Notwithstanding its 'buy Canadian' policy and an ongoing trade war with China, the Carney government will not interfere in a Crown corporation's $1 Billion loan to B.C. Ferries to buy new boats from a state-owned Chinese shipyard.
Federal Ministers ‘Disappointed’ With BC Ferries Over China Vessel Orders, Won’t Cancel $1B Loan | Epoch Times | Matthew Horwood & Paul Rowan Brian:
August 1, 2025- "Federal ministers told MPs they are 'dismayed' and 'disappointed' by BC Ferries’ decision to purchase vessels from Chinese shipyards, but they won’t ask the Canada Infrastructure Bank (CIB) to cancel the $1 billion loan it provided the corporation for the purchase. Infrastructure Minister Gregor Robertson, who oversees the CIB, and Transport Minister Chrystia Freeland made the comments on Aug. 1 as they testified before the House of Commons transport committee....
"In June, BC Ferries announced it had hired state-owned China Merchants Industry Weihai Shipyards to build four vessels. The announcement came amid concerns with Chinese interference in Canada, as well as the United States imposing 50 percent tariffs on steel and aluminum, which has prompted Ottawa to prioritize 'buy Canadian.' No Canadian shipyard participated in the procurement process, with B.C. shipyard Seaspan saying it didn’t bid on the contract due to the difficulty of competing with countries that have lower industry standards.
"Robertson told the committee that Ottawa had no role in approving the $1 billion CIB loan for purchase of the vessels, saying the infrastructure bank operates at arm’s length from the federal government.... Robertson said he’s 'disappointed' by BC Ferries’ decision to hire a Chinese state-run shipyard, but argued the new ships will benefit Canadian workers through 'hundreds of millions of dollars in Canadian based maintenance [and] service support over the life of these vessels'.... Robertson, who became housing minister on May 13, said he only became aware of the CIB loan to BC Ferries on June 11 once it was too late to reverse-course on the deal signed March 28.... Robertson said his policy directions going forward would focus on a 'buy Canada' approach.
"Tory MP Leslyn Lewis, who serves as her party’s infrastructure critic, expressed disbelief that it took Robertson one month to learn about the CIB loan. Lewis subsequently put forward a notice of motion to abolish the CIB, saying its loan to BC Ferries violates section 6 of its founding act, which pledges to invest and attract investment in the Canadian public interest and with an aim to strengthen the sustainability of Canada’s infrastructure.
"Freeland testified at the committee before Robertson and said that Transport Canada has provided $38 million in annual support to B.C. for ferry operations. She said she received assurances that this money would not be used in the procurement of Chinese ships.
"Opposition MPs pressed Freeland on whether she supported cancelling the CIB loan but she did not answer the questions.... Freeland reiterated that she was disappointed by the decision, and that she was doing 'everything in my power' to ensure Canadian workers, steel, and aluminum are prioritized.... Freeland said she is convening a meeting with the provinces and territories, ferry owners, shipyards, and steel and aluminum industry representatives to discuss 'the challenges related to the procurement of ferries in Canada.'
"CIB CEO Ehren Cory spoke Aug. 1 before the committee, saying that CIB’s loan to BC Ferries benefits Canadians regardless of where the ferries are being built.... He added that when discussions began in September of last year with BC Ferries about a loan, where the vessels would be constructed was not yet known and 'wasn’t part of the decision,' as the focus was on benefiting the approximately 23 million customers who use BC Ferries annually.
"Asked by Liberal MP Stéphane Lauzon about whether mandating Canadian labor and materials in projects comes down to political will, Cory said 'yes,' adding that if the government mandated BC Ferries to source vessels from Canada, the CIB would support that indirectly—possibly by increasing its loan. However, he noted that repaying a larger loan could mean higher fares for ferry riders."
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