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Irving proceeding with lawsuit over sub contract

Last Updated: Friday, January 4, 2008 | 3:24 PM AT

CBC News

Halifax-based Irving Shipbuilding vows to continue with its lawsuit against the federal government over a lost 15-year submarine maintenance contract.

The Canadian Press reported that a $1.5-billion contract for Canada's four Victoria-class submarines will not be re-tendered by the government.

Irving spokeswoman Mary Keith said the way the contract was awarded to a B.C. consortium was neither transparent nor fair.

The deal is also a bad value for taxpayers, she told CBC News on Friday.

"We want to put 200 shipyard employees at Halifax to work. We believe we've got the skill, we believe we can provide the value for dollar and we think the contract should be re-tendered. It's not a settlement we're seeking," she said.

Keith said it doesn't make financial sense to send Halifax-based submarines to the West Coast for maintenance.

Defence Department spokesman David Martin told CP that negotiations with the B.C. consortium are underway and a final contract is expected in a few months.

This story is now closed to commenting.

Internal Links

Court allows Irving challenge of sub contract
Irving loses bid for submarine repair contract

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