Industry Committee on March 13th, 2008

[Peggy Nash, NDP, Parkdale—High Park, ON]

But you've refused to fund these projects, and these are crucial—

[Jim Prentice, Conservative, Calgary Centre-North, AB]

If I might—

[Peggy Nash, NDP, Parkdale—High Park, ON]

—for the future of the industry.

[The Chair, Conservative, James Rajotte]

Ms. Nash, could we have the minister respond? You've posed the question; let's have him answer.

[Jim Prentice, Conservative, Calgary Centre-North, AB]

If I might respond, the budgetary allocation to the Canadian Space Agency is approximately $300 million a year. This is extensive public funding to the Space Agency to do many things, including their review of the projects of which you speak.

In the time after the shuttle program winds down, there are a number of critical decisions that will need to be made, not just by—

[Peggy Nash, NDP, Parkdale—High Park, ON]

[Inaudible--Editor]...the deal between MDA and ATK—

[The Chair, Conservative, James Rajotte]

Ms. Nash.

[Peggy Nash, NDP, Parkdale—High Park, ON]

—in order to put public money into this industry that will just go to a U.S. company?

[The Chair, Conservative, James Rajotte]

Ms. Nash, please. Ms. Nash, you've asked the minister a pretty substantive question.

Mr. Minister, you have the opportunity to answer the question.

[Jim Prentice, Conservative, Calgary Centre-North, AB]

Space obviously inspires all of us, Mr. Chairman.

As I was saying, in the time after the shuttle program winds down, and there's a limited number of shuttle launches to the international space station left, all the major industrial countries that are participants in space—Canada, the United States, the European Union, and others—will be required to make decisions on the strategic deployment towards the various priorities that are out there. Canada is no different from anyone else in that sense. We will continue to have discussions about that.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Ms. Nash.

We'll go to our last questioner, Mr. Simard.

[Raymond Simard, Liberal, Saint Boniface, MB]

Thank you very much, Mr. Chair.

Thank you very much for being here, Minister.

I'm sorry I missed the first part. I had to speak in the House, and we don't necessarily control the timing of that. I did hear you say, Minister, that you're very proud of the work of this committee. It is a very thoughtful committee, by the way. It's a committee that works very, very well.

We're hoping you use it as a sounding board for some of your decision-making. I really feel, Minister, that it would be tragic if a decision were made over the Easter break to allow the sale of this company. I do think that when we had our witnesses here—the last time we only had one meeting with them—all members, and I'm not going to speak for the other members, but I think all members had some concern in terms of selling this company.

I do feel, as Mr. Brison indicated before, that it has the potential of being an Avro Arrow. It will be a benchmark decision. And 10 years down the road, we'll be looking back and saying, “My God, we made a bad decision.”

I would hope that you would commit now to at least extending for 30 days and allowing us to have a few meetings with the key players here, experts, so that we can express our concerns to you.

[Jim Prentice, Conservative, Calgary Centre-North, AB]

Well, I would just reiterate that I've not yet reached the point where the 45-day period requires an extension. I will deal with that decision at the time, and I'll deal with it to the best of my ability under the legal obligations I have.

[Raymond Simard, Liberal, Saint Boniface, MB]

So there's no commitment to extend until we've met a few witnesses?

[Jim Prentice, Conservative, Calgary Centre-North, AB]

I don't think I can be any clearer than I just was.

[Raymond Simard, Liberal, Saint Boniface, MB]

One of my colleagues actually attended the Endeavour launch with you and actually thought it was fascinating, as you did. He was also told by many people from the Canadian space program that they couldn't believe we would allow the sale of this company. So he's hearing it from people who are in the know.

Do we know, for instance—and this is something we may want to try to get from our witnesses down the road—if we allow the sale of this, whether we are selling 5% of our space technology or 50% of our space technology? If it's 5%, maybe we'll say we can live with that. If it's 50% or 60% or 70%, well, it may change our recommendations to you, sir.

[Jim Prentice, Conservative, Calgary Centre-North, AB]

Your colleague, Member of Parliament Roger Valley, did accompany me to the Kennedy Space Center, and I think he was really as amazed by the shuttle launch as I was, but I think he was also just as proud as I was to see what Canada has achieved with Dextre and with the launch and their contributions.

[Raymond Simard, Liberal, Saint Boniface, MB]

So is it 50% we're selling to this company or 5%? Do we have any idea?

[Jim Prentice, Conservative, Calgary Centre-North, AB]

I've been as clear as I can with respect to my obligation in law to deal with this proposed transaction and to respect the confidentiality imposed on me.

[Raymond Simard, Liberal, Saint Boniface, MB]

I have one last question, Minister.

I don't think it's a surprise that the shareholders voted 99.9% in favour of selling this company. If I'm not mistaken, Canada has invested I believe over $700 million there, so there is a substantial investment from this government in the company that has built the equity over the years. Are there any conditions that come with that?

[Jim Prentice, Conservative, Calgary Centre-North, AB]

Persistence on your part is to be admired. Clarity on my part is I think equally to be respected. I am in a position in which there are confidentiality restrictions imposed in law upon the Minister of Industry in the context of this review. I will carry out the review to the best of my ability and I will do so within the four square corners of the statute and the legal requirements.

[The Chair, Conservative, James Rajotte]

Thank you very much, Mr. Simard.

Minister, I want to thank you and your officials for being here with us today, and I want to particularly thank you for extending your time by half an hour to be with us until 12:30. Obviously, there's a lot of interest by the committee in this particular transaction. I want to thank you for encouraging members of this committee to make their views known to you, as I suspect many of them will do in due course. I want to thank you for your appearance here today, and I certainly welcome you to come back at any time.

[Jim Prentice, Conservative, Calgary Centre-North, AB]

Thank you. I was delighted to be here, Mr. Chairman. Excellent job.

[The Chair, Conservative, James Rajotte]

Thank you.

Members, we will suspend for two to three minutes, at which time we will resume in camera. Thank you.

[Proceedings continue in camera]