Foreign Affairs committee  I would like to begin by thanking the committee for inviting me to appear, especially for allowing me to do so by video conference. It's my wife's birthday today, which made it imperative that I stay in Vancouver. Six weeks ago I testified before the industry committee on the implications for Canadian sovereignty of the proposed sale of MacDonald Dettwiler's space division.

Industry committee  With all respect, I think the reason there was initially silence on my part was that although I know the argument, or some of the arguments, MDA is advancing, I don't actually objectively grant much weight to them. I did mention the benefit to the MDA shareholders. There is the argument that it will keep some of the jobs in places like Richmond, B.C.

Industry committee  Let me just say that if you want that information you should call the CEO of MacDonald Dettwiler. I cannot speak for him.

Industry committee  No. My job as an expert is to call it as I see it, and that is what I do.

Industry committee  If I think it is correct, it may appear to you to be one-sided.

Industry committee  I don't want to impute bad faith onto MDA, but I do want to suggest that MDA was certainly aware of these limitations and in fact was very closely involved in the consultation on the draft legislation. So MDA went into this arrangement with its eyes open and certainly would have been aware of the assumption on the part of the very many people, myself included, who commented on this legislation, that this satellite would stay in Canadian hands.

Industry committee  MDA's shareholders will benefit enormously.

Industry committee  I agree with Mr. Staples, in that I have no worry whatsoever about MDA continuing to make handsome profits even if the sale of RADARSAT-2 is blocked. RADARSAT-1 made $26 million in 2004 alone for the federal government, much of that from these kinds of green activities: ice-mapping, agricultural, and forestry.

Industry committee  I think we need to consider RADARSAT-2 in the context of that icebreaker--as sovereignty assertion.

Industry committee  I want to come back to my analogy of the polar icebreaker that your government has so wisely committed to build, and also to the six to eight ice-strengthened patrol vessels. First of all, you're not going to get that kind of service, that kind of public good, provided by the private market.

Industry committee  One doesn't need to be a conspiracy theorist to be concerned about this sale.

Industry committee  Thank you for that. RADARSAT-2 is particularly good at the mapping of sea ice. It can actually measure the thickness of the ice. This is part of the reason we developed it; part of the way it was developed was to fulfill this kind of purpose. It's very good at tracking vessels; it is even reportedly able to detect submarines that are in relatively shallow water, as they might be were they entering the Northwest Passage.

Industry committee  Absolutely. I can't see that the Standing Committee on Foreign Affairs and International Development can avoid this one. This is too big. It's too important a record. But I think this committee needs to continue to work on this as well. The net benefit test under the Investment Canada Act would in this context incorporate the national security dimension.

Industry committee  First of all, I want to apologize for having stumbled on Ms. Nash's question. I had to fly overnight from Vancouver and spend six hours in Toronto airport to get here today, so I'm operating on low batteries. You have put your finger on the question. Who actually controls which pictures are taken from the satellite and when they are taken?

Industry committee  This committee needs to find out. I find it difficult to conceive that Canada would remain the licensee in the long term, but I'm prepared to be proven wrong on that if someone could do so.