In an extraordinary move, the industry group representing Canadian shipbuilders has chastised a major shipyard in Canada for allegedly overstating its case in a growing spat over a government ship deal.
Rebuking Irving Shipbuilding Inc., the Shipbuilding Association of Canada, said it is surprised and disappointed over Irving's interference in the government proposal to have Chantier Davie build and operate an interim supply ship for the Canadian navy.
The nearly $700-million deal with the Levis, Que., shipbuilder has been finalized and was due to be approved by the cabinet by the end of the month.
However, a federal cabinet committee stalled the unconventional deal, and postponed all decisions for 60 days. That followed an intervention from one of Davie's strongest rivals, Irving Shipbuilding, which runs the Halifax Shipyard.
James D. Irving, the company's co-chief executive officer, alleged the government of pursuing a sole-source deal with Davie, in spite of an offer from Irving and partner Maersk Lines to offer a different and potentially affordable option.
The letter stated, "This was done on a non-competitive basis without transparency and without a full evaluation of cost, delivery schedule, capability and risk associated with the Irving-Maersk proposal."
Rebuking Irving Shipbuilding Inc., the Shipbuilding Association of Canada, said it is surprised and disappointed over Irving's interference in the government proposal to have Chantier Davie build and operate an interim supply ship for the Canadian navy.
The nearly $700-million deal with the Levis, Que., shipbuilder has been finalized and was due to be approved by the cabinet by the end of the month.
However, a federal cabinet committee stalled the unconventional deal, and postponed all decisions for 60 days. That followed an intervention from one of Davie's strongest rivals, Irving Shipbuilding, which runs the Halifax Shipyard.
James D. Irving, the company's co-chief executive officer, alleged the government of pursuing a sole-source deal with Davie, in spite of an offer from Irving and partner Maersk Lines to offer a different and potentially affordable option.
The letter stated, "This was done on a non-competitive basis without transparency and without a full evaluation of cost, delivery schedule, capability and risk associated with the Irving-Maersk proposal."