Trudeau tells London, Ont. mayor the General Dynamic file is top priority - Action News
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Trudeau tells London, Ont. mayor the General Dynamic file is top priority

The Prime Minister is reassuring Ed Holder, London's mayor and a former Conservative MP, that resolving financial troubles with Saudi Arabia and preserving local jobs at General Dynamics Land Systems (GDLS) is a top priority.

Local jobs, delayed payments by Saudi Arabia and human rights concerns are issues the PM said need resolution

London's mayor Ed Holder met with Prime Minister Justin Trudeau in Ottawa on Jan. 28, 2019 (City of London)

The Prime Minister is reassuring Ed Holder, London's mayor and leader of the city building light armoured vehicles, that resolving financial troubles with Saudi Arabia and preserving local jobs at General Dynamics Land Systems (GDLS) is a top priority.

Justin Trudeauinvited Holder to a private meeting Monday in Ottawa, alongside London-area Liberal MPs Kate Young and Peter Fragiskatos.

Holder said the focus of the meeting was on the $15-billion arms deal between Canada and Saudi Arabia, a contract filled by the London-based defense contractor GDLS.

"I came with a sense of optimism and he certainly realized that what we're talking about is preserving somewhere in the range of 4,000 jobs," Holder told CBC.

"This issue is top of mind for his government."

The contract to provide Saudi Arabia with armoured vehicles, equipment, and training over 14 years is controversial with political opponentsciting the killing of journalistJamalKhashoggiand the Kingdom'sinvolvement in the war in Yemen.

Late last year, it was revealed thatGDLSwas owed $1.8-billion in overdue payments from Saudi Arabia, impacting the local company's ability to pay dozens of suppliers.

(Combat Camera/General Dynamics)

There has been talk of scrapping the deal. In an interview in Dec. 2018, the Prime Minister said for the first time that he was looking for a way out of the deal.

Holder experienced with Kingdom

Holder said that late payments and concerns around human rights continue to be issue.

"The federal government is working with Saudi Arabia to resolve two issues: significantly delayed payments by the Saudi government, which are causing General Dynamics payment difficulties with its suppliers, and human rights concerns," said Holder in a statement.

Ambassador of the Kingdom of Saudi Arabia Naif Al Sudairy meets with Canada-Saudi Business Council chairman Ed Holder. (Canada-Saudi Business Council)

Holder has experience dealing with the Kingdom, having travelled there as the first chairperson of theCanada-Saudi Business Council. He was also a Conservative MP in Stephen Harper's government when the contract was signed in 2014.

"I know sometimes it's a challenging country to do business with but like any country it's important to understand how they do their business," he said. "These [issues] aresome of the realities that we deal with."

Holder was in Ottawa Monday attending a meeting ofCanada's Big City Mayors.