Feds Share ‘Outrage’ Over BC Ferries’ Contract With Chinese Shipyard, Government Says

Liberal MP Mike Kelloway rises during Question Period in the House of Commons on Parliament Hill in Ottawa on Dec. 9, 2022. Justin Tang/The Canadian Press

The federal government says it is concerned about a publicly owned B.C. ferry company’s decision to hire a Chinese state-owned shipyard to build new ferries.

Parliamentary secretary for the transport minister Liberal MP Mike Kelloway made the comments during question period at the House of Commons on June 13, responding to comments from Conservative MP Aaron Gunn, who said B.C. Ferries’ decision this week to hire Chinese state-owned company CMI Weihai to build four major vessels would mean the loss of “thousands of good-paying Canadian jobs.”

“I share the concern and I share the outrage,” Kelloway said. “The reality is that this particular project, again, is under provincial procurement standards, regulations, and oversight.”

Kelloway added that if a decision of that nature was in the federal government’s hands, they would prioritize Canadian companies.

Gunn said B.C. Ferries’ move means public funds, which he noted amounted to more than $30 million in federal subsidies, would go not to Canada’s shipbuilding industry, but to “shipyards owned by the Chinese Communist Party.”

“Taxpayer money [is] now subsidizing jobs in China, a country that has kidnapped Canadian citizens and has unjustly tariffed our farmers and our fishermen,” Gunn said.

B.C. Ferries announced the decision on June 10, saying it followed a “rigorous global procurement process” that evaluated proponents on bid strength, technical capabilities, safety and quality standards, experience, and delivery timelines.

It described the selected proponent, CMI Weihai (China Merchants Industry Weihai Shipyards), as a “global leader in passenger ferry construction,” adding that the shipyard had been inspected and met all expectations.

The four new vessels are meant to replace four aging ships that are increasingly prone to mechanical issues, B.C. Ferries said.

The ferry operator did not respond to a request for comment on the concerns raised in the House of Commons.

B.C. Transport Minister Mike Farnworth also expressed reservations about B.C. Ferries’ deal.

“I do have concerns around procuring services from any country that is actively harming Canada’s economy through unfair tariffs or other protectionist trade practices,” he said in a statement to the media. “I have shared these concerns with BC Ferries.”

B.C. Conservative Leader John Rustad has called on B.C. Ferries to cancel its contract with the Chinese firm, saying it amounts to a “national security issue.”

“China’s money laundering, China’s fentanyl, & China’s election interference have all hurt BC & Canada,” Rustad said in a June 11 social media post.

Canadian intelligence officials last year said Beijing has previously used China-based corporations to further the regime’s strategic goals.

“We do see corporate actors out of [China] using all means and various techniques at their disposal to try to further the objectives of the Communist Party of China,” officials said in May 2024.

The B.C. premier’s office has not responded to a request for comment.

NDP MP Jenny Kwan, who represents the riding of Vancouver East, said that while the ferry operator is not federally controlled, the federal government could still help Canadian companies become more competitive.

“[Ottawa] is set to hand $30M subsidies to BC Ferries while it hands over critical jobs, investment and industry to China,” she wrote in a June 12 social media post.

“Ottawa has a role in working [with the] province to build up [the] country, ensuring domestic companies can compete for large procurement contracts.”