November 24, 1999
(Industry, Trade and Technology)

The following statement was issued today by Sandra Kelly, Minister of Industry, Trade and Technology. It was also read in the House of Assembly:

I would like to take this opportunity to update my honourable colleagues on one of the projects that my department has been working on over the last few years. This project relates to the Canadian Industrial and Regional Benefits Program, or IRBs, an Industry Canada initiative which is delivered by the Atlantic Canada Opportunities Agency in this region.

The IRB's focus is on major government procurements which are primarily in the aerospace and defence sectors. Although price and technical capability are always primary considerations, major contractors submit a Regional Benefits package, which is also a key factor when the federal government awards contracts. The purpose of this is to ensure that all regions of the country will benefit from subcontracting opportunities on major Crown projects.

My department of Industry, Trade and Technology works with our federal partners, and the companies, to lobby on behalf of our provincial firms, so that they will benefit from these major contracts.

Our aerospace and defence sector is growing, and there are significant opportunities for Newfoundland and Labrador companies to do this work.

Several weeks ago, my department organized a seminar on IRBs, and invited representatives from Industry Canada, and the Atlantic Canada Opportunities Agency to explain how the program works. Almost 20 companies from regions across Newfoundland and Labrador participated in this informative and interactive session.

If my honourable colleagues are aware of any defence and aerospace firms in their respective districts that did not attend, I would ask you to encourage them to contact my department so that they can take advantage of this opportunity.

Through the work of my department, we have already had a number of companies benefit from the IRB program. One of these is in my own district of Gander. Newfoundland Bonding and Composites was awarded the contract from Team Cormorant for work on the Department of National Defence Search and Rescue Helicopters Program.

In addition, over the past few years, NewTech Instruments Ltd. has been doing console work on light terrain vehicles for DND. This came as a direct result of an IRB opportunity with the Diesel Division of General Motors of Canada.

Last month, through another IRB opportunity, Lockheed Martin Undersea Systems awarded a $2.9 million contract to Northstar Technical Inc. The contract is for the fabrication and testing of fire control consoles for the VICTORIA class submarines that were recently purchased by the Department of National Defence.

These contracts will have significant benefits for our province, and for our economy. It is important that we work with our federal partners, and the private sector, to ensure that more benefits are accrued to our province through major government procurement projects.

My department will continue with these efforts, and we will continue to ensure that the maximum benefits of these and other projects go to the people of our province.

1999 11 24 2:20 p.m.