MONTREAL - Prime Minister Stephen Harper promised Friday to act aggressively to help Canada weather the global economic crisis, making the vow as he announced a new contract for Montreal's CAE flight simulator company.
"In the weeks to come, our government will be announcing more initiatives under our economic action plan, all designed to create jobs, to boost economic activity and to prepare for the future in communities across this country," Harper told workers at the Montreal-area plant without being more specific.
On Friday, Harper announced a $329.5-million federal contract for CAE for flight simulator training equipment and services for the C-130J Hercules tactical airlift aircraft. The program creates about 330 jobs for the first three years and 50 for the next 20 years.
He said the announcement is a welcome example of good news in the midst of the worst global economic crisis since the Second World War.
"There will be bad news," he said in reference to the economic crisis. "But there will also be good news. There will also be private and public investments. This one today is an example of those investments."
Calling the recent federal budget "arguably one of the most important budgets in Canadian history," the prime minister said it is part of a multi-year economic action plan designed to ensure Canada emerges from the current economic turmoil stronger than ever.
"Extraordinary times such as these call for extraordinary measures," he said.
Although Parliament is still debating some of the budget measures, Harper said Friday's announcement is an indication his government is pushing ahead with its initiatives.
Harper said the budget contains an range of measures, such as targeted investment in key economic sectors.
The automobile industry also faces "very particular challenges," he said, noting that the Canadian and U.S. governments worked in late 2008 to prevent the collapse of the entire sector.
The aerospace sector will benefit from a range of initiatives, he said, noting Friday's contract announcement stems from efforts to rebuild the Canadian Forces.
He said Canada is also increasing its funding in the Strategic Aerospace and Defence Initiative and additional funds were recently announced for the Canadian Space Agency.
"There are a range of initiatives to support this sector and other sectors and make sure we position these sectors well for the recovery that will inevitably come after this difficult period."
Harper acknowledged he still remains concerned with the so-called "Buy America" provisions in U.S. President Barack Obama's economic stimulus package, which could cause difficulty for a number of Canadian exporters such as steel companies.
"There were some improvements as this went through the congressional process but obviously all of us remain concerned and I think President Obama himself has said that he wants to ensure that these stimulus packages do not lead to protectionist measures in the United States or anywhere else."
