Telesat deal good for Canada, Champagne tells INDU committee

Canadians are getting a good deal with loans to Telesat Corp. because they will protect national security and northern sovereignty, the Minister of Innovation, Science and Industry said Thursday, Oct. 3. François-Philippe Champagne (Saint-Maurice–Champlain, Que.) was testifying before the House of Commons industry committee. In an often raucous discussion, the Conservative MPs on the committee fired questions about the $5 billion in loans and warrants issued to the telecommunications company since 2018. Tory industry critic Rick Perkins (South Shore–St. Margarets, N.S.) wanted to know how much of those individual loans had been paid back. The minister would not give a specific figure. “We’re making money out of these loans,” Champagne said. In September it was announced that Telesat finalized a $2.14 billion loan from the federal government with a floating interest rate that is 4.75 per cent above the Canadian Overnight Repo Rate Average (CORRA) with a 15-year maturity. The feds will receive warrants for 10 per cent of the common shares of Telesat LEO based upon an equity valuation for Telesat LEO of US$3 billion, the company said. Perkins kept pressing, not getting a dollar amount in response. At times the two MPs talked over one another, forcing committee chair Joёl Lightbound (Louis Hébert, Que.) to intervene. “If you don’t have the mic, you’re not to be speaking over someone else,” the Liberal MP warned Perkins. The minister said Telesat will have satellites which will offer internet connectivity to people in remote areas and will provide the government with intelligence about arctic sovereignty. As a spin-off, Canada will see a new factory which will produce two satellites per day. Politicians should be celebrating that fact, Champagne added. During her time allotted, Conservative MP Michelle Rempel Garner (Calgary Nose Hill, Alta.) tried to pin down how many, if any, people are receiving service from Telesat. The satellite provider had promised to have connectivity by this year, she asserted. Telesat had previously told the committee in 2020 that it would begin offering services over its low-Earth orbit satellites by 2023. The firm later changed its launch goal to mid-2026, with global service scheduled for 2027. “Is it fair to say no Canadians are connected to the internet via Telesat Lightspeed?,” she asked. The minister replied that first money is raised, then satellites go into orbit. Champagne was also asked about the proposed digital charter implementation act, Bill C-27, currently before the committee. He said there has to be a way to move forward with the legislation. Opposition members on the committee are united in voting against the proposal for a privacy tribunal that is contained in the bill. The minister spoke out against the loss of the tribunal. He told NDP critic Brian Masse (Windsor West, Ont.) that he does not regret blaming the committee for slowing down the progress of the legislation. Artificial intelligence is a growing issue in the nation. “We need to have an AI bill for Canada,” Champagne noted. “So my voice was mild compared with what people are telling me we need in this country.” ppark@thewirereport.ca

Telesat deal good for Canada, Champagne tells INDU committee

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By Paul Park
| October 4, 2024

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Telesat deal good for Canada, Champagne tells INDU committee

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