National Defence Committee on Nov. 23rd, 2010

[Antonio Rodriguez Barberan]

Regarding the Buffalo specifically, when I was a boy the Spanish air force used to have Caribous, which were the predecessor of the Buffalo. Our planes have been following the doctrine of the Caribous and the Buffaloes. They are very similar, except they have been designed 40 years later.

Basically it's a plane with stall characteristics, capable of landing on unpaved runways with very low stall speed. They're a little bit bigger. They're pressurized and they have a higher speed than the Buffalo, but basically the philosophy and the concept of the Buffalo is inherited by our planes.

Regarding the C-130 Hercules, we like to say they are complementary. The U.S. Coast Guard is using the Hercules and CN-235 for different missions.

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

From a training perspective, then, how would the transition work to the use of your plane, and what benefits and challenges would there be from a training perspective?

[Antonio Rodriguez Barberan]

They will need to get the right certificate. The Hercules and the CN-235 or the C-295 have basic types of certificates, but any Hercules pilot will be able to fly any of our planes. They will get the type of certificate after training at our facilities with our simulators in Seville--or it could be somewhere else--in a question of weeks. It is not a major challenge.

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

Thank you.

Changing gears somewhat to industrial benefits, you mentioned in your presentation that you would endeavour to maximize industrial benefits in Canada. Generally, how would you do that, and specifically, how would high-tech companies in Canada benefit?

[Antonio Rodriguez Barberan]

First of all, let me underline once more that we have a unique characteristic in our engines, our avionics, and our training centre. This is something that goes to any of the 83 planes we have sold and to the hundreds we are planning to sell. The second thing is that we are part of Airbus. Airbus already has certain plans for growth. Mr. Garnier can speak further on this. We have some plans to increase our supply chain in Canada. We are discussing that with several companies.

For instance, we talked about mission systems. We need to find a local company that would help us to Canadianize and for maintenance of the software. Also, on the sensor side, there is a Canadian company that is very well known that today is, by chance, a second choice when we are selling overseas. It's obvious that the decision in favour of the C-295 will place us in a much better position in our exports worldwide.

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

Thank you.

[Antonio Rodriguez Barberan]

And of course in-service support is planned to be done with a local company, and we are having already some discussions in that regard.

[The Chair, Conservative, Maxime Bernier]

Thank you.

Now I will give the floor to the Liberal Party of Canada.

Mr. Scott Simms, you have the floor.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Thank you, Mr. Chair.

I want to read you a story from Defence Watch, a publication here in this country. This was written about a year and a half ago. It says this:

At a meeting with Air Force officers and defence industry representatives in Ottawa last week

--that was then July 2009--

the extent of the paralysis that plagues a $3 billion Fixed Wing Search and Rescue project was front and centre.

An Air Force officer was running through the various equipment projects on the go while images were projected on to a screen.

When the slide came for FWSAR, the screen was filled with a giant question mark.

That was according to the publication.

The gist of the story is that the day did not go well. There was an air of confusion about it. There were people, from the industry's perspective, coming out saying that they weren't sure what it was and what the timing would be.

What have your dealings been thus far in the communication between you and the government on how you go about this procurement?

[Antonio Rodriguez Barberan]

If I understood your question, basically, we have officially answered the letter of intent, which we are presenting to you. It is quite a detailed view on the perspective from the fixed-wing SAR. But you have to understand that it is with full respect of decisions you are taking on the procurement. The only thing we can do is try to be as good as we can be to convince the Canadian officials that it is worth proceeding with this project. I cannot elaborate further on that.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Under traditional methods, one of the ways of procurement we enjoy so much is the dollar-for-dollar requirement: we would spend $3 billion on your plane, and you'd be willing to spend $3 billion in this country. How do you feel about that?

[Antonio Rodriguez Barberan]

First of all, we like very much the value-for-money approach. I think we are very good when you analyze our products from a value standpoint--value for money. Regarding what you have, you leave in the country. I think that we will be second to none in IRBs and benefits for the country. Being Airbus, being EADS, we are extremely well placed to leave....

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

You already have 20%, you said.

[Antonio Rodriguez Barberan]

It's not only that. We have a huge supply chain. We are in a position to be extremely attractive for the industry.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Mr. Chair, I'd like to pass my question to Mr. Bagnell.

[Larry Bagnell, Liberal, Yukon, YT]

I've been pushing this for five years, but I missed the first part, so I might ask something you've already been asked.

Do you think the competition is fair? What has taken so long? This should have been done five years ago. Are you convinced that this will be completed in the near future so that we can have some search and rescue planes?

[Antonio Rodriguez Barberan]

As I said, I am a pure foreign industrialist, so the only thing I can do is to make my proposal as good as I can in order to convince you, Canadian officers, that my proposal is good for your country. I am not in a position to comment further.

[Larry Bagnell, Liberal, Yukon, YT]

What's the farthest north that you have a plane stationed permanently?

[Antonio Rodriguez Barberan]

It is in Finland. There is a permanent base in the southern part of Finland, but there are some deployments of planes in the northern part of Finland, north of the Arctic Circle.

[The Chair, Conservative, Maxime Bernier]

Thank you very much.

Now I will give the floor to Mr. Boughen.

[Ray Boughen, Conservative, Palliser, SK]

Thank you, Mr. Chair.

Let me add my voice of welcome to the panel.

In your brochure you talk about the C-295. I'm wondering what kinds of limitations the lack of pressurization in the cabin on the C-295 imposes upon its flight.

[Antonio Rodriguez Barberan]

The pressurization in the cabin is limited by definition. You cannot have infinite. It is fully certified for passenger transportation. So there is no limitation whatsoever for normal fixed-wing SAR procedures.

Simply take into consideration, for instance, that the Buffalo that you are using today with such great success is an unpressurized plane. We are offering a fully pressurized cabin, compatible with all the civil standards. In fact, the plane is civil-certified.

[Ray Boughen, Conservative, Palliser, SK]

I have some questions about the manufacturing of the aircraft. Does your company have any manufacturing capabilities in Canada?

[Hervé Garnier]

Yes, we have some. We have a helicopter assembly factory in Fort Erie, Ontario. We have a composite factory in Lunenburg, Nova Scotia. We have Plant CML, which is a company involved in secure communications and 9/11-like control rooms. We have 700 employees today in Canada.

It's clear that if the fixed-wing SAR project is allocated to Airbus Military, we may want to expand, as appropriate, this industrial baseline here in Canada, where there are different options that we will consider. This is on top of cooperation with our Canadian partners. In addition to those mentioned, we have Pratt & Whitney, CAE, Telus Canada, but also others, like the ISS support and maybe some manufacturing with specific companies, large or small, east or west. It depends on what we will be able to find in our study.

Basically, we are totally committed to comply with the IRB rules. We know them. We are ready to be totally compliant with the rules edicted by Industry Canada.

[Ray Boughen, Conservative, Palliser, SK]

One last question for you gentlemen. Can you provide us some specific examples of where your SAR plane is being used today around the world?