Strengthening Canada's Defence Sector Act

Bill C-40, Strengthening Canada's Defence Sector Act · Second reading · now at committee in the House Where it stands

What Bill C-40 would do

The bill would create the Canadian Corporation for Defence Investment to handle production, buying, and investment for the Canadian Armed Forces, the Department of National Defence, and partner governments. It would also expand federal buying and stockpiling powers to cover national security supplies and services. The responsible minister would gain authority to make financial investments in defence and security sectors, and new procurement rules would be set. The bill would also require a future review of these changes.

Official text (opens in a new tab)

29 statements

Emmanuella Lambropoulos, Saint-Laurent

Liberal
“I support this bill because it will speed up how we buy equipment for the military. It can take up to 26 years to get the Armed Forces what they need because too many departments are involved. Putting this work into one place will help us buy planes, ships, and other gear much faster.”
  • Reply to a debate question

    Relevance 100 of 100

    Of this reply, 100% addressed the question or point raised.

    See full analysis
Official Hansard

Mr. Speaker, I think that this bill does make a concrete change. At the Standing Committee on National Defence, we saw just how long it takes to provide the necessary tools to the Canadian Armed Forces. The fact that it can take 16 to 26 years to acquire this equipment is truly incomprehensible. One of the reasons is that multiple different departments were involved. Now that everything is concentrated within one department, I think things will move much faster when it comes to procuring aircraft, ships and all the equipment we need.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“We plan to spend more than 2% of our GDP on the military in the coming years. Creating a Crown corporation to buy equipment is the most efficient, accountable, and open way to do that. What does the member think?”
  • Question or comment in debate

    Clarity 46 of 100

    Much of this statement used imprecise wording, lacked details on timing or responsibility, or made broad claims without support.

    See full analysis
Official Hansard

Mr. Speaker, it is important for us to recognize that the newly elected government, with the Prime Minister’s providing a very clear indication that we want to be able to hit the 2% of GDP spending for our Canadian Forces, is going to go far beyond that over the coming years. Part of that is to ensure that we are able to meet the needs of our Canadian military through a tendering process. A Crown corporation is the best way to ensure that it becomes more efficient, accountable and transparent. I would like the member’s thoughts on my general comment.

Emmanuella Lambropoulos, Saint-Laurent

Liberal
“I agree with what my colleague just said. We have a big goal ahead of us, and this plan is the best way to reach it.”
  • Reply to a debate question

    Signal 17 of 100

    Much of this statement went to praise, blame, greetings, routine procedure or general stories rather than reasons, requests or specific points.

    See full analysis
Official Hansard

Mr. Speaker, I almost wish I could respond to the question again, because I think that was an excellent response. It is the best way to be able to achieve those goals. As the member on this side of the House mentioned, we do have a very big goal ahead of us. I think we will be meeting target as we move forward.

Marie-France Lalonde, Orléans

Liberal
“I want the House to pass this bill. It takes too long for Canada to buy military gear, which leaves our troops with old equipment and costs more money. This bill creates a new agency that cuts red tape and buys equipment faster while still being watched by Parliament.”
Official Hansard

Mr. Speaker, it is a pleasure to rise in the House to speak to Bill C‑40. As many of my colleagues have done, I would like to take a moment, on behalf of the community of Orléans and myself, to acknowledge the tragedy at Canadian Forces Base Wainwright, where four Canadian Armed Forces members lost their lives and dozens more were injured during a training exercise. To their families, loved ones and colleagues and to the entire community of Wainwright, I want to say that our thoughts are with them. I want them to know that the entire nation stands with them during this difficult time. I will now come back to the issue before us today. I think all members of the House can agree that our defence procurement system has become too cumbersome and that we need to find ways to operate faster and more efficiently. No matter which government has been in power over the past decades, this problem has been going on for a long time. Delays in military procurement are not a partisan issue. They are an issue of capacity, efficiency, funding and, ultimately, national security. We are at a critical moment. The federal government is moving forward with important reforms through the new defence industrial strategy and the new Defence Investment Agency. However, the world is not standing still. Threats are changing fast, new technologies are reshaping how wars are fought, and global instability is on the rise. While our allies are moving quickly to modernize their forces and strengthen their capabilities, Canada cannot afford to fall behind. We cannot meet today’s challenges with yesterday’s processes. Every delay means higher costs, lower delivery and a greater risk that our military will not have the tools it needs when it needs them most. As the former parliamentary secretary to the minister of national defence, I saw first-hand how our system can become a veritable labyrinth. What should take a few years sometimes takes 10 or 15 years, if not longer. While paperwork piles up on desks, costs soar, threats multiply and diversify, and our women and men in uniform continue to wait. The biggest cost is not always financial. It is felt by the women and men who serve in uniform. They need modern equipment to do their jobs and keep Canada safe, not equipment that arrives years after it was requested. The reality is that this issue is not tied to any one government or political party. We have seen these challenges for years. When a project takes years longer than expected, our military personnel are left to make do with aging equipment, rising costs and reduced capabilities. In some cases, the delays are so lengthy that the equipment may become outdated before it even reaches our service members. I had the privilege of serving on the Standing Committee on National Defence, where we studied defence procurement. We heard from officials from National Defence, Public Services and Procurement Canada and the Treasury Board Secretariat. On paper, it often appeared that the system was moving forward. On the ground, however, the reality was somewhat different: Projects were delayed, costs were going up, and our military personnel was still waiting for the equipment they needed. Over the years, many individuals have weighed in on this issue. Calls to reform our procurement system are nothing new. As early as 2005, researchers at Queen’s University were studying the need to modernize defence administration. In 2013, the Jenkins report recommended better government coordination. Our defence procurement system was seen as overly complex and fragmented across multiple departments. In response to that report, the government launched a strategy aimed in part at streamlining the procurement process. In 2016, the Canadian Global Affairs Institute already observed that delays persisted and that reforms were not moving forward quickly enough. Regardless of which government was in office, the assessment remained largely unchanged: Efforts to streamline processes and improve coordination needed to continue. Our new federal government made important commitments to NATO. Canada has reached a benchmark of spending 2% of GDP on defence, and we are committed to investing even more in the years ahead. However, spending more money is not enough. That money must be turned into real capabilities, real equipment and real results for the women and men who serve our country. That is why Bill C-40, the strengthening Canada’s defence sector act, is so important. Through this legislation, we are proposing to establish the new Defence Investment Agency as a Crown corporation. This new structure would give it greater operational flexibility, would allow it to work more effectively with industry and would cut through some of the administrative barriers that too often have slowed down defence projects. The goal is simple: acquire capability faster, build stronger strategic partnership, support Canada’s defence industrial base and deliver the equipment our Canadian Armed Forces need when they need it. The equipment of tomorrow should be built by Canadian workers using Canadian steel and aluminum and driven by Canadian innovation. By giving the Defence Investment Agency more flexibility, we would be modernizing a system that must keep pace with a rapidly changing world. Our military does not need more bureaucracy. It needs equipment, it needs capabilities and it needs results. This is exactly what Bill C-40 is designed to deliver. This bill is about changing how we deliver critical capabilities to the Canadian Armed Forces. It is about making sure that essential projects do not sit in the system for years while operational needs grow more urgent by the day. In today’s world, the cost of inaction is too high. It is measured not only in dollars but in lost capabilities, reduced readiness and increased risks to our national security. The threats we face will not wait for our processes to catch up, and neither should we. All too often, we wait until a piece of equipment has come to the end of its useful life before we think about what comes next. Many experts recommend that instead, we always stay one step ahead. While one generation of equipment is in use, we should already be designing and developing the next. These recommendations also emphasize the need to speed up decision making, reduce administrative delays and streamline the approval process. The objective is clear: to enable Canada to achieve better results more quickly and respond to rapidly evolving international security threats. For residents of Orléans, national defence is not an abstract issue. We rub shoulders every day with soldiers, veterans and professionals who contribute directly to Canada’s security. They expect investments that are announced to produce real results, not years of administrative delays. Bill C-40, the strengthening Canada’s defence sector act, is specifically intended to make the system more agile, more efficient and better suited to today’s world so that our armed forces receive the capabilities they need when they need them. That said, more flexibility does not mean less transparency. The Defence Investment Agency will remain accountable to the government through a minister. It will be required to be accountable, comply with strict financial management rules, and undergo regular audits. Parliament will also continue to exercise its oversight role. With Bill C-40, the strengthening Canada’s defence sector act, the government is seeking to reduce delays and red tape while ensuring that taxpayer money is managed properly and that the agency remains accountable for its decisions. I hope to have my colleagues’ support for the next steps in the legislative process.

Marie-France Lalonde, Orléans

Liberal
“Under the Conservatives, defence spending fell below 1% of our economy. Our government is working to reach the 2% NATO spending target. We have also included the Coast Guard in our national defence, and its members appreciate that.”
  • Reply to a debate question

    Clarity 46 of 100

    Much of this statement used imprecise wording, lacked details on timing or responsibility, or made broad claims without support.

    See full analysis
Official Hansard

Mr. Speaker, I did not want to be overly partisan, because I was trying to stay within the limits of being parliamentary, but especially in Orleans, we are reminded that under the Conservative government, NATO spending fell below 1%. What our new government has done is go forward in meeting our 2% target. That was exceptional, and I think we collectively all agree. We have also made a significant change in our Coast Guard by including it in our military, in DND and in our defence. From meeting some of its members in the Iqaluit over the summer, I think they are very appreciative that we are going forward in improving their ability to serve Canadians.

Marie-France Lalonde, Orléans

Liberal
“We are debating this bill right now to make sure our military gets the modern equipment they need quickly. Canada needs the right tools for future challenges instead of relying on old gear.”
  • Reply to a debate question

    Relevance 46 of 100

    None of this reply addressed the specific point raised or the topic under debate.

    See full analysis
Official Hansard

Mr. Speaker, I want to thank my colleague for that important question. I would say that the legislative process is under way right now. That is why we are having these discussions. I think it is important to meet expectations so that our military personnel, the men and women who serve our country, get the equipment they need in a timely manner. We also need to be able to quickly assess the options that are proposed. It is time for Canada to get today’s equipment to meet tomorrow’s challenges, rather than relying on yesterday’s equipment to carry out the missions of the future.

Steeve Lavoie, Beauport—Limoilou

Liberal
“Businesses in my riding want to invest in the defence sector, but they do not know how to get involved or get help. How will this bill support these businesses and give them the predictability they need to invest and hire workers?”
Official Hansard

Mr. Speaker, I thank my colleague for her excellent speech. I appreciated her comments, especially when it comes to businesses. We can see that businesses need predictability. We have been hearing about that for a long time. Businesses would like to invest in the defence sector. I met with business owners in Beauport—Limoilou last week. They said that they would like to go in that direction, but they do not know how to do that or how to get help. In my colleague’s opinion, how would this new structure support these businesses and give them the predictability they need to invest more in equipment and a skilled workforce? How would it help our Canadian SMEs get involved in this venture and participate in the defence sector?

Marie-France Lalonde, Orléans

Liberal
“I support this bill. It creates a new agency to bring together buying, building, and investing in military gear. This will make the process simpler and give businesses more certainty, so our troops get the modern equipment they need today.”
Official Hansard

Mr. Speaker, the corporation’s functions, meaning what it will do and what it will coordinate, are very clearly set out in the bill. The Canadian corporation for defence investment will undoubtedly have a broader and more integrated mandate, bringing together procurement, production and investment activities, in order to better support Canada’s defence industry. I think it is important to emphasize today that what Canada and the men and women who serve our country need is equipment for today’s challenges, not yesterday’s. This agency will not only simplify the process, but it will also provide a degree of predictability for the companies that will continue to invest alongside us.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“Every province uses single-source contracts, including for health care. Creating a Crown corporation will make military purchasing faster, more efficient, and more accountable. Does the member agree this is a good step forward?”
Official Hansard

Mr. Speaker, I have a non-partisan question for the member. Single-sourcing is an issue that the member raises. Single-sourcing is done in all provinces. If we look at health, the greatest expenditure that a province has, whether it is B.C., Ontario or Alberta, we find that single-sourcing is a reality. Then if we take a look at Crown corporations, they ensure more accountability, more accessibility and a direct link to their respective legislatures, in this case, the House of Commons. Then we can take a look at the need to expedite and become more efficient at delivering for the members of our Canadian forces. Does the member not agree that a Crown corporation is, in fact, a good step forward in achieving all of those?

Discussion

No comments yet

See the full discussion

Comment rules

More from sitting 151

  1. Government Orders Strengthening Canada's Defence Sector Act 79 statements
  2. Oral Questions Public Services and Procurement 5 statements
  3. Oral Questions Finance 4 statements
  4. Oral Questions The Economy 8 statements
  5. Oral Questions The Environment 2 statements
  6. Oral Questions Immigration, Refugees and Citizenship 15 statements
  7. Oral Questions Canadian Culture and Identity 4 statements
  8. Oral Questions Public Services and Procurement 11 statements
  9. Oral Questions Finance 2 statements
  10. Oral Questions Employment 10 statements
  11. Oral Questions International Trade 7 statements
  12. Oral Questions Finance 8 statements
  13. Oral Questions Small Business 2 statements
  14. Oral Questions The Economy 2 statements
  15. Oral Questions Health 2 statements
  16. Oral Questions Justice 2 statements
  17. Government Orders Government Orders 2 statements
  18. Government Orders Strengthening Canada's Defence Sector Act 44 statements
  19. Private Members' Business Canada Revenue Agency Act 6 statements
  20. Government Orders Canadian Fuel Affordability Act 164 statements
  21. Adjournment Proceedings Adjournment Proceedings 4 statements
  22. Adjournment Proceedings Adjournment Proceedings 4 statements
  23. Adjournment Proceedings Adjournment Proceedings 4 statements