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)

22 statements

Steeve Lavoie, Beauport—Limoilou

Liberal
“I want my colleagues to read this bill carefully. It helps defence businesses get the loans and insurance they need to bid on government contracts.”
Official Hansard

Mr. Speaker, I read Bill C‑40 and had the opportunity to give a speech here in the House. I think there is a bit of a misunderstanding about the bill. I will explain why. By creating this corporation, Bill C‑40 will provide support so businesses can bid on government contracts. I have worked with businesses. All too often, we see that they would like to bid on contracts, but they lack the financial means or do not have the necessary financial backing, from banks, for instance. That is what Bill C‑40 offers. It will support the entire sector in bidding on these contracts. It will provide loan insurance. It will make it possible to get loans. I would like my colleague to take the time to read the bill carefully and consider the impact it could have on the sector. It will support hundreds of businesses so they can bid on contracts.

Chris Malette, Bay of Quinte

Liberal
“I want the House to pass this bill. It helps our military buy equipment faster, cuts government delays, and supports Canadian jobs.”
  • A repeated line

    “Rearm and reinvest in the Canadian Armed Forces.”

    Said 5 times by 5 members since June 1.

    Every time it was said
Official Hansard

Mr. Speaker, in my riding, the beautiful Bay of Quinte, we are proudly home to the Royal Canadian Air Force’s primary and largest air mobility hub, 8 Wing at CFB Trenton. While CFB Trenton is a fascinating and awesome place to celebrate in its sheer enormity and scope of operations, we are here today to discuss important legislation to accelerate defence procurement, strengthen Canadian industry and reinforce Canadian sovereignty. We do so to benefit and bolster the work of the 5,000 military and civilian personnel who keep CFB Trenton operational 24-7, 365 days a year. Bill C-40, the strengthening Canada’s defence sector act, represents a major step in modernizing how Canada equips its military. Above all, the legislation is about building a stronger, more capable Canada, a Canada that can continue to defend itself against emerging threats, protect its interests and keep Canadians safe. The bill comes at a defining moment in our country’s history. Our government is making a generational investment to rebuild, rearm and reinvest in the Canadian Armed Forces, but our investments are only part of the equation. We must also ensure that they translate into effective military capabilities delivered to our Canadian Armed Forces quickly and efficiently, as well as that they deliver real economic benefits for Canadians from coast to coast to coast. To meet these important commitments, in October 2025, we established the Defence Investment Agency, or the DIA, as a special operating agency within Public Services and Procurement Canada. In just one year, the DIA has helped accelerate and advance a number of major defence projects. The legislation we are proposing builds on this momentum, giving the DIA the additional tools and authorities it needs to keep doing this work even more quickly and efficiently. It is important to know that we are not starting from zero. With that in mind, I would like to take a few minutes to highlight some of the important projects the DIA has been able to advance over the past year, as well as to discuss how Bill C-40 would ensure that we can keep delivering at the pace that our military needs and that Canadians expect. Let me begin with air and space. Canada is a vast country. Protecting our airspace, particularly in the Arctic, requires modern aircraft, advanced surveillance systems and reliable communications. We are making significant progress on all three fronts. In May, Canada selected Saab as the preferred supplier for our future airborne early warning and control capability. Negotiations are now advancing toward the acquisition of the GlobalEye system. This system would provide long-range surveillance and early warning capabilities, helping our forces detect and track potential threats. Because GlobalEye uses Canadian-made Bombardier Global 6500 aircraft, this project also offers important opportunities for Canada’s aerospace industry. As we strengthen Canada’s air and space capabilities, we are also investing in emerging technologies. In just months, the defence drone initiative, made possible because of DIA involvement, has helped lay the foundations for a sovereign national defence drone ecosystem. Another important initiative is the enhanced satellite communications project, polar. This project will provide our military with reliable, secure communications in the Arctic, where conventional communications can often be limited. Working with Canadian industry leaders such as Telesat and MDA, the Defence Investment Agency has helped advance an innovative procurement approach. Rather than developing a technical solution in isolation, we engaged Canadian industry earlier, drawing on its expertise to help identify the best way forward. In August, the agency awarded Telesat a $2.3-billion contract for the first major component of this capability. This is an excellent example of how we can move faster while strengthening Canadian technological expertise and industrial capacity. Let me turn then to land capabilities. Our soldiers need modern equipment they can depend on. Earlier this year, our government awarded Colt Canada a contract for up to 65,402 new Canadian modular assault rifle systems. These rifles will replace equipment that has served our military for decades. Through the contract negotiated by the DIA, Colt Canada is committed to incorporating at least 80% Canadian content into these rifles, on top of their being built domestically. This project is a great example of how the DIA is already improving readiness for our soldiers while supporting Canadian manufacturing, skilled workers and our domestic defence industrial base. Likewise, the DIA is helping Canada move forward on the capabilities the Royal Canadian Navy needs to defend our vast waters, done most notably through the Canadian patrol submarine project. In July, Canada selected Germany-based TKMS, with the support of Germany and Norway, as its preferred supplier. Negotiations are under way to acquire up to 12 modern, conventionally powered submarines with long range, long endurance and Arctic capabilities. These submarines would strengthen our ability to detect, track and deter potential adversaries in the Atlantic, Pacific and Arctic oceans. We are planning to sustain these submarines right here in Canada. These are just a few examples of the major defence acquisitions under way. We have been able to make significant progress on these projects since the creation of the DIA. They also highlight something important. The DIA’s goal is not simply to acquire equipment faster. It is about fundamentally transforming how we approach defence procurement. Historically, major acquisitions have involved several federal departments, each with important responsibilities: National Defence identified military requirements; Public Services and Procurement Canada managed procurement and contracting; and Innovation, Science and Economic Development Canada oversaw industrial and economic considerations. While this arrangement brought valuable expertise across government, it could also create duplication, delays and uncertainty as projects move between organizations. The DIA is helping to change that. By bringing together military, technical, commercial and procurement specialists from across government, the agency is building integrated teams that can work collaboratively from the earliest stages of a project. The DIA is also introducing more flexible approaches to procurement. That includes engaging industry earlier, streamlining decision-making and considering existing commercial or military solutions where appropriate. This work is closely connected to Canada’s defence industrial strategy, which is helping ensure our defence investments also build the industrial capacity, skilled workforce and secure supply chains needed to produce and sustain critical capabilities here at home. At its heart is a straightforward approach: build, partner, buy. That means to build in Canada where we have the capacity or where developing that capacity is strategically important; partner with trusted allies when collaboration provides access to better capabilities, technologies or production opportunities; and buy existing capabilities from trusted partners. It would all strengthen our capability to maintain and sustain essential military equipment in Canada. That is important because every critical component we can produce domestically, every system we can maintain and repair ourselves, makes our country more resilient. The DIA would have a clear responsibility for translating these requirements into results, all while maintaining strong governance, financial oversight and accountability to Parliament through a minister. Ultimately, our success will not be measured by the number of contracts we sign. It will be measured by the opportunities we create for Canadian workers and businesses, and it will be measured by the capabilities we deliver to our military. That is what Bill C-40 is designed to achieve: a stronger military; a stronger defence industry; and a stronger, more sovereign Canada. That is why I urge all members of the House to support the legislation.

Chris Malette, Bay of Quinte

Liberal
“This bill will help our military buy the equipment it needs, from socks to airplanes. It will make buying supplies faster while keeping strong oversight.”
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Official Hansard

Mr. Speaker, I thank my friend, the member for Bruce—Grey—Owen Sound, for his service to Canada as a veteran, especially at this time of year. I listened earlier as the member recited a litany of shortages in sending troops into harm’s way when he was an active serving member, and I would like to remind him that the program we are introducing in this bill would help address the very concerns he expressed earlier. This program is designed to help better procure items such as C-17, but we have also seen that we need everything from socks to submarines, and this legislation would help do that, not only with speed but also with great oversight.

Chris Malette, Bay of Quinte

Liberal
“This bill creates a new agency focused only on buying and building defence equipment. It will help us get equipment to the military faster. A new associate minister will oversee the agency to keep it accountable.”
Official Hansard

Mr. Speaker, in the new legislation, the shift is about centralizing execution and accountability with what is known as the CCDI. While recognizing that major defence investments will continue to advance broader Government of Canada priorities, the CCDI mandate would be more focused on defence production, procurement and investment. It would also accelerate delivery of defence capabilities. That does not mean there would be less oversight. The CCDI would operate at arm’s length under the national defence portfolio, reporting to a new minister, called the associate minister of national defence for procurement. The Government of Canada is committed to clear accountability and a more integrated approach to—

Marianne Dandurand, Compton—Stanstead

Liberal
“I want my colleague to explain how the new defence agency could bring economic benefits to ridings like ours.”
Official Hansard

Mr. Speaker, I thank my colleague for the Bay of Quinte for his speech on the new Defence Investment Agency. I would like my colleague to elaborate on the type of spinoffs there might be for a riding like his or mine.

Chris Malette, Bay of Quinte

Liberal
“We should pass this bill. The current defence agency will keep working while we set up the new corporation, so nothing gets disrupted. A contractor in my riding told me this bill will help private businesses work better with the military.”
Official Hansard

Mr. Speaker, the DIA would be continue to operate under its existing authorities and advance procurements while the new Crown corporation is established. The transition would be managed to maintain continuity and minimize disruption to ongoing procurements, industrial industry partners and client organizations. Earlier today, I met with a defence contractor, for instance, who is interested and already actively working at CFB Trenton in my riding of the Bay of Quinte. They are very keen on Bill C-40 to see that this exact piece of legislation would help them further bring their private expertise to work in collaboration with our defences.

Chris Malette, Bay of Quinte

Liberal
“We are not creating a new kind of Crown corporation. Canada already has many of them that work closely with the government and face careful scrutiny. There is no reason to think buying military equipment this way will have less accountability.”
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Official Hansard

Mr. Speaker, as we have seen, we are not reinventing the wheel here. We are not reinventing Crown corporations. I fail to see why, when we are talking defence procurement, we would all of a sudden have less accountability. We have many Crown corporations that operate very closely with government, but that is done with very good scrutiny.

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

Liberal
“I support this bill. A government-owned corporation will help our military industry, and we can still hold it accountable. I want to know why the Conservatives plan to vote against it.”
Official Hansard

Mr. Speaker, in listening to the Conservatives debate this piece of legislation, I find that it is almost as if they want to find a way to vote against it. Crown corporations, whether at the national level or provincial level, have provided all forms of services to Canadians. The Prime Minister has made very clear the commitment to grow our Canadian Forces and to support our Canadian Forces. Let us take a look at our military industry as a whole and how it can benefit by a Crown corporation. It does not take away from accountability. We can still ask questions of the ministers and the parliamentary secretaries. We can still see the Crown corporations come before standing committees. Crown corporations at both the national level and provincial level have proven to be very successful. Why is the Conservative Party deciding to vote against—

Guillaume Deschênes-Thériault, Madawaska—Restigouche

Liberal
“I support this bill. Right now, buying military equipment takes too long because too many government departments are involved. This bill creates a single agency to handle defence purchases, cut red tape, and get our military what it needs faster.”
Official Hansard

Mr. Speaker, as everyone knows, we are living in a rapidly changing world. Multiple conflicts are currently unfolding across the globe. The rules-based international order we knew for decades has been turned upside down. Technological advances are fundamentally altering both the nature of the threats we face and the tools available to address them. We must develop defence capabilities to meet these new realities. There are also new challenges ahead. Consider, for example, the growing strategic importance of the Arctic and the need to find a way to safeguard our sovereignty over this vast northern territory. We must reinvest to ensure that the Canadian Armed Forces have the equipment they need, when they need it. That means reinvesting not only in modernizing and replenishing our equipment, but also in building a defence supply chain capable of meeting the needs of our armed forces in a timely manner. That is precisely why we are debating Bill C‑40 today. Since last year, we have made major investments in the Canadian Armed Forces, and we have met our NATO defence spending target of 2% of GDP. These investments are essential for protecting our country’s sovereignty. They give us the means to defend our territory, our borders and our national interests. We are also seeking to build our strategic autonomy through these investments. We want to further develop industrial capabilities and reliable supply chains right here at home so that we can meet our own defence needs and fulfill our commitments to our allies as members of NATO. This is also a measure of our credibility as a reliable international partner. In addition to meeting security needs, these defence investments are also helping us to strengthen the Canadian economy because we are enhancing Canada’s industrial capabilities. With that in mind, in February, we launched Canada’s very first defence industrial strategy, which seeks to transform our defence industries by prioritizing Canadian suppliers and materials. By investing in our defence capabilities, we want to promote our local businesses, stimulate our economy and invest in Canadian innovation and commercialization, while streamlining procurement to give businesses consistent and predictable demand. As I mentioned, we have already taken historic steps to speed up defence equipment procurement while ensuring that Canadian workers and businesses benefit in the process. However, we want to go further and, as we have said before, we can do better. To improve, we have to start by identifying weaknesses in the Canadian defence procurement system and finding ways to fix them. Specifically, I am thinking of the fragmentation between departments, because defence procurement involves multiple different government entities and ministers. This fragmentation can affect our efficiency. In addition, sometimes, procedures are too complex to meet the military’s constantly changing needs. We have also noted how slow and arduous it is for the system to adapt to the immediate needs of our armed forces. We want to cut through the red tape. We want to speed up procurement and more quickly deliver critical equipment and capabilities to the CAF and our allies. It is in this spirit that we have introduced Bill C-40 to establish the Defence Investment Agency as a Crown corporation. This agency will have a strong mandate to carry out activities related to production, procurement and investment in respect of national defence assets. What will change about this agency? It will have additional and expanded authority to move complex projects forward, and it will have the capacity and expertise to do so while developing Canada’s defence industrial base. More specifically, as a Crown corporation, this agency will be able to operate with greater authority to negotiate and manage contracts in accordance with business practices more familiar to the industry. It will eliminate fragmentation by bringing the decision-makers responsible for procurement and strategic investments together in one place. It will reduce administrative burdens and facilitate access for suppliers in order to speed up procurement. What is more, Bill C-40 proposes creating the position of associate minister of national defence for procurement to oversee this new Crown corporation. The idea is once again to centralize the activities within a single agency rather than having a fragmented system like the one we have now. The objective is to deliver better results for our armed forces. We are already hard at work. We have already announced major investments in our armed forces since the last election. We are currently in negotiations to acquire up to 12 submarines, which is the largest defence procurement in our country’s history. We are establishing a strategic partnership framework under the defence industrial strategy to expand our fleet of armoured vehicles. We announced an $11-billion investment in an icebreaker contract for the Davie shipyard, the largest shipbuilding contract in the history of the province of Quebec. My home province of New Brunswick is not being overlooked. In April, our government announced an investment of more than $1 billion for the Canadian Armed Forces base in Gagetown. This includes $871 million to recapitalize the range and training area and $172 million to establish new ground-based air defence infrastructure. These investments ensure that our soldiers train on infrastructure built to last the next century and truly adapted to today’s needs. In addition to these investments, another $20 million has been budgeted to create a modern building that centralizes transition services in order to better support CAF members and their families during the transition either back to duty or to civilian life. I want to emphasize how important this federal investment of over $1 billion is to my province, New Brunswick. This is a significant amount with economic benefits not only for the military base, but for my province as a whole. In fact, my colleague from Fredericton—Oromocto often talks to us about the importance of investing in CFB Gagetown, both to support our CAF members by providing them with adequate training facilities truly adapted to their needs, but also for the many benefits it brings to our entire province. I support my colleague from Fredericton—Oromocto’s efforts. Our defence industrial strategy also includes a component aimed at increasing Canadian innovation in the defence and dual-use sector. I am referring to funding for technology, infrastructure, research and equipment that serve both military purposes, for use by our CAF, and civilian applications. I am thinking of our investments in drones and surveillance systems. It goes without saying that there is tremendous potential in the defence sector, particularly when it comes to monitoring vast territories such as the Arctic and conducting reconnaissance missions. However, these technologies can also be used in search and rescue operations. They can be deployed during forest fires and used to map our forests. They are also useful in agriculture for mapping fields. These investments improve our drone technology, which has both military and civilian applications. The same is true of satellite technologies and the improvements we are making to access space and enhance satellite connectivity. These investments help meet the need for secure, reliable communications in remote places, of course, but there is also potential to improve cell connectivity in rural parts of the country. I am also thinking of our investments in cybersecurity, which will help strengthen the protection of our networks and improve our ability to detect threats. This is especially important at a time when artificial intelligence is advancing rapidly. Investments in cybersecurity will have tangible benefits, particularly in terms of improving the security of our public and corporate networks. I am giving all these examples to show that our defence investments will not just be used to procure military equipment. They will also benefit our businesses and communities. We are investing to meet the needs of our military, but we are also taking this opportunity to further enhance Canada’s advantage in sectors such as AI, IT and access to space. We are having this discussion on Bill C-40 as we are entering the remembrance period, and I think it is important to mention that. From October 24 to November 11, millions of Canadians wear a poppy as a visible pledge to remember those who served our country and those who made the ultimate sacrifice for the freedom we enjoy today. Wearing a poppy is a symbol of gratitude, thanking those who serve and their families and remembering those who lost their lives in service to our country. It is also a sign of remembrance and education, reminding future generations of the importance of knowing our history and remembering those who served our country. It is a concrete way to support our local Royal Canadian Legions. The poppy campaign raises funds to support veterans and their families, so making a donation is a concrete way to show our support. This year, Remembrance Day takes on a particular meaning following the recent loss of four members of the Canadian Armed Forces and the serious injuries sustained by several others at Wainwright.

Guillaume Deschênes-Thériault, Madawaska—Restigouche

Liberal
“The 1-billion-dollar investment in the Gagetown military base will help our armed forces and New Brunswick. This new defence agency will also stay accountable. A minister will answer questions about it, and it will have to show its finances and face audits.”
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Official Hansard

Mr. Speaker, I am pleased to hear that the member had the opportunity to spend several years in New Brunswick. I am also pleased that he pointed out how important the announced $1-billion investment has been for infrastructure at the Gagetown military base in New Brunswick. That will make a real difference for our Canadian Armed Forces and for the province that I represent. As far as accountability is concerned, obviously a minister will be responsible for this agency. He or she will be in the House to answer opposition members’ questions and will appear in committee. A whole series of mechanisms will be put in place to ensure transparency and accountability within our parliamentary system. The Crown corporation will still be required to disclose financial information, undergo audits and table documents in Parliament. We are giving this organization more independence from an operational perspective, but we are maintaining strict accountability measures.

Guillaume Deschênes-Thériault, Madawaska—Restigouche

Liberal
“This new defence agency needs to be independent so it can invest quickly and build up our industries. It will still follow strict rules. It must share its spending details, write reports, and answer questions from MPs.”
Official Hansard

Mr. Speaker, as I said, accountability measures will apply. The objective of making the agency a Crown corporation is to give it more autonomy so it can invest in defence and meet current needs while strengthening our country’s industrial base. Accountability measures will apply. Committee work will be carried out, reports will be written and financial disclosure obligations will have to be met. All of these criteria apply. Members of Parliament will be able to ask their questions in committee and in the House.

Marianne Dandurand, Compton—Stanstead

Liberal
“Our ridings are partly rural. I want to know if rural areas will get funding and projects from this new defence agency, and how it will help people in my colleague's region.”
Official Hansard

Mr. Speaker, my colleague from Madawaska—Restigouche both have ridings that are partly rural. Some people are wondering whether rural areas will have access to the funding and projects that will come out of this agency. What does my colleague think the Defence Investment Agency would do for the people in his region?

Guillaume Deschênes-Thériault, Madawaska—Restigouche

Liberal
“Defence spending helps the economy in New Brunswick. It brings a $1-billion investment to a local military base, gives contracts to local businesses, and funds university research to make our ports safer and more efficient.”
Official Hansard

Mr. Speaker, first, there is the $1-billion investment in CFB Gagetown. This will have significant economic benefits for the entire province of New Brunswick. Several businesses in my riding have contracts with the Department of National Defence or with its suppliers. I have visited some of them in my capacity as a member of Parliament. I also document my region’s ability to meet the country’s defence needs and forward this information to the appropriate authorities. When it comes to the dual-use sector, there are tangible benefits for our regions. I am thinking in particular of a research project funded by our industrial strategy at the University of New Brunswick, focusing on the security of our critical infrastructure and specifically examining Port Saint John and the Port of Belledune, which is located in northern New Brunswick. The project focuses on ways to improve the security and efficiency of this critical infrastructure. This will have benefits not only for security but also for the civilian sector. There are many such examples. I could go on. This provides a variety of opportunities for our businesses involved in infrastructure, such as our ports, and for our research centres that are studying defence-related issues.

Linda Lapointe, Rivière-des-Mille-Îles

Liberal
“Under the previous Conservative government, defence spending was far below the 2% NATO target. Our government has passed that 2% goal, and we are on track to spend 5% by 2035. I want to know if the Conservatives will support our bill to speed up defence buying and create this new Crown corporation.”
Official Hansard

Mr. Speaker, I listened carefully to the speech by our colleague from Carlton Trail—Eagle Creek, who talked about procurement. Our colleague has been here for several years now. She was in the House when the Harper government was in power. At that time, defence spending was well below the 2% threshold that NATO requires of its members. In 2013, it was less than 1%. In 2014, it was 1.01%, and in 2015, it was 1.2%. Our government has exceeded the 2% target. In addition, we are on track to meet the 2035 target of spending 5% of our GDP on defence. Our colleague said earlier that it was important to speed up procurement. Will the Conservatives support measures to streamline procurement, improve preparedness and establish the Crown corporation?

Linda Lapointe, Rivière-des-Mille-Îles

Liberal
“I support this bill and our plan to spend money on military defence. This spending will help Quebec businesses win defence contracts and create good jobs.”
Official Hansard

Mr. Speaker, I would like to begin by paying tribute to the members of the Canadian Armed Forces and to all veterans. We have started wearing the poppy in remembrance. Let me now turn to Bill C-40. Our government is making major investments to help Quebec businesses enter and expand within Canadian and international defence supply chains. To be clear, these investments are not about military procurement alone. They are also about jobs, innovation, economic growth and ensuring that Quebec workers and businesses are at the forefront of one of the most important industrial opportunities of our generation. In April 2026, for example, a total of $4.5 million was allocated to Aéro Montréal, Propulsion Québec and Sous-traitance industrielle Québec, or STIQ, to support small and medium-sized businesses. This is excellent news for the Lower Laurentians region. These investments will help Quebec businesses integrate into Canadian and international defence supply chains, market new technologies and become more competitive at securing contracts both domestically and abroad. With this support, STIQ will help manufacturers meet the standards required to participate in defence projects. Aéro Montréal and Propulsion Québec will help businesses in the aerospace, electric mobility and smart transportation industries, which have a strong presence in the Lower Laurentians, to access new defence markets and win contracts with Canada, allied countries and major defence contractors. These investments are part of the broader regional defence investment initiative, which is providing $64.9 million to Quebec over three years. This regional initiative prioritizes business growth and productivity projects, particularly for SMEs, to help them meet existing or future needs of the Canadian Armed Forces, NATO or allied countries. These projects aim to increase their production and innovation capacity; improve their productivity and competitiveness; explore and expand into new markets; meet defence certification and qualification standards; support business start-up and growth, with the aim of integrating into national or international defence supply chains; and respond to calls for proposals from prime defence contractors and the Government of Canada. We want Quebec businesses to increase their production capacity. We want them to develop innovative technology. We want them to improve their productivity, meet defence certification requirements and compete successfully in global and domestic markets. Most importantly, we want workers and communities in Quebec to prosper. Projects funded by the regional defence investment initiative should support hundreds of well-paying jobs across Quebec. Thanks to our regional offices, such as Canada Economic Development for Quebec Regions, or CED, and Export Development Canada, or EDC, support will be available across the province to help businesses in large and small communities to take advantage of opportunities and access Canada’s growing defence-related investments. These investments are being made in a province that is already a major hub for defence and innovation. Quebec has over 8,500 jobs in the defence sector, which accounts for about one quarter of the total workforce in Canada’s defence industry. Quebec’s aerospace sector is one of the most sophisticated in the world. I am not sure whether members have heard me mention this in previous speeches, but the Lower Laurentians is home to several aerospace companies, such as L3Harris, which maintains the F-35s we were discussing earlier; Airbus; Bell Textron, a helicopter supplier; and MHI RJ Aviation Group, which is developing all sorts of new technologies to meet the needs of the future, because when it comes to defence, we no longer need the same equipment as before. The province’s advanced manufacturing sector is internationally recognized. These research institutions are making advances in artificial intelligence, digital technologies, communications, sensors, optics and highly advanced materials. As defence spending increases, both in Canada and amongst our allies, these forces place Quebec, and of course the Lower Laurentians, in a strong position to seize a growing share of these new opportunities. Businesses operating in aerospace, information technology, security, advanced transportation, critical minerals and precision manufacturing will have opportunities for growth. When it comes to transportation, I would like to point out that my riding is home to the Nova Bus electric bus assembly plant, Blainville is home to test tracks and the neighbouring riding is home to Paccar. SMEs producing drones, optical systems, simulators, surveillance technologies, electronic components and specialized manufacturing equipment are already well positioned to play a greater role in defence supply chains. In fact, the number of Quebec businesses interested in the defence sector has more than doubled over the past year. This shows both the confidence of Quebec entrepreneurs and the magnitude of the opportunities that lie ahead. We do not need to speculate on what these opportunities might bring. We can already see the results within the Quebec companies that are creating jobs, developing advanced technologies and competing in global markets. Consider a company like CAE in Montreal. As a global leader in flight simulation and training technologies, CAE has benefited from defence-related investments that strengthened Quebec’s and Canada’s global leadership in simulation and training technologies. As an aside, my son is a commercial pilot, and he teaches courses on CAE simulators in Saint-Hubert. I wish my son all the best as he pursues his career as a commercial pilot. These investments support research, exports and highly skilled jobs. Our task now is to build on this success and create the conditions for more Canadian companies to grow, innovate and remain competitive. This is precisely the goal of our government’s new defence industrial strategy, under which we have committed $6.6 billion over five years to strengthen Canada’s defence industrial base. We are investing and improving supply chains, accelerating innovation, and improving access to capital for Canadian businesses. Through its first-ever defence industrial strategy, the government is strengthening the industrial foundations underpinning Canada’s security and economic resilience. By combining long-term investments in both defence and industrial capabilities, the strategy supports businesses and Canadian workers, improves our supply chains and makes Canada a trusted partner to its allies. We are making historic investments in Canada’s defence ecosystem to transform our armed forces. We are creating good, well-paying jobs for Canadians across the country and, most importantly, we are supplying the Canadian Armed Forces with the equipment it needs to protect Canada’s security and sovereignty. The defence industrial strategy acknowledges a simple fact: Canadians should benefit from major defence investments. For that reason, our government is prioritizing Canadian suppliers, Canadian materials and Canadian innovation. This is also why we created the Defence Investment Agency: to modernize procedures, speed up projects and help Canadian businesses participate more actively in defence procurement opportunities. What does this mean for Quebec? For Quebec, these investments mean more procurement contracts. They mean opportunities for SMEs and growth in the aerospace and advanced manufacturing sectors. They mean investments in research and innovation. I am not going to take up any more of the House’s time, although I could go on at length about the many positive aspects of all this. Our objective is to help workers, businesses and communities in Quebec and across Canada. I am ready to take my colleagues’ questions.

Linda Lapointe, Rivière-des-Mille-Îles

Liberal
“Past governments spent very little on defence. We committed to spending 2% of our gross domestic product, and we want to reach 5% by 2035. We also used to buy 70% of our military equipment from the United States. We want to flip that and make 70% of it here in Canada using our own businesses.”
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Official Hansard

Mr. Speaker, I want to go back to what was done in the past. When the Harper government was in power, investment was below 2%. In 2013, it did not even reach 1%. In 2014, it was 1.1%. We committed to reaching 2%, which we have already done. In addition, by 2035, we will reach a target of 5% of our gross domestic product. I assume my colleague is aware of this, but in the past, 70% of defence equipment came from the United States. Now, we want to invert that pattern. We want Canada to produce 70% of the equipment. We want to use our own supply chains and our own industries to manufacture it. If my colleague had truly listened to my answer, he would have realized that it was a good idea to look elsewhere when it came to aircraft procurement.

Linda Lapointe, Rivière-des-Mille-Îles

Liberal
“Our defence investments help both the military and private companies. In Mirabel, there is a centre making drones and autonomous tech that can be used by both.”
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Official Hansard

Mr. Speaker, the goal of the investments we are making in defence is to have dual-use applications. We have to ensure that we develop private companies while we develop defence applications. In the Lower Laurentians region, in Mirabel, there is a hub dedicated specifically to developing autonomous technologies, including drones. There will be a dual use: the private sector and the defence sector.

Marianne Dandurand, Compton—Stanstead

Liberal
“A business in the member's riding could benefit from the new defence agency. I want her to give more examples of local businesses that could benefit from it.”
Official Hansard

Mr. Speaker, I appreciate the examples provided by my colleague. She took us on a tour of her riding, Rivière-des-Mille-Îles, this summer. In fact, I think one of the businesses she took us to could benefit from the Defence Investment Agency. I would like my colleague to provide more examples of businesses in her riding that might benefit from this agency.

Linda Lapointe, Rivière-des-Mille-Îles

Liberal
“Businesses in my riding make 3-D aerospace parts, test self-driving vehicles, and build drones. These technologies can be used by both regular businesses and the military.”
Official Hansard

Mr. Speaker, when my colleagues came to the Lower Laurentians this summer, I did indeed take the opportunity to tell them about all the opportunities we enjoy, but we did not have enough time to visit all the businesses. We did visit Abipa. What makes this company unique is that it produces 3-D parts. In the aerospace industry, it is much easier and safer to build moulds for parts, since only one part is required. We also went to Blainville to visit the test tracks, where the range of all vehicles, including autonomous vehicles, is tested. That is not all, for there is also the development of drones and all sorts of autonomous vehicles, such as personal watercraft, quads and drones used to deliver medication. They will have dual-use applications, in both the private and defence sectors.

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

Liberal
“The Conservatives are wrongly attacking people's character. Not every public appointment is purely political. Our government is focused on getting our military the equipment it needs.”
Official Hansard

Mr. Speaker, it is shameful that Conservative members stand in their places and prefer to continue with character assassinations. If we take a look at Quebec hydro or the Ontario health system, we will find that the CEOs are very compatible. In fact, they might even be more compatible than what is being suggested here. Is the member suggesting that everyone’s appointment to either a federal Crown corporation or a provincial Crown corporation is strictly a political, partisan appointment? If that is the case, I suggest the member needs to realize that things have changed since the last federal election, when Canadians chose a Prime Minister who is moving and pushing to get our Canadian Forces equipped—

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