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)

67 statements

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“I oppose this bill. It sets up an independent corporation to buy military equipment, which will let the government avoid oversight from Parliament. At the same time that the government is cutting money for prisons and other public services, this plan gives a high-paying job to a friend of the Prime Minister. Parliament must be allowed to review how this money is spent.”
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Official Hansard

Mr. Speaker, a riot broke out on Friday, October 16, 2026, at La Macaza Institution, in my riding, caused by understaffing. Frontline officers found themselves in the middle of what could have been a very dangerous situation. I want all my colleagues who were not aware of this situation to know that it was very alarming. Without the expertise of the officers on the ground, the situation could have ended very differently. The connection I want to make here is obvious. Let me be very clear. The inmate population at La Macaza has changed in recent years. We are not talking about a junior kindergarten here. We are not talking about a day care centre. We are talking about a prison, the La Macaza institution. This is a direct result of the federal government’s policies. As everyone knows, the government chose to cut $132 million from Correctional Service Canada. These $132 million in cuts come on top of budget cuts being made across the public service. Now we are learning that under Bill C-40, the Crown corporation the government wants to establish would have a friend of the Prime Minister, Doug Guzman, as its CEO. Is anyone surprised? Mr. Guzman, a former Goldman Sachs executive and banker like the Prime Minister, is expected to get a salary in the neighbourhood of $700,000 a year. That is a little higher than what an MP or even a minister earns. I am outraged. While staff on the ground work day in, day out to ensure public safety at the prisons in La Macaza, Joliette, Cowansville and Port-Cartier, they are seeing how budget cuts have a direct impact on their work. We are being asked, as parliamentarians, to vote to give a $700,000 salary to a friend of the Prime Minister. This is no joke. That is the reality and it is insulting. I will explain why. It is because we also learned that Mr. Guzman allegedly threatened to leave the Defence Investment Agency, and that it was as a result of this blackmail that the government decided to make the agency into a Crown corporation. Agency officials testified to this at the Standing Committee on Government Operations and Estimates. I want to explain to Quebeckers and Canadians what this change really means. The creation of a Crown corporation means establishing a company that is independent from government with a board of directors and a chief executive officer. The Crown corporation will not be accountable to Parliament. I want to emphasize that: It will not be accountable to Parliament. The government will not be responsible for its day-to-day operations. As everyone knows, Canada already has plenty of Crown corporations, including the CBC, the Business Development Bank of Canada, Destination Canada and Canada Post. What do those Crown corporations have in common? They provide services. They have mandates aimed at serving the public or businesses. However, the management of military and defence procurement is not a social, cultural or economic development mandate. There is no rational argument to justify the creation of a Crown corporation in this case. The only reason I can see is that the government wants to do as it did with Bill C-5 this spring or, worse, Bill C-39. The government and the Prime Minister want free rein to ram this through and control the whole process without any parliamentary oversight. Now that is power. What the Prime Minister wants is to evade legislative oversight and turn Parliament into a rubber stamp. It is easy. No one says a word, and his plans go off without a hitch. His actions go unnoticed. There is no accountability, period. Members of Parliament are being denied three roles. I have been here for seven years and I must say I have never seen anything like this. The first is the role of intermediary between citizens and the public administration. The second is the role of legislator. The third is the role of overseeing and monitoring government actions. Otherwise, what is the point? How will lawmakers—and I am talking about all of us, not just the opposition—be able to hold the government accountable if the government keeps undermining transparency and accountability? It is troubling. With Bill C-40, just as with Bill C-39, we are witnessing undemocratic manoeuvres to ram through measures without parliamentary scrutiny. They want to rush this through, quietly and without anyone noticing, as I have already mentioned. What would be my role on the Standing Committee on Government Operations and Estimates if I no longer had the right to scrutinize these matters, if I no longer had the right to know? What do we have to offer to all the people who elected us? I represent the riding of Laurentides—Labelle. I represent a geographical area, but above all I represent people. My riding is home to 92,897 people. When I rise in the House, I am speaking on their behalf. I am speaking in the interests of my constituents. I am speaking with them in mind. When the Prime Minister and the government seek to limit parliamentary power, what they are really doing is limiting the power of the people. I think that is clear. This authoritarian streak worries me, and I am not the only one. I do not want the government to hide behind a board of directors it has appointed in order to justify potentially dubious purchases, or to pat itself on the back when a purchase proves beneficial. I do not want the Government of Canada—which, incidentally, is the only one amongst our allies to have established a system of this sort—to be able to evade the close scrutiny of members of Parliament. We deserve a government that treats Parliament with respect. That is what people want. I want Parliament to be able to work diligently, with respect for the public and with the sound management of public finances in mind. I am concerned. Efficiency must not come at all costs, yet that is what we are being told. We are being told that the government wants to do this in order to be efficient. We have just seen that we could have been efficient by taking care of our culture and investing in it. However, a one-sided decision was made. In closing, I agree that the process can certainly be improved. However, we must ensure that the intentions are noble and in the common interest, not in the interest of the Prime Minister’s friends. I have seen this movie before, and I hope that things will be different this time because the situation is serious. Let us treat it seriously.

Steeve Lavoie, Beauport—Limoilou

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

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

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“This bill creates a new defence agency without an independent watchdog to review contracts. Without an ombudsman, there will be no transparency. We need to help the defence sector, but not by hurting our democracy.”
Official Hansard

Mr. Speaker, I thank my colleague for his question, because it gives me the opportunity to mention something I did not address in my speech: the role of the procurement ombudsman. The ombudsman serves as an independent safeguard and external watchdog. When a contract is disputed and a clear answer is required, a complaint can be filed with the ombudsman. The ombudsman then appears before the Standing Committee on Government Operations and Estimates, helping us get to the bottom of the matter. We correct course, if necessary. With the Defence Investment Agency, however, there will be no ombudsman. Just imagine: no transparency. I fully agree with my colleague that we need to speed up the process, that we need to support this sector and give it a helping hand, but at what cost? It must certainly not be at the cost of undermining our democracy.

Alex Ruff, Bruce—Grey—Owen Sound

Conservative
“I want to know if the member really believes the Liberal MPs on the committee will accept changes to make sure Parliament oversees this.”
Official Hansard

Mr. Speaker, I appreciated my colleague’s comments regarding respect and parliamentary oversight. To what extent is she confident that the Liberal MPs on the committee will accept amendments aimed at guaranteeing parliamentary oversight?

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“The government's plan for this new defence corporation does not make sense. If they keep all these rules, it will not actually work like a Crown corporation. I worry the government is ignoring the problems this will cause.”
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Official Hansard

Mr. Speaker, my colleague’s French is always outstanding. What we are hearing right now is a lot of lofty rhetoric. As with other files, I would like to know just how aware government members are of what is taking place. I have already spoken about wilful blindness, but ultimately we will be left dealing with the consequences of a major departure, and that worries me. If the government is going to retain all these safeguards and criteria, then what emerges will no longer really be a Crown corporation. The rationale simply does not hold water.

Mario Beaulieu, La Pointe-de-l'Île

Bloc Québécois
“This bill gives the Prime Minister too much power. It lets the Prime Minister label projects as important to the country just to bypass environmental laws. I want to know how far this government will go with this trend.”
Official Hansard

Mr. Speaker, I want to congratulate my colleague for her excellent speech. When we look at Bill C‑39, which follows on the heels of Bill C‑5, we see the government concentrating even more power in the Prime Minister’s Office by allowing the Prime Minister to designate projects as being in the national interest and circumvent environmental laws. Is Bill C‑40 not simply a continuation of that same trend? How far is this going to go? What does my colleague think about that?

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“This bill hurts our democracy and hides things from the public. It is part of a bigger problem.”
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Official Hansard

Mr. Speaker, for those who follow our work, this is just the tip of the iceberg. It is unbelievable what is happening. We supposedly have a saviour for now, but what happens later? What then? All of this in the name of national sovereignty and economic development. Seriously, we are undermining our democracy. Bill C-40 is exactly the same anti-transparency process.

Chris Malette, Bay of Quinte

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

    “Rearm and reinvest in the Canadian Armed Forces.”

    Said 5 times by 5 members since June 1.

    Every time it was said
Official Hansard

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

Alex Ruff, Bruce—Grey—Owen Sound

Conservative
“The previous Conservative government bought C-17 planes, Chinook helicopters, and tanks quickly and properly without this new agency. They bought them because our military needed them, and Parliament still held them accountable. I want the member to agree that those past purchases were good, efficient, and done for the right reasons.”
Official Hansard

Mr. Speaker, the member for Bay of Quinte represents the largest Air Force base in Canada. It is a base that houses our C-17s, a massive equipment procurement that was purchased by the previous Conservative government without this agency, without anything. It was done through a sole-source process. It was done as an operational requirement, and it did not eliminate the need for parliamentary oversight or accountability. Would the member agree that the purchase, along with the Chinooks and tanks during the war in Afghanistan, were all good purchases that were done for the right reasons, and they were done efficiently and well?

Chris Malette, Bay of Quinte

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

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

Marie-Hélène Gaudreau, Laurentides—Labelle

Bloc Québécois
“I want the government to explain how it will make sure this new Crown corporation is open and transparent.”
Official Hansard

Mr. Speaker, in my speech earlier, I talked about accountability and transparency. I would like my colleague to explain to me how the government will be able to ensure transparency in this new Crown corporation. I would like him to explain that to me.

Chris Malette, Bay of Quinte

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

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

Marianne Dandurand, Compton—Stanstead

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

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

Chris Malette, Bay of Quinte

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

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

Elizabeth May, Saanich—Gulf Islands

Green
“The member says a minister will still be responsible for this work. Does he agree that making this a Crown corporation actually removes that direct responsibility?”
Official Hansard

Mr. Speaker, I noted that, in the member’s speech, he said that there would still be accountability through a minister, but with the nature of creating this as a Crown corporation, does he not agree that this would inherently set the operations of this Crown corporation at arm’s length from direct ministerial accountability?

Chris Malette, Bay of Quinte

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

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

Sandra Cobena, Newmarket—Aurora

Conservative
“I oppose this bill. The government is wasting time reorganizing offices instead of buying our military the equipment it needs. This bill creates a government-owned company so the minister can make political choices and hide debt from Parliament. We want clear accountability, full financial transparency, and fast delivery of equipment to our troops.”
Official Hansard

Mr. Speaker, our soldiers need equipment quickly, yet the government has spent the last year trying to decide how to organize the bureaucracy responsible for buying it. After 11 years of Liberal government, our sailors, soldiers and aviators are still being asked to make do with aging equipment while they wait for replacements, and they continue to do their jobs. They deserve a government that will do its job too. Last October, the Liberals created the Defence Investment Agency. Canadians were told it would cut red tape and get equipment to our Forces faster. A few months later, the government decided the agency needed to become a stand-alone entity. It brought forward legislation in the spring. Now before that legislation is even completed, Bill C-40 proposes turning it into a Crown corporation. For Canadians unfamiliar with that, a Crown corporation is a government-owned company that has its own board executives, such as Canada Post and Via Rail. That is a lot of time spent reorganizing an agency that was supposed to save time. Why did an agency inside a department not work? Why is the proposal for a stand-alone agency already being replaced? What exactly would a Crown corporation fix that the Liberals could not get right the first two times? The government should answer those questions before asking Parliament to approve another restructuring. Conservatives have called for one clear point of accountability, with a dedicated secretariat in the Privy Council Office so that military purchases receive priority at the cabinet table. We want decisions made, contracts moving and, most of all, equipment delivered. Canadians should be able to identify who is responsible and hold that person accountable for the results. The Liberals keep changing their minds about who should buy the equipment, while troops are still expected to do their jobs without it. They cannot put their duties on hold while the government figures out how to do its job. After 11 years, they deserve a government that can get them what they need and do so without delay. The government keeps restructuring its defence agency rather than delivering equipment to our soldiers. The Defence Investment Agency was created to get military equipment purchased and delivered faster, but here we are, a year later, and it has yet to deliver a single piece of new equipment to our armed forces, so the government’s response is to restructure it again. Under Bill C-40, the minister could direct the corporation to carry out an activity, stop an activity or carry it out in a particular way. The legislation states “the Corporation must do as the Minister directs”. Canadians should understand what that means. What is the point of having a board and a chief executive if that cannot prevent the minister from directing what the corporation does? More importantly, where does that leave the military’s advice? What safeguards ensure that purchasing decisions follow operational requirements rather than political priorities? Our pilots need aircraft that can carry out their missions, much like our sailors need ships equipped for the conditions they face, so before any politician announces any supplier, our military’s requirements should be established. The concerns surrounding GlobalEye, an airborne surveillance system, show why this matters. There have been questions about whether the Royal Canadian Air Force’s requirements were even properly considered before the government announced its preferred supplier. Conservatives have asked the Auditor General and Parliamentary Budget Officer to examine that decision. The people who will operate this equipment understand what the job requires. They are also the ones who face the consequences if the government buys something that falls short. They should never be left trying to make announcements work after the decisions have been made. Before the government asks for broader powers, it needs to answer for the results. What has the agency delivered? What has it accelerated? How would military requirements be protected when the minister could tell the corporation what to do? Our troops need a procurement system that not only answers to their operational needs, but also makes them the priority, always. The government is hiding its debt in Crown corporations, as confirmed by the most recent PBO report; relabelling operating expenses as investments; and shredding fiscal anchors. That is what we are seeing at the Ministry of Defence. The Liberals are creating a Crown corporation to shelter military spending from parliamentary scrutiny and public visibility. Moving spending into a Crown corporation does not make it free. Canadians still carry the cost, and they still carry the risk. Let us look at Canada Post. The government made more than $1 billion in repayable funding available in 2025, and then announced another $1-billion funding package this year to keep it solvent and operating. This funding is not added to the deficit; it is labelled as an asset on the financial books. Does anyone think Canada Post will repay its debt? It is highly unlikely. It has not turned a profit since 2017, and it has lost about $5.3 billion. Calling funding “repayable” does not answer the question taxpayers should be asking: How confident are we that we will get that money back? Just last week, the Parliamentary Budget Officer reported that loans and advances to enterprise corporations reached $141.5 billion in 2025. That is nearly three times the 2016 level: $51 billion in 2016, compared to $141 billion in 2025. This matters because the government borrows money, lends it to a Crown corporation and records it as a financial asset. Money it expects to recover is recorded as an asset, when in fact it is a highly unlikely scenario that it will be recovered. Canadians still owe the debt the government took on to provide that loan, so recording an asset does not make the borrowing disappear. Taxpayers still have to service that debt, and they remain exposed if the loan is not repaid. Bill C-40 would create another Crown corporation with powers to make loans, provide guarantees and buy shares in companies. Having spent 15 years in commercial banking, I know that a loan is only as sound as the borrower’s ability to repay it. One needs to understand their financial position and account for the possibility of a loss. Canadians deserve that same discipline from their government. What is this corporation financing? How will the risks be assessed? If repayment becomes doubtful, when and how will that be reflected in the government’s books? Parliament and the Parliamentary Budget Officer need enough information to follow the money and assess the exposure independently. The same accountability must apply to contracts. Bill C-40 would give the government broad grounds to bypass competitive bidding. It should have to explain which exception it used, why it was necessary and how it established the value for money. Conservatives want regular reporting to Parliament and clear answers about which Treasury Board safeguards would apply to this three-times restructured defence procurement agency. If a contract goes over budget or if an investment loses money, somebody must answer for it. Canadians should not be passed from a minister to a chief executive to a board, with everybody pointing somewhere else. Canadians deserve to know where their money is going and who will answer for it. Our troops deserve the equipment they were promised. They have kept their word to keep Canada safe. After 11 years, it is time the government keeps its word to them too.

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

Liberal

Linked statement

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

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

Sandra Cobena, Newmarket—Aurora

Conservative
“The government wants us to pass this bill without asking questions. Our budget watchdog warned that the Prime Minister is hiding debt in government corporations, and he seems ready to keep doing it. We need real answers.”
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Official Hansard

Mr. Speaker, the member says that the Conservative Party is trying to find an excuse to vote against this bill. The reality is that the Liberal government wants to hand over a bill for us to blindly approve. Canadians sent us here to ask questions and get answers, answers we unfortunately do not often get. The issue with Crown corporations was clearly laid out by the Parliamentary Budget Officer. She is non-partisan. This is an independent body reviewing our country’s books, and she has raised alarms about the amount of debt the Prime Minister is hiding in Crown corporations. He seems to want to continue to do the same.

Sébastien Lemire, Abitibi—Témiscamingue

Bloc Québécois
“This bill promises a lot of money, but government funds are limited. My region could benefit from defence work, but handing this work to a new agency is undemocratic. It will make it harder for Parliament to track spending and keep the government accountable.”
Official Hansard

Mr. Speaker, judging by this bill’s generosity, one would think Christmas had come at Halloween. It seems to have goodies for absolutely everyone. The reality, however, is that there is only so much money to go around, unless the government increases the deficit even more. It is true that, in Abitibi-Témiscamingue, there are opportunities to be seized in the defence sector, whether in rescue training, ballistic defence system development, ammunition or weapon disposal, or military equipment repair. The region has a lot to offer. However, I think that handing this responsibility over to an agency is undemocratic and reduces transparency. As members of Parliament, how can we ensure that such an agency will be accountable when we know very well—as my time on the Standing Committee on Public Accounts has shown me—that this type of structure serves to curtail accountability?

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  2. Government Orders Strengthening Canada's Defence Sector Act 52 statements
  3. Statements by Members Tribute to Men of Terrebonne 2 statements
  4. Oral Questions The Economy 10 statements
  5. Oral Questions The Environment 4 statements
  6. Oral Questions Labour 2 statements
  7. Oral Questions Finance 8 statements
  8. Oral Questions The Economy 7 statements
  9. Oral Questions Foreign Affairs 4 statements
  10. Oral Questions The Economy 10 statements
  11. Oral Questions Child Care 2 statements
  12. Oral Questions Steel and Aluminum Industry 2 statements
  13. Oral Questions Natural Resources 6 statements
  14. Oral Questions Agriculture and Agri-Food 2 statements
  15. Oral Questions Justice 2 statements
  16. Oral Questions Indigenous Affairs 2 statements
  17. Oral Questions Immigration, Refugees and Citizenship 2 statements
  18. Government Orders Strengthening Canada's Defence Sector Act 67 statements
  19. Oral Questions Finance 2 statements
  20. Oral Questions Steel and Aluminum Industry 8 statements
  21. Oral Questions International Trade 5 statements
  22. Oral Questions Immigration, Refugees and Citizenship 4 statements
  23. Government Orders Strengthening Canada's Defence Sector Act 34 statements
  24. Adjournment Proceedings Adjournment Proceedings 4 statements
  25. Adjournment Proceedings Adjournment Proceedings 4 statements
  26. Adjournment Proceedings Adjournment Proceedings 4 statements