Aerospace funding dominates flurry of pre-election spending announcements

In the days preceding the September 7 election call, the Conservative government made a flurry of S&T related announcements across Ontario and Quebec and into Manitoba, including $75 million from the Strategic Aerospace and Defence Initiative (SADI) and an additional $80 million in Ford Motor Co's Renaissance Project.

Added into the mix were re-announcements new research chair and scholarship programs first announced in the last federal Budget (R$, March 11/08). The press release was issued September 2, ostensibly because the programs were being officially implemented and members of their respective selection boards were made public. The Ford investment was made September 2 while the three SADI announcements took place on September 2 and 3.

To date, only one funding announcement had been made under the SADI program (R$, February 25/08) although RE$EARCH MONEY was told last February that announcements would made within weeks. (R$, February 8/08).

three sadi investments

The largest of the SADI investments was $43.4 million in Winnipeg-based Bristol Aerospace Ltd, the largest division of the Magellan Aerospace Group. The interest-free loan to Bristol is in support of Canada's participation in the Joint Strike Fighter (JSF) program for a project valued at up to $120 million. It will develop new processes for composite manufacturing and complex assemblies that use both composite and metal components, designed to strengthen the wing and tail of the F-35 aircraft.

Bristol will partner with other companies and research institutions, including Winnipeg's Composites Innovation Centre, a not-for-profit corporation funded by industry and government. Canada signed onto the JSF program in 2002, facilitating the participation of Canadian aerospace companies.

Participation in the JSF program also factored into SADI's investment in Integran Technologies Inc to develop nanotechnology-based coatings. The Toronto-based firm will receive $4.6 million to support the development of Nanovate, a hard metal coating to be applied to carbon fibre reinforced plastic aerospace tools to improve lifespan and durability. The overall cost of the project was not disclosed.

The third SADI announcement in two days provides $27 million in repayable assistance to Héroux Devtek Inc for a $77-million project to improve the reliability and performance of landing gear systems. The project involves technologies to enhance in-flight monitoring systems, fly-by-wire systems and new materials. The Longueuil QC-based company will leverage knowledge gained from the project to enhance its manufacturing capabilities for better integration of landing gear components into complete systems.

Ford investment

On the automotive front, the federal government is tapping its $250-million Automotive Innovation Fund to invest $80 million in Ford's Renaissance Project, which could reach a total investment of $730 million by 2012. The federal assistance will support the establishment of a new flexible manufacturing engine assembly plant in Windsor ON and the creation of a North American Centre for Diesel and Advanced Powertrain Research. The Centre will consolidate most of Ford's North American engine testing capacity. The Centre will replace an existing obsolete facility and is expected to cost $117 million, with $23.2 million coming from SADI.

chairs and scholarships

Two Budget initiatives for higher education have been re-announced. The Canada Excellence Research Chairs (CERC) and the Vanier Canada Graduate Scholarship Program (VCGS) will ramp up with funding of $25 million and $21 million respectively over two years. The CERC program will peak at $28.6 million annually once all 20 chair holders and their research teams are in place. The chairs will receive $10 million over seven years. Derek Burney (Ogilvy Renault LLP) will serve as the selection board chair while Robert Prichard (Torstar) is vice-chair.

Laurent Beaudoin (Bombardier) will chair the board overseeing the VCGS program while Dr Martha Piper is vice-chair. It is aimed at top-ranked doctoral students.

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