:
I call this meeting to order.
Welcome to meeting number eight of the House of Commons Standing Committee on National Defence.
Pursuant to the motion adopted on September 16, the committee is meeting to commence a briefing with the Minister of National Defence on the main estimates, supplementary estimates A, the minister’s mandate and NATO defence spending.
Today’s meeting is taking place in a hybrid format, pursuant to the Standing Orders. Members are attending in person in the room and remotely using the Zoom application.
Before we continue, I would ask all in-person participants to consult the guidelines on the table. The measures help prevent audio feedback incidents, and protect the health and safety of all participants and interpreters.
As a matter of protocol, I remind witnesses and members to please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic, and please mute yourself when you are not speaking.
For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English, or French. For those in the room, please use the earpiece and select the desired channel.
As a reminder, all comments should be addressed through the chair.
For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will try to manage the speaking order as best we can. We appreciate your patience and understanding in this regard.
I would like to welcome our witnesses. We have the Honourable David McGuinty, Minister of National Defence. Thank you for being here, and thank you for agreeing to come, yet again, in short order.
We also have General Jennie Carignan, chief of the defence staff, Canadian Armed Forces; Mario Pelletier, commissioner, Canadian Coast Guard; Caroline Xavier, chief, Communications Security Establishment; Natasha Kim, associate deputy minister, Department of National Defence; Heather Sheehy, assistant deputy minister, materiel, Department of National Defence; and Jonathan Moor, chief financial officer, Department of National Defence.
I will now invite the minister to present his opening remarks. You have up to five minutes. Welcome, again.
:
Thank you very much, Mr. Chairman.
Thank you to all members for inviting me to appear here today. You just had my colleagues introduced to you, so I won't reintroduce them, but they're all here to continue on after I'm not able to stay. I may very well turn to them if I could, colleagues, during the line of questioning for their insight and their experiences as the operational experts in the department and the Canadian Armed Forces.
Since my appointment in May, I’ve had the privilege of working with an exceptional team of dedicated public servants, military leaders and civilian experts who are helping to strengthen Canada’s defence and security.
I've also travelled repeatedly across Canada and to Europe to meet with the brave women and men of the Canadian Armed Forces.
I've concluded that their contributions to Canada are simply second to none.
[Translation]
I observed a renewed sense of purpose and urgency across our entire team in relation to current and evolving threats. Together, we are taking bold steps to rebuild and re-equip Canada's military and support that reinvestment.
That means ensuring that the Canadian Armed Forces, or CAF, are well equipped and supported, so they stand ready to undertake any mission entrusted to them. That is not possible unless we make generational investments in our capabilities, operations and personnel.
[English]
In total, Canada is investing nearly $63 billion in defence this fiscal year alone. This includes over $9 billion in new funding, which the announced in June.
Let me start where it really counts, where it all begins, and that is with our people.
One of the greatest privileges of this job has been meeting members of the Canadian Armed Forces, hearing their stories and hearing about their pride in serving Canada and the challenges that come with that service.
To better support them, we announced major improvements to the CAF compensation and benefits package just this August.
Members across all ranks will see their pay increase by 8% to 20%, depending on rank, through adjustments to the military factor, which recognizes the unique demands of military life. Many will also see additional increases based on years of service, occupation or deployment status. Colleagues, this is a long overdue and well-deserved pay increase for our forces.
[Translation]
Investing in our armed forces means attracting more talent to augment our ranks.
That is why we are modernizing our recruitment processes, by introducing a probationary period, removing outdated medical requirements and establishing new digital tools for a faster path to enrolment.
That means recruiting more people more quickly and keeping them. I am pleased to tell the committee that, this year, recruitment hit its highest level in 10 years.
[English]
We know there's more to do, colleagues, not only to recruit people but to also retain them. As part of our efforts to rebuild our forces, we continue to advance culture change, ensuring a safe, inclusive, trustworthy and respectful workplace for our members.
Through Bill , we are modernizing the military justice system, reinforcing principles of fairness and accountability for our people in uniform. I'm pleased to note that this bill completed second reading in the House two weeks ago and will shortly be coming to this committee for further study. I thank each and every one of you for your support. I look forward to returning to committee to speak about this important legislation, and I eagerly await the outcomes of your important study of the bill.
As we invest in the next generation of CAF members, we're also making crucial investments in our military capabilities—specifically, the equipment and infrastructure that enable CAF operations. That includes building our fleet of River-class destroyers, procuring future fighter aircraft and modernizing ground and communication systems from top to bottom.
Let me be clear: Across all of our projects, we're focused on value for money and on ensuring this work creates jobs and supports the Canadian economy. To drive these efforts further, we're developing a brand new defence industrial strategy to strengthen Canada's defence industrial space—a national first. We recently launched the new Defence Investment Agency to cut red tape and accelerate delivery of equipment to our troops.
Finally, we remain focused on operations, both at home and abroad. Throughout the year we have thousands of CAF members deployed across the country, in Europe, the Indo-Pacific and beyond. Their vital work reinforces our commitments to NATO, NORAD and our global partners. Likewise, our colleagues in the Communications Security Establishment and the Canadian Coast Guard make critical contributions to our defence and security.
Before concluding today, I want to acknowledge that, earlier today, the Auditor General released two reports covering CAF housing and recruitment. These are good and important reports. We thank her for those reports and welcome the recommendations. Not only are they an integral part of ensuring fairness, transparency and openness in how we conduct government operations, they also gave us the crucial information and guidance about what we're doing well and where we need to improve. After all, the women and men of the Canadian Armed Forces deserve that.
It's a busy time for Defence. I look forward to discussing our priorities with you in more detail. Most of all, Mr. Chair, through you to all of the members, I look forward, in openness and utmost sincerity, to your constructive and thoughtful suggestions for improvement. We are in this together. The women and men of the Canadian Armed Forces are counting on us.
[Translation]
Thank you.
I would be glad to answer any questions you may have.
The defence industrial strategy, which I hope will be released within a few months, will show that Canada is making foundational decisions that reflect its desire to support economic growth and the expansion of our defence sector.
For example, we saw that IMT Precision can now manufacture 5,000 shells a month, which is 2,000 more shells a month than it was producing in December 2023.
In addition, under our defence policy, the department had already planned to invest $9.5 billion over 20 years in a strategic supply of ammunition.
We have the plan. Now it's about putting it into action, as you said.
:
I'm always nice. I'm going to read a few excerpts, and you can respond.
In the report entitled “Housing Canadian Armed Forces Members”, it says that “National Defence did not manage living accommodations in a manner that would meet its operational needs and be responsive to the needs” of military members and their families and that it “did not have reliable data” about its furnished quarters. In 2019, the department estimated that it needed an additional 5,200 to 7,200 housing units, but its own plan to build new housing spaces was short 3,800 units. Furthermore, the CAF did not even know which bases new recruits would be sent to, which shows that plans to build housing did not even take into account actual needs by location.
I realize that you haven't been in the job that long, Minister, only a few months, but I'm still going to ask you this question.
We know that efforts will focus on increasing recruitment. We also know that the average age of the quarters buildings is 60 years, so maintenance, potable water and waste water treatment are all issues.
In light of all that, which projects have you budgeted for in 2025-26, when it comes to repairing and building housing units?
I'm happy to see that the Auditor General looked into this issue and made recommendations.
For some time now, we've been working to improve the situation. The current system has been analyzed. We may have more information now than we did during the period reviewed by the Auditor General.
This year, for example, I went to Edmonton, where 36 new homes are being built for $20 million. Construction is almost complete. In Borden, I visited one of the 300 new homes under construction. Across Canada, 824 other homes are under construction or being purchased in places such as Esquimalt, Borden, Edmonton, Gagetown, Halifax, Kingston, Petawawa, Trenton and Valcartier. So—
:
Good afternoon, everyone.
Obviously, we accept the observations and recommendations of the Office of the Auditor General. They play a vital role in our ongoing efforts to improve our recruitment system.
You should know that, during the preparation of this report, we were already transforming our processes. We also made new investments. We computerized the processes to a certain extent. We've made many changes over the past year. As a result, for the fiscal year ending in March, we surpassed our target for the first time in 10 years by recruiting 200 more people than planned. The transformations really seem to be bringing in the necessary staff.
This year, we've achieved good results in terms of retention. We finished the year with 2,000 more people than we had at the beginning. This means that we're expanding. These results certainly come down to new investments and better pay and benefits, for example. We met 58% of our target by the mid‑point of the fiscal year, meaning the end of September. This is despite the fact that we have a higher recruitment target this year. Last year, our target was 6,500 people. This year, our target for the regular force is 7,000 people. We're on track to meet our recruitment target, despite the fact that it's even more ambitious.
In addition, we've made improvements to everything that comes after recruitment, such as training. We made some initial changes last year. This year, we'll make sure to have everything in place to train all new members of the Canadian Armed Forces.
:
First, these are big numbers and a bit astonishing for Canadians, I'm sure. This is the cost of doing business today in the world when it comes to advanced technology and investments.
We're investing $38.6 billion over 20 years to modernize Canada's NORAD capabilities. For example, we're working with Australia now on an Arctic over-the-horizon radar system. This is a profoundly important system. We will know in Canada—and our American neighbours will know—what may be coming at us from over the Arctic, whether it's the Canadian Arctic or Alaska. We have two sites in southern Ontario that are expected to be operational by 2029. National Defence is also working on many issues with indigenous, territorial and provincial partners.
The question of integrated air and missile defence, IAMD, is one that I'm pursuing with the Pentagon. I'm working with the secretary of defence now. The announced some months ago that, after 20 years of a bit of a chill on discussions with the United States on this question, it is important for us to have those conversations. We are having those conversations to see where this comes to ground and how we come to ground. We also, as I mentioned, have these forward operating locations in Inuvik, Yellowknife and Iqaluit, and a deployed operating base in Goose Bay.
All of these efforts are going to support NORAD operations, give us new capabilities and improve our readiness in the north. This is what people are expecting of us as we assert our security in and sovereignty over the Arctic.
:
It's a big question and an important question.
The first thing I would say is if we consider the relationship in security, defence and intelligence with the United States as a home we built on both sides of the border, and there are 40 or 50 rows of cinder blocks on the foundation, the 30 bottom rows of those cinder blocks remain absolutely untouched. There has been no frost heaving, no leaking, no heaving or shifting. That relationship is fundamentally strong and continues.
Remember that we have the only binational command in the world: NORAD is the only binational command in the world. It's a great privilege to be able to work with our American neighbours. Canada is going to continue to manage that relationship very carefully. There are some very big modernization investments going on in surveillance systems; threat identification; response speeds; ability to deter and defeat aerospace threats; ensuring that CAF can deploy and sustain a strong military presence across the country, including in the north; future-proofing NORAD's ability to defend North America through investments in science and technology; the over-the-horizon radar system, which I mentioned earlier, the first tranche of which is about $6.5 billion. The list is long.
All of this will allow for Canada to dig down and t build a defence industrial base which is ready for takeoff and for growth. We have 600 companies now in this space. Personally, I'd love to see that doubled. That's my personal ambition, if we can get there, or at least taking on companies that are significant players and doubling their books of business. This is also why we went to the European Union and signed on to the SAFE agreement, which is a $1.25-trillion marketplace for defence over the next decade.
There's a lot of opportunity for Canadian businesses here, a lot of job creation. I think we all know that, and we're very excited by it.
Let's talk about languages, since they also have a major impact on recruitment and retention.
We know that a number of occupations are practised exclusively in English. People may claim that these positions are bilingual, but in reality, English prevails. For example, there are no French‑speaking vessels, and a number of occupations and specializations, particularly within the special forces and the Canadian Armed Forces cyber-command, are practised exclusively in English. Even in fields such as infantry, where people take essential career advancement courses, it's impossible to receive training solely in French. I'm thinking in particular of the course provided at the Royal Military College Saint‑Jean to become a warrant officer.
There isn't any support for indigenous languages either. For example, the Canadian Rangers are forced to use English instead of their first languages, such as Inuktitut.
We see these cases. I think that they affect retention.
Can we expect strong and concrete measures in this area? For example, could we see a shift to French in all military occupations and courses, or more courses and services provided in indigenous languages? In this area, does the plan include anything with a timeline or schedule?
Minister, thank you very much.
First, I'd like to thank you both for your visits to my riding in the Bay of Quinte this summer to visit CFB Trenton and 8 Wing. General Carignan, I'd also like to thank you for your visit in August and the announcement you made there.
Minister, your announcement of the $850-million investment in CFB Trenton, specifically, was very well received and appreciated by those stationed there and their families. I've had the opportunity here, first-hand, some of that over the summer.... It's been very well received.
This important project of $850 million in infrastructure is strengthening our operational capabilities and supporting economic growth in my riding. Can you tell us a little more about the modernization efforts specific to our air mobility—as it affects my region, with CFB Trenton and 8 Wing—and the impact of those infrastructure upgrades at 8 Wing?
:
I'd like to take a second, if I could, at a 10,000-foot level, to remind Canadians how important National Defence and the CAF are to the Canadian economy. Everything we do and every dollar we invest are also about the economic benefits for Canadians—Canadian companies and workers—and we're going to need to pull up the slack. There will be sunrise and sunset industries in Canada, as there always are.
Canada's defence and security industries generate about $14 billion in revenue now. That's 81,200 direct jobs and over 200,000 indirect jobs. That's $9 billion in GDP to Canada's economy. For example, when I met with Irving shipyards, I heard about 2,400 local employees and 10,000 knock-on jobs across the country in the supply chain.
When we were in Trenton, announcing the $850 million, not only was it very clear to us that the acquisition of the new Husky refuellers was important for refuelling our fighter jets in the sky and using those aircraft to do many other things; it was very clear to us that this would create 1,000 full-time jobs in the Trenton area for some time. These are bricklayers and cement workers and jobs in HVAC, electrics, design, steel and aluminum, acquisition and logistics.
If you multiply that, Mr. Malette, across the country for the investments we're making in the bases, it's astonishing. I had this conversation with Premier Smith in Alberta, who was shocked to learn of the extent to which the Canadian Armed Forces is investing in Alberta. There will be billions of dollars of economic activity in Alberta, which is going to have a profound effect on jobs.
I met the folks who designed the apartment building that is being built at CFB Edmonton. It's been designed in a way so that we can take the design, shrink-wrap it and replicate it all over the country because we own the IP, the architectural design and the engineering design. However, the jobs it created in the city of Edmonton and the region were just incredible.
If you multiply this over and over again at 33 bases and in up to 3,000 communities where the Canadian Armed Forces are located in Canada, you see the potential impact is dramatic.
:
We will, more specifically over time as these pay increases kick in, retroactive to April 1. Members will be getting a lump sum payment very shortly. It's going to be important for us to monitor the effects of that. It'll take a first-year private from $42,000-$43,000 per year to $52,000-$53,000 per year, plus other benefits. It's a question of watching, now, to see.
It's important for us to try to remember, collectively. We ask the women and men of the Canadian Armed Forces to do some pretty difficult things. We ask them to relocate frequently. We ask the young woman mechanic from Bagotville to get on a plane and fly off to Cold Lake for a month away from her family and kids to repair helicopters. There is no collective bargaining. There is no overtime. We ask these people to give us a lot. Our view is that we need to meet them in the middle in terms of what they give and what we supply and support them with.
We're of the view that if we invest the right way in pay, remuneration, incentives, annual bonuses, recruitment, retention, housing, child care, health care, dental and all of the things that this department and the Canadian Armed Forces are called to do.... The more we do and the better we do that, the higher performing our Canadian Armed Forces will be. This is well established around the world.
If we have people worried, looking over their shoulder, not able to do their jobs because something isn't right in the balance of their lives, that will not help us achieve our secure and sovereign objectives.
:
It would take me more than six minutes to talk about this.
I should first point out that all forms of misconduct in organizations often stem from a culture that allows these types of behaviours. These behaviours are completely unacceptable. However, over time, they can become normalized.
When we addressed the issue, we focused on changing the corporate culture in order to optimize our teams' performance in particularly difficult and hostile situations. The whole purpose was to ensure that we had strong teams.
We've implemented multidisciplinary mechanisms. Implementing recommendations alone won't help us get the job done. It takes a combination of various things.
In terms of implementing recommendations, we prioritized four reports in particular, for a total of 194 recommendations. Of these 194 recommendations, we've now addressed 114. By December 2025, we'll have almost finished our work based on the recommendations in Ms. Arbour's report. A tremendous amount of work has been done on this front. We're continuing our work on the remaining recommendations.
From a broader perspective, we've implemented many reforms in basic training and leadership development. For example, we've introduced character‑based leadership. We've also implemented a probationary period. We've changed our methods for selecting staff for command positions.
We've also made sure to include a variety of work experiences within our teams to encourage a flexible approach to tackling complex issues. Our teams often face unexpected and complex issues during their operations in Canada or abroad. The recommended way to tackle more complex issues is to have diverse teams.
We also improved our grievance and complaints system. In order to build stronger teams, we need to ensure that complaints are addressed. By properly managing complaints within teams, we create a stronger corporate culture and stronger teams, where people maintain a relationship of trust.
Lastly, we created a leadership support team that works with a number of units and formations in Canada and abroad to address systemic issues within certain teams.
I could keep talking about this. In short, we've implemented many initiatives and we're seeing the results. Changes are happening and people are comfortable with the new procedures.
:
Thank you, Mr. Chair and committee members, for having me here today.
Thank you to our witnesses for joining us.
It's a pleasure to be here.
My question is for General Carignan.
Thank you, General, for taking the time to be here.
Two weeks ago, I attended the Montreal climate security summit, where the provided the keynote remarks in speaking to the multi-faceted relationship between climate change and climate change impacts and the Canadian Armed Forces and Canadian security and defence issues.
In his remarks, he was very clear about what some of those connections are, but I wonder if, from perhaps a more operational level, you might speak to the way climate change impacts are affecting the infrastructure and operational readiness of the Canadian Armed Forces in different parts of the country.
I would like to put my question to General Carignan, but anyone who wants to respond should feel free to do so.
We know that Canada has significant shortcomings in terms of air defence, including missile defence, anti‑drone defence and anti‑helicopter defence. It also lacks portable anti‑aircraft weapons and combat drones. In addition, the tank armaments are completely outdated. We could provide many examples of this kind.
Many plans are coming out, but so far, no comprehensive plan has been released. You may indeed have this type of plan within the forces. However, we haven't seen any comprehensive plan with a clear time frame stating, for example, that the modernization of all equipment is set for a specific year.
Does this type of plan exist, even just for you, within the forces?
:
As I mentioned, part of our mandate is foreign intelligence collection. A big part of that is to ensure that decision-makers have the insights they need to do their job, and that includes our Canadian Armed Forces decision-makers. That is one part of the mandate.
The other part is our foreign cyber-operations, which are, again, informed effectively by our foreign intelligence mandate as well as our cybersecurity defence. In that role, we work hand in glove with the Canadian Armed Forces. In my own building, on a regular basis I have Canadian Armed Forces members who are embedded in our agency to do the work we do in the defence of Canada, especially focused on the digital front line. We have people who are also sent overseas at times with our Canadian Armed Forces to be able to continue to support them in the roles that they're playing and in the mandate that they have.
In terms of really paying attention to the Arctic and our backyard, Canada is very much a priority for us, as you heard General Carignan talking about with regard to the Canadian Armed Forces. We are part of the ONSAF policy that was issued by the Government of Canada. We work hand in glove with CAF to protect the Arctic, from the perspective of foreign intelligence but as well in our cyber-sensors and our cyber-defence.
We've distributed sensors in the northern territories to ensure that we have good monitoring from a cyber-threat perspective. That's in addition to working with critical infrastructure in the north, continuing to monitor and surveil from a foreign intelligence perspective, and leading multilats with international partners to better understand the threats in the Arctic, again, to better equip our Canadian Armed Forces in the decisions that they're making. We work, literally, hand in glove.
:
Every incident is unique, and every incident comes with its own complications. It's hard to answer that question in a general manner. As we highlighted in our national cyber-threat assessment 2025-26, AI is very much an amplifier when it comes to threats. It has very much lowered the bar of entry for threat actors who want to do nefarious things in the cyber domain. That is a certain activity.
The Communications Security Establishment and Canadian Centre for Cyber Security are doing their part to ensure that we're continuing to raise cyber resilience across the country by ensuring we're giving proper advice, and that their sensors are rolled out in the various Government of Canada systems including Crown corporations.
We've seen improvement in that coverage. We're continuing to ensure that people are aware of and are looking for the indicators that compromise.... Whenever we are informed, especially from foreign intelligence, of possible threats to an organization, we notify them.
Last year, over 300 pre-ransomware notifications were given to Canadian institutions because we were better informed and because of what we had in our foreign intelligence collection, including observations from partners around the world. In sharing those indicators that compromise, and by sharing our advice and guidance, we're continuing to improve that resilience in order for people to be better prepared.
It is very possible, however, to the point asked, that artificial intelligence could be used by a threat actor and could go undetected for some time. This is why we promote the importance of defending, closing those doors and windows, and following our top 10 basic hygiene tips, so that you become a harder target to have artificial intelligence used against you from a threat actor.
Thanks to all of the witnesses for being here and for what you're doing in defending Canada. All of you lead great organizations and you're doing a great service to all of us.
Especially, General Carignan, please pass on our best wishes and gratitude to every member of the Canadian Armed Forces, as well as the Coast Guard, who we'll get to see much more often.
I'm sure, Commissioner Pelletier, that we'll see you here shortly in our study on the Canadian Coast Guard.
Ms. Kim, you mentioned that 5,000 rounds of the 155-millimetre shells for the howitzers is the goal. Is that the current production already or is it still the goal to get to 5,000?
:
Thank you very much for your responses and participation today. Investment in the Canadian Armed Forces is a great priority to enhance. The work you're doing to help transform enables us to be better protected in regard to not only our sovereignty, but also our economy. Some of the engagements that we're doing relative to that are monumental and it's certainly very concerning for all of us.
Before I adjourn, however, I do have a few items to discuss very quickly, if I may.
The deputy commissioners of the Coast Guard are no longer available to appear on Thursday, October 23, on the committee's study of the integration of the Coast Guard into the Department of National Defence. We're working to confirm a new meeting date, and the clerk has suggested Tuesday, October 28, for an hour, as a potential date to Defence. This has not yet been confirmed.
However, on Thursday, October 23, given that the deputy commissioners of the Coast Guard are no longer available, it's our intention to do committee business for an hour, from 8:15 to 9:15, and then the secretary of state will appear from 9:15 to 10:15. I've asked the clerk to circulate to members, tomorrow morning, a proposed agenda for committee business on that day.
Bill has also been referred to the committee, and I would like to suggest that members start thinking about witnesses they wish to invite for the study. I can also confirm that the is available on Thursday, October 30, to appear on Bill C-11.
I've asked the clerk to circulate the list of witnesses who have confirmed and have not confirmed, so that we then can gauge more effectively how we're going to proceed going forward, as a result of the fact that the deputy commissioners are not available this coming Thursday.