Canada intends to provide its struggling aerospace industry the necessary funds to compete globally because it considers the sector to be strategic, the prime minister and his industry minister said on Friday.

"The Technology Partnership Program is under review," Industry Minister David Emerson told Parliament. "We will ensure the programs that are necessary to create a competitive aerospace industry are in fact in place."

His comments follow an announcement by Montreal-based Bombardier Inc. on Thursday that it will cut 2,000 jobs at its aerospace division and that the unit will post a loss this year as demand sags.

"We intend to implement a study, and not only a study but also a strategy, for the aeronautics industry for Canada, because it's an industry that's fundamental to Canadian industry. It's an industry that had an enormous amount of success and we intend to maintain that success," Prime Minister Paul Martin said in response to a question in Parliament.

Bombardier, the world's third-largest aircraft maker, has been in a market-share dogfight for years with Brazil's Embraer, the industry's No.4 player.

The rivalry has prompted a lengthy series of disputes at the World Trade Organization over government funding.Brazilian diplomats in Ottawa were not immediately available for comment.

(From Reuters, October 08, 2004)

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