Adjournment Proceedings

In adjournment proceedings, Michael Cooper of the Conservatives raised questions about the government’s lease with Maritime Launch Services for a proposed spaceport in Nova Scotia, saying the government gave about $20 million to a company with no launch history and that the board chair later sold shares for $1.8 million, and asked how this was allowed. Sherry Romanado, a parliamentary secretary, replied that Canada is the only G7 country without its own space launch capability, that the lease followed ethics and safety rules, that it is a low-risk arrangement, and that most of the spending would go to Canadian workers and businesses. The exchange remained focused on this issue.Written by AI from the debate. Updated .

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4 statements

Michael Cooper, St. Albert—Sturgeon River

Conservative
“The government gave a $20 million lease to a failing company with no history of space launches. They backdated the deal by a year, which gave the company public money for no work. The company's stock value jumped, and its board chair made $1.8 million by selling his shares. The government did not put rules in place to stop this insider profit. I want to know why they let this happen.”
Official Hansard

Mr. Speaker, I have a question about corruption surrounding the Liberal government’s now infamous lease with Maritime Launch Services for a so-called space port. We know that the government entered into this lease, notwithstanding that Maritime Launch Services had no history of launching anything into space. Indeed, Maritime Launch Services had a history of not doing much of anything because Maritime Launch Services was a practically bankrupt company, sustaining a loss of $47 million and with revenue of just $15,000 in 2025. As such, it is no wonder that the share value of Maritime Launch Services was practically worthless, but then the Liberals entered into the so-called space port lease on March 16 of this year, and rather conveniently, the Liberals backdated the lease by one full year to 2025, funnelling $20 million tax dollars to Maritime Launch Services for no work and no value, effectively bailing out Maritime Launch Services. What was the consequence of that? Surprise, surprise, the share value of Maritime Launch Services soared, and immediately following that, within three weeks, the chair of the board sold three million previously worthless shares, walking away with $1.8 million. He became a millionaire overnight. Do members know what that is called? It is called “pump and dump”. Do members know what else it is called? It is called “corruption”, which the Liberals allowed to happen because they failed to take the most basic of measures to prevent this kind of insider profiteering, such as, for example, insisting upon a lock-up agreement. Why did they not do that? Why did they allow this to happen? Is it because this type of corruption is business as usual with the Liberals?

Sherry Romanado, Parliamentary Secretary to the Minister of National Defence

Liberal
“Canada needs the ability to launch its own rockets into space so we do not have to rely on other countries. We followed all ethics and safety rules when signing the deal with Maritime Launch Services. Leasing this land in Nova Scotia is a safe, low-risk choice, and 90% of the $200 million will be spent on Canadian workers and businesses.”
Official Hansard

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.

Michael Cooper, St. Albert—Sturgeon River

Conservative
“The government gave $20 million to bail out a struggling company. Right after that, the company's board chair sold shares and took $1.8 million. I want the parliamentary secretary to explain how the government can justify this corruption.”
Official Hansard

Mr. Speaker, my question was about pump and dump. It was about corruption. Here we have the Liberal government funnelling $20 million to Maritime Launch Services, bailing out a nearly bankrupt company, upon which the chair of the board immediately sells three million of his shares, walking away with $1.8 million. Does the parliamentary secretary consider that to be normal? Is that just business as usual with the Liberals? How can the parliamentary secretary justify this type of corruption?

Sherry Romanado, Parliamentary Secretary to the Minister of National Defence

Liberal
“Canada needs its own way to launch rockets into space. We are the only G7 country that cannot do this on our own. Our government is spending money to fix this, build our space industry, and create good Canadian jobs.”
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Official Hansard

Let us be clear, Mr. Speaker. Sovereign space launch capabilities are a strategic imperative for Canada. Canada is currently the only G7 country without sovereign space launch capabilities. We are in the process of addressing that strategic gap. Our approach will enable Canada to exercise more control over essential space infrastructure. This is about building Canada strong. It is about investing in Canadian industry, unlocking the full potential of our innovation economy and creating high-quality jobs here at home. It is about developing the critical infrastructure and capabilities that strengthen our sovereignty, enhance our security and support a more resilient Canadian economy. We will build in Canada, we will invest in Canadian workers and Canadian innovation, and we will ensure Canada remains a strong, sovereign and trusted leader in the space domain.

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