Close X
Wednesday, November 27, 2024
ADVT 
National

Companies highlight jobs, economic spinoffs as fighter-jet competition closes

Darpan News Desk The Canadian Press, 30 Jul, 2020 09:55 PM
  • Companies highlight jobs, economic spinoffs as fighter-jet competition closes

Fighter-jet makers are leading with promises of jobs and other economic spinoffs as they make their final pitches for why Canada should buy their planes to replace the military's aging CF-18 fleet.

Friday marks the deadline for U.S. aerospace companies Lockheed Martin and Boeing, as well as Swedish firm Saab, to submit their bids in the current fighter-jet competition, which will see Canada spend up to $19 billion on 88 new planes.

The closing of the competition marks a major milestone in Canada's decade-long effort to buy new fighter jets for the Royal Canadian Air Force, which has been plagued by government mismanagement and political controversy.

While the combat capability of each of the three competing planes — Lockheed Martin's F-35, Boeing's Super Hornet and Saab's Gripen — will be the main focus as the government evaluates each bid, there will also be a lot of focus on the economic benefits of buying each plane.

To that end, Lockheed Martin commissioned a report in February that found up to 4,200 jobs will be created or sustained each year if Canada buys its F-35 stealth fighter, which the company equated to more than 150,000 new jobs over the life of the plane.

The analysis provided to The Canadian Press, which was compiled by Toronto-based OMX, also predicted the Canadian economy will see roughly $15 billion in additional activity between now and 2058 if the F-35 is selected to succeed the CF-18 as Canada's primary fighter jet.

That is in addition to the $2 billion in economic benefits that Canada has already received since 2007 as one of nine partner countries in the development of the F-35, which lets Canadian companies compete for work associated with the stealth fighter.

Canada has contributed US$541 million since 1997 to be a partner in the F-35 program.

"Lockheed Martin has prepared a comprehensive proposal," the company said in a statement on Thursday.

"The F-35 is the most capable, best-value fighter to strengthen defence, enhance ally partnerships and contribute to economic growth in Canada with significant, long-term industrial opportunities."

Lockheed Martin isn't the first to toot its own horn on the potential economic benefits of its fighter.

Boeing last month released its own commissioned report showing its existing operations in Canada created $5.3 billion in economic spinoffs last year and supported 20,000 jobs. Boeing says the numbers will go up if the Super Hornet wins, though it has not revealed its exact estimates.

The emphasis on jobs and money — rather than combat capability — comes as Canada's economy has been battered by the COVID-19 pandemic, forcing the federal government to spend tens of billions in financial support for Canadians.

Defence analyst David Perry of the Canadian Global Affairs Institute said it makes sense for companies to highlight the potential economic benefits of their bids. He said it helps to make the cost more palatable to the public and is also important in determining the winner.

"In any competition like this, you're always looking for any potential partial point that you can get," Perry said.

"Companies, if they're going to invest this significant time and significant amount of money preparing a bid like this, then they don't leave anything to chance. You make sure you try to wring every single last partial point you can get out of your proposal."

MORE National ARTICLES

COVID-19 Outbreak in the Neonatal Unit at St. Paul's Hospital

COVID-19 Outbreak in the Neonatal Unit at St. Paul's Hospital
According to a release from Vancouver Coastal Health an outbreak of COVID-19 has taken place in the NICU at St. Paul's Hospital. The NICU is designed for newborns at the hospital. 

COVID-19 Outbreak in the Neonatal Unit at St. Paul's Hospital

Women on Surrey bus receives threats of sexual violence

Women on Surrey bus receives threats of sexual violence
Metro Vancouver Transit Police say a woman travelling on a Surrey bus received multiple threats of sexual violence. According to Transit Police the woman was on a bus that had just departed Newton Exchange with about 15 other passengers on July 14 around 11 pm when she received the threatening messages to her phone via AirDrop.

Women on Surrey bus receives threats of sexual violence

B.C. sets one-month overdose death record

B.C. sets one-month overdose death record
Another record for monthly overdose deaths related to illicit drugs has been set in British Columbia, prompting the former provincial health officer to call for radical steps to reduce fatalities including access to pharmaceutical-grade heroin produced in Canada.

B.C. sets one-month overdose death record

Hospitality workers fear long-term unemployment

Hospitality workers fear long-term unemployment
The union representing hospitality workers across the country says it fears staff laid off because of COVID-19 may not have a job when the pandemic is over.

Hospitality workers fear long-term unemployment

Vancouver man charged with Ottawa incidents of Voyeurisms and Sexual Assaults

Vancouver man charged with Ottawa incidents of Voyeurisms and Sexual Assaults
On Wednesday, July 15,2020 the Ottawa Police Service Sexual Assault and Child Abuse Unit (SACA) charged a Vancouver man with 34 counts of Voyeurism and three counts of Sexual Assault involving six adult female victims known to him.

Vancouver man charged with Ottawa incidents of Voyeurisms and Sexual Assaults

Systemic issues cited in man's killing of mother

Systemic issues cited in man's killing of mother
Manitoba judge sentencing a young man for beating his own mother to death has denounced systemic issues the judge says leave Indigenous people at risk.

Systemic issues cited in man's killing of mother