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)

52 statements

Sophie Chatel, Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence

Liberal
“We should pass this bill because it will give contracts to Canadian defence companies faster. Combining our expertise will help get contracts out more quickly, especially for the aerospace industry.”
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Official Hansard

Madam Speaker, my colleague will be voting in favour of Bill C‑40, because its goal is get contracts awarded faster to our defence companies. I want to come back to the aerospace industry. Contracts could easily be awarded. By combining expertise, we could make sure contracts are awarded faster.

Philip Earle, Labrador

Liberal
“I want the House to pass this bill. It makes our defence buying agency permanent and puts one minister in charge of it. This will help our military get modern equipment much faster.”
Official Hansard

Madam Speaker, like my colleague, this is the first time I have spoken on a bill in the House since October 17. I would like to bring condolences from the people of Labrador with respect to the tragic loss to Canada, to all of us and especially to the families of those who lost their lives on October 17. At the heart of the ongoing debate around Bill C-40 in the House lies a simple notion, that the Canadian Armed Forces deserve to have the equipment they need when they need it. It was, after all, the opening comment from my colleague across the way just a few short moments ago. Our armed forces and Canadian Coast Guard work tirelessly to protect our country’s sovereignty, defend our people, respond to emergencies and maintain international peace and security. The women and men who serve our country must have the capabilities they need to do their jobs. That includes modern, reliable equipment with advanced features and technology for maximum advantage in the field. Canada’s defence procurement has long been complicated, lengthy and reliant on international suppliers. The old methods of defence procurement involve a decentralized approach that has not been, and is not, fit for the current geopolitical realities, with responsibilities and accountability spread over too many separate departments. Canada needs a defence procurement system that can keep pace with the world around us. Our armed forces need the right equipment. We need new, nimble and more streamlined methods of procurement. Our industry needs clear direction, and Canadians expect us to deliver. Bill C-40, the strengthening Canada’s defence sector act, is the next step in that important work: giving the Canadian Armed Forces and the Canadian Coast Guard the capabilities they need when they need them. Providing modern, reliable capabilities to our armed forces is at the very core of the Defence Investment Agency’s mission. The DIA was created in October 2025 under a temporary structure of a special operating agency within Public Services and Procurement Canada to help Canada respond to current and emerging security threats. The overarching goal was to modernize equipment delivery and ensure our troops receive the capabilities they need when they need them. Creating the DIA as a special operating agency allowed us to improve delivery immediately, while developing its permanent structure. However, that was never intended to be the destination. Over the last year, the agency quickly got to work on its mission to transform defence procurement in Canada, reducing delays, cutting red tape, streamlining decision-making and delivering critical capabilities more quickly, transparently and with full accountability to Canadians. As a special operating agency, it has succeeded in its mission, to a point. In the year since the DIA was created, several major procurements have been completed or are on track to be completed faster and earlier than expected. The agency has reached key milestones on a number of complex and highly valued projects. Now guided by Canada’s first defence industrial strategy, the agency has made considerable progress in important projects, such as the next-generation rifle for our army, new aircraft, space capabilities and the next generation of submarines. The special operating agency model has proven its value. It has shown us that we can accelerate defence procurement. Instituting the Defence Investment Agency as a permanent organization with an updated mandate, authorities and flexibility will give us the tools to accelerate even faster. Moreover, it will provide a critical level of agility to meet the serious defence and security challenges that Canada is facing. This would allow us to deliver military capabilities sooner, strengthen Canadian industry and remain accountable for the results. This is what Bill C-40 would accomplish, taking progress to the next level and using a more businesslike approach. I believe many, if not most, members in the House would agree that there is a strong need for a single point of accountability for defence procurement. Under the previous, decentralized system, responsibility was spread out across multiple departments. Many organizations had a role, but no single minister was accountable for delivering results. Bill C-40 would set a dedicated ministerial leadership within the national defence portfolio, the associate minister of national defence for procurement. It is important to note that Bill C-40 would allow the new associate minister to perform financial assistance operations related to production or investment in respect of defence or national security. These new powers would allow the government to play a more active role in strengthening Canada’s defence and national security industrial base. This is how we are fostering innovation that supports strategic capabilities and moving swiftly to ensure that critical technologies and manufacturing capabilities remain available to Canada and to our allies. We have already streamlined approval processes under the DIA’s temporary structure and achieved many things in terms of accelerating and improving procurement, as I mentioned earlier. However, we need to go further, and Bill C-40 would take us there. In closing, as Canadians face an unpredictable and unstable world, our government is ensuring that our armed forces remain ready for the challenges ahead. We are rebuilding and reinvesting in the Canadian Armed Forces to meet the moment, so that Canadians who serve have access to the dependable, modern equipment they need. We are laser focused on delivering on the defence industrial strategy and supporting the buy Canadian policy by tapping into and using a more businesslike approach. We are collaborating with like-minded, reliable and trusted industry partners to create new opportunities for Canadian defence industries, ensuring Canadian expertise has a strong hand in keeping us safe and secure. Canada’s government is protecting Canadians by making generational investments in defence and security, and we need institutions built to match the scale and urgency of that ambition. That is why the Defence Investment Agency is transitioning to a permanent organization with an updated mandate, as well as a centralized office with greater accountability. Under this model, the DIA will move faster to make strategic investments and deliver capabilities we need for the dedicated women and men on the front lines of our armed forces. This is about putting in place the right long-term institutional framework to improve defence procurement and delivering better results for Canadians. Bill C-40, once passed, will dramatically improve outcomes for the women and men of the Canadian Armed Forces and all Canadians. I urge all members in the House to support this legislation.

Fraser Tolmie, Moose Jaw—Lake Centre—Lanigan

Conservative
“Past Liberal policy made Canada rely on foreign countries for military equipment. The Conservatives invested in F-35 fighter jets, which helped Canadian small businesses. Now the Liberals are delaying that project. I want the member to tell us which side of this issue he supports.”
Official Hansard

Madam Speaker, I consider my colleague from Labrador a friend. I would just like to ask him a few things about his intervention. Under the Chrétien government, the Liberals came out with a defence white paper. It was about buying off-the-shelf technology, and that was, basically, relying on foreign countries for equipment. I heard my colleague say that put us in a bad situation, and we are reliant on foreign nations. Under a Conservative government, we invested on the ground floor of the F-35s, which included small businesses in Canada being able to gain from the contracts. Now the Liberals are dragging the puck on that. What side of the fence is my colleague on? If I get two Liberals in the same room, they are arguing between each other, and at some point one of them is going to win. Which one is going to win?

Philip Earle, Labrador

Liberal
“I want the House to pass this bill. The world has changed. This bill lets us spend more on our military, give our troops the tools they need, and create Canadian jobs.”
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Official Hansard

Madam Speaker, I share the same respect for my colleague across the way. We have worked collaboratively on many things since I came here as a new member of Parliament. I would say to my hon. colleague that the world has changed. The premise of his question, while well stated, does not recognize that the world has changed. This legislation would allow us to invest more into our military but build an industry right here in Canada so those investments that are made would go to create jobs, maybe in his riding or in another riding. It is all about the women and men in uniform and giving them the tools they need.

Greg Fergus, Hull—Aylmer

Liberal
“Can the member explain how this new agency will deliver quickly for the Canadian Armed Forces?”
Official Hansard

Madam Speaker, I thank my colleague from Labrador for his excellent speech. He talked about the importance of being able to make decisions quickly. Could he explain to the House how, in his opinion, this new agency will quickly deliver on its promises for the Canadian Armed Forces?

Philip Earle, Labrador

Liberal
“Buying military equipment in Canada is hard because the rules and requirements keep changing. We need to clearly state what the military needs and write accurate contract requests to get them that equipment.”
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Official Hansard

Madam Speaker, coming from the aerospace sector before coming to the House, I know all too well how challenging procurement is in Canada when it comes to identifying the need and then waiting through the process as contract tender specs continue to change and so on. To answer my colleague’s question, we must identify the need, make sure it is well pronounced, have an RFP that is developed accurately through this new process, and get through the procurement process to get the goods required by our Canadian Armed Forces.

Martin Champoux, Drummond

Bloc Québécois
“I worry this bill lets the government avoid blame for defense spending decisions. The new agency's president is close to the Prime Minister and will make about $700,000 a year, which is more than the Prime Minister makes. If there are scandals or bad decisions, the government could just blame this agency. The government needs to stay directly in charge of defense investments.”
Official Hansard

Madam Speaker, is this not a way for the government to shirk some of its responsibility? Is it not a bit risky to create an agency to handle such crucial and sensitive defence investments? Questions are already being raised. First, there is the appointment of the agency’s president, who is close to the Prime Minister and has a background at Goldman Sachs. Then, that person’s salary is around $700,000 a year, which is more than that of most senior public servants. That is more than what the Minister of Finance and National Revenue himself earns, and it is more than the Prime Minister’s salary, though interest on his investments is not included in that figure. I wonder if this is a way for the government to offload some of its responsibility. When there are questionable decisions, when there are suspicions of misconduct or scandals, which could happen, even if it is just cases of misconduct that need to be investigated, the government might then be able to claim that it was not them, that it was the agency, and that it cannot be held responsible. On the contrary, when it comes to defence investments, it is absolutely essential for the government to be at the helm.

Philip Earle, Labrador

Liberal
“Creating this Crown corporation will take politics out of buying military gear. It puts trained experts in charge so our troops get what they need at the best price.”
Official Hansard

Madam Speaker, I would say to my hon. colleague that it is quite the opposite. Setting up a Crown corporation would take it away from politics. It would allow people who are trained and experts in the field, who will most likely sit on the board of directors, to direct the procurement policy and get the best deal for Canadians so we can buy the products and items that our Canadian Forces need.

Fraser Tolmie, Moose Jaw—Lake Centre—Lanigan

Conservative

Linked statement

“I do not want this bill to pass. It creates a new corporation that lets a minister spend billions of dollars on military gear without enough oversight from Parliament. We need to buy military equipment faster, but we should fix our current system instead of making a new bureaucracy. This bill also fails to include targets to hire veterans or use veteran-owned businesses.”
Official Hansard

Madam Speaker, I will be splitting my time with the member for Bruce—Grey—Owen Sound. I rise today to speak to Bill C-40, the strengthening Canada’s defence sector act. When this debate opened, the Secretary of State for Defence Procurement read the House a long list of what the Defence Investment Agency has achieved. Then he said something that I agree with completely: Some were contracts, some were preferred suppliers and some were arrangements, and we should not confuse them. He is right, so let us not. A preferred supplier is not a contract. A contract is not a delivery. Let me be clear about where Conservatives stand. Procurement in this country is too slow. Our men and women in uniform have waited too long for the equipment they needed yesterday. Going faster is the right goal. We do not object to going faster. We object to going faster with nobody watching. We know it can be done. During the war in Afghanistan, a Conservative government bought C-17s, Chinooks and new Hercules quickly using the urgent operational and national security exceptions that already existed. That speed came from political leadership. It did not require handing unchecked power to one person. This is the third version of this agency in a year. It started inside Public Services and Procurement Canada. Six months later, the government buried a plan to make it a stand-alone entity in an omnibus budget bill. Before that plan has even passed, it wants a Crown corporation instead. That is three structures in one year. How is that for Liberals making themselves look busy while accomplishing nothing? There is no shortage of decisions, and how they were made tells us exactly what this bill would make routine. Let us take the fighter trainer as an example. Since March 2024, the Royal Canadian Air Force has not had a lead-in fighter trainer. The Hawks are gone. The 419 squadron is on hiatus, and our future fighter pilots are being trained in Italy, Texas and other locations around the globe. How did the government pick a replacement? It was not through an open competition. The Prime Minister launched negotiations for the Italian M-346 with Prime Minister Meloni on the sidelines of the G7, even though Canada had received proposals from American and South Korean manufacturers. It may well be a fine aircraft, but a leader-to-leader handshake is not a procurement process. Under Bill C-40, a government-to-government deal would be one of 17 ways a minister could skip competition entirely. Then there is GlobalEye. The government named Saab’s GlobalEye as its preferred airborne early warning aircraft at CANSEC in May. It is a capability that our air force badly needs, but according to reports, the decision came as a shock to the RCAF itself and to other manufacturers ready to bid on the contract. Saab did not meet with National Defence or the air force about operational requirements until weeks after the announcement. The technical assessment that followed found real shortfalls: limited radar coverage, no air-to-air refuelling capability and incompatibility with NORAD’s secure data network. That is why Conservatives have asked the Auditor General and the Parliamentary Budget Officer to investigate. If this is how decisions get made while Parliament still has some oversight, imagine how they will be under the bill that would remove it. This bill would create a Crown corporation that we are told would operate at arm’s length, but the minister can direct it to do or not do any procurement activity, and the bill says it must comply. Ministers keep the control. The House loses the line of sight. We have seen what happens when public money flows through a body the House cannot see into. The green slush fund handed out public money with too little oversight. Bill C-40 would build that same kind of body and hand it $1 billion at a time. Plainly, this bill would hand a new associate minister oligarchic powers to direct a corporation with a billion-dollar fund, to have it lend money and buy shares in companies, and to do it all while the House is kept at arm’s length. This is not reform. This is concentration. The secretary of state defended clause 9 by calling it an “unambiguous tie to the government”. That is exactly the point. This is not at arm’s length. It is a minister’s hand on a billion-dollar fund. The government is promising a once-in-a-generation build-out-of-Canada defence economy, so let me ask a simple question: Who is better prepared to build, maintain and sustain military equipment than the people who use it? They are mechanics, technicians, logisticians, pilots and project managers who have run operations under conditions that most private sector managers will never see. On the veterans affairs committee, we hear in study after study that veterans’ skills are not recognized and that the government has no measurable targets, and there is nothing in the bill and nothing in this strategy to change that. There is no target for veteran-owned businesses and no credit in contract evaluation for hiring veterans. There is nothing. Let us look south. In the United States, Congress set a statutory goal that 3% of federal contracting dollars would go to small businesses owned by service-disabled veterans. In fiscal year 2023, American agencies did not just meet that goal; they beat it, awarding more than 5%, or nearly $32 billion U.S. We do not have to look south to know targets work. The secretary of state told the House that defence procurement met the government’s 5% indigenous procurement target last year. That is good. It proves that a target can be set, measured and met in Canadian defence procurement, so why is there no target for veterans? Conservatives want our armed forces equipped faster. We just want it done in the open and done for the people who served. That means having a minister who answers to Parliament. The bill says, “The Corporation must do as the Minister directs”, which is wording we would not find in any other law in Canada. Direction should come from cabinet on the record, not from one minister’s say-so. It means using the tools the system already has. We did it in Afghanistan. That is why Conservatives have called for a dedicated secretariat in the Privy Council so defence contracts get cabinet’s priority. Speed comes from political will, not from new Crown corporations. Conservatives would cut the process, not cut Parliament out. After a decade of Liberal neglect, our sailors, soldiers and aviators do not need a new bureaucracy or a minister with a new title. They need a procurement process that equips them for the modern threats we face. I am concerned that Bill C-40 would remove the parliamentary oversight that this agency badly needs and would open the door to waste and mismanagement. We have seen where this leads. The greens slush fund was an arm’s-length body handing out public money. Bill C-40 would be the same kind of body. That is why Conservatives have concerns and will be seeking clarity at committee. I would be remiss not to spend my last minute of this speech recognizing those who served with the Snowbirds. I was at their last air show in Moose Jaw, something that obviously I was proud to witness and that inspired not only me but Canadians across this nation, but something that was very disappointing. It is another example of a procurement boondoggle on the Liberal side, as we do not have an aircraft to replace the Snowbirds, to transition from one to the other and to continue having a team that shows the professionalism of our Canadian military. I look forward to the questions and comments that will come from my colleagues from both my side and the other side.

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

Liberal
“Our government is getting results on military purchases, like bringing in the F-35s in 18 months. A Crown corporation will build our military industry efficiently, and we can still hold it accountable through ministers and committees. I want to know why the Conservatives will not support this Crown corporation.”
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Official Hansard

Madam Speaker, I wish I had enough time to counter many of the things the member put on the record. Quite frankly, I am starting to believe that Conservatives do not understand or do not care. We could talk about procurements. Today, the member talked about speed, but I would add in the word efficiency. In 18 months, we can look at what the Prime Minister has accomplished. The F-35s are now on Canadian soil. There are so many things that, at the end of the day, members of the opposition do not recognize, like accountability. Crown corporations go to a minister. Members are allowed to hold them to account. Crown corporations go before a committee. We can hold them to account. Efficiency matters, and building Canada’s industrial military base also matters. This is something that a Crown corporation would be able to accomplish. The Conservatives need to get off their “we oppose everything the government does” ledge and start recognizing a good thing when it hits them in the face. Why will the member not support a Crown corporation?

Fraser Tolmie, Moose Jaw—Lake Centre—Lanigan

Conservative
“The government is far too slow at buying military equipment. After 11 years, we have only received two F-35 fighter jets, and the helicopters are delayed too. Nobody believes the government can fix this.”
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Official Hansard

Madam Speaker, I feel like I am at Yuk Yucks. Honestly, on efficiency for the F-35, we have two that have been delivered after 11 years of the Liberal government, and it is not the first time it has done this. There are the Cormorant helicopters. It is unbelievable. Time after time after time, we are always waiting for equipment from the Liberal government. Is this an admission of it having bad policy previously and that it cannot get its act together? Is it trying to create some new way to expedite? Nobody believes the Liberals.

Tako Van Popta, Langley Township—Fraser Heights

Conservative
“I do not support this bill. It just creates more government bureaucracy for photo ops and announcements instead of getting real work done.”
Official Hansard

Madam Speaker, my colleague’s speech was very enlightening. We are talking about Bill C-40, the proposed strengthening Canada’s defence sector act, which would create yet another bureaucracy for the federal government to use as a vehicle for announcements, reannouncements and photo ops. I think of Build Canada Homes, which was going to build houses at a generational scale, and in the meantime, housing starts are down and nowhere near the 500,000 for replacement to bring back housing affordability. How would this bureaucracy be any different?

Fraser Tolmie, Moose Jaw—Lake Centre—Lanigan

Conservative
“The government makes announcements but does not deliver real results for housing, pipelines, or the military. We waited 10 years for new fighter jets and only got two. Troops do not have the equipment they need, and this is why military recruitment is down.”
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Official Hansard

Madam Speaker, the short answer is that it would not. When we look at the past record of how the Liberals have been operating in government, it is just boondoggle after boondoggle. Whether it is housing, the military or building pipelines, we have not seen anything. All we hear is the Prime Minister or ministers at the podium making announcements upon announcements. We have not seen anything. It is not tangible. It takes forever for the Liberals to come up with something. Canadians are so tired of waiting. We have been waiting 10 years for the F-35 fighter aircraft that we desperately need. We had two delivered just recently and the Liberals think they have a win. This is just another example of why recruitment is down in the military and why we cannot get people in. We are not setting goals or standards and giving people something to strive for. We are not making them feel good that they are being looked after, that when they are being deployed to Latvia, they have the equipment they need or that they are not using used equipment or washed equipment from a weekend so that reservists can do weekend deployment.

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

Liberal
“The member is wrong that military recruitment is down. We have record numbers of applicants, and our government has doubled military spending to 2% of GDP. The member needs to stick to the facts.”
Official Hansard

Madam Speaker, the member just said that military recruitment is down. Again the member is wrong, and he should know that we had record numbers of people applying to join the Canadian Forces. The member should acknowledge that. At the end of the day, we have a Prime Minister who has been pushing for the last 18 months for our Canadian Forces. We have gone from a Stephen Harper 1% of GDP for the military to a 2% of Canadian GDP under the current Prime Minister. The member needs to be more straightforward and stick with the facts.

Fraser Tolmie, Moose Jaw—Lake Centre—Lanigan

Conservative
“More people are dropping out of the military. New recruits are joining without understanding what they are getting into. The government is not telling the full truth about what is happening with military recruitment.”
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Official Hansard

Madam Speaker, I will be straightforward: There are more people washing out in the military. They are being thrown into recruitment centres and being told that they are going to become soldiers, sailors and infantry, and they do not even know. They just show up. I have talked to friends who are in the military, and they are asking, “What are these people doing here?” They do not even know what they are doing here. Do not tell me that recruitment is up when the full spectrum of what is going on in the military is not being given.

Alex Ruff, Bruce—Grey—Owen Sound

Conservative
“Canada needs to fix how it buys military equipment, but this bill lets the government spend hundreds of billions of dollars without proper oversight from Parliament. Ministers must come to committee and explain how they will keep this spending open and accountable to Canadians.”
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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.

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

Liberal
“Crown corporations are very accountable because they answer to committees and ministers. In my 30 years in government, they have worked well. Creating a new corporation for military supplies will help our military. Does the member agree that these corporations can be very effective?”
Official Hansard

Madam Speaker, I think it is important to recognize that when we think of a Crown corporation, there is a very high level of accountability. We have Crown corporations that report to standing committees, for example. We have a minister responsible for the Crown corporation, who we can pose all sorts of questions to. There is a higher level of accountability, I would ultimately argue, and it is arm’s length. I have been a parliamentarian for over 30 years at the provincial and federal level, and Crown corporations at all levels of government have proven to be very successful. Having a military procurement corporation would be good for Canada’s military industrialization and our military. I will continue to articulate that. Would the member not agree that provincial corporations and other federal corporations can prove to be very effective?

Alex Ruff, Bruce—Grey—Owen Sound

Conservative
“I want to know why the government is avoiding openness and oversight from Parliament. This bill involves hundreds of billions of taxpayer dollars, and we need to watch how it is spent.”
Official Hansard

Madam Speaker, I am not going to debate whether or not Crown corporations can possibly be very effective. I think there are examples of where they have been very effective. There are plenty of examples of where they have not been very effective or very efficient. We have had huge debates around Canada Post. There are still huge issues, as it is not actually functioning the way it needs to function properly. That said, why is the government, and this is the whole purpose of part of my speech, hiding behind transparency and parliamentary oversight? That is where my real concerns are when we are talking about literally hundreds of billions of taxpayer dollars.

William Stevenson, Yellowhead

Conservative
“The Auditor General has said that government-owned corporations have different rules than regular departments, which makes it harder to hold them accountable. How can we make these corporations transparent when these barriers exist?”
Official Hansard

Madam Speaker, I want to thank the hon. member for Bruce—Grey—Owen Sound for his service in the military. In the public accounts committee, of which I am a member, we have had many occurrences where the Auditor General has said that there are different rules for departments versus Crown corporations, and how that is a problem for the Auditor General’s dealing with accountability and transparency with regard to the Crown corporations. Can the member speak to how he sees this transparency actually proceeding with these impediments?

Alex Ruff, Bruce—Grey—Owen Sound

Conservative
“The government is bending accounting rules by calling its spending an asset. Losing money, like Canada Post does, is not an asset. We must follow normal accounting rules and watch taxpayer money closely to make sure our military is properly equipped.”
Official Hansard

Madam Speaker, I think that is a great point. In fact, I encourage all Canadians listening to read the Parliamentary Budget Officer’s latest reports around the bending of the rules and the interpretation of how accountability and accounting are working with the government expenditures, with the Prime Minister and the Liberal government are trying to say that spending is somehow now assets. The parliamentary secretary talked about how Crown corporations are so good, but we have some examples. I mentioned Canada Post, which has been losing $1 billion every year. At the same time, how is that an asset? That is absolutely a liability. It is spending, not an actual asset going forward. I think we should be using the same rules we have always used to account for our budgetary spending of Canadian taxpayers’ dollars in this country. I think it is so important that the privilege we have as parliamentarians is used to actually provide that oversight, to ensure for Canadians that the members of our Canadian Armed Forces are being equipped properly with those very limited taxpayer dollars.

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