The sales pitch The Liberal government has not been shy to let both bidders know that Canada expects major economic benefits from this massive defence purchase. In fact, several months ago the bidders were given an opportunity by Canada to sweeten their proposals in terms of industrial benefits. Both Hanwha and TKMS have entered into multiple alliances with Canadian companies as part of their bids. There are a lot of promises and claims of job creation flying around, with numbers of new jobs ranging from
450,000 to 650,000 over the life of the program and financial benefits of more than $100 billion. Such claims, however, are tentative — most, if not all of the agreements, are based on the specific company winning the bid. Any agreements with the losing bidder will produce nothing. In addition, since the program will span decades, the true result of the job creation and financial benefits for Canada won’t be known for many years. Some analysts point out that a Canadian purchase of the Hanwha
sub would be a major success for the company in that the boat has not been exported previously. “For Hanwha, winning the CPSP would therefore represent not only a commercial success, but also an opportunity to establish itself as a long-term defence partner within NATO’s maritime ecosystem through Canada, much as its land-based defence systems gained a foothold in the European market through Poland,” concluded an analysis from the Asia Pacific Foundation of Canada.
Canada submarine purchase, Hanwha, TKMS, CPSP, industrial benefits, job creation, NATO maritime ecosystem, Asia Pacific Foundation of Canada, Liberal government
So are we paying like $100 billion for promises again?
I don’t even get why it’s a “sweeten your proposals” thing. If the jobs are real they should just be written in stone right? Sounds like politics and marketing with numbers thrown around.
Wait, aren’t these subs already built by whoever’s winning? Like how do they keep claiming 450k to 650k jobs for “decades” like that’s just gonna happen automatically. Also Hanwha never exported before so how is that a “major success”?? Seems backwards to me.
Every time Canada buys defense stuff it’s always “NATO maritime ecosystem” and “industrial benefits” and then years later it’s like, surprise, no one got the jobs they said. Plus if the losing bidder’s deals don’t matter, doesn’t that mean half this whole thing is meaningless until the contract is locked in? I’m not saying TKMS or Hanwha are bad, I just don’t trust the Liberal pitch math.