Liberal Leader MIchael Ignatieff just left; Conservative leader Stephen Harper is there as I write this, and, tomorrow, NDP Leader Jack Layton will be in the Forest City, also known as London, Ont.
The most volatile riding is likely London West where Conservative Ed Holder is a first-time MP who knocked off in 2008 a five-time winner in Liberal Sue Barnes. Liberal Glen Pearson is a likely incumbent favourite in London North Centre (he succeeded former Liberal cabinet minister Joe Fontana who is now London's mayor). Similarly, Conservative Joe Preston looks to be in good shape in Elgin-Middlesex-London (Harper's and Layton's rallies, incidentally, are both at the same hotel in Preston's riding). And in London-Fanshawe, the NDP want Irene Mathyssen to hold that seat. She succeeded Pat O'Brien, who finished his parliamentary career as an Independent after leaving the Liberal caucus over the same-sex marriage issue.
For Londoners, one of the big campaign issues this year is federal help for a local aircraft manufacturer, Diamond Aircraft. The airplane maker needs a $30 million federal loan without which it could end up laying off up to 200 workers. Ignatieff backed the loan program during his visit last week.
So far, the Conservative government has resisted Diamond's request.
Reporters from the London Free Press, one of the Sun Media titles I write for, were keen to ask Harper about this issue during his visit there to day although Harper tends to take no questions at his afternoon events in cities he visits. Read their set-up piece for today's visit.
In the meantime, the Liberal war room is trying to stir the pot by suggesting that the old job of Harper's chief of staff, Nigel Wright, may be getting in the way of a decision. Here's what the war room has:
Is this why the Conservatives won’t commit to giving Diamond Aircraft its loan?
- Until last fall, Nigel Wright sat on the Board of Directors at Hawker Beechcraft and will likely return there once his stint as Chief of Staff to the Prime Minister comes to an end.
- Hawker Beechcraft is a competitor of companies like the London-based Diamond Aircraft.
- Diamond Aircraft needs a loan to proceed with production of its D-Jet, a new Very Light Jet (VLJ) class plane. It has secured $20 million from the private sector and $30 million from the Government of Ontario, but they are both contingent on a $30-million loan commitment from the federal government.
- The federal government has refused to provide this commitment, even though there is very clearly a market for this plane – according to Thomas House, owner of YouJet, business executives are downsizing from corporate jets to planes like the D-Jet, and he hopes to purchase several D-Jets for his company. (London Free Press, April 1, 2011)
- The downsizing by business executives has impacted Hawker Beechcraft, which announced last fall that it was suspending production of its corporate jet, Light Jet (LJ) class 400XP, due to a plunge in demand. (The Wichita Eagle, Nov. 13, 2010)
- Is this why the Conservatives are refusing to help Diamond Aircraft? Has Nigel Wright had any influence on the Conservatives’ decision?
The Liberals didn't promise to give the loan. They promised to make consideration of the loan a priority.
If the Cons had given them what they need financially. The media would have had a ball saying the favouritizm or even worse. This was handled right by the MP Stephen Harper and you are just making mountains out of mole hills.
In 2008 Diamond got a federal loan of $19.6 million for research and development,
– what were the terms?
– are they delinquent making payments?
– have they paid that loan back yet?
Diamond applied for this second loan in February, I doubt Tony Clement has even had a chance to look at it.
Decisions of this nature are made by management, not by the Board of Directors. The Board of Directors of public companies may approve or disaprove of major financial decisions after management have negotiated a deal in principal and recommend to the Board accordingly. A final decision is made after due dili is completed.
It seems that neither the Liberal war room or Mr. Ignatieff understand the inner workings of public corporations.9knbv
Many people on here are simply politicizing this issue to create confrontation. The issue with Diamond aircraft is a London issue. We are talking high tech, leading edge technology and London desperately needs industry of this nature. All London political party candidates should rally around this.
This $35m is pocket change to what the FEDS give to Bombardier and P&W. London needs this going forward but it is not Montreal or Toronto and has little visibility.
Going forward, Diamond have the ability to hire many more people to high end engineering and manufacturing jobs. If successful with the DJET, a larger twin jet could be in the works.
To correct the article the 200+ have already been laid off.
The Liberals said two things Ignatieff said that they will look at the loan when he first arrived and then he met with Diamond and promised the loan.
Diamond did pay back the first loan in FULL
The loan request was actually made in Dec and has been sitting on Clements desk since Feb. Shades of Oda coming.
Whoa, so Boards just rubberstamp management decisions? Since when? Boards can recommend direction to senior management – that is what they are there for. Management EXECUTES, Boards APPROVE and RECOMMEND. If funding was contingent on fed funding, then obviously someone was filling out requests to make this happen. The Board would have HAD to have been involved in okaying the strategic decision to go with the jet.
Diamond Aircraft has not paid back their first loan. How could they ever pay their first loan of $18 million back in less then 3 years? I remember that this first loan was given in 2008.
And if this high risk project fails to complete then the Canadian tax payer is out $35 million plus the $19 millon from 2008, plus the $10 million they got some time before plus the 35 million they ask from the Province. This is $100 million Canadian tax payers money. I am glad we have a Government that is taking it serious and doing a due diligence and not throwing good money after bad money like Mr. Ignatieff would do.