Ford, Legault call on Ottawa to allow Bombardier to compete for surveillance aircraft contract
The topic is on the agenda for the premiers' meeting in Winnipeg
The premiers of Ontario and Quebec have joined forces to call on the federal government to launch a procurement process that would allow Quebec-based Bombardier to compete for a multi-billion dollar contract to replace the Royal Canadian Air Force's surveillance planes.
The federal government has come under fire for considering a sole-source contract with U.S. giant Boeing for the aircraft. Ottawa maintains that no final decision has been made.
Now, Quebec Premier François Legault and Ontario Premier Doug Ford are asking other provincial leaders at the premiers' conference underway now in Winnipeg to put pressure on the federal government to consider Bombardier's pitch.
Ford said he's a "big believer in making sure we manufacture everything in Canada."
"Right now there's a big footprint with Bombardier here in Ontario and we just want to endorse them to have a fair process," Ford said in Winnipeg.
"If Boeing's better, then Boeing gets it. If Bombardier's better, they get it. But it has to be a fair and transparent process. I love things made in Canada."
WATCH: Premier Ford supports opening competition for surveillance planes
Canada made a formal request to the U.S. in March to purchase its P-8A Poseidon surveillance aircraft, which are already used by allies. The federal government said it's the only aircraft on the market that meets the air force's requirements.
The U.S. State Department gave the green light in June for Canada to buy up to 16 advanced P-8A planes from Boeing at an estimated cost of roughly $7.8 billion Cdn.
Bombardier has criticized the plan and has campaigned publicly to put forward its own proposal. The Quebec company partnered with rival General Dynamics to offer Canada a militarized version of its Global Express 6500 aircraft.
Bombardier released a new report by PricewaterhouseCoopers on the opening day of the premiers' meeting. The report claims its plan could support 22,650 jobs directly or indirectly through its supply chains in Atlantic and Western Canada and lead to $800 million in tax revenue for different levels of government.
Legault said he wants premiers to press the federal government to give Bombardier an opportunity to compete, "instead of going directly with Boeing."
"It's an important contract and we can understand the U.S. government must put a lot of pressure on the Canadian government, but we have a Canadian company, Bombardier, having plants in Ontario and Quebec that can supply what is needed," Legault said in Winnipeg.
Boeing's plan could create an annual benefit to the Canadian economy of $358 million and more than 2,900 Canadian jobs, said a study conducted by Doyletech.
Boeing said the industrial and technological benefits are connected to jobs in Quebec, Ontario, Atlantic and Western Canada related to innovation, clean technology programs, initial training and interlocking supply chains.
Boeing has facilities in Winnipeg that produce parts for commercial planes. Manitoba Premier Heather Stefanson, who is hosting the premiers' conference, said her focus is on "economic development opportunities here."
"I will continue to support Manitoba companies so they can continue to build and expand the jobs here in Manitoba ... That's always been a focus of mine since I've become premier and that's never going to end," said Stefanson.
Defence procurement expert David Perry said it's not every day that premiers get involved in defence procurement decisions.
"It's come up in the past before but it's not incredibly common," said Perry, the president of the Canadian Global Affairs Institute.
He said that in the past, political pressure has helped to sway federal procurement decisions.
He pointed to the Davie shipyard as a recent example. In response to intense lobbying by the Quebec-based Chantier Davie, Prime Minister Justin Trudeau announced in April that the Davie shipyard would join a club of shipyards eligible for billions of dollars in federal work. Legault stood alongside Trudeau during the announcement and announced $519 million in provincial support for Davie.
Perry said the government's approach to replacing Canada's air force surveillance planes is "kind of an unusual situation." He said the government initially indicated it was open to other options but proceeded to seek U.S. congressional approval to purchase the planes.
"I'm having a difficult time thinking of another example where we have done that," said Perry.
He said that since the government has not offered an "articulate reason" for not following the normal process, it's "understandable" that people are calling for an open competition.
Perry said there's a high level of interest in the contract because of how expensive it is to replace Canada's decades-old surveillance planes. The aircraft were purchased several decades ago and have gone through extensive modernization and life extensions over the years. He said it's not just the aircraft that are being replaced — it's also surveillance equipment and, in some cases, weapons.
"So when you buy a bunch of big airplanes and you put in a bunch of fancy gear into them, the price tag gets pretty high," he said.
Bombardier said in a media statement it hopes "the premiers not only discuss it, but commit to engaging the federal government on it."
Procurement Minister Helena Jaczek's office said in a media statement that it is "important that we ensure significant economic benefits" and it hasn't made a final decision yet.
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With files from Murray Brewster