Former Transport Minister Chrystia Freeland is set to return to a parliamentary committee to provide testimony regarding B.C. Ferries' recent purchase of four new vessels from a Chinese shipyard. This decision follows the revelation of emails indicating that the ministry had been informed weeks in advance about the deal.
The House of Commons transport committee unanimously approved a motion for Freeland to testify after a report highlighted communications between B.C. Ferries CEO Nicolas Jimenez and Transport Canada Deputy Minister Arun Thangaraj. Freeland had previously expressed her disapproval of the ferry deal, stating she was "dismayed" by B.C. Ferries' choice to procure vessels from the state-owned China Merchants Industry Weihai Shipyards.
The Canada Infrastructure Bank, a Crown corporation, provided B.C. Ferries with a $1 billion loan to finance the acquisition. However, an email dated April 29 from Jimenez to Thangaraj raised potential national security concerns regarding the deal. In a follow-up email in June, Jimenez expressed his concern over Freeland's reaction, noting he was "troubled" by her response despite having given her a confidential heads-up six weeks before the public announcement.
B.C. Ferries has stated that it will not release the related documents and has no further comments, directing inquiries to the article in the report. The transport committee's motion, passed on Thursday, also calls for additional meetings involving Freeland, other officials, and representatives from Canadian shipyards.
Conservative MP Dan Albas criticized the situation, describing it as a "damning indictment" if Transport Canada was aware of the deal for six weeks without taking action to protect Canadian jobs. He argued that this undermines Freeland's claims of wanting B.C. Ferries to purchase Canadian-made vessels.
B.C. Ferries has indicated that no Canadian companies submitted bids for the contract during a five-year procurement process. Freeland had previously testified at an August 1 meeting alongside Housing and Infrastructure Minister Gregor Robertson and officials from the infrastructure bank. She recently stepped down as transport minister to serve as Ottawa's special envoy for the reconstruction of Ukraine but will continue to serve as a Member of Parliament.
B.C. Premier David Eby, who was in Ottawa, described concerns regarding the federal loan for the ships as "bizarre," especially considering the federal government's financial support for ferries in Eastern Canada, including from the same shipyard. Eby met with newly appointed Transport Minister Steven MacKinnon to discuss the B.C. Ferries deal and expressed disappointment over the lack of attention to the treatment of ferry users in British Columbia compared to those in Eastern Canada.
Eby pointed out the disparity in federal subsidies, stating, "The fact that the federal government paid for an entire ferry built at the same (Chinese) shipyard for Eastern Canada, and that it is somehow a problem that B.C. Ferries users get access to a low-interest loan, is bizarre." He noted that B.C. ferry users receive, on average, $1 in federal subsidy, while their Eastern counterparts receive $300.
The Ala’suinu ferry, built by Weihai Shipyards, began operations last year between Nova Scotia and Newfoundland. Eby and Jimenez both mentioned in emails that they could not recall any negative feedback when the same shipyard constructed a vessel for Marine Atlantic. Eby emphasized the need for increased shipbuilding capacity in Canada and called for fair treatment for British Columbians, stating, "If Eastern ferry-goers get their ferries paid for, so should we." He added that a subsidy of $50 per ferry user in B.C. would significantly benefit many families and businesses.