Canada Budget 2024–2025
Aéro Montréal acknowledges the government’s efforts and emphasizes the importance of building a national aerospace strategy
Montréal, April 16, 2024 – Aéro Montréal acknowledges the efforts made by the Government of Canada to strengthen national security through the update of its national defense strategy. The organization welcomes the government’s commitment to supporting research and development, the space sector, and access to sustainable aviation fuels. However, the Québec aerospace cluster urges the government to go further by developing a national aerospace strategy to reinforce industrial capacity and maintain Canada’s competitiveness.
Key highlights for the Québec aerospace sector
- Update of Canada’s defense policy: Strong, Secure, Engaged – Our North, Strong and Free: $549.4M over 4 years starting in 2025–2026, plus $267.8M in future years, to replace Canada’s global satellite telecommunications equipment, acquire new tactical helicopters, and airborne early warning aircraft. $66.5M over 5 years (starting in 2024–2025) to train Royal Canadian Air Force personnel.
- Protection of Canada’s biofuels industry, notably through the restructuring and 4-year extension of the Clean Fuels Fund, with $776.3M allocated between 2024–2025 and 2029–2030 to support clean fuel projects.
- Creation of a whole-of-government approach to space exploration, technology development, and research, with the establishment of a new National Space Council.
- Introduction of new investment tax credits by the end of 2024 to create jobs, reduce pollution, and help Canada achieve carbon neutrality by 2050.
- Support for R&D and intellectual property: $1.8B over 5 years to increase funding for basic research grants, along with the creation of:
- a new fundamental research funding agency,
- a Science and Innovation Advisory Council,
- and a working group to encourage pension funds to invest in airport infrastructure.
- Artificial intelligence: A significant increase of $2.4B in targeted AI support, including $100M over 5 years for the National Research Council’s AI Assistance Program, to help SMEs scale up and boost productivity through the development and deployment of new AI solutions.
- New orientations allowing Crown corporations to assume greater risk in supporting Canadian businesses.
Quote
“By updating its national defense strategy and investing in Canada’s security, the federal government is taking an important step in the right direction. We look forward to collaborating closely with government authorities to build on this momentum and reach NATO’s recommended defense spending target of 2% of GDP.
Efforts to stimulate high-potential sectors such as space research and exploration, as well as the growth of artificial intelligence in Canada, will also benefit the development of our industry. However, in the coming weeks, Aéro Montréal, together with AIAC, hopes to engage in constructive discussions with the government on strategic issues such as the creation of a national aerospace strategy, which is essential to maintaining the competitiveness of Canada’s aerospace sector.”
— Mélanie Lussier, President and CEO, Aéro Montréal
About Aéro Montréal
Founded in 2006, Aéro Montréal is a strategic think tank that brings together Québec’s aerospace decision-makers, including industry players, educational institutions, research centers, associations, and unions.
Aéro Montréal’s activities are made possible thanks to the support of the Governments of Canada, Québec, and the Communauté métropolitaine de Montréal, as well as member companies of the cluster.
SOURCE: Aéro Montréal
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Media contact:
Léa Guicheteau
Aéro Montréal
514-550-7494
lea.guicheteau@aeromontreal.ca