Federal shipbuilding contract marked change toward fairness, transparency: MacKay

HALIFAX -

According to Peter MacKay, the original $25-billion contract, awarded to the Irving-owned Halifax Shipyard, was a giant step towards securing contracts in a transparent and fair manner.

"Our government had made a commitment," said the former defence minister. "The first piece of legislation we brought in was The Federal Accountability act to remove the politics around procurement, in particular."

MacKay said the economic benefits affecting Halifax and the region have mostly surpassed expectations.

"In areas of innovation and technology, and promoting new age technology and jobs for the future," said MacKay.

Ten years later, debate lingers over the Darrell Dexter NDP government making a $260-million forgivable loan to the Irving Shipyard.

"It is turning out to be the most lucrative investment that the province had ever made," Dexter said on Monday.

Former Nova Scotia Progressive Conservative Leader Jamie Baillie disagreed. He said this was a federal contract, not a provincial one.

"What I have a problem with is the taxpayers of Nova Scotia were subsidizing the federal government's purchase of those warships," said Baillie.

Nova Scotia Premier Tim Houston, in office for less than two months, did not know the status of the loan to Irving.

"I remember the 'Ships Start Here' program very well," said Houston. "I don't know the status of that loan and I would be happy to get back to you on that."

In a follow up email, CTV News learned that Nova Scotia forgave almost $60 million but the rest of the agreement is still open.

From a strategic shipbuilding perspective, military security expert Ken Hansen said the contract was historic.

"From an operator's point of view for the navy, that is gold," said Hansen. "It was game changing."

Hansen said previously that shipyards built ships in boom-and-bust cycles. 'Ships Start Here' was the 21st Century launch of a long-term modern and sustainable strategy.

MacKay also said there was an intangible benefit.

"It gave us confidence and it put a bounce in our step," said MacKay.

MacKay also said it was much needed good news, for a region that had previously dealt with more than its fair share of economic hardships.