Building next generation naval ships in Halifax would create 11,500 jobs
at peak; transform provincial economy; provide superior benefits to the
rest of Canada
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HALIFAX, May 27, 2011 /CNW/ - New reports commissioned by the Greater Halifax Partnership released today show
that building Canada's next generation of naval vessels at Halifax
Shipyard would create peak employment levels of 11,500 jobs, bolster
the provincial economy for a quarter of a century and provide economic
benefits for the entire country.
It's thought the findings will provide more impetus to Halifax Shipyard
owner Irving Shipbuilding Inc.'s bid to win a substantial component of
the Canadian government's $30 billion National Shipbuilding Procurement
The first report, Canada's National Shipbuilding Procurement Strategy: Potential Impact
on Nova Scotia and Other Regions, by the Conference Board of Canada, is a broad assessment of the
potential economic impact associated with Irving Shipbuilding Inc.
becoming the prime contractor for either the combat vessels package or
non-combat vessels package. The second report, Halifax: Becoming a Shipbuilding Centre of Excellence, by Jupia Consultants Inc., provides a deeper view of how the project
would impact the economy and Nova Scotia's marine and aerospace and
"The benefits to Halifax and Nova Scotia are clear and they are beyond
our best expectations — thousands of long-term jobs; $351 million in
disposable income to be spent on homes, cars and trucks, and in stores;
and over $350 million in federal, provincial and local tax revenue both
in peak years — and provide superior benefits to all regions of
Canada," said Paul Kent, President and CEO of the Partnership.
"Building these vessels here would drive supply chain and other economic
benefits to all parts of Canada. For every $1,000 spent in procurement
from shipbuilding inside Nova Scotia, another $491 in real GDP will be
generated in other regions across Canada," he noted. "In other words,
if Halifax wins, everyone wins."
Fred Morley, the Partnership's Executive Vice President and Chief
Economist said "transformative" is the right word to describe the
effect the shipbuilding program would have on the provincial economy,
noting that average demand for housing would jump by 420 new
residential units per year over the 2012-2030 period. Homeowners'
insurance providers, local utilities and the maintenance and repair
sector would see millions of dollars in new spending every year.
Automobile sales would jump by an average of 750 new units every year.
There would be a corresponding increase of $17 million in gasoline
sales. Utilities would also benefit. Telecommunications, internet
access providers and cable/satellite TV companies would also see a
significant increase in spending. There would also be an increase of
$8.5 million per year in spending on telephone services, $38.5 million
more spent on groceries and $11 million spent on restaurants in Nova
"The next 30 years could be very different for Halifax, Nova Scotia and
the region," he said. "We're talking about a generation of more stable
employment; and the catalyst to reverse outward migration of our young
people and attract others to come and stay in Nova Scotia and grow our
population. This program would provide stability for small
businesses, increase community and business confidence and turn Halifax
into one of Canada's high growth cities."
To view the full reports go to the Greater Halifax Partnership's website
http://bit.ly/shipbuildingimpact . To learn more about the Government of Canada's National Shipbuilding
Procurement Strategy and Nova Scotia's response, visit www.shipsstarthere.ca.
About the Partnership
The Greater Halifax Partnership is a catalyst for economic growth and
confidence in Greater Halifax, the economic hub of Atlantic Canada.
/NOTE TO EDITORS: Media Assets accompanying this story are available as
Photo : http://smr.newswire.ca/media/articles/1322/ghp-infographic-920am.jpg
Photo : http://smr.newswire.ca/media/articles/1322/irving-shipbuilding-3.jpeg
SOURCE GREATER HALIFAX PARTNERSHIP
For further information:
Or to arrange an interview please contact:
Greater Halifax Partnership