Taxpayers subsidize defence industry's participation in arms trade shows
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Lee Berthiaume Published on: September 4, 2014
Last Updated: September 7, 2014 7:32 PM EDT
The trade group representing Canada’s arms industry is defending the fact it has been using taxpayer dollars to attend international trade shows and engage potential customers abroad.
The Canadian Association of Defence and Security Industries (CADSI) is just one of 38 trade associations benefiting from a $3-million annual fund set up by the federal government to bolster Canadian exports and business outside the country.
The list includes trade groups representing Canada’s independent music industry, post-secondary institutions, and the aerospace sector.
But some are wondering why the defence industry in particular can’t afford to pay its own way, given it boasts $12 billion in revenues each year, includes a number of large multinational companies, and already receives significant support from the federal government.
“Why does this industry association need essentially a taxpayer subsidy to do something they would already do in the course of their business?” asked former Canadian ambassador for disarmament Peggy Mason, now president of the Ottawa-based Rideau Institute.
CADSI will receive only about $150,000 through the Global Opportunities for Associations fund this year, and has received less than $1 million since 2008, when the government changed it from an early program.
But Mason noted the money is being given at a time the Conservative government is cutting public service jobs, services and funding in a variety of other areas to produce a budgetary surplus before next year’s election.
Government documents obtained by the Citizen show the money was used last year to help Canadian defence companies participate in major trade shows in Paris, Washington, D.C., and Abu Dhabi.
The Conservative government has been promoting Canada’s defence industry as an economic priority, in large part because it hopes doing so will help offset the thousands of manufacturing jobs that have been lost in other sectors.
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