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  14 avril 2020 | Local, Terrestre

  ANALYSIS: Cloud lifted from GDLS Saudi deal, but future business uncertain: analyst

  Canada's $14-billion deal to sell armoured vehicles to Saudi Arabia is going ahead and will keep a London defence giant rolling, but some say questions remain about future business between General Dynamics Land Systems Canada (GDLS) and the desert kingdom. NORMAN DE BONO Canada's $14-billion deal to sell armoured vehicles to Saudi Arabia is going ahead and will keep a London defence giant rolling, but some say questions remain about future business between General Dynamics Land Systems Canada (GDLS) and the desert kingdom. The federal government said it's lifting a moratorium on new permits for military exports to Saudi Arabia, a critical step for London since GDLS, with about 2,000 employees in London, has a nearly 40-year relationship supplying armoured vehicles to the Saudis. But Ottawa also said it's appointing an advisory panel of experts to review Canada's arms export process and to push for an international inspection for arms sales. That could threaten future business, warned analyst David Perry, vice-president of the Canadian Global Affairs Institute. The Canadian-Saudi deal, with GDLS at the centre, negotiated by the former Conservative government and inherited by the Liberal successor, had come under sharp attack, with some critics calling for it to be scrapped, amid concerns about Saudi Arabia's poor human rights record. “If I was a worker I would be tremendously relieved and happy they made the decision,” Perry said of the federal government. He stressed reviews of the contract determined there was no indication GDLS vehicles were involved in human rights violations. “This went back and forth for a few years, and the government reviewed and threatened to cancel this contract outright. I think there has been irreparable harm. If you're another country open to exports, they may be thinking twice about doing business with Canada,” said Perry. “They (Saudi Arabians) have options when it comes to sourcing. I think they may be thinking in the future about where they source (their military equipment).” Lifting the cloud from the Saudi deal comes at a critical time on the London business landscape, with the fallout of the coronavirus pandemic and the lockdowns that have brought new uncertainty for many employers. In clearing the air on the deal, the federal government also revealed it would have been on the hook for up to $14 billion if it had cancelled the contract to sell light armoured vehicles to the Saudis, a deal that dates to 2014. The review panel, however, poses a level of uncertainty in future business dealings, Perry noted. “A new export panel will offer another layer of review. I don't know how to interpret that. It depends on who is appointed to that panel,” he said. In 2018, after news broke that the Saudi government had ordered the murder of dissident journalist Jamal Khashoggi, the Trudeau Liberals announced a review of all Canada's existing arms sales to Saudi Arabia. Ottawa also slapped a moratorium on new export permits for shipments of military goods to Riyadh. Existing military contracts, such as the GDLS deal, were not affected by the moratorium. But in 2018 Prime Minister Justin Trudeau publicly talked about trying to find a way to end shipments of armoured vehicles to Saudi Arabia. Thursday, Foreign Affairs Minister François-Philippe Champagne and Finance Minister Bill Morneau said the suspension of approval of new Saudi permits is now lifted. They cited a government review last September that found no credible evidence linking Canadian exports of military or other controlled goods to Saudi human rights violations. But the moratorium on trade with the Saudis has already affected the Canadian defence sector to the tune of about $2 billion, according to a memo sent to the foreign affairs minister from two top foreign affairs and international trade officials. “(Twenty) companies that have a history of exporting to KSA (Kingdom of Saudi Arabia) suggest that approximately $2 billion in trade has been affected since August 2018. A number of Canadian exporters to KSA have suspended their business development operations . . . The open-ended nature of Canada's moratorium on new export permits, and the lack of identified conditions that would allow a resumption of permit issuance, present a high commercial risk for Canadian companies,” the memo says. Perry, who shared the memo with The Free Press, said he has heard similar concerns from the Canadian defence sector. “I have spoken to businesses that have lost business opportunities” from the moratorium on arms trade with Saudis. “This is welcome news,” he added of the lifting of restrictions, “but the government has introduced uncertainty into Canadian defence industry and exports.” Political scientist Erika Simpson at Western University also questioned the role of the panel, saying there are few details about its authority and adding that only Global Affairs has the authority to impact trade agreements. She also questioned why the contract appears to have been reduced by $1 billion in value. When the Conservatives announced it in 2014, it was worth $15 billion. Ottawa now says it is a $14-billion contract. “I think $1 billion is a lot of money. What happened to $1 billion?” asked Simpson, an associate professor of international politics. “This is good news, but I want to know where the $1 billion went.” GDLS Canada declined comment Friday. Perry also questioned the timing of the announcement. With more than three million Canadians expected to be left unemployed due to the COVID-19 crisis, Ottawa could not jeopardize thousands of jobs across Canada, he said. “As important as this is in Southwestern Ontario, it is not just Southwestern Ontario,” he said. London Liberal MP Peter Fragiskatos downplayed down the idea the review panel could dampen further GDLS business. “I don't think so. This government is behind this contract, this workforce, 100 per cent. On the contrary, I would say a review is a good thing. It will bring greater transparency to the arms program. I welcome it,” the London North Centre MP said. He also stressed the Saudi deal is only about half complete, meaning about six more years of work may remain before there needs to be a discussion about future contracts. “I am pleased to say the least. It was in the making for some time, but it is a very good result not just for the company and its workers, but for the city,” said Fragiskatos. It's too soon to draw conclusions about the future of work by GDLS for the Saudis, since that depends largely on who is at the table negotiating future deals, said Bill Pettipas, former president of GM Defence, which General Dynamics bought and renamed. Pettipas bargained several arms contracts with foreign powers, including a multi-billion dollar deal with the U.S. army to supply it with Stryker armoured vehicles. “It depends on individuals, on relationships. It will get resolved. It will normalize eventually. That relationship has been going on since the early 1980s,” said Pettipas. “Time takes care of things.” Officials with Unifor Local 27, the union for many GDLS workers in London, couldn't be reached for comment Friday. Unifor's national office declined comment. https://lfpress.com/news/local-news/analysis-cloud-lifted-from-gdls-saudi-deal-but-future-business-uncertain-analyst

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  14 mars 2019 | Local, C4ISR, Sécurité

  CADSI Report: Greater collaboration on military cyber-defence essential for keeping Canada safe from foreign attacks

  New CADSI Report: Greater collaboration on military cyber-defence essential for keeping Canada safe from foreign attacks OTTAWA, ON March 7, 2019 – Canada's current military procurement models and levels of industry-government cooperation have not kept pace with the unprecedented “speed of cyber” and could compromise national security if left unaddressed, a new report from the Canadian Association of Defence and Security Industries (CADSI) concludes. The report, entitled From Bullets to Bytes: Industry's Role in Preparing Canada for the Future of Cyber Defence , was made public today. It outlines some of the challenges associated with preparing and equipping the Canadian Armed Forces for a modern battlefield where the physical and digital are seamlessly merged. “Warfare has changed,” said CADSI President Christyn Cianfarani. “Our military is moving rapidly into a future where cyber-defence will be essential for protecting Canada and Canadian military missions abroad. How industry and government work together and get decisive cyber technologies into the hands of Canadian soldiers and intelligence agencies must change, too.” Based on a year of research and 70 interviews with government, military and industry leaders in the field, From Bullets to Bytes confirms that there are dozens of Canadian firms with cyber-defence expertise that could be leveraged by DND as it invests billions in cyber-defence programs and procurements over the next decade. The report notes, however, that government and industry still lack formal mechanisms to communicate, collaborate and build trust – and procurement cycles can take years. “Our adversaries can deploy new cyber capabilities in a matter of months, or even days," said Ms. Cianfarani. “For Canada to win on the cyber-enabled battlefield, Canadian government and industry must collaborate intentionally, the way our allies do. Now is the time to lean on Canada's national security innovation base and overhaul the procurement process to work at cyber-speed.” CADSI's report outlines a path forward, offering five core recommendations that the association believes will move Canada's military toward cyber-readiness. These include setting up a secure Canadian cyber-defence network to facilitate collaboration, increasing the pool of available experts to be used as cyber reservists, and overhauling the government's classification system and capabilities database. https://www.defenceandsecurity.ca/media/article&id=346&t=c

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  23 novembre 2018 | Local, Aérospatial

  Liberals press on with second-hand jets amid questions over who will fly them

  CANADIAN PRESS OTTAWA — The Trudeau government pressed ahead with its plan to buy second-hand fighter jets from Australia on Tuesday despite withering fire from the federal auditor general, who warned that the military might not have anybody to fly them. Six years after blowing up the Harper government's plan to buy new F-35s without a competition, auditor general Michael Ferguson targeted the Liberals' own attempts to buy jets. He first picked apart the government's aborted plan to purchase “interim” Super Hornets to bolster Canada's aging CF-18 fleet, and then its current plan to buy used Australian fighters. The government says those extra fighters are needed to address a shortage of CF-18s until a state-of-the-art replacement can be purchased and delivered — a lengthy process that will run through 2032, at which point the CF-18s will be 50 years old. But the auditor general's office arrived at a very different conclusion: The military doesn't need more planes because it doesn't even have the pilots and mechanics to operate what it already has. What it really needs, the office found, is more people. “The shortage of personnel in relation to technicians means that they don't have enough technicians to prepare and maintain the planes,” Casey Thomas, the principal auditor on the fighter jets study, told reporters on Tuesday. “And they have 64 per cent of the pilots that they need, so they don't have enough pilots to fly the planes. What National Defence actually needed was to increase its personnel.” The auditor general's report also flagged concerns that the government's plan to sink $3 billion into the current CF-18s and additional Australian fighters to keep them flying to 2032 won't be enough, as the money won't actually improve the aircrafts' combat systems. Without more money, which some analysts have suggested could mean hundreds of millions if not billions of dollars more, Canada's fighter-jet fleet will become even more obsolete, to the point where the plans might not be any use at home or overseas. Yet only a few hours after the auditor general's report was released, Defence Minister Harjit Sajjan announced that the Liberals had signed a contract to buy the 18 second-hand jets from Australia. Officials have pegged the cost at around $500 million. Sajjan also said he had directed officials to look at options for upgrading the combat systems on the CF-18s and Australian fighters, which he acknowledged would mean investing more money into aging fighter jets. Missing from the announcement: Any new funding or other initiative to increase recruiting and retention of pilots and technicians. Instead, Sajjan said the government and military have already introduced several initiatives through the Liberals' defence policy last year, such as giving tax breaks to military personnel deployed on overseas missions, to give them reasons to stay. At the same time, the minister sidestepped questions about recruitment, saying the military can't reduce its standards for new pilots. He noted that commercial airlines are also facing a significant pilot crunch. Air-force commanders have previously said the current training system, which can only produce 115 new pilots each year, a fraction of whom are fighter pilots, is not fast enough to replace all those who move on to commercial opportunities. The subtext to much of the auditor general's report on Tuesday was the question of how Canada ended up in a position where the military will be flying fighter jets until they are 50 years old. The Liberals were urged early in their tenure to launch an immediate competition to replace the CF-18s. Instead they spent two years working to buy those stopgap Super Hornets before a trade dispute with the company that makes them, Boeing, saw the government move on to the used Australian jets. The Trudeau government insists that it was doing its due diligence, but critics — including numerous retired air force and defence officials — have accused it of trying to bend procurement rules to avoid buying the F-35. Yet even before the Liberals took the reins, the Harper government was having a hard time making any progress on buying new fighter jets. The Tories championed the F-35 before resetting the entire process in 2012. That move was prompted by Ferguson's first report, which accused defence officials of misleading parliamentarians about the stealth fighter's costs and various technical issues. National Defence later pegged the full lifetime cost of the fighters at $46 billion. “Lot of people had a hand in this,” said defence analyst David Perry of the Canadian Global Affairs Institute, adding that the worst part is there is no easy or obvious solution to what has become a very troubling situation for Canada and its military. “I think our fighter force is in trouble.” https://lfpress.com/news/national/liberals-press-ahead-with-second-hand-jets-amid-questions-over-who-will-fly-them/wcm/859a3329-9d8b-4856-af7f-5c8064e778e7