[R-G] The defence industry grows in Halifax

[Anthony Fenton]

http://www.dominionpaper.ca/articles/2695

June 5, 2009

A Harbour For War?
The defence industry grows in Halifax

by Hillary Lindsay

The Dominion - http://www.dominionpaper.ca

Canadian warships in Halifax Harbour. Tax-breaks to military  
contractors like Lockheed-Martin make the area a favourite for weapons  
manufacturers. Photo: Glenn Canning

HALIFAX-In April, Lockheed Martin announced it would be growing its  
operations in Halifax, creating 100 new jobs over the next five years.  
The announcement was hailed by Nova Scotia Premier Rodney MacDonald as  
"further proof of Nova Scotia's reputation as a destination of choice  
for the world's best companies."

Lockheed is one of the world's largest weapons manufacturers,  
reporting sales of $42.7 billion last year. The province, through Nova  
Scotia Business Inc. (NSBI), is supporting its expansion with a $1.8  
million payroll rebate.

"It's frightening when you have a company doing as well as Lockheed  
and they're getting tax breaks," says Heidi Verheul, a member of the  
Halifax Peace Coalition (HPC), an organization speaking out against  
Lockheed's expansion and payroll rebate. "We should be investing in  
more sustainable industries," she adds.

NSBI is not in the business of sustainability, however, but of  
increasing economic activity in the province. And industries like  
defence and aerospace contribute $1.5 billion to the provincial  
economy each year and provide jobs with $70,000 annual salaries, says  
Sarah Levy of NSBI. "You can't argue with numbers like that."

But Verheul says it's unethical for the province to support companies  
like Lockheed. "This is a company that earned over $3 billion in  
profit last year from war. It should not be getting government  
handouts. Its Hellfire missiles are used to kill people in the Middle  
East."

HPC member Tamara Lorincz adds that it's the choices and policies of  
the provincial and federal government that help make weapons  
manufacturing more profitable.

A year ago, the Harper government unveiled the Canada First Defence  
Strategy, which commits to raising defence funding from $18 billion in  
2008-09 to over $30 billion in 2027-28. In total, the government plans  
to invest close to $490 billion in defence over a 20 year period.

The move is an obvious boon for weapons manufacturers who will profit  
from large contracts with the Canadian military. In November, a  
Lockheed Martin-led team was awarded a $2 billion contract for the  
installation, integration and long-term in-service support of a new  
combat system for 12 of the Canadian Navy's frigates, or warships.

When announcing the new jobs in Nova Scotia, Tom Digan, president of  
Lockheed Martin Canada, stated that "an expansion in Halifax simply  
makes sense."

Nova Scotia is home to approximately 40 per cent of all Canadian  
military assets. Operating in Halifax provides a "proximity to  
clients," says Levy, an advantage that NSBI highlights on its website.

Indeed, one of Lockheed Martin's offices in Halifax is inside the  
Canadian Forces base. The company has a 25 year ongoing relationship  
with the Canadian Navy, says Levy - a relationship Lockheed refers to  
as a "25 year legacy."

Lorincz does not support the Canadian military having such cozy  
relations with Lockheed. She points out that Norway's government  
pension fund divested itself of its shares in Lockheed because the  
company's activities as a weapons manufacturer are considered in  
breach of its ethical guidelines. Lorincz adds that no socially  
responsible investment (SRI) fund will invest in weapons manufacturers  
either.

"If it's not ethical for Norway, if it's not ethical for SRI, why are  
we doing this?" she asks.

Lockheed isn't the only weapons manufacturer to see the advantage of  
locating in Halifax. L-3 Electronic Systems, General Dynamics and  
Xwave also have offices in the city.

"We're not opposed to the workers," says Verheul. "People need to feed  
their families. We want to see more sustainable industries supported."

"Jobs to make combat systems are not the kind of jobs that we need,"  
echoes Kaleigh Trace, a Dalhousie University student and a member of  
the Student
Coalition Against War (SCAW). In February, SCAW protested Lockheed's  
presence at a Dalhousie career fair. "The government should be  
supporting companies involved in the green economy and investing more  
in education, not supporting a weapons industry," she says.

While the Canadian and provincial government invest in weapons and  
defence, Lorincz points out that the "real enemies" are going  
unnoticed. "We're facing real threats like climate change," she says,  
but the same year the federal government spend $18 billion on defence,  
$1.5 billion was spend on environment.

"When we ask Canadians what their priorities are, they say health and  
the environment," says Lorincz. She points to a 2005 poll done by the  
Centre of Research and Information that found the top three program  
priorities for Canadians are protecting the environment (78 per cent),  
spending more on health care (74 per cent) and spending more on  
education and training (73 per cent). She would like to see the  
federal and provincial government shift their priorities accordingly.  
"Let's get people working on solar and renewable energy."

Hillary is an organizer with the Halifax Media Co-op and Managing  
Editor at The Dominion.