Government announces 1.4 billion transport plane deal with U.S. firm.

There is no explanation as to why the Conservatives invoked a national security clause so that they could negotiate exclusively with Boeing. Not only did no other contractors get a look-in but they will not be involved in the maintenance work either unless as sub-contractors to Boeing. We are now junior partners in the US military industrial complex but a few jobs will trickle down to Canada for maintenance and perhaps there may be a few rewards for eminent Canadian politicians that will not be made public.

Government announces $1.4 billion transport plane deal with U.S. firm
Last Updated: Wednesday, January 16, 2008 | 6:24 PM ET
CBC News
The federal government has announced the $1.4 billion purchase of 17 new Hercules transport planes to replace the air force's aging fleet.

Defence Minister Peter MacKay and Public Works Minister Michael Fortier said at a news conference in Ottawa on Wednesday that a deal had been signed with the U.S.-based aircraft manufacturer Lockheed-Martin.

One of the Canadian military's aging Hercules makes a supply run in Northern Ontario.
(Jonathan Hayward/Canadian Press) The cost includes $1.7 billion for a long-term maintenance package. Canadian defence contractors — including Airbus Military, which made an appeal to the House of Commons defence committee — have been upset that Lockheed will also be responsible for maintenance.

MacKay said officials are still working to negotiate the maintenance contract, expected by 2009, but that the government will insist the bulk of it be done domestically.

"Much of this work — 70 per cent, which is a historic percentage — will be done by Canadians in Canada," MacKay told CBC News.

"So when we take delivery of those planes, this is going to mean jobs and economic benefits and increased aerospace technology for Canadians."

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Delivery of the first C-130J Hercules — the new and upgraded version of the aging carrier — is slated for winter 2010.

More than a year ago, the Conservative government invoked a national security clause in procurement legislation and negotiated exclusively with the U.S. defence giant.

In 2006, then-defence minister Gordon O'Connor launched a rearmament drive to replace the C-130E and C-130H planes. Most were built more than 30 years ago and have been flown from the Arctic to Afghanistan.

The Hercules, considered one of the world's most successful military transports, can carry 17 tonnes of cargo or 90 soldiers with light equipment. Canada operates some of the oldest C-130s in military service anywhere.

With files from the Canadian Press