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VesselFinder developerFinance Minister Joe Oliver says he has no plans to sell off defence manufacturing in the wake of the federal government’s decision to strip Lockheed Martin’s C-130 military transport plane of its $7 billion order.
A report from the Globe and Mail quoted Mr. Oliver as saying he would “not be taking any steps” that would cause a loss of skilled jobs in Canada’s aerospace sector.
But he also suggested that Ottawa does not plan to offer the $7 billion to any other manufacturers to replace the C-130 contract, which was originally awarded to a consortium of Canadian and U.S. companies.
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“This is not a situation where we’re not going to do anything,” Mr. Oliver told the House of Commons on Wednesday morning, as the government sought to sell the Harper government’s policy of not purchasing military hardware from the United States.
He was asked whether the government would be open to taking the long-delayed replacement for the C-130 from any other manufacturers, and whether that could entail the loss of skilled jobs.
Mr. Oliver said his administration’s policy is to look for competitively priced replacement aircraft from “other countries.”
On Tuesday, Prime Minister Stephen Harper told reporters he had no plans to reopen the C-130 contract, saying the government will order the next generation of military transport aircraft from Boeing.
The C-130 is scheduled to be replaced by an Airbus A-330. The contract was originally awarded to Lockheed, along with the U.S. defence giant United Technologies, but a series of delays and cost overruns put the program in doubt.
Mr.
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