November 09, 2010 Saskatoon, Saskatchewan
The Honourable Lynne Yelich, Minister of State for Western Economic Diversification, provided opening remarks today at the local "Partnering for Success" Industry Day, highlighting the Government of Canada's commitment to facilitating growth opportunities for western Canadian aerospace and defence firms.
"Western Canadian companies in the aerospace and defence sector are important job creators in our communities," said Minister Yelich. "Our Government is committed to providing them with every opportunity to grow and excel in today's competitive global environment."
Western Economic Diversification Canada (WD) and Enterprise Saskatchewan have partnered to host the event to provide comprehensive details on the Government of Canada's Industrial and Regional Benefits (IRB) policy. An afternoon business matchmaking session will enable representatives of small- and medium-sized firms to meet with companies that have IRB obligations. The sessions could lead to new joint ventures, partnerships and investment.
"This event is an excellent networking opportunity for aerospace and defence firms in Saskatchewan," said the Honourable Jeremy Harrison, Minister of Enterprise and Minister Responsible for Trade. "This event will generate additional investment, business and job opportunities which is not just a benefit for these industry sectors, but for our province as a whole."
Through the Government of Canada's Industrial and Regional Benefits policy, Western Economic Diversification Canada is helping to facilitate industry opportunities and partnerships for western Canadian firms. Activities include identifying key federal procurement opportunities for the West, as well as promoting western Canadian businesses and connecting them with global aerospace and defence companies.
Industrial and Regional Benefits consist of contracts awarded to Canadian businesses and investments made in high-technology sectors of the Canadian economy by successful bidders on federal defence procurement projects.
Western Economic Diversification Canada works with the provinces, industry associations and communities to promote the development and diversification of the western economy, coordinates federal economic activities in the West and represents the interests of western Canadians in national decision making.
For additional information, contact:
Lloyd Suchet
Office of the Minister
Western Economic Diversification Canada
Telephone: (613) 957-7855
lloyd.suchet@wd-deo.gc.ca
Joanne Johnson
Director, Communications
Enterprise Saskatchewan
(306) 787-7967
Lionel LaBelle
President & CEO
Saskatchewan Trade and Export Partnership
(306) 787-1550
WD Toll-Free Number:1-888-338-WEST (9378)
Teletypewriter (TTY): 1-877-303-3388
WD Website: www.wd-deo.gc.ca.
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The IRB Policy provides the framework for using federal defence procurement to leverage long-term industrial and regional development within Canada. It was created in 1986 to ensure that Canadian companies can derive benefits from procurements, such as new business or investments in new technologies.
Under the IRB Policy, winning contractors are required to make investments in advanced technology sectors of the Canadian economy in an amount equal to the contract value. The investments can either be directly related to the procured item, or indirectly related to it. IRBs are the Canadian version of industrial participation, practiced around the world by over 100 countries.
Industry Canada is responsible for the administration of the IRB Policy, with the assistance of the Regional Development Agencies. Within the Industrial and Regional Benefits Directorate, there is a group of experienced IRB managers who are available to help and answer questions.
A key objective of Government of Canada procurement is to ensure that the right goods and services are purchased at the best possible price for the taxpayer. Sometimes, Canadian firms meet the procurement requirements and provide significant Canadian content in their goods or services. Other times, global firms provide goods and services that combine high-value Canadian content with world-class items sourced outside of Canada.
The IRB Policy does not dictate where the goods and services are purchased. Instead, it allows for the best available balance between quality and value for money, while ensuring that an equivalent amount of high-value economic stimulus is injected into the Canadian economy. IRBs help ensure that the Canadian economy in all regions benefits from procurement, regardless of the final outcome of the procurement process and which company wins the contract.
The IRB Policy strongly encourages prime contractors to select their Canadian partners based on what makes the best business sense, with the goal of generating long-term, sustainable business relationships in Canada. These strategic relationships stimulate the Canadian economy while helping to ensure a more competitive Canadian industry. The long-term focus of the IRB Policy provides Canadian companies with an opportunity to develop and apply their own strengths and competitive solutions and to take advantage of real business opportunities that will last years beyond the initial IRB commitment.
During the bidding process for a project with IRB requirements, bidders must submit an IRB proposal as part of their overall bid. The IRB proposal is a specific plan that outlines how the bidder plans to engage with Canadian companies over the life of the contract. The IRB proposal responds to several key requirements, such as providing plans for regional and small business participation, along with specifically identifying business activities being proposed. A team led by Industry Canada evaluates each IRB proposal to determine whether it satisfies the requirements of the IRB Policy.
The IRB Policy recognizes both "direct" and "indirect" types of business activities. Direct IRB are goods, services or investments that relate to the item being procured by Canada under the contract and direct global value chain work on strategic international fleets. Indirect IRB are goods, services or investments related to the contractor's other product or business lines or other approved investments that meet the established eligibility criteria. Both are measured for their Canadian content value (i.e., Canadian labour, goods and services).
The Government of Canada does not force winning bidders to do business with specific Canadian companies. The government asks them to identify and undertake high-value business opportunities in Canada that make good business sense to all parties involved.
The IRB Policy benefits the Canadian economy by:
- securing major investments in the Canadian economy
- providing the incentive for global prime contractors to partner with leading Canadian companies
- increasing Canadian industrial competitiveness, through improved market access of advanced-technology sectors
- facilitating the entry of Canadian firms in the global supply chains of major international corporations
- developing and maintaining a capacity in Canada to deliver long-term equipment support to the Canadian Forces and other clients around the world
- promoting growth of Canada's small and medium-sized enterprises and the development of regional industrial capacity
For more information on Canada's IRB Policy, a description of ongoing and future federal procurements subject to the IRB Policy, and the phase-in plan for the enhancements to the IRB policy, please visit the IRB website.
