Mr. Speaker, I am pleased to respond. Lancaster Aviation won competitive contracts in 1997 and again in 2000 for the disposal of surplus aerospace assets, not simply spare parts as the member alleges. Allegations that the contract to dispose of the Twin Huey helicopters and Challenger aircraft were sole sourced are also false. They were competitively bid.
The 1997 RPF also contemplated special project sales such as planes. When such a need arises the process calls for an amendment to the contract to legally bind the parties. That is exactly what we did with the sale of the helicopters and the Challenger aircraft.
Through Lancaster Aviation the government sold eight Challenger aircraft to DDH Aviation of Fort Worth, Texas, for approximately $30 million. The sale was a result of a competitive tender issued by Lancaster Aviation. These aircraft did not have civil certification. Nor were they outfitted for executive use. As such they were in need of extensive modifications.
As for the assets being warehoused in Florida, I reiterate once again that Lancaster Aviation is using and renting that facility in Florida strictly for warehousing purposes. Lancaster Aviation is solely responsible for marketing the sale of assets. The assets are in Florida because that is where the market is and that is where the sales are taking place.
The DND assets are not in danger as the member alleges. The assets are the property of the Department of National Defence and are only in the custody of a contractor. Lancaster Aviation is responsible for the safekeeping of the assets and is liable for any losses. No parties other than the crown have any rights to those assets.
I think that shows the assets are not at risk. Even though there may be allegations against somebody out there, our assets are not in danger.