Speaking Points

The Honourable Tony Clement, PC, MP
Minister of Industry

IMP Aerospace — Industrial and Regional Benefits
of CH-147 Chinook Acquistion

Enfield, Nova Scotia
August 10, 2009

Check Against Delivery

Good morning. It is my pleasure to be here with you this morning to share some good news that will have significant economic benefits not only for IMP Aerospace and Halifax but also for Canadian companies and communities from coast to coast.

As my colleague the Minister of Defence said, our government ordered 15 state-of-the-art CH-147 Chinook helicopters from Boeing earlier this summer. While the acquisition of these aircraft will go a long way for our military, an independent analysis of the economic impact estimates that it will also create 5500 direct jobs in our aerospace and defence industry and the opportunity for 15 000 indirect jobs across the country. And the in-service support of these helicopters is expected to generate twice those job numbers.

These jobs and opportunities are the result of Canada’s Industrial and Regional Benefits, or IRB, policy.

The IRB policy requires companies, like Boeing, to generate new work equal to or greater than 100 percent of the value of the contract in high-quality, advanced-technology business here in Canada. In this case, the Chinook project will generate billions of dollars in economic activity as a result.

In fact, this is far from being an isolated deal. Since we first announced our Canada First Defence Strategy procurements in June 2006, the government has leveraged nearly $4.5 billion in contractual commitments from companies like Boeing and its peers. This is $4.5 billion back into our economy in the form of jobs, investments in research and development, and other economic activity.

Small and medium-sized enterprises across the country will see more than $600 million in contracts awarded to them thanks to the IRB policy’s application on the procurements made under the Canada First Defence Strategy since 2006. Canada’s post-secondary institutions will see nearly $11 million.

The bottom line for Canadian manufacturers is that IMP workers here will make components that are essential to Canada’s 15 Chinooks. For the Atlantic region as a whole, the benefits related to our Canada First Defence Strategy procurements will draw more than $385 million in contracts.

In Quebec, Canada First Defence Strategy procurements will generate over $750 million worth of contracts; and, in Ontario, there has been a commitment of nearly $700 million in contracts.

Out west, IRBs related to Canada First Defence Strategy procurements will draw more than $400 million in work.

In the coming weeks, we will be making further announcements across the country related to the IRB work packages associated with this Chinook contract.

This is good news for all Canadians, civilians and soldiers, from coast to coast.

This good news is a result of our IRB policy, which provides a strong incentive for prime contractors to bring Canadian companies into their global supply chain to do long-term, high-value work on their larger international fleets of aircrafts.

The IRB policy delivers significant export opportunities for Canadian companies.

This new business being generated in Canada means that we hold an enviable place in the global aerospace industry.

We rank among the top five aerospace countries in the world. Our domestic aerospace industry, both civilian and defence, employs more than 85 000 skilled professionals in over 400 firms across Canada.

Canada is also a major exporter of aerospace products, and our aerospace industry is a significant contributor to Canada’s technology capacity. In 2008, Canadian firms recorded sales of over $23 billion.

Canada’s aerospace industry is a vital component in driving the Canadian economy. We know the pressures placed on it by challenging financial conditions and increasing global competition.

One of the reasons I am optimistic of this deal is because of Boeing’s long-standing commitment to Canada of over 90 years.

Canada is Boeing’s second-largest global supply base, spending over $1 billion in Canada every year. It has more than 200 suppliers across the country, in Western Canada, Ontario, Quebec and Atlantic Canada.

Our government is focused on creating new business opportunities and partnerships for Canadian aerospace firms. This will translate into a stronger and more competitive Canadian aerospace industry in the future.

Our government is creating the conditions for productivity and competition to thrive in Canada. Part of this involves promoting science, technological advancement and innovation-led business development.

We want our IRB policy to be in synch with current business conditions. Our goal is to ensure that the policy continues generating long-term, strategic business relationships for Canadian suppliers for years to come.

You are on the front line, helping to transform Canada into a global technology leader while equipping the Canadian Forces so they can better protect all of us.

Thank you.