Bombardier Inc. has hired a lobbyist in Ottawa to help the company obtain more than $600-million in government financing for the development of a new regional jet. It has recruited JSL Consulting Services Ltd. to lobby for ''sales financing'' from Export Development Corp. and a ''development loan'' through Technology Partnerships Canada, a federal lending agency, according to a lobbyist registration form filed last week.
The financing is connected to Montreal-based Bombardier's plans to build a 100- to 135-seat regional airplane, the registration said. The company is expected to make a decision on whether to proceed early next year.
The project will cost about $2-billion. Bombardier is expecting about one-third of that to come from government loans or grants.
Dominique Dionne, a Bombardier spokeswoman, confirmed the company has hired JSL. She said the firm consists mainly of long-time lobbyist John Legate, who will provide advice to William Fox, Bombardier's vice-president of public affairs. Mr. Fox was once communications director for former prime minister Brian Mulroney.
Ms. Dionne said Bombardier has not made any formal request for federal support but it is providing information to officials who "would have a say in this." She also said Bombardier has begun meeting with officials from other governments, including the United States, Britain, and other parts of Europe, to explore how much assistance they might provide.
Buzz Hargrove, president of the Canadian Auto Workers Union, which represents workers at Bombardier's Toronto plant, said the company is looking for the best government aid package before deciding where it will build the new regional jet.
He said that in addition to the federal government, Bombardier will be approaching the Ontario and Quebec governments, Britain, Ireland and two U.S. states.
"They are saying they are going to put the product where they can get the most support," he said, adding the union is pushing Bombardier to build the plane in Canada.
Ms. Dionne said government financing is only one factor in the decision-making, and that the final decision will depend on what "makes the best business sense."
Bombardier has received hundreds of millions of dollars in government loans over the years, and has said the support is crucial, given how much aid its rivals get.
But new Industry Minister David Emerson said he plans to review business subsidy programs such as Technology Partnerships Canada, which has an annual budget of about $300-million, and provides loans mainly for research and development. The agency has come under fire from critics who say it is really a subsidy program because many of the loans are never repaid.
Paul Waldie