Frigate design decision challenged in Federal Court, putting $60B program in limbo

On the same subject

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  May 7, 2020 | Local, Land

  General Dynamics saw $1 billion bump after Canada-Saudi accord

  By: Joe Gould   1 day ago WASHINGTON ― General Dynamics has received $1 billion since the renegotiation of a $10 billion contract for Canada to sell light armored vehicles to Saudi Arabia, company officials said on its first quarter earnings call. In a deal last month, Canada lifted its ban on arms sales to Saudi Arabia, which in turn agreed to a speedier payment schedule for the LAVs. Canada had the vehicles on hold since 2018, following the death of Saudi journalist Jamal Khashoggi; and by October, Saudi Arabia had racked up $1.5 billion in back payments to General Dynamics. Amid news on the April 29 call that the company's revenue fell $512 million in connection with the coronavirus pandemic, General Dynamics Chief Financial Officer Jason Aiken highlighted “the formal signing of the restructured contract on the Canadian international program, which settled all issues to the satisfaction of the parties.” “With respect to our standing receivable you may recall that we received $500 million early in the first quarter and we received another $500 million this month. This will be very helpful to free cash flow in the second quarter,” Aiken said. “We will begin a regular cadence of scheduled payments in 2021 consistent with deliveries and making further progress in the scheduled amortization of the arrearage.” The company's Combat Systems division had revenue of $1.7 billion, up 4.4 percent over the same quarter last year, and sales to the U.S. government were up 12 percent. The firm's aerospace business segment also had revenue of $1.7 billion, but that represented a 23 percent fall from the same quarter last year. On April 9, Canada's foreign affairs minister, François-Philippe Champagne, announced Ottawa was “able to secure significant improvements” to the LAV contract, including more latitude for the Canadian government to speak about it. Under the new terms, Canada could also delay or deny export permits without penalty if it learned Saudi Arabia was not using the vehicles for their stated purpose. Ottawa would also be reviewing permit applications on a case-by-case basis to ensure they meet Canadian law and the U.N. Arms Trade Treaty. Though the Trudeau government has been under political pressure to scrap the LAV deal over human rights concerns, Champagne said its cancellation would have “resulted in billions of dollars in damages” and risked thousands of Canadian jobs across the defense supply chain. The vehicles are made by the General Dynamics Land Systems subsidiary in London, Ontario. https://www.defensenews.com/congress/2020/05/07/general-dynamics-saw-1-billion-bump-after-canada-saudi-accord

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  September 29, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence

  Leadersphere 2022

  September 29, 2022 - Saint-Jean-sur-Richelieu, Que - National Defence/Canadian Armed Forces The media are invited to attend the Leadersphere 2022 conference, which will be held on October 4 at Royal Military College Saint-Jean (RMC Saint-Jean). This year, the event will be held under the theme “Analyze, Decide, Act: Responding to contemporary security challenges”. What are the challenges facing Canadian leadership in the international environment? And those that come with thinking a constantly changing world? Leadersphere 2022 is structured in three panels around the key points of the strategic decision-making process. Researchers, ambassadors, politicians, business, and military leaders will be gathered to think about the world of tomorrow. Panelists include Dr. Caroline Quach-Than, Laure Waridel, and Megan MacKenzie, as well as Ambassador Jacqueline O'Neill, Brigadier-General Krista Brodie, Madeleine Redfern of CanArctic Inuit Networks Inc., and Martine Saint-Victor of Edelman Canada. What: Leadersphere 2022 conference - “Analyze, Decide, Act: Responding to contemporary security challenges”. When: 8:30 a.m. to 5:45 p.m, Tuesday, 4 October 2022 Where: RMC Saint-Jean, 15 boul. Jacques-Cartier Nord, Saint-Jean-sur-Richelieu, Quebec Notes to editor/news director: Media representatives are asked to confirm their attendance before 4:00 p.m. on Monday, October 3, by contacting Captain Rachel Lefebvre, RMC Saint-Jean Public Affairs Officer, at 450-358-6777, ext. 5733, or at rachel.lefebvre@forces.gc.ca. Associated Links Leadersphere 2022 Contacts Captain Rachel Lefebvre Public Affairs Officer Royal Military College Saint-Jean Phone: 450-358-6777, ext. 5733 Email: rachel.lefebvre@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2022/09/leadersphere-2022.html

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  November 26, 2019 | Local, Other Defence

  U.S. sent ‘blunt’ letter to Canada criticizing defence spending: sources

  BY MERCEDES STEPHENSON AND KERRI BREEN Canada has been officially called out by the United States over how much it spends on the military, Global News has learned. A “blunt” letter from the U.S. government was delivered to the Department of National Defence that criticized Canadian defence spending levels and repeated American demands that Canada meet NATO targets. Global News has not seen the letter — said to have a frustrated, critical tone — but multiple sources have confirmed it was sent and received. U.S. President Donald Trump has long called for members of the 29-nation military alliance to beef up their budgets for defence. His national security adviser Robert O'Brien, who spoke Saturday at the Halifax International Security Forum, said getting NATO members to meet the established target — two per cent of Gross Domestic Product (GDP) — is an urgent priority. “There are very serious threats to our freedom and our security and if NATO is going to be effective, and if we want to put our money where our talk is, we got to spend that money to defend ourselves,” he said. Nations including Canada agreed at the 2014 NATO summit in Wales​ to move towards the military spending target within a decade, he noted. “We expect our friends and our colleagues to live up to their commitments and their promises,” he said. He also praised Canada's plan to build and deploy Arctic patrol vessels. The North, he said, is going to be the new “frontline” of defence, as Russia and China have made it clear they are going to militarize the Arctic. One Canadian source told Global News that the U.S. is concerned that Canada does not take the threat from those countries in the Arctic seriously and wants the country to boost its contributions in that area. Just seven countries — including the U.S. and the U.K. — have met NATO's two per cent of GDP spending goal, according to figures released in June. NATO's estimates show Canada is expected to spend 1.27 per cent of its GDP on the military this year, up from about one per cent in 2014. Canada does fare better when you look at its defence budget in dollars and cents, said Dave Perry, vice president of the Canadian Global Affairs Institute. The country spends the sixth highest amount overall among NATO members on its military. As for meeting the percentage of GDP target, Perry's not optimistic despite planned increases in the defence budget. “Canada is not on a path to live up to the commitments that we were signing up for in 2014 in Wales,” he said. Last year, Canada spent about $22.9 billion on the Department of National Defence. But Ottawa intends to dramatically boost military spending in the coming years. In 2017, the government released a plan to increase the budget to almost $33 billion annually within a decade. Asked about the letter from the U.S., Defence Minister Harjit Sajjan touted this plan to strengthen spending. Discussions around “burden sharing” within the bloc have been happening for some time, he said. He noted that under the government's plan, the defence budget would see an increase of 70 per cent, a “significant amount.” “The relationship with Canada and the U.S., the defence relationship, I think, is even stronger now, because they see a tangible plan that we have created,” he said on an episode of The West Block that aired Sunday. “It's working, actually, extremely well.” The U.S. sending such a letter is an unusual, formal means of relaying a message, and it represents an escalation from previous attempts to get Canada to spend more on its military. That pressure has been increasing in recent weeks ahead of the NATO summit in London starting on Dec. 3. In fact, the same message has been conveyed in multiple ways to the federal government, a diplomatic source said, and NATO itself also wants to see more military spending from Canada. In July, however, NATO Secretary General Jens Stoltenberg suggested publicly he was happy with improvements in Canadian defence spending. “Under your leadership,” he said to Prime Minister Justin Trudeau, ​​”Canada has stepped up its contributions to our NATO alliance including with forces for NATO missions and operations and increased spending.” But one former defence minister said the letter from the U.S. — NATO's leader in defence spending in relation to its GDP — was not a good sign. Peter MacKay said such a letter amounts to “a very serious diplomatic slap — not on the wrist, but in the face.” During his time in government, the former Nova Scotia Conservative MP said he had talks with defence secretaries regarding Canadian military spending and the country's goal of reaching two per cent. “Those discussions can be forceful and frank but they took place face to face,” said MacKay, who was defence minister for six years under former prime minister Stephen Harper. “Sending a démarche (diplomatic letter) is really ratcheting it up a notch.” https://globalnews.ca/news/6210623/canada-defence-spending-nato/