Official Hansard
Mr. Speaker, I will be sharing my time with the member for Orléans. Before I begin speaking to Bill C-40, allow me to say a few words on the tragic incident that took place at Canadian Forces Base Wainwright on Saturday afternoon. Sergeant Morgan Wong, Private Shaun Farrell, Private Aidan Goulding and Private Hayden Lykkemark are four lives and four families forever changed. Four futures were taken too soon. Behind each name was a cherished son, a beloved friend, a fellow soldier, and a life filled with hopes, dreams and promise. I say to the grieving families that no words can ease the unimaginable pain of their loss. I wish them my sincere condolences, along with those of my constituents in the Saint–Laurent community. My heart, and that of my community in Saint-Laurent, is also with those who were injured, their loved ones and the military community carrying the weight of this tragedy. It is in the spirit of respect for the men and women who serve our country that I wish to speak today. I am thankful for the opportunity to speak to Bill C-40, the strengthening Canada’s defence sector act, which is an incredibly important bill at a time of considerable uncertainty, ongoing tensions and conflict around the world, and at a time when Canada is finally stepping up to bring our military up to par. As a former member of the national defence committee, where I had the chance to work on matters of defence for several years, I know just how overdue these changes and investments are. I personally credit the Prime Minister for doing what is within our control to defend Canada and our sovereignty. Bill C-40 proposes to establish the Defence Investment Agency, the DIA, as a Crown corporation, to provide the agency with a clear mandate, a permanent structure and dedicated ministerial leadership focused on defence, procurement, production and investment activities in support of national defence and the Canadian Armed Forces. The DIA would operate at arm’s length under the national defence portfolio, reporting to a new minister titled the associate minister of national defence for procurement. The Office of the Procurement Ombud found this year that a major defence project takes, on average, 16 years to move through the full procurement pipeline, and in some cases as many as 28 years. Behind those numbers are real consequences. Canada purchased its CF-18s in the early 1980s, expecting to replace them in about 20 years. That did not happen. As the Auditor General told the national defence committee in 2023, the Department of National Defence had to increase the number of fighter aircraft available for operations by 23%. We heard from industry officials and independent experts. Their message was consistent: The process is complex, rigid, risk-averse, and it cannot keep pace with the changing technology. Industry witnesses called it overly complicated and costly in time and money. A witness who testified at committee in 2023 listed several challenges with the way we currently procure that create bottlenecks when it comes to defence procurement, including bureaucratic hurdles and the complexity of defence procurement processes, risk aversion issues and politicization issues, defence procurement personnel shortages, and a lack of transparency and accountability. Another witness described the bureaucratic steps and processes that are required to procure defence goods and services for the CAF as a “labyrinth of procedures and processes” that are implemented and managed by several federal organizations. On structure, the testimony was just as clear. The Parliamentary Budget Officer told us that having one single minister and one single senior official responsible would speed up procurement, rather than having two ministers in two separate departments. Unless one minister is placed in charge of defence procurement, it will never be as efficient and effective as it could be. The current procurement system is simply not able to provide the CAF with the major weapon systems, latest military technologies and equipment it needs to maintain its operational readiness and combat edge in a timely and cost-efficient manner. In identifying several challenges facing Canada’s defence procurement processes and proposing possible solutions, witnesses at committee mentioned making defence procurement a national priority, promoting a sense of urgency in the defence procurement system, improving data collection analysis and performance measures relating to defence procurement, centralizing defence procurement, increasing defence procurement budgets, accelerating the pace of defence procurement, streamlining defence procurement processes, learning defence procurement-related lessons from allies, depoliticizing defence procurement, reducing risk aversion, investing in the defence procurement workforce and enhancing transparency and oversight. Let me turn to what the bill would actually do and how it would solve these problems. Today the Defence Investment Agency sits within Public Services and Procurement Canada, while the needs are defined at the Department of National Defence. The bill would move the agency into the national defence portfolio and put procurement and commercial authorities in one organization. Therefore, it would end the split that currently exists. Second, it would create one accountable minister. Part 2 would amend the National Defence Act to create an associate minister for national defence for procurement, who would answer to Parliament for the agency. Witnesses told us they wanted one minister and one point of accountability, to make the system more efficient and easier to navigate. Third, it would build expertise. The corporation would bring together a dedicated team of procurement professionals, guided by a board of directors and chief executive accountable to that board. The ability to recruit talent from outside the public service would further strengthen its specialized knowledge and commercial expertise. This responds directly to what I heard on the committee about the value of focused leadership and dedicated capacity. With clear responsibilities and commercial authorities, the corporation would be equipped to make informed, timely decisions and deliver results. Fourth, the bill comes with safeguards. The corporation would be accountable to the government through a responsible minister, with legislated governance; financial, audit and reporting requirements; and parliamentary oversight. National Defence, the Canadian Armed Forces and the Canadian Coast Guard would continue to define what capabilities they need and the criteria for accepting them. The military would still decide what it needs. The corporation’s job would be to deliver it. Witnesses have emphasized that one of the most important challenges facing Canada’s defence procurement system is the lack of clear ministerial accountability, stemming from responsibilities being spread across multiple federal departments and agencies. While calls to centralize defence procurement under a single organization are not new, meaningful reform requires more than structural changes. It requires a fundamental shift in culture, leadership and accountability. Bill C-40 would set a great foundation, one upon which we could build and incorporate other smart and efficient practices, such as those that were recommended in the 2024 report. I personally put forward about 10 of those recommendations that were adopted by the committee, including recommendation 17, which was mentioned by the secretary of state earlier today in his speech. Other recommendations that I had put forward include: That the Government of Canada proactively collaborate with industry and universities early on to determine current capabilities and to come up with a made-in-Canada solution by leveraging our innovation and industrial strengths to meet our growing defence and security needs and to work collaboratively towards developing the tools and technology that will be needed by the Canadian Armed Forces in the years to come. There was also this one: That the Government of Canada make the procurement process more open, unbiased, and transparent with objective and realistic selection criteria to acquire the best equipment possible, and that it prioritize Canadian companies before opening the competition to other global competitors, especially for industries that are well-developed, competitive globally, and where Canada is a leader, such as the Canadian aerospace industry. I will continue to work closely with the secretary of state to ensure that we continue moving in the right direction. Perhaps the most important change is already under way. Under the Prime Minister’s leadership, we have seen a renewed sense of urgency and commitment to transforming how Canada approaches defence procurement. The Prime Minister has taken this issue seriously, demonstrating the political will necessary to challenge long-standing practices, strengthen accountability and drive meaningful reform. The real risk is not acting. The Auditor General has told us that delays have real operational consequences. The procurement ombud has put the average at 16 years. We cannot ask our forces to wait that long. Last year, Canada spent $65.9 billion on defence, 2.03% of GDP, exceeding the NATO target for the first time in decades, and we are on a path to 5% by 2035. Money alone does not defend a country. It has to be turned into ships, aircraft, vehicles and equipment, and it has to arrive while it still matters. For years, the House has heard that our procurement system is too slow, too fragmented and too cautious. The Auditor General has said so. The procurement ombud has said so. Witnesses before the national defence committee have said so and recommended changes in a report that the government has said helped shape this bill. Bill C-40 would give us one home for procurement, one accountable minister, dedicated expertise and oversight by Parliament. It would let us spend what we are committing to spend, and to spend it well. Our women and men in uniform have waited long enough. I urge all members to support Bill C-40 and to deliver the change they have been promised.