Official Hansard
Mr. Speaker, I would like to note that I will be sharing my time with the member for Richmond—Arthabaska. First of all, let me say what a thrill it was to meet Kevin White’s brother-in-law today, astronaut Jeremy Hansen, here on Parliament Hill. Kevin White is the fire chief in the city of Barrie, and he is married to Jeremy’s sister. I thought I would mention that for Kevin’s benefit. During World War II, when Allied aircraft would be flying over the targets, ready to bomb, they would be hit with flak. In this place, we know we are over the target when Liberals start justifying and making excuses for things that absolutely make no sense, and they speak in a louder tone to try to make their point. What is important about this debate tonight is that Canadians are watching the government spend $200 million on a politically connected spaceport project in rural Nova Scotia. The more we learn about it, the less sense it makes. As the finance minister suggested in committee of the whole two weeks ago, this is not a story about innovation or economic stewardship. It is a story, in fact, about Liberal insiders, political connections, well-connected insiders and taxpayers who, once again, are being asked to foot the bill for a project that should have never received this level of government backing in the first place. Canadians are effectively paying $50,000 every single day for this project. What exactly are they getting for that money? They are getting a gravel road, two sea cans and a concrete slab that has launched exactly two rockets, neither of which have reached space. One of those launches was conducted by a York University student rocketry club. Canadians are effectively paying $50,000 a day for what amounts to be the most expensive science fair project in the country, and yet somehow, despite this lack of infrastructure, lack of revenue, lack of launches and lack of any proven commercial success, the federal government decided to give this company $20 million a year for the next 10 years. The debate and argument tonight is that Canadians deserve to know why the numbers alone make absolutely no sense. Maritime Launch Services reported less than $15,000 in annual revenue. At the same time, the company reported tens of millions of dollars in losses and had only about $70,000 in cash on hand. Independent auditors openly warned that there was material uncertainty about whether the company could even continue operating. In plain English, this company was on the verge of financial collapse. Instead of walking away, what the Liberal government did was attach itself to this project even more aggressively. Canadians have seen this pattern before. When ordinary Canadians struggle financially, the Liberals tell them to budget better, but when politically connected companies struggle financially, the Liberals suddenly open up their wallets. The insider connections surrounding this project are impossible to ignore. Former Liberal premier Stephen McNeil publicly supported the project before the environmental review had even been completed. Then later, after championing the project politically, he conveniently joined the company’s advisory board. Canadians are tired of this revolving door where Liberal politicians help projects while in office and then later somehow attach themselves to the same companies benefiting from that government support. MLS’s chief lobbyist was reportedly a former senior staffer to the justice minister, and the company reportedly lobbied the justice minister 14 separate times, more than the current or former local MP for the area. Canadians do not need a conspiracy theory to see what is happening. The pattern is clear. Former Liberal politicians, former Liberal staffers and well-connected political insiders are all orbiting around a company that is now receiving hundreds of millions of dollars in taxpayer support. Despite all of these political connections, the project itself still makes no practical sense. The original business model was based around launching the Cyclone-4M rocket. The problem is that the rocket has never actually been built. Imagine spending $200 million to build an airport for planes that do not exist yet. Canadians would never, ever tolerate that level of incompetence in any other sector, yet somehow the government saw no proven rocket, no proven market, no regulatory framework, no meaningful revenue and massive financial instability and still thought this is exactly where 200 million hard-earned taxpayer dollars should go. The government did not just ignore the warning signs. It practically sprinted past them. The company’s founding partner became tied to a NASA false claims case involving allegations of false billing and ignored safety protocols. The chair of the board faced sanctions from Canada’s investment regulator over failures involving compliance and supervision. The Ukrainian aerospace partner behind the project had already been surrounded by allegations of corruption, failed international projects and major financial disputes. Any one of these should have triggered caution, but instead, Liberal insiders continued to attach themselves to this project. The most unbelievable part of it all is the land arrangement that is in place. Maritime Launch Services does not even own the land. It leases Crown land from the Province of Nova Scotia for less than $13,000 a year, and somehow, through this federal government agreement, taxpayers are paying massively inflated amounts connected to the exact same land, resulting in a 1,300% profit margin. Canadians are struggling. They cannot get mortgages approved. Young people cannot afford homes, families are cutting back on groceries and seniors are struggling with bills, but somehow, the Liberal government found a way to guarantee politically connected insiders with what appears to be a 1,300% return tied to publicly owned land. That is not to mention that effectively worthless shares of what was an effectively bankrupt company were sold for a profit of $1.8 million. That is not economic development, nor is it innovation, as the finance minister would say. It is absolute cronyism. Why is the federal government attaching itself so aggressively to a project that still lacks even the most basic foundations for success? Canada does not even have a fully developed regulatory framework for commercial orbital launches. The environmental assessment was minimal. The project dramatically changed its entire business model. The site itself is underdeveloped. There were two launches, and both were unsuccessful. Still, the government wants to invest $200 million in it. At some point, Canadians will stop seeing this as a business decision and start seeing it for what it looks like: a politically protected project kept alive by well-connected Liberal insiders using taxpayer money. Canadians deserve governments that invest based on merit, viability and public interest, not on who knows which minister, former premier or Liberal staffer. Right now, Canadians are paying $50,000 a day for a failed science fair, while the only things truly taking off appear to be the profits and connections of Liberal insiders.
