Strengthening Canada's Defence and Security Industries
Industry Minister Moore at Canada's largest defence trade show discussing measures to help the industry grow and create jobs
(firmenpresse) - OTTAWA, ONTARIO -- (Marketwired) -- 05/28/15 -- Industry Canada
Minister of Industry James Moore spoke today at CANSEC, Canada's premier defence trade show, where he highlighted how government defence procurement policies strengthen the competitiveness of Canadian defence and security firms, while creating jobs and benefits across the supply chain.
Minister Moore discussed actions taken by the government to sustain the success of the defence and security industries. These include changes made to the Industrial and Technological Benefits Policy that will help attract earlier investment by prime contractors in Canadian firms, particularly small and medium-sized enterprises, while reducing red tape and increasing the transparency and accountability of the policy.
Minister Moore also reiterated the government's commitment to continue working with the industry to create high-quality jobs and grow Canada's economy.
Quick facts
Quotes
"Our government has worked to set the right conditions for strengthening the competitiveness of Canada's defence and security industries. The refinements to the Industrial and Technological Benefits Policy announced today will leverage greater economic benefit from defence procurement, and they are strong examples of how we are working in lockstep with industry to create jobs and economic growth for Canadians."
- James Moore, Minister of Industry
"The changes announced today will leverage investment in Canadian companies and make it easier for small and medium-sized businesses to secure contracts through the Defence Procurement Strategy and the Industrial and Technological Benefits Policy. This is good news for our industry, and it once again demonstrates how close consultation between government and industry is essential to ensuring that Canadian companies and jobs benefit from defence procurements. We applaud the government for their leadership on this important file and look forward to continuing to work with them to strengthen Canadian aerospace and defence capabilities going forward."
- Jim Quick, President & CEO, Aerospace Industries Association of Canada (AIAC)
"The improvements we are seeing made to the Industrial and Technological Benefits Policy should reduce the administrative burden on companies and enable Canadian SMEs to seize more business opportunities. These changes, which were developed in consultation with some of our members, build on the strong collaborative relationship the defence industry has enjoyed with Industry Canada throughout the development of the Defence Procurement Strategy."
- Christyn Cianfarani, President, Canadian Association of Defence and Security Industries (CADSI)
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- Backgrounder: Industrial and Technological Benefits Policy Enhancements
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Backgrounder
Industrial and Technological Benefits Policy Enhancements
A number of enhancements to the Industrial and Technological Benefits (ITB) Policy are being made to align it more closely with the overarching goals of the Defence Procurement Strategy: delivering the right equipment and services to the Canadian Armed Forces, leveraging economic benefits for Canada and streamlining the procurement process.
The Government of Canada is introducing changes to the ITB Policy to attract earlier investment in Canadian firms, particularly small and medium-sized enterprises (SME), while reducing red tape and improving transparency.
Industry Canada, in keeping with a core principle of the Defence Procurement Strategy, consulted industry stakeholders on opportunities to strengthen the ITB Policy.
Attracting earlier investment in Canada
The ITB Policy's banking provision allows companies to undertake business activities in Canada prior to the procurement and to bank these investments for later credit against their ITB obligations once they secure a defence contract.
The government is changing the banking provision in order to enhance the attractiveness of investing in Canada in advance of a contractual requirement. This change will also motivate prime contractors to extend successful business relationships with Canadian suppliers above and beyond their contractual requirements.
The changes to the ITB Policy will:
The ITB Policy's pooling provision allows companies to get credit against multiple procurement obligations for investments over $100 million that they make in Canada.
To encourage companies to make more large-scale, high-value investments in Canada, the government is changing the pooling policy to:
Encouraging investment in SMEs
The Investment Framework encourages prime contractors to invest in SMEs' research and development as well as commercialization undertakings in Canada by crediting their investments in SMEs at multiples of their face value.
To encourage prime contractors to give work to SMEs and enhance their participation in supply chains, the government is changing the ITB Policy's Investment Framework to:
Reducing red tape
All proposed investments in Canada under the ITB Policy must meet eligibility criteria to be credited against a contractor's ITB obligation.
Contractors must also report annually to Industry Canada on their progress in meeting their obligations under the Industrial and Regional Benefits (IRB) Policy and ITB Policy. Clarifying what documentary evidence is required to demonstrate that an investment meets incrementality and causality eligibility criteria, as well as electronic reporting, will significantly reduce the administrative burden of the program.
To ease this burden, the government will:
Increasing accountability and transparency
To increase transparency and enable Canadian companies to more easily identify opportunities with prime contractors, Industry Canada will report annually on contractors' progress in meeting their IRB and ITB obligations while respecting commercial confidentiality. This will include the size of a prime contractor's IRB/ITB obligation, the amount fulfilled, the amount for which plans have been identified, the outstanding obligation and the company's contact information.
The terms and conditions of the ITB Policy have been adjusted to reflect these changes and will be included in future requests for proposals. In addition, Industry Canada is undertaking an administrative review of the terms and conditions to further streamline and simplify the policy. An updated version of the model contract will be posted on the Industry Canada website in the fall.
Contacts:
Jake Enwright
Press Secretary
Office of the Minister of Industry
343-291-2500
Media Relations
Industry Canada
343-291-1777
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Datum: 28.05.2015 - 12:30 Uhr
Sprache: Deutsch
News-ID 396433
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