Quebec angry at feds over Bombardier’s reported loss of Via Rail deal

Quebec Premier OTTAWA Francois Legault said Tuesday “it makes no sense” for the federal government to let Via Rail award a major contract without ensuring any jobs are created in Canada.

Reacting to a report that the German firm Siemens AG has beaten out Bombardier Transportation for a $1-billion contract to build new Via Rail trains, Legault said the feds should have included a 25-per-cent local content requirement — at a minimum. “I can’t get over seeing (Federal Transport Minister Marc) Garneau throw in the towel,” he told reporters in Quebec City.

Garneau told reporters earlier Tuesday that free trade agreements with Europe and the United States prevent the federal Crown corporation from favouring Bombardier in the awarding of contracts. “We are competing around the world,” Garneau said. “At the federal level, we don’t have the right to impose rules that favour Canadian companies when we believe in free trade deals.”

He added that Via Rail is independent from the federal government.

La Presse reported Tuesday that Via Rail is negotiating the terms of the contract with Siemens after its submission beat out Bombardier Transportation and third-place Spanish company Talgo Inc. Bombardier was hoping the Via Rail contract would provide several years of work at its factory in La Pocatière, Que.

Garneau did not confirm the report and said the contract tendering process is not finished. Via Rail also declined to comment, saying the name of the winning bidder will be known in December.

Via Rail ruled out in March the possibility of requiring local content in its request for proposals. The company is seeking 32 new fuel-efficient, bidirectional trains to serve passengers in the WindsorQuebec City Corridor.

Legault said the requirement for local content could be applied regardless of whether Siemens or Bombardier lands the contract

“It is the taxpayers who, through the federal government, are going to invest $1-billion in these trains,” Legault said. “And here we have a federal government that says. ‘I’m not going to require any Canadian content.’ It makes no sense.”

Claude Michaud, president of the union representing roughly 600 workers at Bombardier’s factory in La Pocatière, criticized Via’s reported choice. “It’s inconceivable that (the contract) will be given to a German company,” he said.

Layoffs at the factory 150 kilometres northeast of Quebec City have already begun following the completion of a contract to produce cars for Montreal’s subway system.

Bombardier Inc. this month announced it will cut 5,000 staff worldwide, half of them in Quebec. Almost all the Canadian jobs lost are in the firm’s aerospace unit.

Michaud called on Via Rail to review its contractawarding process.