Kirkhill,
My recollection is tax dollars were actually paid Irving to close Irving at a time when any rational person looking at the military could've said: "You know, we should be building some new AOR's in sequence right now, and by 2007 we should shift to the 280-replacements and in 2008 we open a second drydock to do a sequential run of Frigate Upgrades. Then we do a midlife upgrade on the Victorias...etc., etc., etc."
Bottom Line: Our shipyards are uncompetitive because there are no economies of scale because they are forced to run one-off jobs. You give them a 20-year production run guarantee so that the company could make the requisite investment in high technology and there is no reason we could not produce at that same efficiency as the Finns. I would add that once the company has made that investment in the high technology and trained its people, due to the guaranteed revenues you are providing, you now have a world-class company that can compete for other industrial projects. And any additional sales into this new market (in which Canada otherwise would not be competing) provide 100% ROI in terms of the income/corporate taxes collected and EI premiums saved.
JMHO,
Matthew.