# canadian govt repeals tax on foreign built ships.



## mrcanoehead (Sep 15, 2007)

recently heard that the canadian govt. repealed the tax shipping companies pay on foriegn built ships, guess this means many of older lake ships will now go to the breakers quickly.so much for new ship construction in canada, most of the new tonnage will mostlikely be chinese built.


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## Keltic Star (Jan 21, 2006)

mrcanoehead said:


> recently heard that the canadian govt. repealed the tax shipping companies pay on foriegn built ships, guess this means many of older lake ships will now go to the breakers quickly.so much for new ship construction in canada, most of the new tonnage will mostlikely be chinese built.


And rightly so, it should have been repealed at least 30 years ago. No one but the government can afford to build ships in Canada and new tonnage built at competitive prices will maintain jobs for Canadian seamen because the related Coasting Trade Act has not been repealed.


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## Klaatu83 (Jan 22, 2009)

Keltic Star said:


> And rightly so, it should have been repealed at least 30 years ago. No one but the government can afford to build ships in Canada and new tonnage built at competitive prices will maintain jobs for Canadian seamen because the related Coasting Trade Act has not been repealed.


The situation is exactly the same in the "Lower 48". Nobody except the Government can afford to have ships built in American yards. As a result, the only ships being built in the US anymore are Navy vessels. 

However, that being said, one cannot help wondering what will happen to the nation's ship-building industry if the Government ceases to subsidize it, either directly or by tax incentive. What will happen if cir***stances arise whereby the country actually needs it's national shipbuilding industry again, and suddenly finds that it no longer exists? Will Canada be able to count on Korea or China then?


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## Satanic Mechanic (Feb 23, 2009)

Probably go the same way as the UK where the yards are almost exclusively for defence work. Actually works ok just so long as the fleet gets updated/upgraded from time to time. 

If you haven't seen them already, you should see the yards out here (China) and in Korea, you would have a Road to Damascus like epiphany as to why the industry is out here - it makes Europe/North America look like something from the stoneage - they are simply stunning, I describe some of them as Industrial Wonders of the World.


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