Cabinet aides conspired to “limit the damage” from public disclosures that Canadian taxpayers funded Chinese shipyard jobs. One aide wrote, “Distance ourselves from this as much as possible,” as then-transport minister Chrystia Freeland denied knowledge of the $1 billion B.C. Ferries deal.

Internal emails show staff aimed to redirect procurement questions to B.C. and advised minister Freeland to deny involvement, according to Blacklock’s. A PMO email called B.C. Ferries' procurement choices “political opinion,” suggesting a paper release to distance the office.

These disclosures were made public by the Commons transport committee.

B.C. Ferries, a Crown agency, will acquire four electric ferries from China's state-run Weihai Shipyards, funded by a $1 billion federal grant. An internal email stated, “Try to limit the damage.”

Cabinet aides in internal emails schemed to “limit the damage” from public disclosures that taxpayers financed Chinese shipyard jobs.
“Distance ourselves from this as much as possible,” wrote one aide as then-@Transport_gc Minister @cafreeland denied knowledge of $1 billion… pic.twitter.com/mx4mfcb785

— Holly Doan (@hollyanndoan) September 24, 2025

Union executives told the committee yesterday that taxpayers would face a double hit from federal financing for Chinese shipyard jobs. Subsidized loan costs compound tariff waivers meant to protect Canadian jobs.

“If we are using taxpayers’ money to fund projects, surely to God we can put people to work,” testified George MacPherson, president of the Shipyard General Workers’ Federation. “There is no value in Canadian workers,” he added. “That is basically what they’ve said to us.”

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MPs are examining the federal loan to B.C. Ferries from the Canada Infrastructure Bank for four vessels from China's state-run Weihai Shipyards. MacPherson noted the federal government waives duty when B.C. Ferries imports offshore vessels.

Conservative MP Dan Alba, who sponsored the August 1 motion for confidential information, condemned the Infrastructure Bank's “outrageous” below-market loan to B.C. Ferries. The Commons transport committee requested Freeland appear for questioning last Thursday.

The Transport Ministry was informed in mid-April that the BC Ferries shipbuilding contract would go to a CCP-owned company.
Right in the middle of the Liberals' "Elbows Up" re-election campaign. pic.twitter.com/DmdPxPa8FB

— Sheila Gunn Reid (@SheilaGunnReid) August 1, 2025

Minister Freeland claimed she learned of the contract from a news release, stating on June 12 that she was “disappointed and concerned” by the procurement, especially when Canadian workers needed support.

Yet Freeland's Department of Transport knew of the contract months before its announcement. Despite opposition demands to cancel Weihai Shipyards financing, the Privy Council Office stated that cancellation would be politically awkward and lead to serious legal and financial consequences. 

MP Albas noted the “palpable anger” from workers who feel the government undervalues their know-how. He referenced David Eby and Mark Carney's calls to “build Canada strong” and “buy Canadian,” urging faster action.

Freeland refuses to commit to asking the cabinet to stop the loan used to purchase BC ferries from a CCP-owned shipbuilder.

She's disappointed, tho. Oh ok. Thanks. I guess that's settled. pic.twitter.com/jfcXEeqoU1

— Sheila Gunn Reid (@SheilaGunnReid) August 1, 2025

Premier Eby previously criticized the federal government on September 18 for the disparity in ferry funding, calling it “bizarre” that B.C. Ferries received a scrutinized loan while Eastern Canadian ferries were fully funded.

Eric McNeely, president of the B.C. Ferry and Marine Workers’ Union, said offshoring of shipyard jobs, including to yards using North Korean labour in Germany, Romania, and Poland, was a deliberate and long-standing practice for B.C. Ferries.

“Each decision further erodes our Canadian capacity. Canada is a seafaring nation with the longest coastline of any in the world,” said McNeely. “Our shipyards have built fleets that helped win wars.”

Canadian shipyards withdrew prior bids on new vessels, unable to compete with lower-priced foreign competitors and their subsidized labour. No government caucus member defended the contract.