By Ken Pole | March 23, 2017 Estimated reading time 4 minutes, 46 seconds.
The federal government is consolidating its Strategic Aerospace and Defence Initiative (SADI) and similar programs into a new Innovation Canada platform it says will pay out $1.26 billion over the next five years.
Finance Minister Bill Morneau did not specifically mention the change in his March 22 budget speech; the information was buried in his department’s 278-page main budget document, but it did not include specifics. A government official in the budget media lockup acknowledged to Skies that since there was “no carve-out” of individual programs, there was no guarantee of increased or even sustained growth of funding for SADI, which was established a decade ago.
Overall, however, the government says consolidation of “dozens” of innovation-support programs should facilitate access to funding by “reducing legwork and paperwork, providing more timely and relevant access to services, and ultimately putting more money in the hands of Canadian innovators.”
There were some financial specifics in the budget document, including an additional $950 million over the next five years to accelerate development of “a small number” of technology “super-clusters” it says will attract “anchor” companies from around the world.
“Successful clusters like the ones in Silicon Valley, Berlin, Tel Aviv and the Toronto-Waterloo corridor contribute significantly to both regional and national economies,” notes the document.
Access to this funding would be on “a competitive basis in support of a small number of business-led innovation super-clusters”—including advanced manufacturing–which may encompass the aerospace sector.
Looking to “expand the role of Canadian firms in regional and global supply chains,” the government cited the $54 million it announced last May for MDA Systems Ltd. and its partners to collaborate on new satellite technologies. It was the first project funded under a new technology demonstration program designed to foster early research and development.
On the military aviation front, the government reiterated its commitment “to ensuring the Canadian Armed Forces has the tools it needs to defend Canada and North America, and to contribute with our allies to a wide spectrum of operations globally.”
To that end, it was moving forward on several key programs.
One is its planned sole-source acquisition of 18 Boeing FA/18 Super Hornets to address a “capability gap” until a decision is made on the eventual replacement for the CF-188 Hornet fleet through “an open and transparent competition.”
The other is the long-overdue acquisition of new fixed-wing search and rescue (FWSAR) aircraft to replace its aging de Havilland Buffalos and the RCAF’s older Lockheed Martin C-130 Hercules. The government’s decision to buy C295Ws from Airbus is being challenged in Federal Court by the Italian-based Leonardo conglomerate, which argues that the Airbus platform is fundamentally unsuited to the Royal Canadian Air Force SAR mission.
Ongoing funding for the FWSAR project was addressed in the budget document, notably a willingness to hold back Department of National Defence funds to pay for it beyond the 2035-2036 fiscal year.
“Total funding available to National Defence for large-scale projects is $83 billion over the next 30 years,” the budget document explains. “To ensure that funding is available when key capital acquisitions are to be made, funding that is not yet allocated to specific projects, or that cannot be spent due to unforeseen delays in planned projects, may be moved forward into the future when it will be needed.”
That would require the reallocation of $8.48 billion of funding from the 2015-2016 to 2035-2036 period to “future years” for the FWSAR project, but a government official could not give Skies a breakdown.
“While there is sufficient funding available . . . the expected profile of large-scale capital funding does not align with the timing of expenditures associated with these projects.”
Expecting to release the results of its year-old Defence Policy Review in the coming months, the government said that will include funding consideration. “A key objective will be to provide the military with stable and predictable budgets that will enable effective long-term planning.”
The Federal Government treats the world like a big discount supermarket for its defensive needs…that includes 4 broken down British submarines . We have the capability to provide our own , but , rifles , a Colt USA design , pistols , probably Belgium or US design , tanks are German , fighters are Boeing , transports heavy lift are Boeing or Lockheed . The Buffalo has provided outstanding service for about 40 years and Viking Air of Victoria can re-engine and re-instrument a brand new model stol Buffalo aircraft that will handle any rudimentary airstrip up north or SAR application . The USA commits to buying it’s own industry produced needs , this gives great pride and jobs to it’s people . Our Government has no idea how BUY CANADIAN would generate not only jobs but much more industrial growth , help get us out of our hewers of wood and drawers of water mentality…wake up FEDS before you give away our country to foreigners , completely !! You want to keep shopping at the supermarket for any need , fine , you pick a Canadian one every time ! So there will be a multi year development curve , but considering how deplorable has been the selection process over the years and a complete embarrassment , to boot , investing in your own people will bring huge long term rewards…..start now !!