- FMA
- The Fabricator
- FABTECH
- Canadian Metalworking
Federal economic development minister says Bombardier aid request being studied
The request came as the Quebec government pledged $1.3 billion in October to help Bombardier complete the CSeries aircraft line.
- January 11, 2016
- News Release
- Fabricating
The federal economic development minister says he is continuing to examine the request for financial aid from struggling aerospace giant Bombardier Inc.
"It's really about making sure we go through the process and evaluate all the key factors," Navdeep Bains said Thursday following an unrelated announcement.
"We understand the significance of the aerospace sector. We'll keep that in mind and take a holistic approach. But we're really going to look at it at the business case level.''
There is no set timetable, he added.
Bombardier CEO Alain Bellemare asked Ottawa for money late last year.
The request came as the Quebec government pledged $1.3 billion in October to help Bombardier complete the CSeries aircraft line in an effort to reassure potential customers.
At the time, Quebec Economy Minister Jacques Daoust said he expected Ottawa to also help Bombardier and match the Quebec government's US$1-billion financial investment in the commercial aircraft that was certified by authorities ahead of entering into service in the coming months.
The Quebec government will own 49.5 per cent of a new joint company with Bombardier that would be solely responsible for the CSeries aircraft and give the province a say in the development of the aircraft. There is also a promise the company would keep headquarters, manufacturing and engineering facilities in the province for two decades.
The Quebec government defended its investment by saying the company is simply too important to dismiss, given the industry provides tax revenues and jobs that pay well.
The Caisse de depot et placement du Quebec, the provincial pension fund manager, is also investing US$1.5 billion for a 30 per cent stake in Bombardier's railway division.
Neither the federal government nor the aerospace giant has indicated how much Bombardier wants from Ottawa, but Prime Minister Justin Trudeau has said he would need to see a solid business plan before injecting federal cash.
Bains says the federal government is well aware of the importance of the aerospace sector - $29 billion to the Canadian economy as well as 180,000 jobs, including about 40,000 centred in the Greater Montreal Area.
But Bains reiterated financial participation must be good for those footing the tab - Canadian taxpayers - and also generate economic growth.
"We'll continue to look at the business case and continue to do our due diligence to make sure we come forward with a responsible decision that respects taxpayers," he said.
subscribe now
Keep up to date with the latest news, events, and technology for all things metal from our pair of monthly magazines written specifically for Canadian manufacturers!
Start Your Free Subscription- Stay connected from anywhere
Easily access valuable industry resources now with full access to the digital edition of Canadian Metalworking.
Easily access valuable industry resources now with full access to the digital edition of Canadian Fabricating & Welding.
- Trending Articles
Cobot flexibility opens opportunities for welders
Online manufacturing platform adds instant quotes for sheet metal fabrication
Plasma cutting guide helps ensure straight, accurate bevels
Induction preheater helps save energy in wind tower assembly
Variable-speed disc sander aids precise handling of large workpieces
- Industry Events
MME Langely
- April 10, 2024
- Langely, BC Canada
Tube 2024
- April 15 - 19, 2024
- Düsseldorf, Germany
Lincoln Electric's Large Format 3D Metal Printing Seminar
- April 16 - 17, 2024
- Cleveland, OH
CTMA Economic Uncertainty: Helping You Navigate Windsor Seminar
- April 30, 2024
- Windsor, ON Canada
MME Winnipeg
- April 30, 2024
- Winnipeg, ON Canada