During testimony on Canada outsourcing shipyard work to China, the head of BC Ferries made an astonishing admission.

“My first question for you is which government departments and or ministers were notified of the final or likely decision to purchase the ferries from a state-owned shipyard in the People's Republic of China and when were they notified?” asked first-time Conservative MP Aaron Gunn. 

“We had conversations with the Federal Department of Transportation, at the officials level, in mid-to-late April to advise them of the fact that the procurement was coming to a close,” replied Nicolas Jimenez, President and CEO of BC Ferries. 

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“We were indicating where it was going to land in terms of the yard and the country of origin,” he clarified. 

BC Ferries awarded a contract to China Merchants Industry Weihai Shipyards on June 10, citing no Canadian bids after a five-year procurement process. The Canada Infrastructure Bank financed the project but wasn't involved in contract decisions.

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

“Did any of these departments express any economic or national security concerns regarding that specific contract, before the public announcement?” Gunn asked the executive.

“Well, no,” replied Jimenez. “What I can say is when we made the initial contact with the department, we were seeking counsel on how to continue a dialogue with others in the federal government, specifically around national security.”

Transport Minister Chrystia Freeland expressed strong disapproval in a June 20 letter regarding BC Ferries' contract with a Chinese state-owned shipyard.

BC CPC MP @DanAlbas asks Transport Minister Freeland how she can be all "Elbows Up" while backstopping a loan to buy ferries from a CCP-owned shipbuilder over Canadian jobs.

No real answers. Just time wasting pic.twitter.com/KXlNh7IAAK

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

On Friday, Freeland clarified, “I am aware that there is money that goes from transport operating support for the operation of ferries in British Columbia,” adding she “received assurances” that  “none of that operating money be used for this procurement.”

The Infrastructure Bank approved $1.1 billion on June 26 to partially replace BC Ferries' fleet, including four new vessels from China's state-run Weihai Shipyards, drawing criticism from Opposition MPs.

CIB had loaned BC Ferries $1 billion at 1.8% interest on March 28; the Crown bank announced support two months later but did not name the shipbuilder.

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

A Commons transport committee investigation into the loan followed Minister Freeland's claim that China received no federal funding for ferry construction.

She did not admit to prior knowledge of the loan on Friday, despite repeated inquiries from MPs.

Freeland previously criticized the B.C. government for purchasing four new ships from Weihai Shipyards, despite CIB financing the deal.

B.C. Transportation Minister Mike Farnworth distanced his government from the decision, citing Chinese tariffs. Cabinet denied any knowledge of BC Ferries outsourcing shipyard jobs.