By Canadian Press

Procurement minister defends rule change for F-35 as necessary for competition

May 30, 2019 | 1:09 PM

OTTAWA — Federal procurement minister Carla Qualtrough is defending the government’s plan to loosen procurement rules for the F-35 in the face of questions and concerns from companies that make competing fighter jets.

The plan involves lifting a requirement that companies commit to putting some of their contract money back into Canadian industry if they win competitions to supply defence equipment.

The proposal follows U.S. complaints that the demand violated an agreement that Canada signed in 2006 to become a partner country in the development of the F-35.

Speaking at the annual Cansec arms-trade show, Qualtrough says ensuring a fair and open competition among all the players has proven extremely complicated.

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And while bidders will not be required to legally commit to reinvesting back into Canada, she says they will need to show a credible plan for how Canadian industry will benefit from the purchase.

Fighter-jet makers Boeing and Saab voiced concerns Wednesday about the new rules, saying the previous approach worked well for Canada’s taxpayers and its aerospace industry.

The Canadian Press