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Hon. Shafqat Ali

Liberal 6:30 p.m.

“I want taxpayers to spend $18 billion on defence projects in the year ending March 31, 2027. This is part of the government's commitment to strong fiscal management. The government is spending less on operations so it can invest more in priority areas like defence, infrastructure, and housing.”

Official Hansard

moved: That Vote 5, in the amount of $17,968,133,395, under Department of National Defence — Capital expenditures, in the Main Estimates for the fiscal year ending March 31, 2027, be concurred in. He said: Mr. Speaker, I will be sharing my time with the hon. member for Halifax. I am thankful for the opportunity to speak about the government's spending priorities for the 2026‑27 fiscal year as set out in the main estimates. The main estimates outline the funding and resources departments require to deliver the programs and services Canadians rely on. Parliament must authorize these expenditures before the government can legally spend public funds. To further strengthen accountability and scrutiny, parliamentary committees have the opportunity to hear from and question ministers and officials to determine whether proposed spending aligns with key government priorities. Canadians can also see how the government intends to use their tax dollars. The amounts listed in the main estimates are reflected in appropriation acts, also known as supply bills. Once passed, these acts give the government the legal authority to spend. With respect to main estimates 2026‑27, I would like to point to budget 2025 as the context for these spending requests. As the budget made clear, the government is committed to strong fiscal management. This means spending less on operations so that we can invest more in building Canada strong. Since the budget was tabled in the fall, rather than in the spring, as in previous years, there has been greater opportunity to align the main estimates with budget decisions. As a result, the 2026‑27 main estimates reflect $14.7 billion in new spending announced in budget 2025, including in key areas like defence, infrastructure and housing. Measures that are still under development will be presented through future supplementary estimates. As I mentioned, making investments in priority areas means that the government is spending less and investing more to build the strongest economy in the G7. As such, the spending outlined in these main estimates also reflects some of the savings resulting from Canada's new government's comprehensive expenditure review. Last year, we made a clear commitment to spend less on government operations so that we can invest more in the workers, businesses and nation-building infrastructure that will grow our economy and strengthen this country. The comprehensive expenditure review launched in July was essential in meeting this commitment to responsible, cost-effective spending that delivers results for Canadians. The review required federal organizations to bring forward savings proposals to spend less on the day-to-day running of the government. It targeted programs and activities that were not core to their federal mandate, were duplicative or were not aligned with the government's priorities. Organizations also considered ways to work more efficiently, leveraging existing and emerging technologies, like artificial intelligence, where they can make the government more effective and efficient. Some of the results of this review were presented in the budget, and savings of $13 billion annually by 2028‑29 were identified across departments. This includes bringing the public service back to a sustainable level, including through a reduction in the size of public service by an estimated 16,000 full-time equivalents. The government understands the scope of the review. That is why the reductions are being managed with fairness and compassion, relying on attrition and voluntary departures to the greatest extent possible. The government remains committed to supporting impacted public servants with compassion and transparency. I would also like to take this opportunity to thank our public servants for their dedication and commitment in delivering services to Canadians. We are also leveraging all available tools to limit involuntary departures, including the early retirement incentive. The early retirement incentive provides an opportunity for eligible employees to retire without a penalty for early departure. Around 7,000 employees have already applied to the program. The government's departmental plans tabled in March provide more details on the review and how financial resources will be used to achieve planned results. Before getting into the details of the main estimates, I would like to speak about the financial reporting cycle and why it is so important. I have already mentioned the purpose of the main estimates, but not all funding requirements appear in the main estimates, so the government also introduces supplementary estimates throughout the year. Supplementary estimates may include funding for new initiatives, urgent needs, such as disaster responses, or items that were not ready in time to be included in the main estimates. These documents are tabled at different points throughout the fiscal year: supplementary estimates (A) in the spring, supplementary estimates (B) in the fall and supplementary estimates (C) in the winter, if required. Taken together, the supplementary estimates and the mains are part of the estimates family of documents. This estimates family of documents also includes departmental plans, which set out priorities of federal organizations, and departmental results reports, which show how departments performed and help Canadians assess how effectively their tax dollars were used. Another significant document in this fiscal cycle is the public accounts. While the estimates outline planned spending, the public accounts provide the audited, consolidated financial statements of the Government of Canada for each fiscal year ending March 31. They detail how the funds were actually spent and how the revenue was collected. The government is well aware of how important transparency and accountability are to Canadians. That is why we continue to prioritize the way the estimates are presented. Extensive explanatory documentation is readily accessible online to parliamentarians and Canadians. Online platform tools used for this purpose in GC InfoBase present the main estimates and the supplementary estimates, along with other data related to government finances, people and results.

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Hon. Shafqat Ali

Liberal 6:40 p.m.

“I'm cheerleading for my team. I think our leader is great. All the governments are working together. I want us to spend boldly and take action. Go team!”

Hon. Shafqat Ali

Liberal 6:45 p.m.

“We spent a lot of money. Our spending must have caused good jobs numbers. Good jobs numbers mean we can spend more.”

Marilyn Gladu

Liberal 6:45 p.m.

“We have some good signs. I hope they mean we can spend even more.”

Hon. Shafqat Ali

Liberal 6:45 p.m.

“I want to talk about how we are spending a lot of money. It's very important that everyone can see how we're spending money. Please look at our fancy website.”

Shannon Miedema

Liberal 6:45 p.m.

“I'm here to cheer for lots of military spending in my riding of Halifax. This year it's $50.7 billion, a 42% increase! More money means more jobs and more programs here. We need to keep spending more to hit our NATO targets. We're also cutting waste and reviewing spending to modernize things. Support this big increase in military funding!”

Official Hansard

Mr. Speaker, the global security environment today is volatile and uncertain. We face real challenges, both military and non-military, that demand an equally strong and coordinated response. Canada must be prepared to defend ourselves and our allies. Our government has announced the most ambitious defence rebuild in a generation. Today, with the 2026-27 main estimates, we are putting the money behind that commitment. I am really pleased to stand in the House to talk about this today, representing my riding of Halifax. Halifax is home to the largest defence base in the country. CFB Halifax, in one form or another, has existed since the 18th century, predating Canada as we know it. The military and our armed forces members are ingrained in our history and are already shaping our future. Our city is advancing incredible projects for the Canadian Armed Forces. We are building the River class destroyers and we are home to NATO DIANA and the Maritime DISH. As we prepare our next big defence procurement with the new fleet of submarines, there is even more possibility for Halifax. The government is requesting $50.7 billion for the Department of National Defence. That is $15 billion more than the previous year, or a 42% increase in funding. That includes $5.1 billion in new operating funding, $7.1 billion in capital and $2.3 billion in grants and contributions. These are not abstract numbers. They represent real capabilities and real investments in real people: the personnel who wear the uniform and defend this country every day. Last year, Canada hit 2% of GDP on defence for the first time since the fall of the Berlin Wall, half a decade ahead of schedule. Reaching the 2% benchmark is a foundational step in renewing Canada's defence and a clear statement of resolve in a more dangerous world. We are now working toward NATO's new defence investment pledge: 3.5% of GDP for core defence and 1.5% for broader defence and security infrastructure, for a total commitment of 5% of GDP by 2035. As the Prime Minister noted at CANSEC, Canada is already meeting that 1.5% target for critical defence infrastructure. These estimates keep that momentum going. Canada's new government is delivering on its promise to make generational investments in the women and men of the Canadian Armed Forces and to further accelerate these investments in the years to come. In a more dangerous and divided world, Canada is taking full responsibility for defending our sovereignty and building our strength as a reliable partner and ally. Our government made a promise to rebuild, rearm and reinvest in the Canadian Armed Forces, and we are getting it done. A military is only as strong as its people, and this government has made clear that our people in uniform deserve to be treated accordingly. The $1.3 billion in these estimates reflects the historic pay increase we delivered for CAF members; the largest in a generation. Better pay means better recruitment. It means better retention and a more capable and more ready force. The results are already showing. CAF recruitment is the highest it has been in three decades. Last fiscal year, we surpassed our recruitment goals, bringing in over 6,700 new regular force members. We are also investing $274.9 million in CAF recruitment and training to modernize how we attract and develop the next generation of service members. We are building a more robust recruiting and training system, and we will dedicate the resources needed to be successful. There is $274.5 million committed for Canadian Forces health services, because the obligation to care for our people does not end when an operation does. The CAF continues to build a more modern, effective and inclusive military supported by digital tools and data-driven processes. Work is ongoing to improve efficiency, reduce delays and align recruitment and training systems with the evolving needs of the organization and of Canadians. Words do not defend Canada, but capabilities do. The CAF must be ready to operate in the Arctic, across North America, through NORAD, within NATO's collective defence framework and wherever global stability demands a Canadian contribution. These estimates include $7.3 billion for in-service support, keeping the equipment we have available, reliable and sustainable. As well, there is $1.2 billion for fleet equipment readiness to adapt and respond to a faster and more complex security environment. Preparedness also means investing in what comes next. That is why we have included $12.8 billion for major multi-stage procurements, River class destroyers, joint support ships, Canadian multi-mission aircraft and critical infrastructure investments that will serve Canada for decades. These capabilities will defend our sovereignty in the north, protect our maritime approaches and allow us to operate shoulder to shoulder with our allies. The Canadian Coast Guard is part of the Department of National Defence's main estimates. The $4 billion included here funds its critical missions, search and rescue, icebreaking, environmental response and ocean science. As part of the defence portfolio, the Coast Guard will now do more, sharing intelligence, coordinating with defence partners and enhancing Canada's maritime security posture. In a country with three oceans and the world's longest coastline, that is no small thing. No country defends itself alone, not Canada and not our allies. That is reflected in the $3.3 billion in grants and contributions, funding programs, organizations and partners whose work advances Canada's defence mandate. A significant share supports Ukraine through the military training and co-operation program, because the fight for a rules-based international order is one in which Canada has a direct stake. We are investing in NATO initiatives that strengthen interoperability, intelligence sharing and collective decision-making across the alliance. We are also doubling down on Canada's defence industrial base. These estimates include initial investments for the new Canadian defence industry resilience program, strengthening domestic production capacity and Canadian sovereignty. That includes support for nitrocellulose production, a critical energetic material for artillery that is in high demand across allied militaries. Programs like IDEaS and MINDS continue to connect innovators, academics and industry to the defence mission, turning Canadian expertise into Canadian capability. In February, we released Canada's first-ever defence industrial strategy. The framework is straightforward: building Canada first, partnering where we cannot and buying smart where we must. These estimates put that strategy into action. Spending more is only part of the story. Spending well is the other part. Through the comprehensive expenditure review, the Department of National Defence is targeting approximately $460 million in operating cost reductions from 2026-27 through 2028-29. That means continuing the fleet divestment strategy, streamlining the real property portfolio, expanding energy performance contracts and modernizing project approvals and internal business processes. The global security environment is not waiting for anyone. We are building again. The 2026-27 main estimates are a down payment on that commitment, an investment in people, in preparedness and in the partnerships that make Canada stronger. We are spending with purpose, we are investing with urgency and we are rebuilding the Canadian Armed Forces with the ambition this moment demands. I urge all members to support these estimates.

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Shannon Miedema

Liberal 6:55 p.m.

“The Conservatives are wrong. I'm excited about our defence plans. Halifax should be grateful and hopeful about all the spending we have planned. I won't provide any real strategy, I'll just say nice things about our Defence Minister and the Halifax defence sector.”

Shannon Miedema

Liberal 6:55 p.m.

“I'm excited that the government is spending money on ocean science and research at Dalhousie University. And we're going to host a big conference in Halifax where smart people will talk about it more.”

Sherry Romanado

Liberal 6:55 p.m.

“The person before me said there was no defence strategy. But there is a strategy with 10 things Canada wants! What are people in your riding saying about those 10 things?”

Shannon Miedema

Liberal 6:55 p.m.

“I'm filling time with kind words and saying nothing anyone could pin down later.”

Shannon Miedema

Liberal 7:00 p.m.

“I want to cheer for a program that spends money in my riding. I don't know details and I won't say more.”

Iqra Khalid

Liberal 7:10 p.m.

“You want to help people. I want to help people too. Maybe you just don't understand how important it is to help people. Do you want to help people? Or are you just trying to score points?”

Hon. Kevin Lamoureux

Liberal 7:25 p.m.

“I want the government to spend your money on space programs in Atlantic Canada. I'll call you shameful for not wanting to spend more money.”

Official Hansard

Mr. Speaker, I do not exactly know whether the Conservatives have something against Atlantic Canada or how they justify their positioning on Canada having an opportunity to launch things into space. An hon. member: Shameful. Hon. Kevin Lamoureux: Mr. Speaker, the member says “shameful” from across the way, but let us keep in mind that the Conservatives tend to oppose anything that the government wants to do. We have made a clear commitment to our Canadian Forces and to what will be taking place in the industrial development sector, whether it is in space or for our Canadian Forces, that whole 2%. The Conservatives, no matter what we seem to do, want to be negative and want to shoot it down. Is there any aspect of the government expenditures that he actually approves of, whether it is for the forces or for the space launch centre?

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Hon. Kevin Lamoureux

Liberal 7:30 p.m.

“I think the government is doing a lot to help people with the cost of living. We are spending money on programs to make food and fuel cheaper. I want the other party to admit that our government is doing a good job.”

Official Hansard

Mr. Speaker, I believe that through the whole estimates process, the government has given a great deal of attention to the issues of agriculture and, in particular, taxation. The member made reference to how we could support making things more affordable. Just last Friday, we dealt with the issue of providing the groceries and essentials benefit program, supporting 11 million Canadians. There is more. We could talk about the fuel excise tax. Fuel costs 10¢ less a litre. If the member was fair in his assessment, he would realize that, in many ways, the government is there to support the issue of affordability with regard to agriculture, whether it is canola out west or providing export opportunities—

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Hon. Kevin Lamoureux

Liberal 7:55 p.m.

“I want to say the government understands what people are going through. We are spending money on many industries already. But let's talk about something else now. The government is spending a huge amount of money on armed forces and Arctic sovereignty. Does the Bloc party support all this spending in northern Canada? Let's talk about that big number instead of the difficult things you brought up.”

Official Hansard

Mr. Speaker, the member is wrong when he makes the assessment that the government does not understand. Of course the government understands. That is why we are providing financial support, whether it is for our forestry industry, our aluminum industry or our steel industry. We can appreciate the tension and anxiety within those ndustries. My question is more in regard to the issue of reserves and Arctic sovereignty, a very high priority. It was not that long ago that the Prime Minister was up north and made a commitment of close to $35 billion in order to invest in the armed forces and protect our sovereignty in the north. Does the Bloc party support the investment for northern Canada in order to substantiate a very strong, sovereign north—

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Hon. Kevin Lamoureux

Liberal 8:10 p.m.

“I'm filling time with kind words and saying nothing anyone could pin down later.”

Official Hansard

Mr. Speaker, the member raises an issue that I know affects so many people. All members of Parliament are genuinely concerned about these unethical individuals, many living outside of Canada. With the modernization of technology of the Internet, phone scams, robocalls being made and vast numbers of emails, scams take many different forms. Unfortunately, it is quite often the vulnerable in society who are targeted, but it goes even beyond that. I am very familiar with a senior, Peter, who was defrauded of hundreds of thousands of dollars also. I think it is important that we highlight the Canadian Anti-Fraud Centre as an organization that does some good things. I appreciate the comments of the member regarding the budget. We—

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Kristina Tesser Derksen

Liberal 8:15 p.m.

“I want to look like I support the military. I am asking for a lot of money for the military. We need more money for defence because the world is dangerous. We need more money for military pay, recruitment, and healthcare. We need more money for ships and planes and other equipment. We need more money for the Coast Guard too. All these things need a lot of money. Canadians should know we are trying to save money too. We are investing in the military but also trying to save money.”

Official Hansard

Mr. Speaker, I am pleased to rise today to speak to the 2026-27 main estimates for national defence and to this government's efforts to rebuild, rearm and reinvest in the Canadian Armed Forces. We all know the global threat landscape has changed. The threats we face are numerous and multiplying, from incursions in the Canadian Arctic to attacks on our cyberspace. Canada cannot meet these challenges with yesterday's tools. The first job of the government is to keep Canadians safe. Our government is protecting Canadians and supporting our allies with an approach that transforms defence procurement. We need a ready and resilient Canadian Armed Forces that can recruit and retain skilled people and that has the training, infrastructure and modern capabilities needed to succeed in today's complex and volatile security environment. Defence and security have become the nation's top priority, as evidenced by the significant increase in planned spending in the 2026-27 main estimates. We are requesting $50.7 billion for the Department of National Defence. That is $15 billion over the previous year, roughly a 42% increase in funding. That includes an additional $5.1 billion in operating funding, $7.1 billion in capital funding and $2.3 billion in grants and contributions. These are significant investments in Canada's security, our sovereignty, our alliances and our people in uniform, who give so much of themselves to serve this country. Last year, Canada spent 2% of GDP on defence for the first time in nearly four decades, ahead of its original schedule. With these main estimates, we are continuing that momentum, working toward NATO's new defence investment pledge of 5% of GDP by 2035. That commitment includes 3.5% for core defence requirements and 1.5% for broader defence and security-related spending. In fact, the Prime Minister noted at CANSEC that Canada is already meeting that 1.5% target for critical defence infrastructure. These estimates will help us support our people, strengthen our preparedness and build the partnerships Canada needs in a more dangerous world. A significant portion of this funding, $1.3 billion, reflects last year's historic pay increase for members of the Canadian Armed Forces to better reflect the unique challenges and sacrifices of a life of service. Improved compensation also strengthens recruitment and retention, reinforces readiness and gives members in uniform greater certainty as they serve. The estimates also include $274.9 million for CAF recruitment and training. This will help update processes and systems to improve the applicant experience and grow the pool of prospective members. It will also modernize training so new members can get up to speed quickly and start contributing sooner in the roles they signed up for. There is also $274.5 million for Canadian Forces health services to care for our people serving across Canada and overseas. Compensation, benefits, health care and predictable support are all necessary to support military readiness. Equally necessary are the capabilities to defend Canada, support North American security and contribute to peace and stability with our allies and partners. The CAF must be prepared to operate at home and abroad, defend Canadian sovereignty in the Arctic, strengthen continental security through NORAD operations, contribute to collective defence through NATO and support other missions that enhance global peace and regional stability. These estimates include funding for those operations, as well as contribution funding for military training and capacity-building activities. They also include $7.3 billion for in-service support to ensure the availability, reliability and long-term sustainability of military equipment. We are also requesting $1.2 billion for fleet equipment readiness to give the defence team the direction and resources needed to adapt and respond to a more dynamic and complex security environment. Canada also needs to make major investments in future capabilities. That is why we have included $12.8 billion for multi-stage procurements that will allow the CAF to operate effectively now and for decades to come: river-class destroyers, joint support ships, Canadian multi-mission aircraft and other major equipment and infrastructure investments. These will strengthen Canada's sovereignty in the north, protect maritime approaches, support deployed operations, contribute to continental defence and operate alongside allies. The Canadian Coast Guard is also part of the national defence main estimates. The $4 billion we have included for the Coast Guard will go toward capital funding, operating funding and grants and contributions. The Canadian Coast Guard will continue to deliver its critical missions of search and rescue, icebreaking, environmental response, safe navigation and ocean science. However, as part of National Defence, it will now play a greater role in Canada's security, collaborating with security and defence partners to share information, coordinate activities and enhance training, strategic planning and innovation, because in a country with three oceans and the world's longest coastline, the Coast Guard's maritime expertise is a national asset, and it is one of great pride. All of these investments are necessary to boost Canada's preparedness in a precarious world. We need to plan, be strategic and maintain the discipline required to focus our resources where they deliver the greatest value. We know, too, that we cannot do this alone. Defending Canada and contributing to global stability is a national effort that demands strong partnerships across the government, industry and academia and with our allies. That is why National Defence's grants and contributions have increased significantly, with $3.3 billion in the main estimates to support programs, organizations and recipients whose activities advance Canada's defence mandate. A large part of this funding supports Ukraine through the military training and co-operation program. It includes contributions to NATO initiatives that benefit all allies while strengthening Canada's access to shared decision‑making, intelligence, capabilities and interoperability. We are also strengthening Canada's defence industrial base. That includes establishing a new Canadian defence industry resilience program. These estimates include initial investments for this program, which will strengthen Canadian sovereignty and increase production capacity for Canadian defence businesses. It will also support Canada's ability to produce nitrocellulose, which is a critical, high-demand, energetic material for artillery. We are collaborating with innovators, academics, defence and security experts and other partners through programs such as IDEaS, innovation for defence excellence and security, and MINDS, mobilizing insights in defence and security. All of these partnerships help turn Canadian expertise into defence capability. They support innovation, domestic capacity and Canada's ability to contribute to allied security with greater resilience and independence. In conclusion, Canadians expect their government to protect the country, support the people who serve and manage public funds responsibly. We want to reassure them that National Defence continues to find savings through the comprehensive expenditure review. The departmental plan outlines approximately $460 million in operating cost reductions, beginning in 2026‑27 and continuing through to 2028‑29. These measures include continuing the fleet divestment strategy, streamlining the real property portfolio, expanding energy performance contracts and modernizing project approvals and internal business processes. That work reinforces the same principle that runs through these estimates. We are spending with purpose, focusing our resources and delivering better value for the defence team, for CAF members and for Canadians. We are investing in people. We are investing in preparedness. We are investing in partnerships. The 2026‑27 main estimates support Canada's path towards NATO's new defence investment pledge and they reflect this government's commitment to rebuild, rearm and reinvest in the Canadian Armed Forces. The world has changed, and Canada's defence investments are changing with it.

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Kristina Tesser Derksen

Liberal 8:25 p.m.

“Don't blame me. It was the other guy's project, and it's hard because America is involved. We'll have news for you soon.”

Kristina Tesser Derksen

Liberal 8:25 p.m.

“Thanks for complimenting our government's huge new military spending. I won't address any risks or flaws you raised. Everyone thank the troops!”

Marilyn Gladu

Liberal 8:25 p.m.

“You already praised our big defence spending. Now say it will create jobs and grow the economy too.”

What they said. What they meant.

Recent debates

Main Estimates, 2026-27

Hon. Shafqat Ali

Hon. Shafqat Ali

Hon. Shafqat Ali

Marilyn Gladu

Hon. Shafqat Ali

Shannon Miedema

Shannon Miedema

Shannon Miedema

Sherry Romanado

Shannon Miedema

Shannon Miedema

Iqra Khalid

Hon. Kevin Lamoureux

Hon. Kevin Lamoureux

Hon. Kevin Lamoureux

Hon. Kevin Lamoureux

Kristina Tesser Derksen

Kristina Tesser Derksen

Kristina Tesser Derksen

Marilyn Gladu