See Also: Backgrounder — Canada's Industrial and Regional Benefits Policy
News Release: Contract Boosts Jobs and Streamlines Military Procurement
Speaking Points
The Honourable Christian Paradis, PC, MP
Minister of Industry
Mirabel, Quebec
August 31, 2011
Check Against Delivery
Thank you very much, Richard, for your warm welcome.
I am pleased to be here with you today on behalf of our Prime Minister, Stephen Harper. I want to thank you all for coming to this announcement.
L-3 MAS is a leading Canadian provider of aircraft support services to government departments and agencies and private sector clients. Congratulations on your 25 years of hard work and dedication to the aerospace and defence industries.
As we have said many times, the economy remains our government's top priority. With the economic recovery still fragile, we continue to focus on creating jobs and economic growth.
So I'm very pleased to be here to announce another example of our government's support for the aerospace industry. This announcement affirms yet again our commitment to creating jobs in this region, which has such important aerospace capabilities.
In 2004, we awarded an initial contract to L-3 MAS for the maintenance of the CF-18 primary air vehicle fleet.
And last year, the Prime Minister announced an amendment to that contract with L-3 MAS for the continued maintenance of the CF-18 fleet.
Today, it gives me great pleasure to announce an amendment to the current CF-18 contract to integrate an Optimized Weapon Systems Support element to it.
This amendment puts the focus on service. It aims to reduce the number of contracts required to support the fleet by bundling them under broader, multi-year contracts.
Canadians will be happy to learn that this new approach to procurement will decrease the paperwork burden and increase efficiency by reducing the number of contracts the government has to manage.
This is another example of the Government of Canada's commitment to cut red tape in military procurement, reduce the number of contracts it manages and save money for taxpayers.
Canadians demand the best value for their hard-earned dollars — and this contract will give them just that.
This $111-million amendment applies to the current contract, which is valid until March 31, 2017, and provides for three additional option years if required. The contract will provide the CF-18 aircraft with support for its final years of flight.
Our government is determined to provide our men and women in uniform with the equipment they need to do their job at home and abroad.
We also offer solid support to the men and women who work in Canada's world-class aerospace industry.
This industry is a key component of the Canadian economy and to that of Quebec. It generates annual revenues of more than $22 billion and provides well-paying, highly skilled jobs to 80,000 people in the country — almost half of which are here in Quebec.
The government has several mechanisms in place to support the aerospace sector — in particular, the Strategic Aerospace and Defence Initiative, the National Research Council Canada's Institute for Aerospace Research, and our participation at the Farnborough and Paris international air shows.
I would also like to mention Canada's Industrial and Regional Benefits (IRB) Policy. The IRB Policy ensures that defence firms that are awarded Government of Canada contracts invest back into the Canadian economy.
The IRB Policy has brought about a portfolio of more than $20 billion in commitments in all regions of the country. This value will continue to grow as our government makes new investments in equipment for the Canadian Forces.
Today's announcement will increase the value of this portfolio, as Canada's IRB Policy will now apply to this contract.
Ladies and gentlemen, our government is not only procuring important equipment and services for our military from L-3 MAS but also guaranteeing that this company will invest back into Canada.
Thanks to this contract amendment, we can honour our commitment while creating and preserving jobs in the region.
The economy and jobs remain our government's top priority.
Canadians can have confidence in the future. We have a solid plan and our economic performance is more than enviable.
Today's announcement here in Mirabel reflects our confidence in L-3 MAS and in the other members of Canada's innovative, export-producing aerospace industry.
Thank you.
