MacDonald Dettwiler and Associates has warned that the Canadian government’s decision to block the sale of its space division to an American defense contractor Alliant Technosystems could backfire, resulting in the loss of jobs and key technologies, the Financial Post reports.
MDA wants to sell its space division to ATK for $1.3 billion in order to focus on its fast growing real-estate information business. If the sale does not go through, company officials say they would have three options:
- purchase an American-based company to gain access to the U.S. market, draining funds from its information business;
- hire hundreds of American workers so it can gain access to U.S. contracts, thus sending jobs south of the border;
- collaborate with a U.S. company, with the risk of having its technologies stolen.
Last month, Industry Minister Jim Prentice rejected the sale on the grounds that it would have no net benefit for Canada. He sided with critics who say that the sale would damage the nation’s space program, sell off taxpayer-funded technology to the United States, and possibly block Canadian access to data from the Radarsat 2 satellite.
Continue reading ‘MDA Warns of Job and Technology Losses; Critics Decry Lack of Space Vision’
CAW AND RIDEAU INSTITUTE PRESS RELEASE
TORONTO/OTTAWA, March 30 /CNW/ - The Canadian Auto Workers union and the Rideau Institute publicly released a letter written by their legal counsel calling upon Industry Minister Jim Prentice to release information regarding the purchase of MacDonald, Dettwiler and Associates’ (MDA) important Canadian space information systems, including RADARSAT-2 and the maker of the Canadarm by U.S.-based Alliant Techsystems (ATK).
Citing procedures regarding “Third Party Representations” which are set out under the Department’s Guidelines - Administrative Procedures issued pursuant to section 38 of the Investment Canada Act, the letter calls upon the Minister:
- to seek permission from ATK to release any undertakings the U.S firm made to the government in support of its application;
- to describe steps taken by the department in evaluating the compatibility of ATK’s application with other Canadian government policies; and
- which departments, provinces and territories have been consulted about the application, as required by the Investment Canada Act.
Continue reading ‘Rideau Institute, Auto Workers Seek Release of Information on MDA Sale’
The Canadian government has announced a 30-day delay in its decision on whether to approve the controversial sale of MacDonald, Dettwiler and Associates’ space technology division to American defense contractor Alliant Technosystems.
Facing a Saturday deadline, Conservative Party Industry Minister Jim Prentice announced a month-long delay in order to conduct a more in-depth review of the sale. The Vancouver-based company has built some of Canada’s major contributions to space, including Canadarm, Radarsat 2, and the International Space Station’s new Dextre robot.
MDA wants to sell the division in order to focus on other parts of its business. Its shareholders have overwhelming approved the move. However, critics say the sale will devastate the Canadian space industry and threaten the nation’s sovereignty. One issue is whether U.S. law will limit Canada’s access to data from Radarsat 2, which the Canadian government primarily funded.
There has been a lot of coverage of this issue in the Canadian media. Below are some useful links:
Canadian Broadcasting Corporation:
Ruling on sale of Canadarm, Radarsat to U.S. arms-maker delayed 30 days
Canada Newswire:
Access Denied: U.S. Law Will Limit Canadian Access to RADARSAT-2 Data if Sale of MDA’s Space Division Proceeds
Liberal Party of Canada:
MDA Review Must Provide Solid Answers to Sovereignty Issues and Protecting Canada’s Space Industry
New Democratic Party:
NDP MP Peggy Nash demands that minister reject the sale of MDA
National Post:
Time to ground space firm’s sale (Op-ed by Don Martin)