The Conservative government has decided that U.S. aerospace giant Sikorsky won't have to pay $36 million in late penalties even though the maritime helicopter it is building for the Canadian Forces is being delivered two years late...But for those worried that the Cons did nothing but to give away a late fee would have been owed to the federal government, have no fear. Instead, they can also be counted on to give away more money for supposed "improvements" that nobody's interested in discussing:
Both Liberal and Conservative politicians, as well as Sikorsky officials, have in the past highlighted the penalties as evidence that there were severe consequences if the firm didn't deliver on time. The clause allowed the federal government to charge the company $100,000 a day for every day it was late. The maximum penalty was $36 million.
Under the new deal, Canadian taxpayers will now pay Sikorsky $117 million extra for improvements to be made to the Cyclone as well as changes to the long-term in-service support package for the aircraft.So in total, Canadians will get to pay over $150 million above the original contract price - and all for the privilege of having the promised helicopters delivered two years later than agreed.
However, the government is not discussing the exact nature of those improvements. The Defence Department and MacKay's office declined to comment, referring inquiries to Public Works and Government Services Canada.
Of course, that result is entirely consistent with how the Cons apparently think public money should be used. But for those of us who think taxpayer money has better uses than to pay military contractors for breaking their commitments, today's news should serve as a serious warning signal about the dangers of having the Cons in power at the best of times...let alone when the federal government's direction will determine how quickly (if at all) our economy is able to recover from a downturn.
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