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LONGUEUIL, Que - Federal Industry Minister Jim Prentice says lack of market access shouldn't be a reason for Canadian companies like MacDonald, Dettwiler and Associates Ltd. to sell their businesses to foreigners.

He made the statement at the Canadian Space Agency on Friday, just hours after blocking the sale of MDA's space division to American firm Alliant Techsystems Inc.

Alliant and MDA had argued the sale of the space unit would give the division access to more lucrative contracts, especially in the United States.

In a speech to workers as they looked down from the upper floors of the space agency, Prentice said the government will work hard to gain full access to markets for Canadians and Canadian firms.

"We will work diligently to try and ensure that American markets are available to Canadian companies, but Canadians should not have to sell their assets and their companies to access foreign markets," he said.

Prentice later told reporters Ottawa would continue to work with the Vancouver-based firm on Canadian Space Agency projects.

But after announcing a four-year $109-million contract extension to MDA to continue to provide support for DEXTRE and other robotics systems on the International Space Station, Prentice had little else to offer.

At the MDA's annual meeting in Richmond, B.C., chief executive Daniel Friedmann said he wasn't angry about the deal being blocked.

"What angers me is that Canada and MDA can be world leaders in space and we have been and Canada is not doing that, despite what people are saying," said Friedmann, who added the company will not try to sell the space division again.

"I'm hoping all those people who spoke against the sale are going to now work on fixing the problem."

NDP industry critic Peggy Nash says she thinks MDA and the Canadian space industry can continue to survive.

"What MDA and our space industry needs is what every other country in the world that has a space industry relies on and that is leadership from its government," she said in an interview.

Nash said ongoing investments in the space industry are needed so that "the excellent work" done by MDA and other companies can continue.

She also said the $109-million contract was just a re-announcement and was not new money.

Nash noted that MDA is a leader in space robotics and that the technology can be used around the world.

"And there may well be other commercial applications of that technology," she added.