20 décembre 2018 | Local, Terrestre
Saudi Arabia has fallen behind in making payments on its $15-billion arms deal with Canada, a contract that Prime Minister Justin Trudeau has said he's looking for ways to halt.
The Saudi government was short $1.8 billion in payments to the end of September for light-armoured vehicles assembled at General Dynamics Land Systems Canada (GDLS) in London, according to financial statements from the Canadian Commercial Corp., the federal Crown corporation overseeing the controversial contract.
“It is a problem. There is concern, absolutely,” a federal official with knowledge of the agreement told The London Free Press on Wednesday.
The arrears on the deal can be traced to a new regime in Saudi Arabia since the agreement was signed in 2014, and there have been delays in payments since the change, said the official, who declined to be identified.
“That changed the way everything worked, including payments,” he said of the desert kingdom's new leadership.
However, since September the oil-rich country has been making payments and has reduced the amount owed, the official added.
The deal, which the Liberals are under pressure to scuttle amid Saudi human rights abuses, including the slaying of dissident journalist Jamal Khashoggi at the country's consulate in Turkey, affects thousands of workers in the London area and in a supply chain that extends nationwide.
Trudeau, whose government inherited the deal from former prime minister Stephen Harper's Conservatives, said publicly this week for the first time that the Liberals are trying to find a way to stop the sale involving hundreds of light-armoured military vehicles built by the Canadian division of American defence giant General Dynamics.
The report by the Crown corporation handling the sale says “trade receivables” are short $1.86 billion as of quarterly statements ending Sept. 30, and that payments have been sparse over the course of about one year.
“The significant increase in past due trade receivables, is mostly attributable to the ABP contract,” the report says, referring to the armoured brigades program.
“Trade receivables are considered past due when the payor has failed to make the payment by the contractual due date.”
The payment issue hasn't been helped by recent public musings by Trudeau, who on Sunday told CTV's Question Period the government is looking for a way to halt the sale.
“We are engaged with the export permits to try and see if there is a way of no longer exporting these vehicles to Saudi Arabia,” he said, without being specific.
Such a move would devastate GDLS Canada's 1,800-member workforce in London, as well as thousands of jobs with supplier companies, said David Perry, a senior analyst with the Canadian Global Affairs Institute think-tank.
The Saudis may now feel even less inclined to write a cheque, he added.
“It does not give the Saudis a reason to catch up on payments. The government of Canada is responsible for making sure GDLS gets paid for the work it has done,” said Perry.
It also makes even less sense that Ottawa should want out of the deal now, he added. Not only would the federal government incur billions of dollars in penalties, according to GDLS Canada, but the Saudis aren't likely to pay the balance owed.
“It does not make sense. It would leave the government out of pocket,” said Perry.
A review of the quarterly reports suggest payments began slowing about a year ago, he added.
“We are right back to dealing with an unreliable client, and that is a problem,” said London-Fanshawe NDP MP Irene Mathyssen. “Work has been done and they have not seen fit to pay their obligation.”
She also slammed Trudeau for creating uncertainty around the issue. “It is a problem, it creates stress. The PM cannot make up his mind about what to do.”
As for why payments aren't being made, Mathyssen cites reports of financial issues with the Saudi government. Media in May reported soaring debt in Saudi Arabia and economic woes as a result of low oil prices.
“There have been reports they overspent, they do not have the cash they once did,” said Mathyssen. “Saudis are used to dictating to the world because they hold such significant oil reserves. They are used to calling the shots.”
The Canadian Commercial Corp. (CCC) helps businesses sell overseas and works with foreign governments to buy here. It declined comment on the quarterly reports, saying financial matters between the Crown corporation and business are confidential.
“CCC is bound by commercial confidentiality, and, as such, we are not able to disclose the details of our contracts or their management,” the company wrote in an email message.
James Bezan, the Conservative critic for national defence, blamed Global Affairs Minister Chrystia Freeland for the slowing cash flow. Her tweets in May criticizing the Saudi human rights record coincide with fewer payments made, he said.
“It is concerning. It occurred after irresponsible tweets from Freeland rather than working through proper diplomatic channels,” he said.
“The Liberals are prepared to trade away good jobs in London and southern Ontario rather than deal with this at a diplomatic level.”
Bezan encouraged the government to find other ways to pressure the Saudis, such as targeting oil imports here, instead of cancelling a contract that would result in massive job losses.
“GDLS has been on time, and on budget,” and would be the ones punished. “The government has the responsibility to work through the payments in a timely fashion,” he said.
Speaking to reporters at a year-end news conference, Prime Minister Justin Trudeau was asked about whether he'll cancel the Saudi arms deal serviced by a major London defence contractor.
https://lfpress.com/news/local-news/saudis-fall-1-8b-behind-in-under-fire-arms-deal-with-canada
9 avril 2024 | Local, Aérospatial
New airborne early warning (AEW) aircraft and funding for tactical helicopters to replace multi-role CH-146 Griffons, are among the key aerospace elements of an updated defence policy.
6 février 2019 | Local, Aérospatial
By The Canadian Press OTTAWA — The Royal Canadian Air Force is hoping to pull the trigger on the purchase of new drones within six years after spending nearly two decades weighing different options. The Canadian Forces has been working since the early 2000s to find unmanned aerial vehicles that can conduct surveillance over Canada's vast territory and support overseas missions. Yet aside from purchasing a small number of temporary, unarmed drones for the war in Afghanistan, the military has never been able to make much progress on a permanent fleet. Air Force commander Lt.-Gen. Al Meinzinger says he believes that is about to change after the Trudeau government became the first to officially authorize the acquisition of a fleet of armed UAVs through its defence policy. In an interview, Meinzinger says the air force is nearly finished drawing up options — where it has been stuck for years — and will soon move into the next phase by presenting its proposals to procurement officials. While the military has welcomed Canada's decision to buy armed drones and promised to abide by international laws, some arms-control advocates have expressed concern about the legal grey zone such weapons inhabit. The Canadian Press https://www.nationalnewswatch.com/2019/02/06/air-force-aiming-to-have-armed-drones-in-the-air-in-next-six-years-commander-3/#.XFsws1xKiUl
8 mai 2019 | Local, Aérospatial
QinetiQ has been awarded a C$51m (c£30m) contract to deliver unmanned aircraft systems (UAS) that will drive enhanced situational awareness for the Canadian Armed Forces. The contract will be delivered from QinetiQ's state-of-the-art unmanned vehicle manufacturing and operational facilities in Medicine Hat, Alberta. The vertical take-off UAS will provide Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) services to the Royal Canadian Navy and Special Operations Forces Command, for both domestic and international operations. The system, based on the UMS SKELDAR V-200 UAS, will be equipped with a number of sensors including an Active Electronically Scanned Array (AESA) radar and Electro-optic infrared (EO/IR) camera. Robert Aube, Managing Director of QinetiQ in Canada says, “We are delighted with this contract win to deliver critical over-the-horizon situation awareness to the Royal Canadian Navy and Special Operations Forces Command. This generates tactical advantages for commanders while minimising the risk to manned helicopters and personnel. As a result of the contract, we will be pleased to see a large number of jobs created in the Southern Alberta region where UAS repair and overhaul services will be carried out.” Aube continues, “We are dedicated to providing a world-class service for the Canadian Armed Forces and the information collected and used by a UAS system of this calibre will be critical for the men and women serving Canada, both domestically and abroad.” Iain Farley, Managing Director International Business at QinetiQ says, “International growth is a core part of QinetiQ's strategy and to facilitate this, we continue to make significant investments in our subsidiary businesses and complementary acquisitions. This contract provides an important proof point that this strategy is delivering. The investment we have made in Canada has helped secure our largest Canadian contract to date and provides us with a solid foundation for delivering further QinetiQ products and services into the Canadian market and beyond.” QinetiQ will work with four principal partners to deliver the ISTAR services: Canadian-UAV, Leonardo, UMS SKELDAR and Wescam: “This is an important contract win for us alongside our partners including QinetiQ and confirms our stated strategic commitment to working with global navies following our announcement last year with the German Navy,” explains Axel Cavalli-Björkman, CEO of UMS SKELDAR, the UAV joint venture between Sweden's Saab and UMS AERO GROUP of Switzerland. “With multiple systems to be delivered in Q3 this year, the Royal Canadian Navy have secured a maritime UAV platform that not only includes our heavy fuel engine manufactured by German-based Hirth Engines, but also has an ability to carry multiple payloads.” “L3 WESCAM is proud to have been chosen by QinetiQ, as it confirms our role as a trusted global supplier of advanced imaging technologies to the UAS market,” said Cameron McKenzie, Vice President, Global Sales & Business Development of L3 WESCAM. “In fact, this order marks many strategic firsts for WESCAM in the Canadian marketplace, including a first for our MX™ Series turrets to be used by the Royal Canadian Navy, a first order for our MX-8 and MX-10D in Canada and our first contract with QinetiQ in Canada.” Sean Greenwood, President, and CEO of Canadian UAVs says, “It's a privilege and an honor to be able to work with the Canadian Armed Forces and QinetiQ, especially on such a novel project. This is the foundational contract the Canadian UAV industry has been waiting for to become world-class in autonomous vehicle service delivery and technology development. QinetiQ's recognition of CUAVS' work to date with Transport Canada in developing advanced UAV operations and their commitment to supporting local SMEs has been fundamental to our growth and cannot be understated.” Wayne Smith, Head of Radar Campaigns from Leonardo says, “We are pleased to be a part of this project with QinetiQ. Our PicoSAR Active Electronically Scanned Array radar provides an unrivalled all-weather capability for Unmanned Aerial Systems. It delivers a high resolution Synthetic Aperture Radar imaging and Ground Moving Target Indication capability that will allow the SKELDAR V-200 to easily acquire a true, all-weather ground mapping and surveillance capability.” https://www.suasnews.com/2019/05/qinetiq-wins-c51m-contract-with-the-canadian-armed-forces-unmanned-aircraft-system-service-program