Good morning, my name is Simon Kennedy and I am the Senior Associate Deputy MInister at Industry Canada. Thank you for inviting me to speak here today.
Industry Canada's mandate is to help make Canadian industry more productive and competitive in the global economy. This includes leveraging major investments in military equipment to encourage long-term industrial development and significant economic activity in Canada.
The F-35—or joint strike fighter—program is unique, as is its approach to industrial participation. All JSF partner countries agreed to forgo offset programs, like our industrial and regional benefits policy, which would normally be applied to military procurement. Instead, work on the JSF program is awarded on a best value basis, meaning that companies are given the opportunity to compete for F-35 work.
While we forgo the guaranteed minimum amount of economic activity that would come with an IRB approach, the industrial participation model being pursued through the F-35 consortium offers other important benefits for Canadian companies.
First, these companies have the opportunity to be involved in the early development of a very advanced fighter aircraft, allowing them to develop cutting-edge technologies that can be applied elsewhere in their businesses. Second, these companies can bid on contracts involving the production of a global fleet of over 3,000 partner aircraft, not just those planes that are directly associated with Canada's purchase. Finally, Canadian firms that are involved in the production of the JSF are well positioned to maintain and repair the equipment they make over the decades to come.
Because of the unique nature of this program, Industry Canada has been actively engaged in educating Canadian companies about the program and in helping them position themselves to succeed. We've been doing so for more than a decade through the development and production phases of the program and, increasingly, the sustainment phase.
Canadian companies have done well. Since Canada joined the joint strike fighter program in 1997, 70 Canadian companies have received $435 million U.S. in contracts. Participation in the JSF program provides the opportunity to compete for billions more over the program's lifetime.
Canadian companies are well positioned to succeed. Canada has the fifth-largest aerospace sector in the world and the third largest within the JSF partnership. The globally competitive nature of our industry is a strong base from which to pursue opportunities going forward.
I would be pleased to answer any questions you might have regarding Industry Canada's role in this program.
Thank you.