The 2006 agreement for developing the controversial F-35 stealth fighter jets contains a withdrawal clause that would allow a new government to end Canada's participation with no penalties and appears to contradict the government's claim that Canadian firms involved up to now would suffer.
The clause, combined with other clauses and timetables in the memorandum of understanding gives Canada the opportunity to withdraw at any time before it signs its first procurement contract in 2014. It would face no penalties other than costs it might incur through the termination of contracts specifically reached for its own order of the stealth fighters, said Alan Williams, a former deputy minister who was at the centre of the project when it began eight years ago.
And, should withdrawal mean Canada would have to pay those costs by dropping out of the development phase of the fighter program, the total amount of Canada's financial contribution to the program would not exceed the $551-million it is already committed to for its share of development costs for production of the Lockheed-Martin jets, the agreement says.
Source: The Hill Times
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