The Harper government’s $723-million deal with a U.S. aerospace firm for the maintenance of Canada’s new transport planes will provide work for western Canadian firms, but won’t spell any relief for Quebec’s ailing aerospace industry.
The contract with Lockheed Martin is reminiscent of another deal in the mid-1980s, concluded by the Mulroney government which inflamed passions across the country.
In that instance the Mulroney government awarded a contract to maintain CF-18 jet fighters to a Quebec-based aviation firm even though a western company had a bid considered to be lower cost and better value.
The difference this time is that while western firms will share in the contract to maintain the C-130J transport planes, aerospace industry insiders say the deal provides little high value work for any domestic firms. Much of that work, they note, will be done in the U.S.
That, however, hasn’t stopped the Bloc Québécois from pointing out that the contract is a snub to Quebec, home to 55 per cent of the country’s aerospace industry. “The government has for some time been trying to shift the aerospace industry out of Quebec,” said Bloc defence critic Claude Bachand. “So I’m not surprised at all about this.”
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The spoiled brat me me me BLOC can just go and screw off. I’m going to put some cash into crying towel stocks they’ve got nowhere to go but up in Canada after this announcement.
Misleading headline since it suggests the Government intentionally excluded Quebec. If the Bloc actually has any evidence that this is the case then they should either put up or sfu.
It can be assumed that it was an open bid contract, and that the lowest bidders won. Quebec firms were obviously not the lowest bidders, probably because of the large provincial tax considerations that had to be factored into the bid that has made Quebec firms uncompetative in open bid situtations.
The only problem I ever had with the Mulroney contract was that it didn’t provide the best bang for the buck. If a firm wants to maintain aircraft then let them provide the best service for the lowest price. I trust that is the case in this instance.
How will Gilles handle this. Quebec better get ready for another set back, one Ted Morton makes a new equalization deal. Charest and Dalton have stated on the world stage they don’t want any dirty money from AB or Sask, and a lot of us are prepared to grant their request.
Of course, the Bloc head seemed to forget to mention that the 55% of Canada’s aerospace industry is in Quebec only because of previous governments buying off Quebec. Canada’s aerospace industry would do much better in Western Canada than it does in Quebec.
TORIES SHUT QUEBEC OUT OF $723 M DEAL
And the alternative is what? Another Mulroney-Bristol Aerospace decision, circa 1986? Mulroney justified that decision as being “in the interests of national unity.” For once, we’ve had a major aerospace industry tender go through and it hasn’t be corrupted by politics. So of course “Quebec Inc.” doesn’t like it. That’s just not the way things are done there.
Correct me if I’m wrong but didnt a previous federal government over turn awarding a jet figher maintenance contract to the lowest bidder located in Manitoba in favor of a higher priced Quebec based company? Perhaps thats what ‘Raging Ranger’ is referring to.
Besides, Quebec based Bombardier does quite well with what I believe is federal government subsidies. Again, correct me if I’m wrong.
Read that as : Bombardier shareholders benefit from federal government subsidies to areospace industries, located in Quebec. They pay nice dividends, too. Funny that – dividends, paid out of “after tax money”. Why do they need subsidies then, they are making a profit aren’t they? I could make the same case for GM in Ontario.
Most salient point, jt. Corporate subsidies need ditching yesterday where profits continue to ratchet up. That’s a no-brainer. ENOUGH taxpayer abuse.
The money is in the preferred share structure. BBD.PR.C shares effectively don’t “trade” priced at $22, the yeild on these is 7%. The BBD.PR.D shares “trade” at $18.48 with a 7% yeild as well. You buy these when issued, so “insiders” are in line ahead of you for these shares and their juicy dividends. Once bought they really don’t trade on the open market, unless somone dies and estates sell them. The common shares: BBD.B trade at $5.54 today and yield 1.8%. You’d do better buying a bank stock.
hynd is correct regarding taxes. provincial sales tax is set to increase. this was planned after the gst was reduced but only implemented now with the recession used as an excuse. like most places public works is being used as a kick start for the economy, problem is the constructiion instury is corrupted to the max in quebec and as a result public works cost an estimated 30% more here in quebec. no wonder john charade moved so fast to shut down any inquiry.
recall this all got started during the montreal election. nothing new here. remember a few years back, during the grand prix, an overpass, under construction collapsed killing a few people in a car? turns out he company doing the work, beaver construction, no longer had a license to operate but of course they still managed to get government contracts.
Good point, Paul. The ‘corruptocrats’ extracting 30 percent higher charges in Quebec, IS a file to rework. Savings there and all.
Thanks for the ‘heads up’, jt. You inform us as usual and it’s appreciated.