Canada's 12 frigates to get refits in Halifax, Victoria

The federal government has awardedcontractsworth $900 million to companies in Victoria and Halifaxtorefitthe navy'sentire fleet of frigates.

The 12 Halifax-class frigates, considered the workhorses of the navy, were built in the 1990s and are in need of upgradedweapons, sensors and communications equipment.

Defence Minister Peter MacKayannounced on Monday thata $549 million contract was awarded to the Irving-owned Halifax Shipyard forseven frigatesand another worth $361 million to a shipyard in Victoria for the other five frigates.

Led by J.D. Irving, dockyard workers gave a round of cheers asMacKaymade theannouncement in Halifax.

"Thank you sir, thank you very much," Irving said.

Ottawa expectsthe Victoria contractto createas many as110 local jobs, while helping to maintain 450 more.

At its peak in 2012, the Halifax contract is expected to maintain and createas many as600 jobs.

Thecontracts run until 2020.

In Halifax, thedeal was welcome news to the union at the shipyard, though they saida new building programis what isreallyneeded.

Karl Risser, president of Local 1 of the CAW Marine Workers Federation, said the deal to refit the vessels will help keep workers in place until acontract to build is secured.

MacKay promised another announcement on rebuilding Canada's aging and shrinking navy, but did not give a date.