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 .

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4 statements

Greg McLean, Calgary Centre

Conservative
“The government gave a $200 million defence contract to a spaceport company that is almost bankrupt. We are paying the company $20 million a year to lease land that the company rents for only $13,500. This deal pumped up the company's stock, letting an insider cash out roughly $2 million in shares. This is a waste of tax dollars to help connected insiders, and the government must answer for it.”
Official Hansard

Mr. Speaker, I am following up on a question I asked in the spring about an issue called spaceport. The government awarded a 10-year contract for $200 million to fund a national defence company called Maritime Launch Services through National Defence. One of the egregious factors in this lease is that Maritime Launch Services does not own the land the government is paying for a lease on, but leases it from the Government of Nova Scotia for $13,500 per year. We are paying a $20-million lease on land that the company is leasing for $13,500, which is ridiculous in itself. Now, my colleagues across the way will say how much value has been added by the development of the site by Maritime Launch Services. That nonsense, of course, is completely defied by the company’s financial statements. In June 2025, the company had negative value and its paper assets, before considering any of its liabilities, were only $13 million. Again, that is $13 million, against which we are going to pay $20 million annual rent for the land. It is ridiculous again. The government had decided to pay this $20 million, but the second most egregious part of it, of course, is that it is paying a year in arrears when they were not even on the land. It is basically a grift, a gift to some of their connected insiders that is beyond what should happen with any responsible government. Let me read from Maritime Launch Services’ actual audited statement from the middle of 2025: “As a result, there is material uncertainty that may cast significant doubt as to whether the Company will have the ability to continue as a going concern.” It is almost a bankrupt company, and the government decided to give them $20 million from defence, in addition to a $10-million line of credit from none other than Export Development Canada. Now, we have seen Export Development Canada, of course, involved in so many other slush fund operations where the government is throwing Canadian taxpayers’ money out the door. We have got a few corporations in here. Now, what is Maritime Launch Services? Let us look at its role in this. It is really a sandwich organization between renting from one government and getting a big contract from the other government. It is a penny stock, a worthless company on the stock exchange, publicly traded, now doing the government’s bidding and getting paid egregious amounts of money for doing next to nothing. Now, we know there is a whole bunch that has to happen here, as far as spaceport goes, but this is an example of money being thrown out the door. If this is what the government is talking about, about how we spend money in defence procurement more effectively, it is completely wrong. This is a way to throw Canadian taxpayer dollars away, not actually trying to make sure it gets into the pockets of the right people. No sooner than it put $20 million into an almost bankrupt company than the principal of the company gets the lift from that, the $20 million onto a balance sheet, from five cents a share to 60¢ a share, and he unloaded almost 2 million dollars’ worth of his shares. That is a grift, through and through, and the government has to be held to account for it. It is the definition of pump and dump. I will let the government respond to that, and I will continue to push on this. This is not the way any democratically elected responsible government should be acting.

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.

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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.

Greg McLean, Calgary Centre

Conservative

Linked statement

“The government gave 20 million dollars to a private company with no oversight. Company leaders took the money, sold their shares, and kept the profits. If this company goes broke, taxpayers will lose their money. I want the government to tell us what will happen with this money.”
Official Hansard

Mr. Speaker, I appreciate the answer. The $20 million in arrears, there is no excuse for. There is no Treasury Board Secretariat oversight of how that money was spent. It was spent in the year before the government threw the money out the door and immediately into the pockets of a private sector organization in order to get the ball rolling. It is exactly how government should not be operating, particularly when the people it is giving the money to flush the shares out and put the money in their pockets. I do not know if it even knows what a share lock-up agreement is, but it is a repetitive pattern, including with everything the government says is in urgency, much like with Lion Electric, which is being investigated by the RCMP this week because of what it did, in exactly the same format of funding the public companies and all of the principals taking the money out when they pump the stock up and running away. When this goes bankrupt, if this goes bankrupt, then the Canadian taxpayers are going to end up holding the bag again. Will my colleague tell us what is going to happen?

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.

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