Mr. Speaker, I requested these adjournment proceedings because I, and the people of London, would like to hear and have on record from the government the reason funding was denied to Diamond Aircraft.
I will quote the minister of state, in his response to my question last week. The minister stated:
After a thorough review of Diamond's request, the company was advised by this government that we could not support the request.
I would appreciate a more detailed answer and I would like the minister to explain to the people of London who lost their jobs why the government was unable to find money to lend to Diamond.
For the sake of clarity, I need to be sure that the minister of state has the details regarding Diamond Aircraft. It is a leading manufacturer of small planes and has operated a factory in London, Ontario, for almost 20 years. Diamond is an important contributing member of our community.
London's manufacturing sector has been hit hard during the recession with the collapse of the auto industry. In fact, the unemployment rate in London is the highest in the region. Diamond Aircraft was one of the few manufacturing employers left and our community needs to keep these jobs.
Diamond has completed the expensive and sophisticated research and development to launch its new D-Jet, the next generation of private jets. The company already has an order for 240 D-jets valued at $400 million; $20 million from the private sector and a $35 million loan guarantee from the Ontario government. All that was required to go ahead with the project was the final piece: a loan from the federal government.
The loan application process has been lengthy and thorough. The initial request goes back to January 2009. There were many meetings, discussions and applications, both formal and informal, with ministers, staff and even the Prime Minister.
Sadly, the ultimate response was no.
The government missed a real opportunity to make Canada a leader in the aerospace industry and bring more jobs to a city that is hurting from the economic downturn. This investment would have saved jobs. Diamond was compelled to lay off 213 workers from its London facility. There was also a potential for 500 new jobs that would have helped revive the manufacturing sector in London. How can the government deny the chance to create good jobs?
It is important to reiterate that the loan guarantee was not a matter of the government cutting a cheque for $35 million. The loan disburses progressively at about $2 million per month over the next 18 months. This would allow the government to stop and cut losses at any time if unsatisfied with the program's progress. It is a fully repayable loan. It is not based on the success of the program. No matter what, Diamond would repay the money invested.
All those factors make it clear that this was a smart investment where everyone would benefit: the Government of Canada, the people of London and the Canadian aerospace industry.
Again, I would like to ask the minister and have him explain to the people of London who lost their jobs why the government was unable to find the money to lend to Diamond Aircraft.