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)

79 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.

Jeff Kibble, Cowichan—Malahat—Langford

Conservative
“I want the member to explain how the government can claim we are meeting NATO's defence spending goal. NATO says a coast guard must be trained and equipped like a military, but our Coast Guard head said ours cannot do that. The government's claim that we meet the spending target is an illusion.”
Official Hansard

Mr. Speaker, the member opposite mentioned NATO spending. I will ask this question again, as I fail continually to get an answer in the House. According to NATO’s own definition, a coast guard must be trained in military tactics, equipped as a military force, able to operate under direct military authority and able to be deployed to operations realistically outside of national territory in support of a military force. At committee, the head of the Coast Guard testified that the Canadian Coast Guard cannot meet this goal, so can the member justify how the Liberals can have a big parade and victory lap over meeting the 2% NATO GDP spending target when it is clearly an illusion? Can the member justify it? I am not interested in any other answer.

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.

Claude DeBellefeuille, Vallée-du-Haut-Saint-Laurent

Bloc Québécois
“If this new agency becomes a Crown corporation, the ombudsman will not be able to investigate complaints from small businesses. This is not transparent. I want my colleague to support a change to the bill that lets the ombudsman oversee Crown corporations.”
Official Hansard

Mr. Speaker, I commend my colleague on her speech. I have a specific question for her. The thing I take issue with in this bill is that if the agency becomes a Crown corporation, the procurement ombud will no longer have the power to intervene. The ombud’s jurisdiction does not extend to Crown corporations. This means that if a small business wishes to file a complaint, it may not be heard because the ombud’s jurisdiction does not cover Crown corporations. Does my colleague not think that this shows a lack of transparency? Knowing my colleague, it seems to me that she would support an amendment to the bill that would extend the procurement ombud’s jurisdiction to include Crown corporations.

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.

Jeff Kibble, Cowichan—Malahat—Langford

Conservative
“I do not want this bill to pass as it is. It gives one minister too much power to spend billions of dollars on military equipment without a fair bidding process or oversight. I want the bill changed to make the government publish its reasons for handing out contracts without competition, report regularly to Parliament, and follow strict conflict of interest rules.”
Official Hansard

Mr. Speaker, I will be splitting my time with the member for Vernon—Lake Country—Monashee. I rise today with a heavy heart. On Saturday afternoon, a tragic fire swept through a training area at CFB Wainwright and four members of our Canadian Armed Forces were reported killed, and 39 more were injured, many of them critically. I say to their families, their comrades and the injured still fighting to recover, they are in our thoughts and Canada grieves with them. The Leader of the Opposition spoke yesterday to the House of soldiers and firefighters who ran toward the danger. I wore a uniform for decades. I served as a captain of a ship. I oversaw the security and surveillance of Canada’s west coast, and I served on multiple deployments. I know the courage of our men and women in uniform, and I know what it costs their families. In Cowichan—Malahat—Langford, many of those families are our neighbours. This is non-partisan. We, as Canadians, stand together in sorrow and with respect. We owe those soldiers that same standard of respect in our work here today. Before us is Bill C-40, the third version of the Defence Investment Agency in less than a year. In clause 9 of the bill, it says the Defence Investment Agency “must do” as the associate minister directs. It does not say “may”, it says “must”. More than 2,000 years ago, Aristotle wrote that an oligarchy is ruled by the few for the benefit of the few. This, I offer as a test for this bill. Who decides for what reasons and to whom they are accountable? Who decides under Bill C-40? It is just one person. The new associate minister position would be created and it would have even less Treasury Board oversight with less accountability to Canadians. The member expected to take a seat in that role has served this country as a fighter pilot, and I deeply respect his service. The head of the DIA has no military experience and was reportedly threatening to quit, though he is an experienced business and banking leader. However, it does not matter what someone’s experience or service is, as no one person should hold this amount of power over this amount of public money. For example, a family replacing its roof gets three quotes. A company signing a billion-dollar contract needs its board to approve it and its auditors to check it, and then the company reports back to its shareholders. In national defence, Canadians are the shareholders. This year, we will spend about $75 billion in defence, and by 2035 it will be $163.6 billion per year. Our allies do not do it this way. In the United Kingdom, an independent regulator oversees the pricing of single-source defence contracts. In the United States, the sole-source contract must be justified in writing and made public, but Bill C-40 asks Canadians to accept less. Let us look at the GlobalEye surveillance aircraft announced by the Prime Minister at CANSEC in May. There was no competition and no reasons given. The vice-president of L3Harris Canada, also hoping to bid on that project, himself a former deputy commander of the RCAF, said that he was quite surprised by the announcement. With gaps in radar coverage, no air-to-air refuelling and critical NORAD compatibility issues, the GlobalEye does not even meet the Air Force’s own operational requirements. I oversaw the surveillance of the west coast while I was in uniform, and I know what a gap in radar coverage means for those standing watch for Canada. Why would we sole-source, and by what authority? What were the reasons? Worse now, Bill C-40 gives 13 reasons to skip the competitive bidding process. The last reason lets the newly minted associate minister add more reasons without reporting them back to the House. There is no disclosure for individual projects. There is only one annual report for billions and billions of dollars of procurement. That is not accountability. Bill C-40 would go so far as to remove the fines and prison sentence an associate minister would otherwise face for failing to run a competitive process. The Defence Investment Agency would be approved to draw up to $1 billion from the consolidated revenue fund, with nothing in that bill on how often, by whom and under what conditions. Between 2020 and 2023, approximately $5.4 billion in approved defence procurement spending went unspent. Money is tight in this country, and Canadian families feel it every day. That is exactly why every defence dollar demands accountability. Take the F-35, now 18 months into a six-month long special review. If the F-35 decision moves under the Defence Investment Agency, the associate minister, by himself, could completely change the course of the fighter jet program without giving Parliament a single written reason. The member designated to hold that new associate minister position has publicly opposed the F-35 project for over a decade, a position that has drawn mockery from his own fellow fighter pilots. This decision belongs to a fair and open competition, not one man. For the record, the F-35 has already won such a competition twice. Faster procurement does not require less accountability. Here is how we do that: keep sole-sourcing for genuine operational needs, but require written, published reasons; report regularly to Parliament on every ministerial direction; and put conflict of interest rules directly into the bill itself. Everyone who advises or votes on these decisions, including the Prime Minister and cabinet, must disclose any interest in the companies being considered, and anyone with a conflict must recuse themselves. The Prime Minister relies on an ethics screen covering more than 100 companies. If that safeguard is needed at the top, it also belongs with the sole position making these multi-billion-dollar decisions. Lastly, we need to set real-time procurement timelines and measure against them. Let me bring this back to the people this bill is meant to serve, the men and women of the Canadian Armed Forces who selflessly defend the sovereignty of Canada. They ask me regularly, “Where are the tanks and the ships and the submarines? Why are the clawbacks almost as big as their pay raises? Where is the ammunition and equipment the government keeps announcing? Why are soldiers on patrol in Latvia without ammunition in their guns, wondering why the artillery supporting them does not have enough shells?” None of this equipment matters without the people trained to use it. The government will say that recruiting and enrolment is up, but enrolment is not recruitment and a recruit is not a trained soldier. The Auditor General found that only one in 13 applicants made it to basic training and that there are not enough instructors, equipment or facilities to train the people that do enrol. Failure rates have climbed from 15% to 23%, and some reports are now putting it as high as 45%. However, we are still thousands of members short in the specialized trades we need filled right now. Enrolment numbers make good headlines, but only trained, qualified members can defend our country, and we keep them by giving the equipment they need to defend Canada. I am not asking the government to scrap the Defence Investment Agency, other countries use this model, but before we debate the vehicle, we must fix the philosophy driving it. These are not partisan questions. They are the least Canadians should expect of any government spending their money to defend our country. I ask every member of the House to measure Bill C-40 against that standard and to heed Aristotle’s warning that the path we choose today will shape our country that our children will inherit and the safety of those who defend it.

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?

Jeff Kibble, Cowichan—Malahat—Langford

Conservative
“I do not support this bill as it is written. Government companies can work well, but this bill lets one person make huge choices without reporting to Parliament. When Conservatives made quick deals for military gear, we had to write down our reasons. This bill does not hold anyone accountable.”
  • 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 indeed said that Crown corporations have proven successful in other countries, but these unaccountable regulations, which would allow one person to make these powerful decisions, are the problem. That is the failure. Conservatives have used single-source contracts to much success to arm our troops quickly when there was a need, but there were written reasons. The bill is focused around 13 expandable reasons that do not require accountability and do not require reporting back to the House. That is the problem, not the Crown corporation.

Rhéal Éloi Fortin, Rivière-du-Nord

Bloc Québécois
“I want to know what this bill actually gives our military, like more soldiers, planes, or ships. The government has not given me a clear answer. Setting up a Crown corporation just lets the government avoid taking responsibility for its actions. Does my colleague agree that this is the only real change the bill makes?”
Official Hansard

Mr. Speaker, I would like to ask my colleague a question because I have not been able to get a clear answer from our colleagues in the government as to what, in practical terms, this bill will achieve within our armed forces. Will we have more tanks, airplanes, ships, soldiers and so on? Does he have an answer to that question? If not, does my colleague agree with me that the only change is that, with an agency, the government remains accountable to the public, whereas under a Crown corporation, even if the government issues the same directives to it, there is less accountability? The government will say that it is a Crown corporation and not the government itself. To my mind, that is the only advantage I can see. Does my colleague agree, or am I mistaken?

Jeff Kibble, Cowichan—Malahat—Langford

Conservative

Linked statement

“This bill needs to be changed. The government spent billions of dollars on planes the air force cannot use, and there was no proper oversight. The bill is written in a way that allows corruption and outside interference.”
  • Reply to a debate question

    Clarity 47 of 100

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

    See full analysis
  • 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, let us look at the track record. The GlobalEye is an aircraft that does not meet the air force’s operational needs, and there could be an ability for billion-dollar draws without oversight and accountability. Clearly, the way the bill is written would allow for corruption and outside interference. It needs to be changed. Although the structure of a crown Corporation could be good, the bill certainly fails to meet the need.

James Bezan, Selkirk—Interlake—Eastman

Conservative
“This bill gives the minister total control over the new defence agency. It also gives the minister 13 ways to skip normal bidding rules. I am asking my colleague if this bill will lead to political meddling and corruption with a billion dollars of public money.”
Official Hansard

Mr. Speaker, my colleague, as the shadow minister for defence procurement, has reviewed Bill C-40 very closely. He mentioned that paragraph 9(2) of the bill would give the associate minister for defence procurement absolute power over the Defence Investment Agency. We have never seen a Crown corporation be under the thumb of the government like this, where it “must do as the Minister directs”. Not even the CBC has that type of government influence over it as a Crown corporation. As the member said, there are 13 exceptions added in here as reasons the government, or the minister, may not want to run a competition, and in that, the minister would also be given a get-out-of-jail-free card. When we are talking about having a billion dollars at the disposal of the minister and the Defence Investment Agency, does my colleague believe that there is open opportunity here for increased political interference and corruption?

Jeff Kibble, Cowichan—Malahat—Langford

Conservative
“I oppose this bill. It gives the government too much power without enough oversight or accountability.”
  • Reply to a debate question

    Signal 40 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
  • 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, that is an excellent question from my colleague, who is the shadow minister for national defence. It is my privilege to work so closely with him on a committee. Absolutely, we have seen a long list of Liberal government corruption scandals, and this, with the lack of accountability and the lack of oversight, would only open it up. It would give unprecedented powers and a lack of accountability. I will not accept it. Conservatives will not accept it, and I challenge Canadians to not accept this complete lack of accountability.

Scott Anderson, Vernon—Lake Country—Monashee

Conservative
“I oppose this bill. Our military badly needs new equipment, but creating a new Crown corporation will not fix the government's broken buying system. This bill also risks taking money away from Arctic defence and NORAD to buy equipment from Europe instead.”
Official Hansard

Mr. Speaker, the thoughts of this House are with the brave soldiers who were killed and badly injured at Wainwright. The fact that these young men knew and accepted the risks beforehand is what makes them the Canadian heroes we will remember. The soldiers wearing our Canadian uniforms are well renowned for peacekeeping and asymmetrical warfare even with outdated equipment. They serve aboard aging ships, fly in old airplanes and train with equipment that was new over half a century ago. I know this because I was in that equipment only 15 years ago, in simpler times when war was far away from our shores. That was at a time when grey-zone warfare was just a concept for novels. After more than a decade of the Liberals sidelining Arctic sovereignty and continental defence, the need for rebuilding our armed forces is obvious to everyone. Our geostrategic reality has shifted over the past decade while the Liberals have slept, and we can no longer ignore the attacks against the west by foreign powers. This is not the bogeyman to the south, who the Liberals blame for everything, but our real enemies, the ones actively engaged in grey-zone warfare against us: Russia and China. In Afghanistan, we could afford to use older equipment because our outdated tanks and borrowed logistics were still generations ahead of anything the Taliban could send. They were good enough. Today, we live in a different world. Cyber-attacks and other grey-zone warfare is on the rise. If we are going to protect our northern sovereignty, we must rearm with first-class modern hard power. The government’s own figures show the urgency to update and fill our forces. In 2024-25, serviceability across key fleets stood at 59% for maritime equipment, 51% for land equipment and 42% for aerospace equipment. These describe serious constraints on what our military could do even if our equipment was modern. Today, we ask our soldiers to be ready to fight against battle-hardened enemy soldiers in a three-dimensional, high-tech, 21st-century battle space, and we ask them to do it using weapons that were old even 20 years ago in Afghanistan. Ukraine has shown us that the next war will be fought with weaponry never imagined before 2022. Only the very best is good enough for our troops in today’s threat environment. Our soldiers, airmen and sailors have no voice. They depend on us here in this chamber to speak for them. They are entitled to know when their equipment will arrive, and they must know, in an era of symmetrical warfare, that they have the best equipment possible. Conservatives support getting equipment to our armed forces faster. We support a strong Canadian defence industry, clear responsibility for procurement, and the removal of unnecessary red tape. However, Bill C-40 asks Parliament to accept that giving a new Crown corporation greater flexibility, while placing substantial authority in the minister’s hands, will finally solve problems the government has repeatedly promised to fix. The Defence Investment Agency began in October 2025 as a special operating agency within Public Services and Procurement Canada. Then the Liberals proposed a stand-alone agency. Now they have proposed a Crown corporation with dedicated ministerial leadership. Each iteration has promised to bring greater speed and clarity. Each iteration is built atop the failed promise of the last one. Each iteration takes procurement farther away from the military and toward civilians, some of whom do not know the difference between an RPG and an RPAL. Perhaps that is why 18 months after taking office, the Liberal government has plastered this House and the media with announcements, but the only thing it has managed to produce is a signature on the yellowed papers that will eventually get new rifles to our troops. Eighteen months is the time it took to build the Empire State Building and the Alaska Highway from planning to completion. If the government had been in charge of the Alaska Highway, we would still be laying logs in muskeg 85 years later. Why is that? Why is the government shouting announcements from the rooftop while doing as little as humanly possible? After 18 months, the Liberal government cannot even decide to buy what must be the most over-vetted aircraft in the history of North American military flight. The F-35 is an airplane that our air force generals need, an aircraft we Canadians helped develop and a transitional aircraft on the cusp of an age of autonomous warplanes. It is the only aircraft with continental deterrence value today and into the next decade, and the Liberal government can do nothing but dither. Why? What has changed in the military requirement? Has NORAD suddenly become less important? Has the threat to the Canadian Arctic diminished, or is it because of the Prime Minister’s ambitions toward European integration? Let us step back down to earth for a minute. We are a North American nation whose security depends on NORAD, and NORAD depends on our military integration with the United States and the defence of our Arctic, yet this legislation would grant sweeping powers to a new Crown corporation just as the Prime Minister redirects defence procurement toward Europe through SAFE and Readiness 2030. The Liberals try to pass this redirection off as diversification, knowing full well that it is nothing of the sort. It is an expensive security arrangement that almost certainly benefits European bankers more than Canadians. The European Union cannot replace NORAD, and European equipment may cost a fortune to integrate into continental defence systems. Will scarce defence dollars be diverted from Arctic surveillance, air defence and NORAD modernization to satisfy the security demands of the Prime Minister’s pet project? Europe is an important ally, but geography is not a political preference. Canada’s defence procurement must serve our security requirements, not the Prime Minister’s European geopolitical ambitions. This is precisely the issue I raised with the Parliamentary Budget Officer when I questioned the competing financial demands of European and continental defence ambitions. She acknowledged the tension between the two and identified aircraft procurement as one of the major expenditures potentially affected. We therefore have a government advancing multi-billion-dollar European procurement initiatives without Parliament having any clear financial picture, or the additional costs of maintaining interoperability with our American partners. The Carney government is simultaneously pursuing European defence procurement arrangements—

Scott Anderson, Vernon—Lake Country—Monashee

Conservative
“The government is buying European military planes to build political ties instead of listening to what Canada's military needs. These European planes will cost taxpayers more money because they need expensive changes to work with North American defence systems. I want the government to tell Parliament if any promised jobs or benefits are actually worth these extra costs.”
Official Hansard

Mr. Speaker, the present Liberal government is simultaneously pursuing European defence procurement arrangements through SAFE and Readiness 2030, negotiating with Saab over GlobalEye and creating a new Crown corporation with sweeping powers to direct defence investment. These developments raise the serious concern that procurement decisions could be influenced by the Prime Minister’s preferred geopolitical relationship rather than the operational requirements identified by Canada’s military leadership. Take Saab’s GlobalEye airborne warning aircraft, for example. This is a project being advanced by the Defence Investment Agency itself, the very organization that Bill C-40 proposes to transform into a powerful Crown corporation. Concerns have been raised about radar coverage, aerial refuelling, and compatibility with NORAD’s secure communications networks. Will Canada be paying for additional engineering, modifications, training, infrastructure and long-term maintenance to make a European-designed surveillance platform compatible with the North American defence architecture? How does that compare with alternative surveillance aircraft already designed to operate within existing NORAD architecture? The Prime Minister frequently invokes strategic autonomy to justify his European ambitions, but autonomy is measured by whether Canada can independently operate, maintain and sustain the equipment it purchases. A European aircraft that requires expensive modifications to integrate with NORAD does not make Canada more sovereign. It just makes continental defence more expensive. If Canadian industrial participation is being used to justify a preferred supplier, Parliament and the people of Canada deserve to know whether those promised industrial benefits outweigh the additional costs. Conservatives are not opposed to European defence co-operation. We are opposed to allowing geopolitical preferences to substitute for military judgment and financial accountability. The Prime Minister is entitled to pursue closer relations with Europe, but he is not entitled to make Canadian taxpayers finance that ambition to our detriment.

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