Canada's Sub Hunt: A Multi-Billion Dollar Decision
The race to secure a multi-billion dollar submarine contract from Canada is heating up, with South Korea making a bold move to showcase its capabilities. Prime Minister Mark Carney, on a tour of a South Korean shipyard, witnessed the country's ambitious bid to sell its submarines to Canada, a decision that could shape Canada's naval future.
A Political Tour with High Stakes:
South Korea's Prime Minister Kim Min-seok personally escorted Carney to the Hanwha Ocean Ltd. yard, a powerful statement of support for their bid. This visit, ahead of the APEC summit, is a strategic move to influence Canada's choice. Carney got a first-hand look at the submarines South Korea aims to sell, with one even flying a Canadian flag, a marketing tactic that's hard to miss.
The Canadian Dilemma:
Canada's aging submarines are set to retire by 2035, and the country is in a bind. The Canadian shipyards lack the expertise to build subs, leaving them reliant on foreign suppliers. Hanwha Ocean, partnered with Hyundai Heavy Industries, has been assertive in its sales pitch, even delivering an unsolicited proposal to the federal government.
A Race Against Time:
The South Koreans are keen to show they can deliver on their promises. With the construction of a new submarine underway, they aim to provide four submarines to Canada by 2035. But the German bid, from ThyssenKrupp Marine Systems (TKMS), faces a timing challenge. Canada might not receive the first TKMS-built submarine until 2032, potentially delaying the entire replacement program.
Economic Impact and Political Promises:
The decision carries significant economic implications. Cabinet Secretary Stephen Fuhr hinted that job creation will be a deciding factor. Canada's shipyards may not build the subs, but the possibility of some construction in Canada has been floated. However, Defence Minister David McGuinty and Vice-Admiral Angus Topshee emphasize the need for immediate solutions, stating that Canada currently lacks the capacity for domestic construction.
The Cost of Delay:
Adding to the pressure, a Parliamentary Budget Office report revealed the Trudeau government's underspending on equipment over seven years, totaling $18.5 billion. This raises questions about Canada's ability to manage increased procurement and whether it can meet its NATO defence spending target of five per cent of GDP.
Controversy and Comment:
As Canada narrows its choices, the debate intensifies. Should Canada prioritize immediate delivery or consider long-term economic benefits? Can the country's shipyards be developed to handle such projects? And what does this mean for Canada's commitment to NATO targets? Share your thoughts below, and let's explore the complexities of this crucial decision.
