Thank you, Mr. Chair.
It's a pleasure to be here, and I should note I am joined by my ADM of acquisitions, Tom Ring. It's a great opportunity to address this committee to talk about the replacement of Canada's CF-18 fighter aircraft in 2016-17.
As Minister MacKay noted, in 1997 Canada became a partner in the joint strike fighter program, and as a part of that program Canada participated in a lengthy competitive process. It was headed by the United States, including a concept demonstration phase, which led to the selection of Lockheed Martin as the JSF supplier in 2001. Since joining the program, the Government of Canada has contributed to the design, development, and demonstration of the joint strike fighter aircraft.
Two years ago our government, as part of the Canada First defence strategy, made a commitment to acquire a next-generation fighter to replace the CF-18. Following on its participation in the joint strike fighter program and its commitments under the Canada First defence strategy, the Government of Canada announced on July 16 its intention to procure 65 F-35 Lightning II aircraft. Deliveries are expected to start in 2016. Canada's purchase of the F-35, the only next-generation fighter that is available to Canada, will ensure interoperability with our major allies well into the middle of this century. In fact, almost all of our key allies are partners in the JSF program and many have committed to acquiring the F-35.
By making this decision now, the Department of National Defence is able to start planning for the introduction and use of the aircraft in Canada. Most importantly, Canada's acquisition of the F-35 is a good news story for Canada's defence industry. Because of our commitment to purchase the aircraft, Canadian aerospace and defence sectors gain immediate priority access to bid for contracts for the entire F-35 global supply chain, estimated at as many as 5,000 planes.
This will mean the creation of high-tech, high-value jobs for Canadians over a long period of time right across the country. In fact within this global supply chain, Canadian industry is very well positioned towards approximately $12 billion in targeted opportunities, representing more than 65,000 man-hours of work.
Canada's participation in the program is already paying off. Canadian companies have been competing for contracts within the program, and they have demonstrated considerable success. On July 21, just a week after our announcement, Avcorp announced the signing of an agreement with BAE Systems Operations Limited for the production of the outboard wing for the carrier variant of the F-35 used by the U.S. Navy. This agreement may represent in excess of $500 million U.S. in revenues over 10 to 15 years of production, and approximately 75 direct and indirect jobs will be created by this contract at Avcorp.
Avcorp Industries, based in Delta, British Columbia, is only one example that clearly demonstrates that the joint strike fighter program brings significant benefits to Canada and Canadian industry. In total, 85 Canadian companies have won approximately $850 million in contracts through our commitment to the program thus far, and this is just the tip of the iceberg. A tremendous door of opportunity has been opened for Canadian companies because of our decision to purchase these planes. If our commitment were revoked, this enormous door of opportunity would be slammed shut in the face of Canadian industry.
The JSF program is the right program to keep Canada's aerospace sector competitive well into the 21st century.
Canada's participation in the Joint Strike Fighter program opens up significant opportunities for the Canadian industry, and especially that of Quebec. Canada's industry will be able to participate fully in the program, which will help to build long-term business relationships in the aerospace and defence sectors. For instance, the head of Héroux-Devtek, an aerospace company with plants in Dorval, Longueuil, Laval, Kitchener and Toronto, told me yesterday that a successful bid could help generate 20 to 25 years worth of work for its staff.
Critics often cite unreasonable delays in the military procurement process as a key factor affecting the operational capability of the Canadian Forces. The joint strike fighter program is a prime example of how the government can procure the right equipment at the right time for our forces. By participating in a program designed to permit NATO allies to acquire advanced fighter technology at the lowest possible cost, the government is also ensuring that Canadian taxpayers receive the best return on their investment.
This announcement is also another indication that our government is committed to rebuilding the Canadian Forces and ensuring Canada's future safety and security while delivering, as Minister Clement said, on long-term economic benefits to our key industrial sectors.
Thank you, Mr. Chair. I'd be pleased to take questions.