:
I call this meeting to order.
Welcome to meeting number 29 of the House of Commons Standing Committee on National Defence.
Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, February 23, 2026, the committee is meeting to study the subject matter of supplementary estimates (C) 2025-26.
Today's meeting is taking place in a hybrid format. Our interpreters are attending virtually. I ask all participants to consult the guidelines on the table to prevent audio feedback and protect the health and safety of the interpreters.
I'd like to remind the witnesses and members to wait to be recognized by name before speaking. If you wish to speak, raise your hand. The clerk and I will manage the speaking order as best we can.
For interpretation, use the earpiece and select the appropriate channel.
Again, all comments should be addressed through the chair.
I welcome the witnesses.
We have the Honourable David McGuinty, minister of defence. Welcome to the committee once again.
From the Department of National Defence, we have Christiane Fox, our deputy minister; Lieutenant-General Stephen Kelsey, vice-chief of the defence staff; Marc Mes, deputy commissioner of programs at the Canadian Coast Guard; Jonathan Moor, chief financial officer; and Heather Sheehy, assistant deputy minister. From the Communications Security Establishment, we have Caroline Xavier, chief; and Julie Chassé, chief financial officer.
We'll proceed with the opening statements.
Minister, it's over to you. You have up to five minutes, sir.
:
Thank you very much, Mr. Chair and members of the Standing Committee on National Defence.
[Translation]
Good afternoon, everyone.
[English]
Thank you for this opportunity to discuss supplementary estimates (C) for the Department of National Defence, the Canadian Armed Forces, the Canadian Coast Guard and the Communications Security Establishment Canada.
Colleagues, at a time of increasing disruption, evolving threats and global uncertainty, Canada's purpose remains clear: Protect our people, uphold our values and contribute to a more secure and a stable world.
Before I begin, I want to reaffirm a fundamental commitment. The security of the women and men of the Canadian Armed Forces is paramount. That includes a strong duty to protect operational security, account for emerging threats and ensure that their missions are safeguarded every step of the way.
In an environment defined by rapidly evolving threats, we will continue to act with discipline and vigilance, both of which are required to protect our personnel and the integrity of their operations. When there is something noteworthy to communicate publicly and when we can do so without compromising operations or, more importantly, the safety and security of our personnel, we do our utmost to share that information in a timely way. Rest assured that we will bring a disciplined and measured approach, as they say, to ensure the safety and security of members of the Canadian Armed Forces.
At a moment marked by rising geopolitical tensions and global crises, Canada will continue to defend its sovereignty, protect its interests and work with partners where it advances our security and stability.
[Translation]
We have set this ambitious goal in response to the changing landscape of global threats, which means that Canada's security and sovereignty can no longer be taken for granted.
[English]
The funding in supplementary estimates (C) that we are seeking today is essential to achieve our target of spending 2% of GDP on defence. The proposed $1.05 billion in funding for key priorities includes major defence procurements, military operations and recruitment and the expansion of the Canadian Coast Guard's security role. Likewise, to support our domestic defences, we're requesting over $66.8 million to support the Canadian Armed Forces' northern operations.
Domestic and international operations like these are sustained by the strength, professionalism and commitment of our people in uniform. To ensure that they are well prepared, well supported and fairly compensated, we are investing in the foundations that enable readiness and retention, requesting $49 million to strengthen recruitment, retention and support programs for CAF members, and $12 million to expand access to child care for serving families.
These investments build on our ongoing efforts to support our people, and they are already showing results. Applications to join the Canadian Armed Forces have increased by 13% over the past year.
[Translation]
At the same time, we are making crucial investments in defensive capabilities. As part of these supplementary estimates, we are requesting $314 million for the strategic tanker transport capability project and the acquisition of CC‑330 Husky aircraft. We are also requesting $2 million to maintain and manage the anti-drone system.
This is in addition to the approximately $563.7 million of previously approved defence investments funded through the capital investment fund.
[English]
Most recently, the Department of National Defence has made historic investments in Canadian defence industries. Guided by Canada's defence industrial strategy, last week we announced up to $642 million to establish a high-explosive projectiles facility; over $400 million to General Dynamics Ordnance and Tactical Systems in Quebec for new artillery production facilities; and $305.4 million to IMT Precision in Ingersoll, Ontario, to build a new manufacturing facility producing metal shells, strengthening Canada's ammunition supply.
In support of Ukraine, Canada also announced the production of 383 Senator armoured vehicles manufactured by Roshel in Brampton, Ontario. Looking ahead, in addition to investments in air, water and land capabilities, we are investing $200 million in core infrastructure for a Canadian-owned spaceport, alongside other major space capabilities.
In the supplementary estimates (C), we are transferring budgets to 14 other government departments, totalling $179 million, reflecting the department's central role in Canadian defence spending and the Government of Canada's commitment to defence priorities.
[Translation]
Over the past year, the Canadian Coast Guard has joined the defence team. Its 6,500 personnel are dedicated to ensuring the safety of Canada's waters and coasts, and its expertise and presence in our Arctic and northern regions benefit Canadians, as well as our sovereignty and security. Today, we are requesting $129.5 million to fund the expansion of the Canadian Coast Guard's security role, as outlined in budget 2025.
[English]
Likewise, through our requested funding for CSE, we will ensure that that agency has the resources it needs. From foreign intelligence, cybersecurity and cyber-operations to protecting Canada's critical infrastructure and providing recommendations and advice through its Canadian centre for cybersecurity, it plays an essential and fundamental role in our security and sovereignty.
In conclusion, as threats to Canada and its allies increase in complexity, approving these requests will enable our defence and security organizations to modernize, rearm and optimize the ways we support our Canadian Armed Forces in their vital work.
I thank you, Mr. Chair, and the entire committee, greatly, for the committee's consideration and its ongoing work. I look forward to your questions.
:
We can take Operation Nanook, for example, our northern exercise, which began as an exercise of several months long over the year and has now basically extended into a full-time exercise. We're expanding the number of countries that are joining us on this exercise.
We're also participating right now in leading the Arctic Seven, A7, group of nations at NATO, where we are pulling together northern countries to come together and share and invest in each other. Our defence industrial strategy is also embracing these relationships to look for co-investment opportunities, for example.
All of this means that we are leveraging not only our own know-how and our own investments, but also our partnerships internationally. I mentioned, for example, the relationship that we've just consolidated with Norway, which we're very keen on expanding. We have a similar defence agreement with Denmark.
We are looking at pulling together a group of partner northern Arctic countries that have a responsibility in the area and at beginning to co-operate more directly.
I'd like to thank the minister and the entire team here today.
Minister, before I get to the heart of the matter, namely the supplementary estimates, allow me to take this opportunity to ask you a question about the study on contaminated lands that we're going to conduct soon. I don't believe you have been sent an invitation for it. I'm sure that if you don't have the information at hand, someone here will be able to answer us.
As you know, there are a lot of contaminated lands in Quebec. In some cases, this has been resolved. In other cases, it isn't quite resolved yet. There is the case of Terrebonne, for example, where people are still waiting. We know that work is scheduled for the near future. The invoice has been passed on to the City of Terrebonne itself. However, we know that the federal government made a series of mistakes, which led to delays. I don't blame you personally, since I know you weren't the defence minister over the past 10 years, but it's still the result of delays caused by Ottawa.
Some of my colleagues, such as Mr. Boudrias and Ms. Sinclair‑Desgagné, who were MPs at the time, have championed this issue for years. Suddenly, the people of Terrebonne are telling us that they were finally told that they were going to receive the invoice in the summer and that they were going to have to foot it.
Have you had any contact with them?
Thank you, Minister. Thanks to your team for being here today.
As you know, and as my colleagues here know, I am the member of Parliament for Labrador, which has a land mass in our country of 296,000 square kilometres and 8,000 kilometres of coastline. It has the military base 5 Wing Goose Bay. That particular military base supports Canadian operations in the Arctic. We certainly support our European allies, and I'm very proud to say, as I know all of you are, that military base is aiding in our contribution to NORAD.
In the period from around 2007 through to 2015, as somebody who lives near the wing, I would say we saw a significant decline in spending and investment on the wing. With that, a lot of the infrastructure there declined. Looking at the estimates in supplementary (C) today, they reflect some of the public announcements we've heard in recent weeks. I'm preoccupied with Labrador, naturally, and I know you're preoccupied with Canada and the women and men in uniform who serve our country.
Can you talk to us a bit about the investments that are planned in supplementary estimates (C), why they are necessary and maybe why they are so important in areas of Arctic sovereignty? Maybe you could talk about SAR and those investments for our great Canadian Coast Guard.
:
Canadians know the threat landscape in Canada has changed. Canadians know our geography won't necessarily protect us anymore. Canadians know our reputation as a fair, democratic, rules-based country isn't enough anymore for us to be able to assert our security and our sovereignty, so we have made a decision to invest massively in the Arctic. This is part and parcel of increasing our reach, our presence, our mobility there and our responsiveness.
I mentioned the over-the-horizon radar. We're also investing heavily in maritime patrols. We're investing in airborne early warning aircraft. We're investing in maritime sensors. We've brought the Coast Guard into the family, so to speak—6,500 strong—and it will further increase our domain awareness and our posture in the Arctic.
We are looking at the three NORAD forward operating locations in Inuvik, Yellowknife and Iqaluit, as well as at the deployed operating base in Goose Bay—the definition of which we'll get back to Mr. Kibble on. We are investing $2.67 billion for two northern operational support hubs at Whitehorse and Resolute and two new northern operational support nodes, which are slightly smaller but important, at Cambridge Bay and Rankin Inlet.
We're working with our partners there and with indigenous rights holders. We're looking at dual-purpose, multi-purpose benefits, as I mentioned, such as extending runways, adding tarmac and improving our utilities access to support defence operations, as well as the quality of life for the people who live there. We are looking at getting electricity, and enough of it. The Coast Guard is going to continue the incredible advanced work it does in working with indigenous folks there.
This is all about asserting our presence and moving more fulsomely in the area, and these investments are long overdue. I think everybody at the table would admit that they are long overdue. Canadians are very supportive, because they're concerned about where I started, which is that the threat landscape has changed.
:
Everything about this is different. This is the first time in Canadian history that we actually have a defence industrial strategy. We're here. We're at the starting line. We have incredible talent. There are 600 companies and 82,000 people who work full time in the sector now, and about $14.5 billion in annual revenue, but we have very specific targets that we will achieve over the decade as we implement this defence industrial strategy.
We're going to be drawing on the capabilities across the country. We know, for example, Ontario has over 35% of our defence industry employment. We know Quebec is home to about 25% of defence industry employment. We know what its specializations are. We know Atlantic Canada is home to 20% of the defence industry. We know what its specialization is. We know about western and northern Canada as well. We know where the capacity is, and that's what we began with. What are we good at doing? What can we do? What are we doing now? How do we build on this?
The idea of more advanced research in these defence innovation secure hubs is one where we can bring together the Canadian Armed Forces to disclose what it needs, and that has to be done in a fairly classified setting. We don't go off and tell the world the details of what our forces need to prosecute their responsibilities. We can bring them together with groups like the Communications Security Establishment. We'll bring together public and private researchers. We've met with our top 15 academic research universities. They're very keen to support and apply the research. I was at Waterloo university just last week, dealing with their quantum team to see how advanced their quantum research is, because this is a big part of the future. What we're going to do is pull together into these DISHs—the first of which was launched in Halifax in the Maritimes area—in a number of nodes around the country, specialized talent so that we can give rise to our Canadian technology, our commercialization, our jobs and our companies.
That's why we are so disciplined about the plan we put in place, which comes from 2,000 stakeholders and 17 countries. We spoke to 17 countries about what they do, how well it works, what didn't work and what did work, and we've reconciled all of this in a go-forward strategy that's being implemented. So far, the take-up is wonderful.
I remind people all the time—and I could use this committee's help to remind Canadians in all of our constituencies—that we cannot build here only for ourselves. Of course, we can partner with the right partners and then we can buy, but only from the right sellers with the same values.
What we can do here in defence is compete and win. We can compete and we can win anywhere in the world. What I'm seeing in this new environment we're operating in is that like-minded, mid-sized countries like Canada from all over the world are asking to work with Canadians. They want to invest here and they want to partner here, so we think this is an enormous opportunity for Canada's future.
Minister McGuinty, thank you for appearing before us today. I think Canadians everywhere are looking forward to the efforts to strengthen our defence and strengthen our sovereignty, and also the positive impact economically as a result of the new investments being made. Congratulations on that score as well.
Hon. David McGuinty: Thank you, Mr. Chair.
The Chair: I'll suspend for the moment so that we can get into our second round.
[The meeting was suspended at 5:30 p.m., Wednesday, March 25]
[The meeting resumed at 4:09 p.m., Wednesday, April 15]
:
Is there further debate?
(Motion agreed to)
The Chair: Now that we have the floor, let's deal with the budget, because we do have a little bit of time.
Is it agreed that the proposed budget in the amount of $500 for the study of the supplementary estimates (C) be adopted?
Some hon. members: Agreed.
The Chair: There is a request for an informal meeting on May 26 with the European Parliament security and defence committee. There are six to 10 members of the European Parliament. It's dated, I believe, for May 26. I'm bringing to your attention that the EU Parliament is coming, and they wish to have an audience with us. Is everyone in favour of proceeding?
Ms. Sherry Romanado, you have the floor.