December 18, 2018 | Local, Land
If the contract to supply Saudi Arabia with London-built military vehicles were cancelled, the impact would also be deeply felt in the hundreds of suppliers that feed General Dynamics and its Oxford Street East factory.
Armatec Survivabilty in Dorchester supplies most of the seats to the General Dynamics Land Systems Canada armoured vehicles going to the Middle East, and a “substantial number” of its workers would lose their jobs if it's cancelled, said Rod Flick, manager of business development at Armatec.
“We're putting seats in those vehicles. It would have a big impact,” said Flick, adding it now employs just over 100.
GDLS has said its suppliers nationwide — including 240 in the London region alone — employ 13,500 people directly or indirectly.
“There are other ways Canada can exert pressure than to cancel this. The Saudis will just go and buy vehicles from somewhere else,” Flick said.
Flick will be in Ottawa this week pressing Global Affairs Canada not to cancel the deal, he added.
Flick has also met with several MPs and MPPs, making the case to defend the agreement.
At Abuma Manufacturing on Admiral Drive in London, about half its business is tied to General Dynamics and cancelling the contract would be “a real blow” to its 26 employees, said president Ben Whitney, who is also head of its sister plant, Armo-Tool. Abuma makes parts for GDLS's light armoured vehicles.
“I am extremely concerned., It would make things very difficult for us. It would put us in a difficult position,” said Whitney.
“It would be a blow, a real blow.”
Armo-Tool bought Abuma in May and would keep it afloat by sharing work, but without that partnership, Abuma would shut down if the Saudi deal is cancelled, he added.
“When this deal was struck, it was because the Saudis were seen as a stable partner in that region. If we want to engage in that region, there is no perfect democracy there. We can engage and build relationships or we can cancel deals and be seen as not reliable,” said Whitney.
“It is tough. Last week, we made a donation to the Salvation Army and now about half our people may need them. It is a tough situation.”
February 2014:
The federal government under the Stephen Harper-led Conservatives announce the deal to supply light armoured military vehicles to Saudi Arabia, with London defence giant General Dynamics Land Systems Canada building the vehicles for a federal crown corporation, the Canadian Commercial Corp., selling the equipment to the desert kingdom.
October 2015:
The Conservatives, under fire from human rights critics for selling arms to Saudi Arabia despite its human rights abuses, lose the general election to Justin Trudeau's Liberals.
The Liberals green-light the deal, despite growing calls to rescind it in light of Saudi Arabian political and human rights abuses, including in neighbouring Yemen.
2016:
Foreign Affairs Minister Stephane Dion quietly approves export permits covering most of the deal, as criticism mounts of Canada doing arms business with Saudi Arabia.
October 2018:
Saudi dissident Jamal Khashoggi, a Washington Post journalist, is killed at the Saudi consulate in Turkey. Suspicion instantly rises that the killing was ordered by Saudi Crown Prince Mohammed bin Salman. The killing increases heat on Ottawa over its Saudi arms deal.
After first denying Khashoggi was killed, Saudi Arabia admits his slaying was “premeditated” and orders an investigation.
Trudeau, facing new pressure to scuttle the Saudi deal in light of Khashoggi's murder, says it would cost $1 billion to scrap the deal. The Liberals say they're reviewing the export permits for the deal.
December 2018:
Trudeau says publicly for the first time that the Liberals are looking for a way out of the Saudi deal, prompting heightened worry and alarm in London.
1,850: Employees in London
13,500: Jobs supported among its suppliers
500: Suppliers nationwide
240: Suppliers in London region
March 14, 2024 | Local, Land
Today, the Honourable Ginette Petitpas Taylor, Minister of Veterans Affairs and Associate Minister of National Defence, visited 5th Canadian Division Support Base Gagetown. The Minister was accompanied by Jenica Atwin, Member of Parliament for Fredericton.
October 11, 2018 | Local, Aerospace
DAVID PUGLIESE, OTTAWA CITIZEN Canadian companies had wanted to provide the aircraft, but the Canadian military decided it needed the planes quicker than they believed Canadian firms could deliver The cost of three small surveillance aircraft Canada is buying from the U.S. could be $140 million more than the Canadian military had originally estimated. The three Beechcraft King Air planes, to be based at CFB Trenton in Ontario, will be outfitted with sensors and equipment to intercept cell phone and other electronic transmissions. Canadian special forces and, potentially, other government departments will use them for missions overseas and in Canada. On Oct. 1 the Canadian Forces told Postmedia the three outfitted planes and initial in-service support would cost between $100 million and $249 million, as outlined in the Liberal government's defence policy documents. However, on Oct. 4 the U.S. Defense Security Cooperation Agency revealed the final tally, informing Congress that the deal was underway with an estimated cost of US $300 million — around $389 million. Canadian companies had wanted to provide the aircraft and on-board equipment, and several have formed alliances with U.S. firms who supply the Pentagon with the same or similar aircraft. But the Canadian military decided it needed the planes more quickly than they believed Canadian companies could deliver, and that U.S. security regulations governing the on-board sensor equipment might cause delays. As a result, it determined the U.S. government was the only supplier capable of providing the planes. The Canadian Forces says it hopes to get a better deal. The cost the U.S. government agency presented to Congress is not the final tally and the “final cost is anticipated to be much lower,” the Canadian Forces claimed in an email. “Over the coming months, we will work to more clearly define our interests and requirements for the purchase, and negotiate an acceptable price with the U.S.,” the email said. Department of National Defence spokeswoman Ashley Lemire said in an email to Postmedia that the delivery of the first plane would take place sometime between 2020 and 2021. The final delivery of the three aircraft would be wrapped up by 2022. The main contractor is Beechcraft in Wichita, Kan. The Canadian government will run a separate program to allow companies to compete to provide in-service support for the planes. The government expects to ask for bids for that 20-year contract sometime in the spring of 2019, said Lemire. DND declined to provide an estimate of what that long-term support would cost taxpayers. Industry representatives have complained over the years that the Canadian Forces cut domestic firms out of the project and reduced the role they could play. Lemire rejected that claim, saying Canadian firms would have a role in servicing the planes. https://calgaryherald.com/news/purchase-of-three-spy-planes-from-the-u-s-will-cost-canada-140-million-more-than-planned
February 17, 2021 | Local, Naval
David Pugliese, Ottawa Citizen, Postmedia News (dpugliese@ottawacitizen.com) Published: a day ago Updated: a day ago National defence says it doesn't know when it determined that a $70-billion project to buy new warships had fallen five years behind schedule, adding billions of dollars to the cost. That lack of knowledge about a massive mega-project is unprecedented, according to the department's former top procurement official, and is further proof the Canadian Surface Combatant project has gone off the rails. The Department of National Defence revealed Feb. 1 that the delivery of the first surface combatant ship would be delayed until 2030 or 2031. The first ship was to have been delivered in 2025, according to DND documents. The five-year delay will cost taxpayers billions of dollars, but the specific amount has yet to be determined. DND now acknowledges that while there were indications in early 2020 the project schedule was slipping, it doesn't actually know when it was determined the Canadian Surface Combatant program was facing significant delays. “There was no specific month/year,” DND spokesperson Jessica Lamirande wrote in an email to this newspaper. “It was an evolving schedule that continued to shift.” But Alan Williams, the former assistant deputy minister in charge of procurement at DND, said that lack of insight by DND staff is dangerous. On major equipment procurements, every step should be documented, as bureaucrats could be called on to justify future spending decisions and overall management of a project, he said. “It's totally absurd they can't even say when they first determined this project would be delayed by five years,” said Williams. “Is that not the definition of a total loss of accountability and control?” The Canadian Surface Combatant (CSC) project would see the construction of 15 warships for the Royal Canadian Navy at Irving Shipbuilding on the east coast. The vessels will replace the current Halifax-class frigate fleet. However, the project has already faced delays and significant increases in cost, as the price tag climbed from an original $14-billion estimate to $26 billion and then to $70 billion. The parliamentary budget officer is working on a new report on the CSC cost, to be finished by the end of February. Each year of delay could cost taxpayers more than $2 billion, the PBO warned previously. Although the DND has a new delivery date for the initial ship in the fleet, that doesn't mean that the vessel will be ready for operations at that time. “We expect delivery of the first ship in 2030/2031, followed by an extensive sea trials period that will include weapons certification and the corresponding training of RCN sailors, leading to final acceptance,” Lamirande said. No dates, however, were provided on when that final acceptance of the first ship would happen. Troy Crosby, the assistant deputy minister of materiel at the DND, denied the CSC project is in trouble. “I wouldn't call it trouble,” he said in an interview with this newspaper in November. “Is it hard? Is it challenging work? Absolutely. But I wouldn't say we're in trouble.” Other defence analysts are arguing the CSC program is salvageable with better governance and oversight. But Williams said the CSC is like a train rolling down a hill without brakes. “You're heading for disaster and people are talking about improving governance,” he said. “That won't save this project.” Canada has yet to sign a contract to build the Type 26 ship proposed by the consortium of Lockheed Martin and BAE for the CSC. So far, taxpayers have spent $739 million preparing for the eventual construction, according to figures tabled with parliament. Australia and the United Kingdom also plan to purchase the Type 26. But the first ship, destined for the U.K., has yet to be completed. The Canadian government originally said it would only accept a winning bid based on a mature existing ship design or a ship already in service with other navies. That would eliminate technical risk, as the design would be a known and tested commodity. The Type 26 carries extra risk as its design has not yet been proven. Williams said Canada could build an initial three Type 26 ships and then purchase other warships based on a proven design at a much reduced cost. Copyright Postmedia Network Inc., 2021 https://www.thechronicleherald.ca/news/canada/dnd-unable-to-say-exactly-when-delays-in-70-billion-warship-program-began-552869/