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ACTION ALERT: Prentice must reject sale of MDA to US weapons manufacturerMarch 7, 2008 As reported by the Ottawa Citizen this morning, "The proposed purchase by a US firm (Alliant Techsystems) of Canada's largest space company (MacDonald, Detwiler and Associates), and with it a $524-million high-tech satellite built mainly with taxpayers' money, is being challenged by a growing number of scientists and engineers." Richmond, B.C.-based MacDonald, Dettwiler and Associates Ltd., or MDA, announced on January 8, an agreement to sell its Information Systems and Geospatial Services operations to Minneapolis-based Alliant Techsystems, or ATK, for $1.325 billion. MDA's Information Systems and Geospatial Services operations are better known as the builders of the Canadarm, the iconic remote-controlled mechanical arm used on the space shuttle, and RADARSAT, an earth observation satellite. Concerns have been raised because the US corporation seeking to purchase MDA manufactures depleted uranium shells, land mines, rocket components and cluster bombs for the US military. Today's Ottawa Citizen article notes that geophysicist Lawrence Morley says the Auditor General should probe this deal, spacecraft systems engineer Hugh Thompson says the deal should be halted, astronaut Marc Garneau says the sale would be a major loss to Canada, and engineers Paul Cottle and Trevor Williams have already quit MDA because ATK is a weapons manufacturer. According to the article, "Industry Minister Jim Prentice will have a final say on whether the deal goes through (by) March 22...although a 30-day extension could be requested." On January 29, the Globe and Mail had reported that, "An NDP member of Parliament will table a motion today with the federal industry committee asking Industry Minister Jim Prentice to attend and answer questions about the proposed sale of MacDonald Dettwiler and Associates Ltd.'s space assets to a U.S. buyer...Ms. Nash said she does not know whether the committee will adopt her motion to call Mr. Prentice as a witness." The follow-up Globe and Mail news article reported that, "Parliament's industry committee passed a motion yesterday inviting Industry Minister Jim Prentice to appear and explain the government's review of an asset sale by MacDonald Dettwiler and Associates Ltd. to U.S. firm Alliant Techsystems Inc. At a meeting yesterday morning, the committee accepted a motion from NDP industry critic Peggy Nash to invite Mr. Prentice to appear...Mr. Prentice is expected to appear before the committee in the next four to six weeks." Those hearings with Minister Prentice occurred this month. Prentice was quoted last month by Canadian Press as saying, "We are in the process of examining all of the implications and I can assure you I intend to be diligent in protecting the interests of Canadian taxpayers.” TAKE ACTION CONTACT INFORMATION WHAT COULD STOP THE SALE? 1. In that ATK has a contract to produce new systems for anti-personnel landmines, the sale of the MDA space and satellite operations to them would violate the Mine Ban Treaty (also known as the Ottawa Treaty) that Canada signed in 1997, and could be considered a criminal offence under Canadian domestic legislation. Lloyd Axworthy, the former foreign affairs minister who signed the Mine Ban Treaty, has been quoted as saying, "If the manufacturer of this special landmine that the American company is involved in has already been condemned by the landmines monitor, then I think we've got a real problem. Especially if there's a continuing of public dollars going into the company to support the space work, there's a real association that takes place in that case." 2. The sale is subject to MDA shareholder approval and a regulatory approval in the United States. 3. The sale faces a mandatory review by Industry Canada under the Investment Canada Act, although MDA president and CEO Dan Friedmann said that the deal does not need approval from the government or the Canadian Space Agency. A spokesperson for Industry Minister Jim Prentice has stated the deal would be rigorously reviewed "to ensure there's a net benefit to Canada." WHAT HAS THE REACTION BEEN? Paul Hannan, the director of Mines Action Canada, has said, "Since Canada spearheaded the whole movement to ban that weapon and was the first country to sign and ratify the treaty, I think it's important that all companies that operate in Canada understand that under this treaty - and under Canadian domestic legislation - it's a criminal offence to assist or to use or produce anti-personnel landmines." WHERE DO THE POLITICAL PARTIES STAND ON THIS? Bob Rae of the Liberals has said, "While the manufacture (of mines) would not necessarily be in Canada, we would still be in the position of subsidizing - through grants and other (technology) subsidies - a company that's engaged in that business. That's something we have to think through very carefully." MORE INFORMATION The Canadian Press report, Proposed sale of Canadarm, RADARSAT to US weapons maker has critics up in arms, can be read here. The CTV.ca report, MDA engineer quits over sale to U.S. weapons company, can be read here. Today’s Ottawa Citizen article is here. The Council of Canadians’ January 29 'ACTION ALERT: Demand that Industry Minister Prentice answer questions about MDA sale' can be read here. Brent Patterson, Director of Campaigns, Organizing |
