IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 16 Apr 2016 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

The provincial government of News Brunswick announced on April 16, 2016 that it proposes an arrangement by which it would assume ownership and management of the New Brunswick Naval Centre in Bas-Caraquet. The proposal consists of a two-phased approach for revival of the shipyard.
 
Phase one consists of assuming ownership of the centre for $1 and completing the original $10-million infrastructure project to ensure its survival.
 
The second phase of the project for consideration by the government calls for renovating and repairing the u-wharf, slip and travel lift as well as completing the dry dock. Phase two is estimated at $28 million. The provincial government will seek partnership with the federal government to complete phase two.
 
Health Minister Victor Boudreau, who is also minister responsible for the Regional Development Corporation, announced that, 'Through the Northern New Brunswick Economic Development and Innovation Fund, the province is willing to invest further funds to complete the project, providing all conditions presented to the centre's board of directors are met and the federal government provides financial support.'
 
The shipyard is currently operated as a private, non-profit entity incorporated by Caraquet and neighbouring Bas-Caraquet and, according to press accounts, has "been crippled by financial problems since it was unable to secure a $4-million loan for its contribution to a $10-million infrastructure update."
Subsequent reporting indicated that the federal government will provide between $8 and $12 million to support the bail-out. "The money will help cover the $25-million expense of finishing the three phases of upgrades at the New Brunswick Naval Centre, according to a June 24, 2016 CBC News report. The province will negotiate an improved agreement with Quebec-based Groupe Océan for the construction and lease of a $13-million floating drydock.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods

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