Evidence of meeting #28 for Industry, Science and Technology in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was mda.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Guy Bujold  President, Canadian Space Agency
Luc Brûlé  Director, Earth Observation Projects, Canadian Space Agency
Daniel Friedmann  President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.
Indra Heed  Corporate Counsel, MacDonald Dettwiler and Associates Ltd.

1:05 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

It's the largest.

1:05 p.m.

Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

That's of interest to me too, because obviously there's some real concern about whether we are doing the right thing morally, and I trust that.

This is a publicly traded company, so there must have been a shareholders meeting when this sale was proposed. What was the response of your shareholders?

1:05 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

The shareholders meeting these days is quite a small affair, because everything happens earlier electronically. But we received hundreds and hundreds of calls from shareholders--teachers and government employees across the whole country. This is a widely held Canadian company.

I didn't want to rub it in with the news, but we got 99.95% approval. There isn't a dictator in the world that gets that.

1:10 p.m.

Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Did they have any of these concerns that we're talking about? These are legitimate questions we're asking about sovereignty and Canadian technology that's being sold. Were those issues raised?

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

Our shareholders are very patriotic. In fact, the teachers' federation was part of the group that brought the company back into Canada. They wanted to know if we were doing this to maintain the company in Canada and make it thrive. I can absolutely tell you, because I'm the guy who made the recommendation, that that's what we're doing. I made the recommendation and wiped out my job the same day.

That's why we're doing this. That's what we've told our shareholders. After they heard that, and many of them called, an unbelievable percentage voted in favour.

1:10 p.m.

Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Okay, thank you.

Those are all the questions I have. I'm going to turn my time over to Mr. Hanger.

1:10 p.m.

Conservative

Art Hanger Conservative Calgary Northeast, AB

Thank you, Mr. Chairman.

Is the sale contingent on ATK purchasing or acquiring RADARSAT-2?

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

The sale is contingent on ATK obeying all the government rules on control and operation of the satellite.

1:10 p.m.

Conservative

Art Hanger Conservative Calgary Northeast, AB

I know, but that's not what I asked. Is the sale contingent on them acquiring that asset--RADARSAT-2?

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

You would have to ask them about that. My understanding is that technically it's not an issue. The issue is whether we have access to sell the data for the money we've invested. The government controls the satellite. You can't do anything with the satellite up there. It's controlled from the ground.

1:10 p.m.

Conservative

Art Hanger Conservative Calgary Northeast, AB

I know there's a lot involved. It's not just an asset per se. The intellectual property, technology, and the like are on the table, are they not?

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

The intellectual property to build RADARSAT-2 that was funded by MDA has been sold to ATK, yes.

1:10 p.m.

Conservative

Art Hanger Conservative Calgary Northeast, AB

Given the fact that CSA really hasn't committed to further steps, from what I can tell, on the feasibility of proceeding with the constellation program--they've taken that step, but that's about as far as it's gone--could the technology that went into this satellite be duplicated in the next constellation project that may result in a similar satellite being developed by Canada?

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

We have bid two options on the RADARSAT constellation. One option is based on RADARSAT-2. One option is based on a new technology we've developed in the last few years. RADARSAT-2 is 10 years old. Both of those proposals are honoured by ATK, and in fact they're hoping very much, as we are, that one of them will be approved soon and we'll be on the work.

1:10 p.m.

Conservative

Art Hanger Conservative Calgary Northeast, AB

So in other words, ATK would get the contract? This is not something that would have to be so-called let out again?

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

I hope not, no. They should get the contract.

1:10 p.m.

Conservative

Art Hanger Conservative Calgary Northeast, AB

You're not sure?

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

All of our existing contracts will be made over to the new owner. If it's in the process of being bid, it will be up to the government to decide whether to move it over or not to move it over. It would be a government decision, but ATK is willing to honour that proposal, as it's willing to honour every proposal we have in front of the government right now.

1:10 p.m.

Conservative

Art Hanger Conservative Calgary Northeast, AB

Also included in this agreement, I understand, is the unmanned aircraft operation. There's a UAV operation out of Suffield.

1:10 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

Yes, our defence group is also part of the sale, and it is bidding on unmanned vehicle jobs for the Canadian government. It hasn't won any, but it's bidding on them.

1:10 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you, Mr. Hanger.

We will go now to Ms. Nash.

1:10 p.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Thank you.

Mr. Friedmann, you described the incredible shareholder support for the deal, and it is a very lucrative deal for the shareholders, but I'm wondering if this was addressed in the agreement. Is it possible that after the sale the Government of Canada could transfer the RADARSAT licence to ATK?

1:15 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

Only if the government wanted to do so.

1:15 p.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Nothing would prevent the government from doing that in this sale?

1:15 p.m.

President and Chief Executive Officer, MacDonald Dettwiler and Associates Ltd.

Daniel Friedmann

The government owns the licence, so it can license anybody today.