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Contract between Saudi Arabia and Canada ‘frustrating’

With the revelation of the killing of Washington Post journalist, Jamal Khashoggi, in Saudi Arabia’s consulate, Turkey, there is increasing pressure for Canada to cancel its contract for sale of light armoured vehicles (LAVs) to the kingdom of Saudi Arabia.

Canada’s Prime Minister Justin Trudeau said that while Canada has condemned the killing of the journalist and is not afraid to freeze permits on arms exports, the contracts that bind them to supply LAVs to Saudi Arabia are very difficult to break.

Speaking to Matt Galloway on CBC Radio’s Metro Morning on Tuesday, Trudeau explained that the way the previous Conservative government negotiated the contract made it very frustratingly difficult to suspend and prevented disclosure of conditions.

“The contract signed by the previous government, by Stephen Harper, makes it very difficult to suspend or leave that contract,” Trudeau said. “We are looking at a number of things, but it is a difficult contract.

“I actually can’t go into it, because part of the deal on this contract is not talking about this contract, and it’s one of the binds that we are left in because of the way that the contract was negotiated.”

Germany  has already stopping its arms sales in light of the incident and other countries, and  are working to figure out what kind of diplomatic and economic pressure could be applied to Saudi Arabia to make it clear that the apparent murder of the once Saudi royal family insider within the walls of the Saudi embassy in Turkey is unacceptable.

The world has of course noticed that Canada, which has had a very serious rift with the kingdom, beginning earlier this year, when the government publicly criticized the arrests of women’s rights activities, is still sanctioning the military deal.

While Trudeau said the government was not afraid to suspend military export permits like they had in the past, he explained that this contract could have more of a back lash on Canada and they were doing their due diligence with looking into the matter.

“I do not want to leave Canadians holding a billion dollar bill because we’re trying to move forward on doing the right thing. So we are navigating this very carefully and that’s pretty much all I can say on that.” said Trudeau.

Foreign Minister Chrystia Freeland has made it very clear that Canada condemns the killing of the journalist and that the Saudis’ “explanations” of the killing of Khashoggi “lack consistency and credibility.”

She has also agreed with the federal government’s call for a thorough investigation in collaboration with Turkish officials, demanding a full and transparent investigation.

“We are gravely concerned by the murder of Jamal Khashoggi,” she said. “We do not find the explanations that have been offered to date to be credible or consistent. That is a serious problem for Canada.” She said.

However, while the Opposition is calling for government to invoke the new Magnitsky law  which gives the government the authority to freeze Canadian assets of foreign individuals who have violated human rights, to sanction those responsible for Khashoggi’s death, there is as yet no concrete word on whether that is the course Canada will take.

 

Toronto: Metrolinx reaches new contract with Bombardier for Crosstown

Over the holidays, Metrolinx negotiated new contract terms with Bombardier, the transit agency responsible for producing light rail vehicles for Toronto’s Eglinton Crosstown light rail transit (LRT) system. According to a press statement, these new terms offer “significant financial penalties for Bombardier if they fail to deliver quality vehicles on-time.”

“This clearly resets the relationship with Metrolinx under its new leadership, and provides a clear path forward to ensure certainty on the technical and financial obligations of both partners,” a Bombardier press statement said.

Bombardier is contracted to manufacture 76 light rail vehicles, which is 106 less than the original contract for 182.

“We want our suppliers to succeed,” Metrolinx CEO Phil Verster said in a statement. “The new agreement provides compelling incentives for Bombardier to allocate the right resources and attention to the production of our Eglinton vehicles.”

The new agreement includes performance deadlines and a new late delivery penalty. Bombardier has also committed to be more transparent when it comes to production plans and progress, which means that Metrolinx will have the opportunity to address progress on a regular basis. Bombardier will ensure vehicle quality is sustained throughout the lifespan of the vehicles.

The GO Transit Operations and Maintenance contract was extended by 18-month.

In May, the provincial government signed a new agreement with Alstom Canada to provide vehicles that would be used on the Eglinton Crosstown. Alstom is still contracted to manufacture 61 cars, but they will be used on other transit lines such as Finch West LRT.

“We have always been resolved to find a clear negotiated path forward, one that delivers value to all parties, and foremost to the people of Ontario. Bombardier is fully committed to the Metrolinx project and to the people of the Greater Toronto Hamilton Area (GTHA),” said Benoit Brossoit, President, Americas Region at Bombardier Transport. “I look forward to working with Metrolinx’s CEO, Phil Verster’s, to advance this project and ensure that riders have the most efficient, comfortable and reliable transit system in the world.”