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MONTREAL — Canadian taxpayers spent almost $500,000 on a study of Bombardier that was launched months before the Montreal company asked the federal government for US$1 billion because of its CSeries commercial aircraft, based on documents obtained by The Canadian Press.
Industry Canada decided to pay $499,930 to Deloitte Inc. to prepare an economic and market assessment of Bombardier, said a revised contract obtained with an access-to-information request.
That’s higher than the original agreement for $464,430 before Deloitte’s deadline to compile the report by Dec. 4 was extended to March 31.
Details about the objective from the report were redacted. The government declined to supply the ultimate report, citing clauses underneath the Access to Information Act that prevent it from releasing information that may harm Bombardier’s competitive position.
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The study was ordered in August by the previous Conservative government.
The Liberal government later reportedly hired Morgan Stanley to assist advise it on the funding request produced in December by Bombardier. Details about that contract weren’t immediately available.
A spokesman for Economic Development Minister Navdeep Bains said the government hasn’t designed a final decision on Bombardier’s request.
Bombardier is dealing with the Quebec government to finalize an agreement by June 30 on its commitment to invest $1 billion within the CSeries.
Quebec wants the CSeries venture to be spun off into a separate entity, with Ottawa taking a one-third stake. That would take the troubled jet program from the company’s books and boost its short-term financial results.
The to begin the CSeries jets is entering service in a few months after years of delays. Bombardier has gotten commitments for 678 planes, including 243 firm orders. It currently controls 50.5 per cent of the CSeries, while Quebec includes a 49.5 per cent stake.
Under Quebec’s proposal, if Ottawa matches the province’s contribution, both governments would each own one-third stakes in the CSeries, with Bombardier playing the remainder.
The Canadian Press
