CANADA HAS LAUNCHED a new programme to provide Government funding support for industry, particularly aerospace. The Technology Partnerships Canada fund will replace the Defence Industry Productivity Programme (DIPP), which was cancelled in 1995.
Industry had attacked the decision to cancel the DIPP, which was instrumental in providing seed funding for engine programmes at Pratt & Whitney Canada and simulator developments at CAE Electronics. P&WC and CAE have welcomed the new initiative.
Funding for the programme will be through the re-allocation of C$270 million ($197 million) in budget savings. The fund is to grow from C$150 million in 1996-7, to about C$250 million by 1998-9, the Canadian Government says.
The new fund, like the DIPP, will be used to provide loans to industry, and repayments will be made from royalties on products subsequently developed.
The Government admits that it was forced to launch the fund, saying: "The cancellation of the [DIPP] in last year's budget was a signal that this sort of Government support was to end. This new programme demonstrates the Government's acceptance that some sort of public support is required in key sectors to match public subsidies to foreign competitors."
P&WC had threatened to move development of the PW150 turboprop for the stretched Bombardier de Havilland Dash 8-400 regional airliner away from Canada unless Government support was forthcoming. The engine manufacturer says that it will comment further once details of the new fund are made available.
CAE says that the fund is "more comprehensive and strategic" than that provided by the DIPP.
Source: Flight International
