NDP, Bloc MPs says feds should impose Buy Canadian policy on Via Rail contract to prevent buying new trains from foreign supplier
Opposition MPs are calling on the federal government to impose Buy Canadian requirements on an ongoing multibillion dollar rail procurement, warning against the "mistake" of awarding the contract to an American company.
Via Rail, the Crown corporation responsible for managing the national passenger rail service, has been running the process to replace its aging long-distance trains operating outside the Quebec City–Windsor corridor since 2024. The procurement was expected to move forward with a winning bidder early this year, but critics are arguing that since it predates the implementation of the Carney government's Buy Canadian policy, there is a risk of billions of tax dollars flowing outside of the country.
NDP MP Heather McPherson (Edmonton Strathcona, Alta.), her party's transportation critic, told The Hill Times in a May 8 interview that her party is “deeply opposed to giving away a good contract outside of the country,” especially to the United States given the trade friction with the southern neighbour.
“Particularly when [Prime Minister] Mark Carney speaks about the need to protect Canadian jobs, need to protect Canadian manufacturing, prioritize construction and contracts in Canada, and to diversify away from our trade relationship with the United States, as they continue to hit us with this crippling trade war,” she said.
When asked whether the NDP wants the government to intervene in the contracting process and consider options such as pausing the process, rewriting the tender, and applying Buy Canadian requirements, McPherson responded: “Absolutely.”
“Every single contract similar to this, we should be putting every possible pressure on to ensure that it is given to a Canadian company,” she said.
“We really need to see their actions match their words. And giving a multibillion-dollar contract to the United States while we are trying to diversify away from that trade relationship, while we are trying to invest more in manufacturing in Canada … It's a mistake. It's the wrong direction.”
Via Rail’s process began in 2024, before new Buy Canadian rules took effect on Dec. 15, 2025. The government’s guidelines explicitly outline that the policy does not apply to solicitations published or contracts awarded prior to the effective date.
The policy sets a mandate for federal departments to prioritize Canadian suppliers and domestic content when they are buying goods and services. It applies to key procurements valued at $25-million and more, and was set to be extended to contracts valued at $5-million or more by this spring.
“Canada cannot afford to repeat the mistake of [2018], when a major Via order for 32 trainsets went to a firm that built those trainsets in the United States,” Unifor national president Lana Payne told The Hill Times in a May 8 statement.
Payne was referring to the $989-million contract that was awarded to the German company Siemens for new trainsets for the Quebec City–Windsor corridor. According to news reports, these trains were built in the company's California facility.
Payne said Unifor raised its concerns about the potential for Via to offshore railcar work with MPs across all parties in Ottawa in March, and “found the reception encouraging.”
“We are now watching closely to see whether that support translates into action before a final decision is made,” she said.
Two requests for qualification that closed last winter for the locomotives and cars show the corporation was looking for design, supply, manufacture, test, delivery, and commissioning of an order of 42 passenger diesel locomotives and an order of 313 passenger cars, split into nine different car types, with options to add more. Via Rail’s 2024 annual report says the request for proposals process engaged suppliers for 320 new cars and 42 locomotives.
In a March 27 letter to Carney (Nepean, Ont.), Payne said a failure to apply Buy Canadian rules to the Via Rail contract runs the risk of having an expensive fleet “that has been marred by its inability to handle Canadian winters, contributing to frequent Via Rail cancellations and travel disruptions.”
“We are facing a situation where the federal government may hand over a $3-billion procurement contract to a company manufacturing in the United States, denying Canadian workers the economic benefits of this opportunity,” the letter reads.
In a May 6 press release, the corporation said the renewal of the fleet is “essential” for reliable service, calling this “the largest single investment in the corporation’s history.” The release does not say whether it chose a bidder or awarded a contract.
Via Rail did not respond to The Hill Times' questions about the details of the procurement such as the cost and timelines.
“As the competitive procurement process for the Long-Distance, Regional and Remote (LDRR) train fleet is still ongoing, and in order to maintain a fair process, Via Rail cannot comment on the current stages or provide details regarding the procurement and potential participants,” reads a May 8 statement.
During a March 11 meeting of the House Transport Committee, Via's chief legal officer Denis Lavoie told MPs the corporation is “in the midst of the procurement processes,” and that it will award the contract “in the coming months.” He said the design and manufacturing of those trains will take a couple of years.
In that same meeting, the committee adopted a motion introduced by Bloc Québécois MP Xavier Barsalou-Duval (Pierre-Boucher–Les Patriotes–Verchères, Que.), his party’s transportation critic, asking the Department of Transport to ensure that Via applies the federal Buy Canadian policy to this procurement process to support the maintenance and development of domestic jobs and industrial capacity.
Barsalou-Duval raised the issue again in the House of Commons on May 5.
“A contract is coming up. Will it be awarded to Alstom, or will it go to Siemens again, like last time, when the Americans were given $1-billion to build it? It is important to choose to keep our people employed rather than constantly sending money abroad,” he said in French.
Barsalou-Duval and Conservative critics on procurement and transport did not respond to The Hill Times’ further questions on the subject.
Timeliness is key, says transportation advocate
The 2024 budget provided Via with new funding to replace its aging LDRR fleet, but did not release the amount to protect the government's negotiating position.
The Thunder Bay Chamber of Commerce—which is advocating for the contract to go to Alstom Canada in Thunder Bay, Ont., a subsidiary of the French rail manufacturer—wrote a letter to Carney last fall asking the government to apply the Buy Canadian framework to this contract, and require it to have Canadian content.
Alstom Canada said it couldn't comment on the situation or its involvement in the procurement as the "Via bid is active and confidential." Siemens did not respond to a request for a comment by publication deadline.
Terry Johnson of Transport Action Canada, a transportation advocacy group, told The Hill Times in a May 8 interview that while this information is “very closely held, we believe that bids are finalized or close to being finalized.”
The primary concern for transportation advocates is timeliness, Johnson said, adding that the new batch of trains must be fully operational before the existing fleet reach a point where “no amount of expertise and money can keep it operating safely in daily mainline service, which is already pretty close at hand.”
“That means choosing the supplier we can absolutely depend upon to deliver a product that fulfills challenging requirements, at an outstanding level of quality, and on a very tight deadline."
Transport Action Canada warned that if this process is delayed, all of Via's passenger train services outside the Quebec City–Windsor corridor risk being withdrawn due to lack of serviceable equipment as of the early 2030s.
A June 2025 briefing note for the deputy transport minister says that funding amounts for the new LDRR fleet were not released to protect the government’s negotiating position for the procurement process. According to the note, roughly 75 per cent of the LDRR fleet is more than 65 years old, which is well past its industry-standard lifespan of 35 to 40 years.
The Hill Times