Official Hansard
Mr. Speaker, I am here today to speak to Bill C-40, strengthening Canada’s defence sector act. This enactment contains measures relating to production, procurement and investment with respect to national defence and national security. Part 1 deals with establishing the Canadian corporation for defence investment and part 2 would amend the Defence Production Act to, among other things: (a) extend the application of that Act to supplies and projects related to national security and to services related to national defence and national security; (b) provide that the Minister of Public Works and Government Services has the authority to acquire supplies and services related to national defence and national security... [with some] exceptions; (c) extend the purposes for which that Minister may engage in stockpiling to include national defence and national security, including economic security, and the defence and security of an associated government or other state; (d) provide that Minister with new financial authorities...; and (e) establish procurement rules..... Then part 3 gets into providing the necessary review of said acts. Everything I just said was extracted from the legislation itself. What does this mean in plain speak? Bill C-40 would establish a Canadian corporation for defence investment, a Crown corporation run by a CEO and a board of directors under the authority of the associate minister of defence for procurement. The extent that Treasury Board’s rules, however, would apply to this corporation have not been established. It is not part of the bill itself, but it is expected to be substantially less than before the defence investment act is enacted. The Defence Production Act would be renamed and amended to permit the minister to procure everything or anything that could have a national defence or security use. It would also allow the corporation to exercise powers under sections 15 and 16 of the newly named defence and national security production and procurement act, which would deal with the stockpiling, procurement and disposal of military equipment. Bill C-40 would also massively expand the number of categories under which the minister could carry out a sole-sourced procurement, 17 in total should this bill pass, and by virtue of that, decline to run a competition and would also allow any number of future exceptions to be written into regulation, not backed through legislation. It would also allow the minister to exclude anyone on national security grounds from a competition, and here is what I take issue with, without justification, oversight or explanation to Canada and to Parliament. Before I get into some of the other reasons that I think it is important that we revisit and revamp our procurement process, I am shocked that we are debating today under the threat of time allocation. To be fair, the government has not moved it, but a Liberal stood on Friday and threatened to move time allocation on a bill that is going to allow the government to spend literally hundreds of billions of dollars going forward and, at the same time, remove parliamentary oversight. I find it fascinating that we are on the second day of debate, not even through the first five hours of debate, and we are already under a threat of time allocation. I will provide a bit of my own background. I spent 25 years in the military, but 24 years ago I had the privilege of attending, on the army side, the land force technical staff program, a year-long course where I did nothing besides study defence management as it relates to the army here in Canada and how we procure equipment. I was shocked, to say the least, after learning the technical expertise, some of the skill sets associated with it and a lot of science and engineering type stuff too, how messed up our procurement system has been for decades. That is why I am all about seeing necessary changes to the way we procure equipment for our members of the Canadian Armed Forces. I want to give another specific example. After I did that course, I had the privilege of being posted at the infantry school in Gagetown. I had this weird title. I was the infantry corps technical adjutant. It was basically my job to read every statement of requirement for every piece of equipment that the army was procuring that could impact the Canadian Armed Forces and, specifically, the Canadian infantry. I remember having a debate and argument with the project director in Ottawa at the time around the purchase of our STANO equipment, our surveillance, target acquisition and night observation gear, specifically our monocular night vision goggles. We were doing something back then called whole fleet management. This was back under the Chrétien Liberal government at the time. I said this was not going to work, that we could not have equipment being procured for individual soldiers and expect to have it serviceable and ready when we need it, when we deploy on operations or to war. This was obviously post-9/11. We had troops in Afghanistan, but had not committed to the fight yet. I was shocked and I had something to say when I called up that project director in spring 2006, because now I am the priority of the Canadian Army, deploying to Afghanistan on combat operations, and I do not even have enough monocular night vision goggles or enough equipment to train in night fighting before we are going out the door and going to war. It was just very frustrating. If we fast-forward a bit, however, we see that we can do this right. The previous Harper Conservative government demonstrated during Afghanistan the ability to make massive procurements. They were to the tune of billions of dollars through a sole-source process. We got Chinook helicopters. We repurchased tanks. We got strategic airlift capabilities with the C-17s. There are many more examples I could provide. It can be done, but it requires leadership and political will. A previous speaker from my side of the House highlighted this. It is about political will. Accountability, transparency and parliamentary oversight are needed. This is what my concerns now relate to. Under the Liberal government, over the last 11 years, a number of defence procurement processes have been messed up. In previous speeches, we heard about the GlobalEye. Again, it was purchased before any substantial discussions with the Royal Canadian Air Force. There are still concerns about the operational capabilities of this platform to work in the north, in our Arctic. Let us talk about the F-35. The member for Winnipeg North got up earlier and said they are a great thing. I will remind everyone that the member ran under the Liberal government in 2015 when it said it was going to get rid of the F-35 and that there was no way it was going to purchase the F-35, which is completely contrary to procurement, government rules and the whole competition process. It is good to finally see those F-35s being delivered. The Liberals announced the Defence Investment Agency. It was announced during the Budget Implementation Act earlier and now through this new piece of legislation, Bill C-40. What may be part of the catalyst for this legislation is that the DIA’s own CEO reportedly wanted to resign. He has been so frustrated by the slow pace of government bureaucracy and lack of the current Liberal government making things happen. What is the government’s answer? It is to take away accountability and oversight. That is where my concerns lie. We are talking about hundreds of billions of Canadian taxpayer dollars being used without being transparent or having proper parliamentary oversight. The Liberals have stood up and are claiming that the accountability is going to occur through the new associate minister of national defence. However, at the same time, we do not see anything within the clauses of the bill itself that would provide mechanisms for that oversight and transparency. In principle, I absolutely support a massive rework of Canada’s defence procurement system. However, as I laid out in my speech, Canada can procure and has procured massive military procurement in the past. How was that done? As I said, it was done through leadership. It was done through leadership by the Prime Minister and the Minister of National Defence, by pushing things through, by making the claim to the Canadian taxpayer publicly and by reporting back to this chamber the necessary mechanisms so that the billions of dollars are going out for the right reasons and not just to Liberal insiders. It can be done. I am going to be listening intently. I am confident in stating that this bill will get to committee. I am looking forward to the testimony of the Secretary of State for Defence Procurement, the Minister of National Defence and the minister of procurement services. I am looking forward to them showing up and explaining how they are going to make sure that they are accountable and transparent to Canadian taxpayers and how they will make sure that members of the Canadian Armed Forces are equipped with the necessary equipment and systems they need to defend this nation.