Ottawa, ON – James Bezan, Conservative Shadow Minister for National Defence, Jeff Kibble, Conservative Shadow Minister for Defence Procurement, and Aaron Gunn, Conservative Shadow Minister for Ethics and Accountable Government, issued the following statement on the Liberals $2.3 billion Arctic satellite contract:
“After eleven years of Liberal neglect, it’s undeniable that our Armed Forces are in need of a rebuild, especially in the Arctic, where just 300 full-time personnel patrol a territory larger than most countries. Rebuilding will require serious investment, but the goal is to match the rapidly evolving nature of modern warfare, not hit an arbitrary spending target.
“To once again reassert our sovereignty in the Arctic, we need secure military communications for forces stationed there. Conservatives have long worked to establish this vital requirement for our collective defence, including under the Harper government more than a decade ago.
“But to reassert our control and dominance over our Arctic, we must convert every dollar into maximum operational strength. Canadians deserve an open process for procurement, and we deserve to know what other capable operators, both Canadian and from allied countries, were considered before the selection of a provider was made.
“What’s particularly concerning is this $2.3 billion contract will be the largest in Telesat’s history, and it’s well-documented that the CEO is a close personal friend of the Prime Minister. None of this is evidence of wrongdoing, but Conservatives will ensure that this is not yet another case of the Liberal club getting rich at the public’s expense.
“The track record and financial state of the company also raise questions. Telesat received $2.14 billion in loans in 2024 for rural broadband, and since then, the project has yet to be delivered, with the loan not having been repaid.
“Over the same period of time, Telesat has taken on billions in private debt and continued to show heavy losses. Their credit rating was lowered by S&P again in June and currently sits at junk status. Bondholders sued the company earlier this year, litigation that is ongoing.
“Put together, these facts raise serious questions about the ability to deliver and whether taxpayers’ money is being used to make the Liberal club richer instead of making our Armed Forces stronger and more capable of defending our country.
“That’s why the Liberals must release the contract terms and decision-making criteria so we can ensure we get the best system for the best price. Canadians deserve transparency on how procurement is making our country more capable of defending every square inch of our sea, skies and soil.
“It’s long past time for our country to start upholding it’s responsibilities to not just defend ourselves, but upholding our responsibilities for continental and transatlantic defence. Conservatives will ensure the government delivers to make us safer, stronger and united here at home.”