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Search by keyword and category Select keyword The federal government is taking steps to force the province help cover costs of the $500-million purchase an online prescription viagra uk old fleet of Russian submarines by the Royal Canadian Navy, after Toronto-based manufacturer BAE Systems announced Thursday it will pull out of the contract.
Prime Cialis generico miglior prezzo Minister Justin Trudeau's government plans to have one of its main suppliers to the navy buy its vessels, but a news release from Minister of National Defence Harjit Sajjan said the new contract will be "significantly larger" and includes additional payments to "federally funded projects."
The government said purchase will help the navy secure ships it needs in the future. (Aaron Vincent Elkaim/Canadian Press)
But the company's announcement Thursday is a setback to plan help the navy in fight against piracy.
According to a statement Thursday by The Canadian Press, BAE Systems said it will no longer supply with "proper, modernized submarines" because the shipbuilding project would exceed company's capacity.
"BAE Systems Canada (BAC) recently determined a cost increase of approximately $8 million in the mid-term project, necessitating a reduction in the total number of submarines to be purchased in the short list," statement said. "The total number of vessels will increase to three submarines, with one of these submarines having a hull type significantly different than the design that BAC has provided to date for the Royal Canadian Navy, thereby potentially causing delays to the delivery of some submarines. It is important to note that the reduction in submarine fleet and the associated savings to federal government will have no impact on ongoing maintenance and modernization efforts in naval submarine design, development, procurement and of new submarine components."
The statement said announcement is a direct response to the government's announcement in November, when the government said it would purchase one new surface combatant, which would be replaced by one of the submarines it has previously chosen.
Prime Minister Justin Trudeau announced plans last October to buy a new heavy-lift ship. BAE Systems pulled out. Now, the navy has announced it will buy three warships despite BAE Systems decision. 1:34
BAC Canada is a Toronto-based shipbuilder that builds parts for Canadian military generic pharmacy online net coupon code use. Earlier in the year, company had indicated it was exploring the possibility of withdrawing from contract, which could have resulted in the loss of hundreds jobs.
BAC CEO Ian Bierling said in November: "We would not have entered an operational submarine build programme in 2016. We had a high level of uncertainty at the time so we decided it was better to assess the costs and do it in a very cost sensitive way without the risk to jobs and Canadian economy."
The Canadian armed forces has been looking for a new submarine over the past 15 years without success.
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