Boeing deal an $8-billion 'handshake' with Bush, Liberals say
U.S. firm in line for military contract
DANIEL LEBLANC
OTTAWA -- The Harper government officially released a plan yesterday to direct $8-billion in military contracts to the Boeing Co. to buy made-in-the-USA aircraft, insisting that the same amount of money will come back into Canada.
But the Liberal opposition said the government is using an uncompetitive strategy to please the Americans on the eve of today's meeting between Prime Minister Stephen Harper and U.S. President George W. Bush.
"It's an irresponsible way for the government to move forward and they're simply doing it to please Mr. Bush. It's going to be a very expensive handshake that Mr. Harper will have with Mr. Bush," said Liberal defence critic Ujjal Dosanjh.
The Department of Public Works invoked national security and a lack of competing aircraft as it signalled its desire to buy 16 Chinook helicopters for $2.7-billion, and four Globemaster C-17 cargo airplanes at $3.4-billion. When maintenance is included, the total deal will reach $8-billion.
Public Works Minister Michael Fortier said no other aircraft are believed to offer the same capacities, and unless a competitor comes forward within 30 days, the two contracts will be awarded to Boeing.
Among other things, the government is seeking helicopters that can carry an infantry platoon of 30 fully armed soldiers, and planes that can carry 39 tonnes of material over more than 6,000 kilometres.
"Although preliminary industry research indicates that there might only be one type of aircraft that suits the Canadian Forces requirements, I want to make sure . . . that the Government of Canada asks the market about other options that might be out there," Mr. Fortier said in a news release. "We welcome competition and manufacturers are invited to submit proposals."
The government said if Boeing gets the contract, it will have to invest the same amount of money in direct and indirect benefits in Canada for work on these contracts or on other products.
But Mr. Dosanjh said there is no guarantee Canada will get the aircraft at the best possible price.
"The requirements are made in a way that there is no competition," the Liberal MP said in an interview.
Mr. Dosanjh said the government's purchase strategy, with its reliance on U.S. products, is putting Canada's sovereignty at risk. Mr. Dosanjh said the United States could prevent the Canadian Air Force from undertaking a humanitarian mission in Cuba with a C-17.
But Al DeQuetteville, the vice-president of Boeing Aerospace in Canada, said the Liberals have it wrong and that Canada will have full control over its planes. "It's nonsense," he said, pointing out that the Australian and the British air forces have also bought C-17s.
The Canadian Forces used to own seven Chinook helicopters, but they were sold to the Netherlands in the mid-1990s because they were too costly. Mr. DeQuetteville said the Chinook has been modernized and costs 50 per cent less to operate and maintain now.
Also yesterday, Public Works launched a process to purchase 17 aircraft to replace Canada's fleet of Hercules transport planes. The government is seeking letters of interest from companies that want to bid on the $4.9-billion contract.
