Canadian Press,
OTTAWA: The federal government has delayed a $12-billion purchase of military aircraft until after the next election, deferring political fallout over buying foreign products, The Canadian Press has learned.
Key cabinet ministers and the defence chief faced “passionate” aerospace industry representatives Monday night. They had to deflect claims they were tailoring the purchase of planes and helicopters to eliminate Canadian competition in favour of specific foreign-built craft they want.
“It's unanimous – we're not moving with it now,” a government official said on condition of anonymity.
“We're not moving with this before an election.
“It's all on the basis of the ferocious lobbying by industry. It's all Toronto-Montreal-Bombardier politics.”
Defence Minister Bill Graham said Tuesday that an election would “inevitably delay the capacity of the government to make major procurements.”
“We don't make major procurements during elections,” he said.
But sources say it's become evident the purchase of tactical transport aircraft, heavy-lift helicopters and fixed-wing search-rescue planes from the United States and Europe will open a political Pandora's box in the key election battlegrounds of Ontario and Quebec.
The issue has created unease in the federal cabinet, where Graham – who has promoted fast-tracked military procurements – could find himself at odds with colleagues whose constituents work in the industry.
The defence chief, Gen. Rick Hillier, pitched the plan to buy aircraft to cabinet ministers Monday, before he and Graham led a government delegation into an evening session with industry officials.
The government proposal, which would see the first deliveries within three years, lays down specific requirements for all three types of aircraft, plus a handful of Arctic utility planes.
Depending on the aircraft, performance-based requirements include specific minimum capabilities of speed, range and manoeuverability, takeoff-landing, altitude and climate, and space and payload.
They've also included fleet size and delivery date requirements.
“If you don't have it – sorry . . . you can't design it,” said a government official, commenting on the aircraft that are needed.
The industry complains Ottawa is ignoring economic and regional development by directing its contracts toward Italy's Alenia C-27J SaR aircraft and the U.S.-made Hercules transport plane and Chinook helicopter
“Our people were passionate,” said Tim Page, executive director of the 430-member Canadian Defence Industries Association.
“They demonstrated a commitment to contribute to a strengthened defence and security industrial base in this country, and were encouraging the government to think and act strategically as it makes decisions on defence procurement in order to best leverage advantages for Canada.”
Industry has been calling for a “fair and transparent” process, he added.
The Conservative defence critic, retired general Gordon O'Connor, says he's concerned the government is rushing the process unnecessarily and has made the requirements “so precise only one solution's possible.”
“They're basically saying that these are needed tomorrow morning for Afghanistan and that's not true.”
“I don't think having a legitimate competition . . . would add much time to this process.”
Department officials say the requirements may be specific but they do not rule out bids by competing companies. The military wants about 15 of each aircraft. It will piggyback the Arctic planes on the SaR order.
Quebec-based Bombardier has hired the lobbying firm of Hill and Knowlton to press its case on Parliament Hill. Bombardier officials did not return phone calls on Tuesday.
“They're spinning, saying it's directed procurement and it's not,” said one government official. “There's a little bit of frustration here because the industry . . . has been pushing for a streamlined, accelerated procurement process for years based on performance indicators.
“We're giving them that and now they scream: 'Not good enough!'
“To suggest that this is not true competition is just hogwash.”
Page said there's a disconnect between how government and industry define performance specifications.
“I don't know that there are too many people around this town who are very expert in coming up with a good definition of what a true performance spec should look like.”
