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  21 décembre 2020 | Local, Naval

  Editorial: Choppy waters for Canada's warship program

  The Canadian Surface Combatant project is moored in layers of unnecessary secrecy. Information that has trickled out has been fragmented and contradictory. This suggests anything but smooth sailing. Author of the article: Editorial Board Perhaps, one day, Canada will have 15 splendid new warships, outfitted with cutting-edge technology, that boost our naval security, create thousands of high-quality jobs and offer myriad industrial benefits. But meanwhile, the project to build the Canadian Surface Combatant vessels remains moored in layers of unnecessary secrecy. The information journalists and the Parliamentary Budget Officer have gleaned to-date has been fragmented and contradictory. This suggests anything but smooth sailing. For one thing, there is the issue of cost. The plan to construct the warships has navigated its way through federal governments since the 1990s, but won't start until 2023. It has been delayed time and again; project requirements have changed; and most significantly, the price estimate has soared. Let's start there. The original $14-billion estimate for these ships is now around $70 billion, according to experts. And, as explained by the Citizen's David Pugliese, officials have done everything possible to keep these swelling costs under wraps. While MPs focus on scandals such as the WE Charity debacle (which involved just under $1 billion in grants), there's been little serious parliamentary scrutiny of the spiralling costs of our new-age warships. Next came allegations of bid-rigging (strenuously denied by the government) from some potential contractors, after the procurement rules were changed. In one legal filing, a company noted the parameters of the CSC project has been altered 88 times during the process. Third, while politicians and bureaucrats have argued there will be thousands of high-paying jobs and other industrial benefits, insiders are more dubious. There are no consequences to contractors who don't meet job targets. What is truly scandalous about the shipbuilding affair, however, is the blind insistence on secrecy from all levels of government. Canadian taxpayers will be on the hook for $70 billion (and perhaps more, by the time the first ship sails). Yet journalists from this news organization and others have seen straightforward questions go unanswered; have been threatened with lawsuits; or have had access-to-information queries (that's the law designed to get answers out of government) stalled for years. The Parliamentary Budget Officer has been refused information that was nonetheless shared by government with lobbyists and potential contractors. Project defenders may deride those who raise problems. Yet with so much secrecy, it is impossible for a thinking voter to feel full confidence that the government is competently steering one of its most important files: the nation's defence. Such stonewalling reeks of confusion or incompetence. It's unacceptable in a liberal democracy, and must change. https://ottawacitizen.com/opinion/editorial-choppy-waters-for-canadas-warship-program

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  14 juin 2018 | Local, Aérospatial, Naval, Terrestre

  Trade dispute could leave U.S. firms out of the running to sell military equipment to Canada

  U.S. President Donald Trump's tirade against Canada and threats to punish the country could undermine efforts by American firms trying to sell fighter jets and other military equipment to the Canadian Forces, warn defence and industry analysts. One European firm, Airbus, has already been talking with Canadian officials to pitch its plan to build fighter jets in Quebec as it positions itself to win the $16-billion deal to replace CF-18 aircraft. An Italian aerospace firm, Leonardo, is looking at building helicopters in Nova Scotia as it moves towards negotiations for a search-and-rescue aircraft modernization project the Department of National Defence says will be worth between $1 billion and $5 billion. Trump has hit Canadian aluminum and steel with tariffs, claiming their import is a threat to national security. After the weekend G7 meeting and Prime Minister Justin Trudeau's reaffirming that Canada would reciprocate with tariffs on specific U.S. products, Trump vowed more economic grief that will “cost a lot of money for the people of Canada.” Trump's move comes at a time when European firms are courting the Canadian government, particularly on big-ticket defence items such as aircraft and warships. Billions of dollars in new purchases are potentially at stake and European firms had a strong presence at the recent CANSEC military equipment trade show in Ottawa. “Trump certainly isn't helping U.S. defence companies who want to sell to Canada,” said Martin Shadwick, a defence analyst in Toronto. “It would be very difficult at this point from a political optics point of view for the government to announce awarding contracts to any American firm.” Shadwick said whether that situation will continue for the next several years, when for instance the decision on new fighter jets is supposed to be made, would depend on any further actions by the president. Two U.S. aircraft, the Boeing Super Hornet and the Lockheed Martin F-35, are among the top contenders in that jet competition. The other three aircraft are from European companies. An earlier trade dispute with Canada has already backfired on Boeing and the Trump administration, costing the U.S. billions in fighter jet sales. Last year Boeing complained to the U.S. Commerce Department that Canadian subsidies for Quebec-based Bombardier allowed it to sell its civilian passenger aircraft in the U.S. at cut-rate prices. As a result, the Trump administration brought in a tariff of almost 300 per cent against Bombardier aircraft sold in the U.S. In retaliation, Canada decided against buying 18 new Super Hornet fighter jets from Boeing. That deal would have been worth more than US$5 billion. Christyn Cianfarani, president of the Canadian Association of Defence and Security Industries, said it is too early to determine the impact of the U.S. tariffs on the domestic defence industry. “Tariffs are never good for trade or business,” she added. “CADSI is monitoring the issue and consulting our members to better understand the potential impact to Canadian firms, both in terms of the direct impact of any tariffs and the more indirect, long term impact on supply chains and market access,” she said. There is growing concern that Canadian aviation firms could be hurt by Trump's aluminum tariffs. The Aerospace Industries Association of Canada did not respond to a request for comment. But its counterpart in the U.S. has voiced concern that American aerospace companies could feel pain. In March, the U.S. Aerospace Industries Association noted it was deeply concerned about Trump's tariffs on steel and aluminum as it “will raise costs and disrupt the supply chain, putting U.S. global competitiveness at risk.” “There is also a significant threat for retaliation from other countries towards American made products,” the association noted in a statement. Canada is the largest exporter of aluminum and steel to the U.S. http://nationalpost.com/news/politics/trade-dispute-could-leave-u-s-firms-out-of-the-running-to-sell-military-equipment-to-canada

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  31 décembre 2018 | Local, Aérospatial

  Criteria for “Boeing clause” in fighter jet competition to be outlined in the new year

  DAVID PUGLIESE, OTTAWA CITIZEN In October, the Canadian government sent out its draft request for proposals to aerospace firms expected to bid on replacing the CF-18 fighter jets. The aircraft that are being considered in this competition are Lockheed Martin's F-35, the Eurofighter Typhoon, Saab's Gripen and the Boeing Super Hornet. The aerospace companies will provide feedback on the draft request for proposals and after that is received the final RFP will be issued and bids required by May 2019. Industry is expected to provide feedback on a number of issues, including the so-called “Boeing clause.” The Canadian government has introduced the change to the standard procurement process with a new provision that defence analysts say was aimed directly at Boeing. The move came after the U.S. firm complained to the Trump administration that its Quebec-based competitor Bombardier was receiving unfair Canadian government subsidies on the production of its C-Series civilian passenger aircraft. The U.S. ruled in favour of Boeing, resulting in Bombardier facing duties of almost 300 per cent on sales of its C-Series planes in America. The Liberal government retaliated against Boeing's complaint by cancelling plans to buy 18 of the company's Super Hornet fighter jets at a cost of around $6 billion. In addition, as part of the competition for the new fighter jets, Canada announced it would assess a company's “economic behavior” in the years leading up to the competition. Navdeep Bains, the Minister of Innovation, Science and Economic Development, said if a firm has caused economic harm to Canada that would be at a distinct disadvantage in the fighter jet competition. But the Canadian government hasn't yet outlined its criteria for the controversial clause. Jeff Waring, director general for industrial benefits policy at Innovation, Science and Economic Development Canada recently told Esprit de Corps military magazine that the federal government is “still finalizing the assessment tool” for that clause and will continue to discuss the issue with industry. The details for the clause will be outlined before the final request for proposals is issued, he added. https://ottawacitizen.com/news/national/defence-watch/criteria-for-boeing-clause-in-fighter-jet-competition-to-be-outlined-in-the-new-year