Concerns raised about U.S. control over Canadian space technology

An iconic Canadian space company now has its operations controlled by an American corporation.

Eight years ago, the Conservative government blocked the sale of the B.C.-based MacDonald Dettwiler and Associates (MDA) to Alliant Techsystems of Minneapolis.

The government said the sale, which brought with it robotic arm technology and the high-tech RADARSAT-2 satellite developed with money from Canadian taxpayers, was not of benefit to the country. The Conservatives were concerned about the U.S. controlling a key Canadian aerospace and defence firm.

But in the last six months, MDA has significantly altered its corporate makeup.

Its new chief executive officer, Howard Lance, is a U.S. citizen who operates the company from San Francisco. SSL MDA Holdings, Inc., a corporation in Delaware, is now the operating company for all MDA businesses. And on Oct. 3, the company brought in a retired U.S. air force general and a former U.S. defence intelligence official.

“What you’re seeing is a stealth takeover of sensitive technology that Canadian taxpayers paid for,” said Steve Staples, vice-president of the Rideau Institute in Ottawa.

But Don Osborne, who is responsible for MDA’s Canadian operations, said the company remains firmly Canadian. He acknowledged operations are now controlled by a U.S. corporation but said there are no changes to the way business is being done in Canada. The company still has its head office in Vancouver and is traded on the Toronto Stock Exchange.

Osborne said MDA has been open about its need to make inroads into the U.S. market.

Staples said MDA’s restructuring gives the U.S. more control over the firm’s technology and how it’s used.

“U.S. national security interests apply to American companies and their subsidiaries wherever they are,” he explained. “So U.S. law is now governing vital Canadian security and space assets.”