Ottawa makes C$300mln Pratt and Whitney investment


The Canadian government is contributing C$300 million (US$300 million) toward a C$1 billion Pratt and Whitney Canada Corp research and development project to make lighter, more efficient aircraft engines.

The funds will be made available through Ottawa’s Strategic Aerospace and Defence Initiative, Industry Minister Tony Clement said on Monday.
“The government’s C$300 million repayable investment is expected to create or maintain an average of more than 700 high-skilled jobs during the project’s work phase and more than 2,000 jobs during the 15 year benefits phase,” Clement told reporters at the company’s plant near Toronto, Reuters reports.

Skilled workers will be hired in Longueuil, Quebec, where the company is based, and in Mississauga, Ontario.

The deal drew fire the Canadian Taxpayers Federation, which said the government has given Pratt and Whitney C$2.2 billion in subsidies since 1967, while the company has repaid only C$124 million of the C$1 billion it was supposed to.
“Industry Minister Clement is playing Santa to Pratt and Whitney at great taxpayer expense,” the conservative lobby group, wrote in a press release.

Pratt and Whitney Canada is a subsidiary of Hartford, Connecticut-based United Technologies Corp.

The company is developing power-plant technologies to provide reduced fuel consumption, lower emissions and less noise, for use in turbofan, turboprop and turboshaft engines in airplanes and helicopters.