Official Hansard
Madam Speaker, the world is changing rapidly, profoundly and, in many ways, irreversibly. It is more divided, more volatile and more dangerous than at any point since the end of the Cold War. In this new reality, the assumptions that shaped decades of Canadian defence and security policy no longer apply, and the threats we face are no longer just hypothetical scenarios. At the same time, we are dealing with rapidly changing methods of warfare, driven by the proliferation of drones, artificial intelligence, space-based weapons and new technologies that are still emerging. The world has changed, and Canada must change with it. That is why our government is strengthening Canada’s sovereign capabilities and critical sectors and deepening co-operation with trusted partners. To keep us safe and secure, we are making generational investments to rebuild, rearm, and reinvest in the Canadian Armed Forces, which will have a profound impact on my home province of Nova Scotia, where 20% of Canadian Armed Forces members are stationed. With a bold new approach to defence procurement, we are transforming how we make those investments so that our military has what it needs, when it needs it, and so that Canadians benefit economically from those investments. This transformation is firmly anchored in Canada’s first-ever defence industrial strategy, which was launched this past February. It is a landmark framework that sets a long-term vision for how we can strengthen our defence capabilities while building a more resilient, innovative and competitive industrial base right here at home. At the centre of that strategy is the Defence Investment Agency. The agency plays a critical role in modernizing and accelerating defence procurement, ensuring we can deliver the right capabilities to the Canadian Armed Forces when they are needed most. At the same time, it is driving stronger investment, deeper partnerships and more meaningful engagement with the Canadian defence industry, helping to position Canadian companies to grow, innovate and contribute to both national security and economic prosperity. Let us be honest. In the past, Canada’s defence procurement system has been slow, complicated and fragmented, particularly when it comes to decision-making and accountability. We have all seen this movie too many times before, with our most critical defence procurement projects taking decades to complete in some cases. What we have in this country is a procurement system that at times struggles to respond to urgent operational needs, and this has come at a cost to the readiness of our armed forces, as well as our defence industrial base. Of course, this is not due to a lack of commitment or professionalism; rather, it is a reflection of a system that was simply not built for the dangerous environment we face today. Canadians last year elected a government that would focus on building one strong economy. In doing so, we created Canada’s first defence industrial strategy, which establishes a whole-of-government approach to transform Canada’s defence industry and procurement system. It rightly prioritizes Canadian suppliers and materials wherever possible. It invests in Canadian innovation, commercialization and export potential, and it provides industry with a more streamlined, predictable and transparent demand outlook. The goal is straightforward: to strengthen Canada’s strategic autonomy while building prosperity here at home. This strategy is going to get us there. Over the next decade, we project that we will see an increase in Canada’s defence exports by 50% and that we will raise the share, critically, of defence acquisitions awarded to Canadian firms to 70%, supporting our homegrown businesses and innovators in the defence space. The size, capability and competitiveness of Canada’s defence industry as a result will, of course, grow. That means more high-quality and high-paying jobs for Canadians, from aerospace engineers to cyber specialists and from advanced manufacturing to digital technologies. The Defence Investment Agency is the engine that will turn this strategy into reality. The DIA has a clear and focused mandate to re-equip our military faster and more effectively while leveraging defence investments to strengthen Canada’s defence industrial base and attract private capital into the sector. It is designed to accelerate procurement timelines and bring sustained leadership and accountability to the largest defence investments made in generations in this country. The agency in its current form was launched in October 2025 as a special operating agency within Public Services and Procurement Canada. In a very short time, it has already demonstrated its value, advancing major procurements such as Arctic over-the-horizon radar and the Canadian patrol submarine project, which are foundational to the defence of Canada, which, of course, has the longest coastline in the world. We know that the Defence Investment Agency, to fully deliver on its mandate, must be established as a stand-alone entity with the authorities, governance and agility required to match the scale of our government’s ambition. That has always been the plan. In our spring economic update, our government proposed $103.8 million over five years, starting in this fiscal year, and $22.3 million ongoing, to establish and operate the DIA as a stand-alone organization. Today, we debate a second act to implement certain provisions of the budget, which was tabled in Parliament on November 4 of last year, specifically on the defence and national security production and procurement act. To be clear, the legislation is not about bureaucracy. It is about capability. It is about speed. It is about aligning procurement with strategy, industry with security and investment with outcomes. This includes actively advancing initiatives aimed at reducing red tape and improving efficiency, which would ultimately reduce duplication, increase time savings and streamline processes. These initiatives would allow us to better align with our G7 and NATO partners, which, as we know, is more important than ever, as today’s global challenges, including international peace and security, global economic stability and growth, and the digital transition, require Canadians and allies to work together to find shared solutions. That is why Canada is working with G7 and NATO partners to build a new era of collaboration, one rooted in trusted partnerships, competitive economies and innovation that delivers for people and businesses. This is especially critical when it comes to the defence sector. This moment in history demands seriousness of purpose and a new approach to defence procurement, which is at the heart of our debate tonight. Since day one, our government has acted, and we are seeing results. Last fiscal year alone, Canada invested more than $63 billion in defence, the largest increase in generations. In March, Canada reached the NATO alliance’s benchmark of spending 2% of GDP on defence five years earlier than planned, and we are on a path to meet the 5% NATO target by 2035. That is imperative because when Canada invests in defence, we are investing in Canadians, our workers and our innovators, and all of our future responsibilities. The changes we propose are necessary, timely and forward-looking. They recognize that Canada’s security and economic strength are inseparable and that we must be able to act quickly and decisively in a more dangerous world. By establishing the Defence Investment Agency as a stand-alone entity, we are building a procurement system fit for today and for the future. We are backing our armed forces with the tools they need, and we are backing Canadian industry and business with opportunity and certainty, helping to ultimately establish Canada’s place in the world as a strong, reliable and capable ally. For all of these reasons, I urge all members of the House to support the Defence Investment Agency and, as a result, support a stronger, safer and more resilient Canada.
