Ontario ministers defend secret payout to Elon Musk's SpaceX over nixed Starlink deal

TORONTO - Ontario ministers defended keeping the province's secret payout to Elon Musk's SpaceX after a cancelled Starlink contract, as critics claimed the government was being evasive during the release of its latest financial statements. Several cabinet members stated the government had the public's support to terminate the $100-million satellite internet deal last year.

The deal was set to launch in June 2025, but was cancelled after Donald Trump's victory in the U.S. election, with Musk expressing concerns about Canada's sovereignty. Ontario Premier Doug Ford subsequently called for a snap election, which he won, and pledged to cancel the Starlink deal if Trump imposed tariffs on Canada. When the deal was cancelled, Energy and Mines Minister Stephen Lecce announced the termination but refused to disclose the kill fee, which SpaceX and the province later negotiated in a confidential settlement.

The province has claimed the kill fee is "significantly less than the contract value." During an interview about the province's financial statements, Infrastructure Minister Kinga Surma, who is now the president of the Treasury Board, stated that the taxpayers had requested the government not pursue the Starlink option, and the deal was consequently cancelled.

Surma defended the government's decision to keep the payout secret, stating that revealing the contract's cost would compromise the province's competitive advantage.