Defence Department Denies Misjudging Supply Ship Costs, Admits Potential for More Increases

The navy supply ship HMCS Preserver sits at dry dock while undergoing refit in Halifax on July 14, 2010. The Royal Canadian Navy has been without a full-time support ship since 2014 as a plan to build two new ones continues to be plagued by delays and budget increases. The Canadian Press/Andrew Vaughan

The Department of National Defence is denying it misjudged the cost to build two new naval support ships even though the price tag for the project increased $1.5 billion in less than two years—and admits it could rise even more.

The Liberal government announced last month that the cost of the project to buy two Joint Support Ships (JSS) needed for the Royal Canadian Navy had increased to $4.1 billion—up from initial estimates of $2.6 billion.