Toronto council approves Bombardier subway car deal

Thunder Bay Mayor Lynn Peterson had tears in her eyes when she heard that Toronto city council had approved a controversial $710-million contract with Bombardier to build 234 new subway cars in her city.

"It means Toronto is going to get the best damn product they ever did see at a great price," said Peterson.

Bombardier workers hugged and applauded when they heard the news.

The deal is expected to secure 300 additional jobs in the northern Ontario city over the next five years. The contract, when officially awarded, could bring the Thunder Bay plant's workforce up to 1,000.

Bombardier hopesto deliver the first of the new subway cars in 2009.

After seven hours of debate on Monday, councillors voted 25-18 to grantthe companyexclusive rights to outfit the Toronto Transit Commission with subway cars.

The Bombardiercontract has been the source of much debate at City Hall, with opponents attackingthe dealbecause it was not open to competitive bids from other companies.

"We are accountable to our constituents that we make the best deal and this [is] not the best deal, in my opinion, because we don't know if it's the best deal," argued Coun. Frances Nunziata.

German-based Siemens told the city it could have built the subway cars for a $100-million less, butcriticsargued the deal would take jobs away from Ontario.

Two consultants hired by the TTC reported that Bombardier's price was a reasonable one.