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Navdeep promises maximum economic benefit for Canadians through Bombardier-Airbus deal

Posted in Featured, Politics

Published on October 20, 2017 with No Comments

The federal Liberals have promised to build in safeguards to make sure this week’s stunning deal between Bombardier and European rival Airbus helps — and doesn’t hurt — Canada’s aerospace industry.

Airbus wants to buy a majority stake in Bombardier’s CSeries commercial planes, whose future has been in question after U.S. officials proposed a hefty 300 per cent import duty on the jet program.

The two plane makers hope that by working together, they can skirt the duties by building CSeries planes for U.S. customers in Alabama instead of outside the U.S.

But the proposal, which still needs federal approval, has raised questions about whether it will result in job losses in Quebec, where Bombardier is based, and weaken Canada’s aerospace industry. Economic Development Minister Navdeep Bains promised T that the Trudeau government would require several long-term promises from Airbus before signing off on the deal.

The European company will also take over repayment of the federal government’s $372-million loan to Bombardier for research and development of the 100- to 150-seat commercial planes. “I oversee this process,” Bains said outside the House of Commons, “and I will make sure we get the maximum economic benefit for Canadians.”

Bains said the government was looking for “long-term production guarantees in Canada” that would run “at least a minimum of 20 to 25 years,” though an official said that was still to be negotiated.

The minister was more guarded about employment levels, though he hoped the deal result in thousands of CSeries planes being ordered and built in Montreal. “We think the potential sales opportunity in this segment is up to 6,000 over the next 20 to 25 years,” he said. “So that means there’ll be stable, predictable production opportunities in the Mirabel facility … and that means more jobs, up to 5,000 jobs in that facility.”

 

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