Canada Pushes Forward with Patrol Submarine Project

The Honourable Stephen Fuhr Secretary of State (Defence Procurement)

Opening

• Hello everyone. It is a great pleasure to be here with you today.
• Before I begin, I would like to acknowledge that we are gathered today on the traditional territory of the Songhees, Esquimalt and W̱SÁNEĆ Peoples.
• I would also like to thank Rear Admiral David Patchell, Captain Kevin Whiteside, and everyone here at CFB Esquimalt for welcoming us and hosting today's announcement. I believe today's announcement will have a positive and lasting impact on this community.

Why Submarines Matter

• Canada is a maritime nation with the longest coastline in the world, three oceans to protect, and growing responsibilities in the Arctic, North America, and around the world.
• Submarines provide a unique combination of persistence, discretion, intelligence collection, and deterrence that no other single platform can match. They can operate discreetly for extended periods, monitor activity beneath the surface, protect critical undersea infrastructure and, when necessary, deter potential adversaries without being detected.
• They provide decision-makers with continuous awareness of activity beneath the surface in Canada's maritime approaches, contribute to the defence of North America, and fulfil our commitments to our allies around the world.
• New technologies, including autonomous underwater systems, will play an increasingly important role. But they complement crewed submarines; they do not replace the endurance, flexibility, judgment, and operational capability that a crewed submarine provides.

Why Now

• Our Victoria-class submarines have served Canada with distinction for decades, but they are approaching the end of their operational lives.
• Renewing this capability is essential to protecting Canadians, defending our sovereignty, and ensuring the Royal Canadian Navy remains ready to meet the challenges of an increasingly complex security environment for decades to come.

Announcement

• Moments ago, in Halifax, the Prime Minister announced an important milestone in the Canadian Patrol Submarine Project.
• For anyone who hasn't had a chance to look at their phone in the last hour, I'm pleased to confirm that Canada has selected Thyssenkrupp Marine Systems as the preferred supplier for Canada's next generation of submarines.
• Following a rigorous, fair, and competitive procurement process, the Government of Canada will now enter negotiations with TKMS to procure up to 12 submarines.
• I can also confirm that Hanwha Ocean has been designated as the Reserve Supplier.
• A reserve supplier has been identified to ensure Canada has a qualified alternative should negotiations with the preferred supplier not result in a final agreement.
• I would like to acknowledge both bidders for the quality of the proposals they submitted. Each submitted a strong proposal demonstrating a commitment to the Royal Canadian Navy, Canadian industry, and Canadian workers.
• Today's decision reflects the outcome of a comprehensive evaluation process to deliver the best overall capability and value for Canada.

Economic Benefit

• As we invest in our security, we are also investing in Canada's prosperity.
• Central to our Defence Industrial Strategy is getting our Armed Forces what they need, when they need it, while strengthening Canadian industry and creating new opportunities for Canadian workers and businesses.
• As negotiations move forward, our focus will be on maximizing the benefits for Canadians, strengthening Canadian industry, and delivering the best overall value for Canadian taxpayers.
• Renewing Canada's submarine capability begins long before the first submarine enters service. It starts with modernizing the infrastructure, skilled workforce, and industrial capacity needed to maintain and sustain this capability here in Canada.
• Those investments will support thousands of high-skilled jobs years before the first submarine is delivered, while strengthening Canada's long-term defence industrial capacity.
• Our government will leverage the Buy Canadian policy to maximize the use of Canadian materials in the infrastructure needed to support this capability, creating opportunities for Canadian skilled trades workers and strengthening local economies.
• Canadian companies will become part of TKMS' global supply chains through licensing and intellectual property transfers.
• We are deepening partnerships with trusted allies while ensuring Canadian expertise contributes to our collective security and economic resilience.

Accelerated Procurement

• Less than eight months ago, Canada identified the qualified suppliers. Today, we've selected a preferred supplier, marking an important milestone in the process.
• For too long, one of the biggest criticisms of defence procurement has been the time it takes to deliver capability. Today's announcement is another example of what Canada's new Defence Investment Agency can deliver.

Closing

• As the Prime Minister has said many times, economic security and national security are mutually reinforcing.
• Today's announcement puts that principle into practice.
• By investing in the capabilities our Canadian Armed Forces need, we are also strengthening Canadian industry, creating high-value jobs, and building the industrial capacity that will serve our country for decades to come.
• Thank you.