Saying Canada is on track to meet its two per cent NATO spending target this fiscal year, Prime Minister Mark Carney has unveiled his government's first Defence Industrial Strategy.
"To protect Canada's sovereignty, build our prosperity, and strengthen our strategic autonomy, the Canadian government must change how we invest in defence," said a release from the federal government. "Canada's defence procurement has long been too complicated, too slow, and too reliant on international suppliers, limiting the growth of our defence industries."
Calling its Buy Canadian procurement strategy its North Star, the new strategy promises to transform Canada's defence industries by prioritizing Canadian suppliers and materials, investing in Canadian innovation, and streamlining procurement so businesses can depend on consistent and predictable demand.
A new $4-billion Defence Platform at the Business Development Bank of Canada will ensure that even small and medium-sized Canadian companies can help grow defence supply chains. A $379.2-million Regional Defence Investment Initiative will also support their integration.
The strategy lines up $180-billion in defence procurement opportunities and $290-billion in defence-related capital investment opportunities over the next decade. The downstream economic benefit is expected to grow to $125-billion by 2035.
By increasing our defence exports by 50 per cent, raising the share of defence contracts awarded to Canadian firms by 70 per cent, and growing Canadian defence industry revenues by 240 per cent, the government anticipates it will create 125,000 new jobs. Maritime fleet serviceability will be increased to 75 per cent, land fleets to 80 per cent, and aerospace fleets to 85 per cent.
"At a time of growing global uncertainty, Canada must strengthen its economic security and protect its sovereignty by investing at home," said Industry Minister Melanie Joly. "By building, innovating, and manufacturing in Canada, we are ensuring our industries benefit directly from defence investments while supporting the modernization of the Canadian Armed Forces."
Where Canada lacks the capability to build domestically, it will partner with trusted allies to supply the Canadian Armed Forces. When it can do neither, it will buy equipment from allies with strong conditions that spur reinvestment in the Canadian economy.
The strategy also pledges to break down barriers between government and industry by establishing a permanent Defence Advisory Forum to speed up acquisition.
"The work of defending Canada is the work of building Canada," said Carney. "Security and prosperity are mutually reinforcing foundations of the true North, strong and free. Our new Defence Industrial Strategy ensures Canada remains a sovereign nation, in charge of its own destiny."
