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Canadian aerospace seeks maximum benefits from new military aircraft purchase

Canadas aerospace sector is calling on the government of Canada to direct to aerospace one hundred per cent of the industrial benefits stemming from the purchase of new military aircraft.


September 19, 2007
By Brooke Shaw


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Canadas aerospace sector is calling on the government of Canada to direct to aerospace one hundred per cent of the industrial benefits stemming from the purchase of new military aircraft.

According to Don Campbell, chair of the Aerospace Industries Association of Canada (AIAC), These acquisitions can have profound, positive impact on Canadas aerospace industry. We urge the government to focus the industrial spin-off from these projects within aerospace. This will yield substantial and strategic industrial benefits for Canada and constitute a long-term, high quality investment for Canadians.

At issue is the Government of Canadas plan to acquire four new strategic lift aircraft, 17 new tactical lift aircraft, and 16 medium/heavy lift helicopters at an estimated total cost of $13 billion, including 20 years of in-service support (ISS). The AIAC calls on the government to require:

• Prime contractors deliver high impact industrial benefits to Canadas aerospace sector including the transfer of advanced technology and manufacturing know-how to Canadian aerospace firms, and facilitate the participation of Canadian aerospace firms – of all sizes and in all regions and operating across the commercial, space and defence sub- sectors – in contractors development programs and global supply chains;
• One hundred per cent (except sparing) of the ISS for the tactical airlift and medium/heavy lift helicopters be performed in Canada by the existing Canadian-based ISS industry;
• Full technical data packages and intellectual property be transferred by the prime contractor to the Canadian-based ISS providers selected for the job.

We see this as critical for strengthening Canadas role as a global leader in aerospace technology, and for maintaining Canadian industrial capabilities essential to a Canada first defence and foreign policy, stated AIAC president, Peter Boag. Re-investing in Canadian aerospace is a win/win for Canada. Not only will it benefit our aerospace sector – a leader in Canadas knowledge economy – but it will deliver a handsome return to Canadian taxpayers.

The industry association also recommends the creation of a government/industry consultation forum within which implementation details would be identified and managed. The long term implications of this acquisition for Canadas aerospace sector demand that the government and industry work together to ensure the best possible outcome, said Boag. We wont have an opportunity like this for many years to come.


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