative caucus on Aug. 26, pointing to unaddressed accusations made by Findlay that questioned her allegiance to Canada. Findlay later held a private meeting with Wat to apologize directly for the comments, while also characterising Wat’s departure as a betrayal of local campaign workers and supporters who backed her during the 2024 election.

Legislative Ranks Grow Ahead of By-Election

Wat, who was first elected to the B.C. legislature in 2013 as a member of the BC Liberals, explained that her decision to join Milobar’s caucus stems from a desire to offer a credible, unified alternative focused on affordability and competent governance.

Milobar and fellow defector Ian Paton initially launched the party last month after quitting the Conservatives. Their caucus expanded last week with the additions of Rosalyn Bird, Bruce Banman, and A’a:liya Warbus before Wat’s joining. These political shifts come just ahead of a Sept. 26 byelection in Abbotsford-Mission, which will decide whether Findlay secures a seat in the provincial legislature.