WINNIPEG - Manitoba Premier Gary Doer is urging Prime Minister Stephen Harper not to let "pork-barrel politics'' hijack a contract to build new military cargo planes.
Doer said Wednesday he's surprised and frustrated by a report published this week that says federal Public Works Minister Michel Fortier won't sign the contracts unless Quebec gets most of the benefits.
Doer says the situation seems like an unpleasant flashback to 1986, when the federal Conservative government chose a Quebec firm over a Manitoba company to maintain CF-18 fighter jets.
Canadair Ltd. of Montreal beat out Bristol Aerospace Ltd of Winnipeg even though Bristol's bid was lower and judged technically superior by a panel of civil servants.
The Conservatives felt the ripple effects of the deal across Western Canada for years.
Doer said the decision on where to build the new C-17s should be based only on who puts forward the best proposal.
"I actually believe Stephen Harper is not going to let the situation deteriorate to where pork-barrel politics takes over from defence-contract merit,'' said Doer.
"It's good for Manitoba, it's good for Boeing and Quebec knows it can compete on the basis of merit.''
The new C-17s are supposed to be delivered by June 2008 but the Globe and Mail reported last week the delivery has been delayed because Boeing and the federal government can't agree on economic spinoffs from the $3.4-billion contract.
Fortier refused to comment, but in a letter sent to the Globe and Mail Wednesday the minister denied saying that Quebec must get a greater share of the contract's regional benefits.
"When billions of taxpayer dollars are given out to aerospace and defence suppliers, it is also the government's job to see that economic benefits are returned to Canadians and the Canadian aerospace and defence industry,'' wrote Fortier.
"No deal is concluded until it is signed -- that is until the government is satisfied that the purchase was done properly, that Canadians are getting the right benefits, and that the purchase will serve the interests of the country.''
The federal government is negotiating with Boeing to buy four C-17 cargo planes. The company's price guarantee expires at the end of the month, meaning Harper could soon be forced to step in and choose between delaying the deal to help the Quebec industry or securing the contract at the current price.
The Quebec government is urging Ottawa to remain strong at the table to get the maximum economic benefits from the contract.
The province is home to the majority of Canada's aerospace industry and the base of Bombardier Inc. (BBD.B), one of Boeing's competitors.
It is also considered a key battleground in the next federal election and the Conservatives want to shore up support there to bolster their 10 seats.
Boeing's only Canadian plant is in Winnipeg, making a variety of airplane components.
Doer says Manitoba and Quebec companies should be able to fairly compete with each other.
"We're not afraid of competition, why is Quebec?''
