Mr. Speaker, this is about how we are developing sovereign capabilities that contribute to Canada's defence and security, our economy and our future. One example is sovereign space launch capability, which is clearly set out in Canada's very first defence industrial strategy.
Canada is the only G7 country without sovereign space launch capability. For a country with such a long and successful history in the space sector, this is a strategic shortcoming.
Space-based systems now underpin essential military, government and civilian services. Having our own launch capability gives Canada greater control over how and when we put critical infrastructure into orbit. Last year, the Department of National Defence looked at available domestic options and considered a range of factors, including regulatory readiness, geographic suitability, operational requirements and the overall ability to support Canada's long-term space objectives. Maritime Launch Services met the necessary environmental and aeronautical safety requirements. The company also demonstrated a level of readiness that aligned with broader defence and economic objectives in the defence industrial strategy.
As with any decision related to government procurement, the Department of National Defence entered into this agreement in accordance with the established rules regarding ethics, conflicts of interest and accountability.
The hon. member also questioned the value of this investment. However, this is about much more than just access to a piece of land. This investment seeks to give Canada the infrastructure necessary to conduct launches from our own soil. It also seeks to reduce our dependence on foreign suppliers and to strengthen our capacity to manage our space capabilities independently.
After weighing the options, we deemed the use of provincial Crown land as an appropriate and low-risk way to provide secure access to a launch site while at the same time avoiding the additional costs, delays and challenges associated with any federal land acquisition process.
The site near Canso, Nova Scotia, offers some important advantages, such as access to open ocean, which is desirable for space launches. It also offers a full range of launch trajectories for earth observation, communications satellites and future defence activities.
The investment also creates economic opportunities. Our agreement with MLS requires that 90% of the project funding be spent in Canada or with Canadian-owned businesses. This will ensure that the vast majority of this $200-million investment will support Canadian workers and communities.
Canada is seeing record investments in space sector research and development from these companies, and projects like this signal that Canada is laying the foundation to support those investments and ensure future opportunities. This project also provides Canada with the opportunity to offer space launch services both commercially and to our allies.
We can be proud of Canada's legacy in space. From the Canadarm to advanced satellite technologies, generations of Canadians have consistently been at the forefront of innovation and exploration. Building Canada strong means investing in the technologies that will shape the future. Canada's growing space sector is creating good jobs, strengthening sovereignty and ensuring that Canadians remain leaders in innovation for decades to come.