Ontario government officials have defended their decision to withhold information regarding the undisclosed payout made to SpaceX by the province following the cancellation of a Starlink contract. Critics have accused the government of lack of transparency in the recent release of their financial reports.
Premier Doug Ford’s cabinet members stated that the decision to terminate the $100-million satellite broadband internet deal in the previous year had public support. Disclosing the kill fee was deemed to potentially jeopardize the province’s competitive edge.
Back in late 2024, the then-infrastructure minister, Kinga Surma, had announced a partnership with SpaceX to provide Starlink internet services to around 15,000 customers, primarily in remote First Nations and rural areas of Ontario. The deal, which received praise from Ford and Elon Musk, was scheduled to launch in June 2025.
Following the announcement, with Donald Trump becoming the U.S. president and mentioning potential economic actions against Canada, Musk, who was associated with Trump, made contentious remarks about Canada’s sovereignty. During an election campaign, Ford promised to cancel the Starlink deal if Trump initiated tariff measures.
After winning the election and securing a third term, Ford fulfilled his commitment by scrapping the agreement when Trump imposed tariffs on Canada. The government also took measures such as removing U.S. alcohol from stores and prohibiting American companies from bidding on provincial contracts.
Several months later, Energy and Mines Minister Stephen Lecce disclosed that the deal had been terminated but declined to reveal the kill fee due to a confidential settlement between the province and SpaceX. The province stated that the kill fee was significantly less than the contract value, with no response from SpaceX on the matter.
Upon the release of the public accounts report, which detailed expenditures from April 2025 to March 2026, there was no mention of SpaceX or Starlink in the audited statements.
When queried about the SpaceX payout during a news conference on the financial statements, Kinga Surma reiterated that the deal was canceled in line with taxpayers’ wishes and highlighted the government’s efforts to expand broadband connectivity across the province.
The government defended its decision not to disclose the secret payout, citing the need to maintain a competitive advantage during negotiations. The opposition parties criticized the secrecy surrounding the payout and vowed to continue pressing for transparency when the legislature reconvenes.
