Adjournment Proceedings

An adjournment debate on a 10-year, $200-million National Defence contract with Maritime Launch Services, a Nova Scotia space launch company. Greg McLean of the Conservatives said the company is nearly bankrupt, that taxpayers are paying $20 million a year to lease land the company rents for far less, that the money was paid out without Treasury Board oversight, and that insiders sold shares after the announcement. Mike Kelloway of the Liberals defended the contract as the fastest, lowest-risk way to build a sovereign Canadian rocket launch capability, noting that at least $180 million must be spent in Canada and that the project has local, municipal, First Nations, and provincial support. Kelloway said the investment was not about helping insiders, while McLean pressed for answers on what happens to the money if the company fails.Written by AI from the debate. Updated .

Official text (opens in a new tab)

2 statements

Mike Kelloway, Parliamentary Secretary to the Minister of Transport

Liberal
“Canada needs to be able to launch its own rockets for national defence and to rely less on other countries. Our 10-year, $200-million deal with Maritime Launch Services in Nova Scotia is the fastest, lowest-risk way to do that. At least $180 million of that money must be spent in Canada. We moved quickly on the contract and the first payment so the launch site can open sooner and rocket research can begin next summer.”
  • Reply to a debate question

    Signal 41 of 100

    Much of this statement went to praise, blame, greetings, routine procedure or general stories rather than reasons, requests or specific points.

    See full analysis
Official Hansard

Mr. Speaker, the question is not whether Canada should invest in a sovereign space launch capability. The question is, rather, how to develop this capability and the role it will play in strengthening Canada’s national defence and, indeed, our economic future. The defence industrial strategy marks a major turning point in how Canada approaches defence procurement, innovation and industrial development. At the heart of this strategy, space launch is clearly defined as a sovereign capability essential to Canada’s long-term security and autonomy. Last year, the Department of National Defence assessed Canadian options for developing a sovereign launch capability. In doing so, DND considered a range of factors, including regulatory readiness, the suitability of various locations, alignment with defence research and development, Canada’s launch the north rocket challenge, the ability to launch payloads into orbit and the proximity to military and industrial assets. The objective is straightforward. We want to establish a sovereign launch capability as quickly and effectively as possible to support Canadian industry and avoid unnecessary delays and costs along the way. We are also committing to reduce our reliance on out-of-country providers as we strengthen Canada’s strategic autonomy. That is why our government selected a partnership-based model. Perhaps the clearest demonstration of Canada’s commitment to a sovereign space capability is through our partnership with Maritime Launch Services. Canada has secured access to an existing launch site near Canso, Nova Scotia, which I know very well, through a 10-year, $200-million agreement signed in January. The agreement also supports the construction of critical launch infrastructure and essential services required to establish domestic launch capability. We believe this approach will reduce delivery timelines, mitigate risk and provide a more cost-effective path to achieve results. Beyond its defence and security benefits, the agreement includes contract milestones, reporting requirements and oversight provisions that link continued funding to demonstrated results. At its core, the investment is about strengthening Canada’s sovereignty, enhancing defence readiness and building long-term economic opportunity. In fact, the contract requires that at least 90% of these public funds, or $180 million, be spent with Canadian businesses or in Canada. This ensures that the vast majority of funding is invested and reinvested in Canadian workers, Canadian companies, Canadian expertise and Canada’s defence industrial base. The member also raised the question of timing of the lease, the signing date of the contract and the payment of $20 million for the first year of the term, so let me speak about that as well. We took each of these steps for two reasons: first, to accelerate the spaceport’s path to fully operational status; and second, to enable the launch the north rocket research and development activities to begin as early as next summer. This project is part of a broad effort to expand our space capabilities in order to support the Canadian Armed Forces and defend Canada. All of this is done while ensuring that Canadians benefit and Canada benefits from economic spinoffs. I will conclude by saying we are at a moment in time when we want to be not just actively involved in the space industry but leading it. It is investments like the ones I mentioned and the strategy that we have put in place that will enable us to lead the way. We do that with partners, with provinces, municipalities, the private sector and first nations, and that is what this project is all about.

Mike Kelloway, Parliamentary Secretary to the Minister of Transport

Liberal
“Canada needs to launch its own rockets instead of relying on other countries. That is why we are investing in the space launch site in Canso. This is not just for Liberal insiders. It is supported by the local municipality, First Nations, and Conservative leaders like Premier Tim Houston and Peter MacKay.”
  • A repeated line

    “For whom I have a great deal of respect.”

    Said 5 times by 4 members since May 25.

    Every time it was said
Official Hansard

Mr. Speaker, I will say what I believe will happen next. It is that we will effectively be involved and leading the way in the space industry. The question we need to ask is this. Does Canada want to build its own sovereign space launch capability, or does it want to remain dependent on others for access? Lastly, the member opposite, whom I have a great deal of respect for, talked about Liberal insiders. The municipality of Guysborough supports this; the Liberal insider Premier Tim Houston supports this; and in fact, the co-founder of the modern-day Conservative Party, Peter MacKay, supports this, along with first nations in and around Guysborough County. We are actively involved in and investing in this. Of course we are, because we believe in Nova Scotia, the people in Nova Scotia, and we believe that we can lead the way in Canso for the rest of Canada.

Discussion

No comments yet

See the full discussion

Comment rules

More from sitting 158

  1. Government Orders Safe Social Media Act 38 statements
  2. Government Orders Safe Social Media Act 81 statements
  3. Oral Questions International Trade 18 statements
  4. Oral Questions Finance 14 statements
  5. Oral Questions Justice 8 statements
  6. Oral Questions Public Safety 2 statements
  7. Oral Questions International Trade 2 statements
  8. Oral Questions Immigration, Refugees and Citizenship 8 statements
  9. Oral Questions Government Appointments 5 statements
  10. Oral Questions Steel and Aluminum Industry 7 statements
  11. Oral Questions The Economy 2 statements
  12. Oral Questions Fisheries and Oceans 2 statements
  13. Oral Questions Taxation 2 statements
  14. Oral Questions The Environment 2 statements
  15. Oral Questions Finance 2 statements
  16. Oral Questions Business of the House 2 statements
  17. Government Orders Safe Social Media Act 23 statements
  18. Oral Questions The Economy 2 statements
  19. Government Orders Safe Social Media Act 42 statements
  20. Oral Questions Intergovernmental Relations 4 statements
  21. Oral Questions Public Safety 2 statements
  22. Oral Questions Families, Children and Social Development 2 statements
  23. Private Members' Business National Strategy for Soil Health Act 16 statements
  24. Adjournment Proceedings Adjournment Proceedings 4 statements
  25. Adjournment Proceedings Adjournment Proceedings 4 statements
  26. Adjournment Proceedings Adjournment Proceedings 4 statements