September 10, 2018 | Local, Land
Murray Brewster · CBC News
A Canadian defence contractor will be selling fewer armoured vehicles to Saudi Arabia than originally planned, according to new documents obtained by CBC News.
That could be a mixed blessing in light of the ongoing diplomatic dispute between the two countries, say human rights groups and a defence analyst.
The scaled-back order — implemented before the Riyadh government erupted in fury over Canada's public criticism of Saudi Arabia's arrest of activists and froze new trade with Canada this summer — could make it politically less defensible for the Liberal government, which has argued it's in the country's business and economic interests to uphold the deal.
The documents show General Dynamic Land Systems Canada, the London, Ont.-based manufacturer, was — as of spring last year — going to deliver only 742 of the modern LAV-6s, a reduction from the original 2014 deal.
The initial order from the desert kingdom was for 928 vehicles, including 119 of the heavy assault variety equipped with 105 millimetre cannons.
Details of the agreement have long been kept under a cloak of secrecy. General Dynamic Land Systems, the Canadian Commercial Corporation (the Crown corporation which brokered the deal) and the Saudi government have all refused to acknowledge the specifics, other than the roughly $15 billion price tag.
Last spring, CBC News obtained copies of internal documents and a slide deck presentation from 2014 outlining the original agreement.
The latest internal company documents obtained by CBC News are dated March 29, 2017, and indicate the agreement had been amended a few months prior, perhaps in the latter half of 2016.
The documents also indicate delivery of the vehicles is already underway and has been for months.
CBC News asked for a response from both Foreign Affairs Minister Chrystia Freeland's office and General Dynamics Land Systems Canada. Both declined comment over the weekend..
A defence analyst said the amended order likely has more to do with the current state of Saudi Arabia's finances than its frustration over Canada's human rights criticism.
"Saudi Arabia — in part because of low oil prices and in part because of corruption and mismanagement of its own economy — has a large budget deficit," said Thomas Juneau, a University of Ottawa assistant professor and former National Defence analyst.
"Spending $15 billion over a number of years for armoured vehicles that it doesn't need that much, at least in a pressing sense, is an easier target for budget cuts, for sure."
The kingdom has projected a budget deficit of $52 billion US this year and the country's finance minister said last spring it is on track to cut spending by seven per cent.
When it was signed, the armoured vehicle deal was a way for Canada to cement relations with an important strategic partner in the region, said Juneau.
He said he wonders if it's still worthwhile, in light of the furious diplomatic row that began over the Canadian government's tweeted expressions of concern for jailed activists — and quickly escalated with the expulsion of Canada's ambassador, the freezing of trade, the cancellation of grain shipments and the withdrawal of Saudi medical students from Canadian programs.
"Now, with the dust not really having settled after the dispute from August, is that partnership, in abstract terms, still necessary? I think it is. But is it still possible?" said Juneau.
Human rights groups say they believe there is even more reason for Ottawa to walk away from the deal now, given the events of this summer and the declining economic benefit.
"We're compromising our position on human rights for even less than we thought," said Cesar Jaramillo, the executive director of Project Ploughshares, which has opposed the agreement from the outset.
"Even if it's not a huge decrease, it is still a decrease. It should, at least in political and economic terms, make it easier for the Trudeau government to reconsider this deal, especially in terms of the latest diplomatic spat."
Full article: https://www.cbc.ca/news/politics/canada-s-arms-deal-with-saudi-arabia-is-shrinking-1.4815571
February 23, 2021 | Local, Aerospace
Montreal, Quebec-based Icarus Aerospace opens up about its Tactical Air Vehicle platform as it seeks government funding and market traction.
February 23, 2018 | Local, Aerospace
Canada's aviation and aerospace industries will play a key role in the creation of innovation superclusters similar to Silicon Valley. Air Canada and PAL Aerospace are among hundreds of companies involved in creating five superclusters across Canada, with a $950 million investment from the federal government that will be matched dollar-for-dollar by the private sector. “We think this is important for Canada,” said Catherine Dyer, chief information officer for Air Canada, in an interview with Skies. “We really view ourselves as a leader in this space, and to build capability in this part of the country, and more broadly for Canada, are two things that we think go very nicely together.” Air Canada will be part of the Quebec-based SCALE.AI supercluster, which aims to use artificial intelligence and robotics to build intelligent supply chains, making Canada a world-leading exporter. “Our hope around this is that it will help us become more efficient in how we deal in our operations excellence program, as well as in our cargo business,” said Dyer. “But from my perspective it has got probably further-reaching opportunities in terms of how we enable employees and customers in creating that Air Canada experience that we're all very focused on. “So most immediately it's going to be focused on the logistics components of our business. But we do believe that artificial intelligence, more generally, has got some fairly broad-reaching implications for our company.” Air Canada was a key player in creating the supercluster submission in late 2017 and sees its involvement as a step toward becoming a global leader in supply chain management. SCALE.AI includes 120 partners across Canada from a wide range of industries, including transportation, telecommunications, mining, food, and oil and gas. “We [Air Canada] would be looking at how we could use artificial intelligence to help us see things maybe we don't see when we're looking at it with human brains,” said Dyer. “That really is the purpose of artificial intelligence, is to take the collective wisdom of many people, and the computing power of machines, and apply it to the business problems that we have today.” Air Canada plans to use artificial intelligence to develop new tools that allow it to better manage cargo capacity, resulting in better customer service. “Timeliness is essential when shipping fresh products and employees will have better tools to forecast the need for space in temperature controlled facilities, facilitate tracking and ensure timely delivery,” said Isabelle Arthur, senior media relations manager for Air Canada, in a statement. “Air Canada already uses artificial intelligence in revenue management, to forecast aircraft maintenance, in marketing, in elevating customer experience and communications by partnering with government, universities in Toronto and Montreal to help Canada retake a leadership position.” PAL Aerospace will be part of the Ocean Supercluster in Atlantic Canada, which plans to use innovation to improve competitiveness in ocean-based industries like fisheries, oil and gas, and clean energy. The company will design and execute projects that encourage collaboration with other supercluster members, small and medium-sized enterprises (SMEs) and academic institutions, said Derek F. Scott, vice-president of program development for PAL Aerospace, in a statement to Skies. “We aim to use supercluster initiatives to advance our digitalization objectives in our modern ocean surveillance programs such as the ice management services we continue to provide the oil and gas industry today,” he said. “In addition, we intend to use the program to advance opportunities to strategically insert other entities such as SME companies into our solution and supply chain for our domestic and international customers.” He noted Canada has the longest coastline in the world, which spans some of the most challenging ocean environments, including the North Atlantic. “Innovation is a solution to challenge, and Canada has an ocean of opportunity to drive innovation into technologies and capabilities that contribute to Canada's economic growth, sustainability and export growth,” said Scott “PAL Aerospace is a leading example of how ocean innovation contributed to its success and the Ocean Supercluster initiative will now give us an opportunity to capitalize on that strength and create even more success for PAL Aerospace and for those companies and entities that work with us on the program.” Along with the SCALE.AI and Ocean superclusters, three others are planned: The Advanced Manufacturing Supercluster in Ontario, which aims to connect Canada's technology strengths to its manufacturing industry; The Protein Industries Supercluster, based in the Prairies, which intends to make Canada a leading source for plant proteins; and The Digital Technology Supercluster, based in British Columbia, which will use big data and digital technologies to unlock new potential in sectors like healthcare, forestry and manufacturing. More than 450 businesses, 60 post-secondary institutions and 180 other participants are involved in the five supercluster initiatives, according to a government news release. It's expected the superclusters will create 50,000 middle-class jobs and grow Canada's economy by $50 billion over the next 10 years. https://www.skiesmag.com/news/silicon-valley-style-innovation-clusters-include-aviation-companies/
February 29, 2024 | Local, Land
The Department of National Defence will reallocate $810 million in the coming budget as part of the Liberal government’s overall austerity drive, according to Federal Treasury Board documents tabled in the House of Commons on Thursday. Some of those savings are to be redirected into major equipment purchases.