Finance Committee on Feb. 5th, 2026

[Jill McKnight, Liberal, Delta, BC]

These amendments are addressing any ambiguity that may be out there between—

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

That's right. They're addressing the ambiguity to the detriment of veterans' benefits, so what do you say to veterans who say you are denying what they originally should have received, which is the formula that included the territories?

[Jill McKnight, Liberal, Delta, BC]

As I mentioned, these are clarifying how things have been done and will continue to be done.

For more specifics about that, I would turn to the officials.

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

No, we can hear from them some other time, and we'll hear from the ombud later.

It's you, Minister, who are responsible for this department. What would you say to veterans who have sued your department for your department's failure to pay them over a period that spanned governments? This is a long-term failing of the department. What would you say to those veterans seeking the compensation they were entitled to under the law that you're now changing?

[Jill McKnight, Liberal, Delta, BC]

Again, these amendments are aligning with how benefits have been delivered.

[Pat Kelly, Conservative, Calgary Crowfoot, AB]

That's no comfort to veterans.

I'm going to move on. I have a minute left.

Mr. Fragiskatos brought in the fact that you are the associate on defence and housing. We have a few moments left, but boy, when I was on the defence committee, we had some staggering reports on the squalid conditions of housing. With $1.4 billion, yes, you may be able to construct some housing units, but given the horrific state of housing, the seven-year backlog as it was, what do you say to CAF members who are getting rent increases from your department?

[Jill McKnight, Liberal, Delta, BC]

When it comes to CAF housing, we are looking at innovative solutions through private sector partnerships to give our forces safe and affordable places to call home. This is one way we are accelerating processes to make more housing available for CAF members, and we are continuing to make investments in housing.

[The Chair, Liberal, Karina Gould]

Thank you, Minister.

Thank you, Mr. Kelly.

We will continue with Mr. Greaves now, for five minutes.

[Will Greaves, Liberal, Victoria, BC]

Thank you, Madam Chair.

Good morning, colleagues. It's a pleasure to join you today.

Good morning, Minister. Thank you for being here.

As you know, my region of southern Vancouver Island includes the headquarters of Maritime Forces Pacific, and greater Victoria has long been the proud home of Canada's Pacific fleet. I represent communities and constituents who have a long tradition of service with the Canadian Armed Forces, as well as many veterans.

I'd like to start with a question about the CAF more broadly, and then, if I may and if time allows, we'll come back to veterans specifically.

This committee already this morning has heard some discussion of the commitments made by the government to reinvest in Canada's national security and defence, including a range of measures addressing long-standing, in some cases, challenges related to the Canadian Armed Forces.

That certainly includes housing, and I've been very pleased to see the announcements made by the Department of National Defence to invest in housing at both CFB Esquimalt and CFB Comox, which are both on Vancouver Island. These are meaningful investments. They make a significant contribution to both the uniformed and civilian populations in my region.

I'd like to invite you to highlight some of the investments that the Department of National Defence, in your capacity as associate minister, is making across Canada, though, of course, anything you'd care to offer about Vancouver Island would be welcome. We've seen and heard already commitments related to defending Canada's national defence, protecting our sovereignty and also meeting our NATO commitments.

It is unfortunate that the Minister of National Defence himself wasn't invited to speak or contribute to this study, but I wonder if you could share or highlight which investments you feel are most significant and how those investments will serve Canadians and Canada in this difficult time.

[Jill McKnight, Liberal, Delta, BC]

Thank you very much.

You acknowledged that you represent a riding that has a number of serving CAF members, both in Victoria and in the Esquimalt area.

This government has delivered the largest pay increase for CAF members in a generation. Recognizing the increased demands on CAF members, we acted to ensure that the compensation reflected both the significance of their duties and the realities of modern life. Members began seeing an adjustment to their pay in mid-November 2025. I had the opportunity to be with some of our serving members on the day it arrived in their pockets, and it had a positive impact on those individuals.

The pay increases vary by category, from 20% for those at a starting level to 8% increases for senior officials. These increases are not temporary bonuses. They are built into the base compensation, which is strengthening long-term financial security for the CAF and their family members.

Alongside those pay raises, we're also implementing new military pay benefits tied to years of service, and we're expanding allowances for training roles, environmental duties and domestic operations. All of these compensation measures demonstrate that Canada values the service of our military members and that we are investing in them.

You mentioned some more specific things that might relate to British Columbia, so maybe I can highlight a few of those, if I may.

As I also referenced, we are making investments in the hardware and the infrastructure to support the Canadian Armed Forces. One example is the two joint support ships we are procuring, which have military capabilities that will allow the navy to operate in threat environments. This particular investment in the two ships, the JSSs, will mean 1,000 jobs at the Vancouver shipyards in British Columbia, and it will contribute to 3,900 jobs across the marine industry.

We also talked about housing. In the Victoria region, there were housing accommodations acquired earlier this year, making housing more affordable for members and allowing more housing into the system, so that we can ensure that we are addressing that for those who are serving for us.

[Will Greaves, Liberal, Victoria, BC]

Thank you for those answers, Minister.

Certainly, those investments the government is making in the Canadian Armed Forces personnel, in particular the increases in pay for CAF members, make a significant investment in our communities. It's certainly helping to support our local economies, given some of the challenging external factors we are dealing with.

You and I have spoken about—

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Greaves. Your time is up.

Thank you very much.

Mr. Garon, you have the floor for two and a half minutes.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Thank you, Madam Chair.

Minister, I'm going to make amends. I take that back. I don't think my 14-month-old son would have understood the question. I don't think he would have cut 15% of his budget either, but that's another story.

Quebec organizations receive a marginal share of Veterans Affairs Canada funding, despite the large veteran population in Quebec. We have the second-largest veteran population in Canada. Let's take the example of Le Sentier, an organization in my riding, in Mirabel. It provides tangible assistance to a number of veterans, but it has to fight to get adequate funding.

Why do your managers refer veterans to these organizations without giving those organizations the financial means they need to carry out their mission?

[Jill McKnight, Liberal, Delta, BC]

Thank you for the question.

Veterans Affairs Canada invests in a number of veterans' organizations across the country, including those in Quebec. For the specifics of how that is allocated, I would turn to the officials to speak to that.

[Jean-Denis Garon, Bloc, Mirabel, QC]

We'll have a chance to talk to the officials about that later. We rarely get a chance to have you here, Minister.

Do you think Quebec organizations are getting their share?

[Jill McKnight, Liberal, Delta, BC]

I know that we are committed to making investments across the country. I recently had the opportunity, while in Quebec City, to meet with one of the organizations partnering on an entrepreneurship program.

[Jean-Denis Garon, Bloc, Mirabel, QC]

At some point, did you take a personal interest in Quebec's share? We have the second-largest veteran population.

Since you've been minister, have you sat down to look at how the funds are distributed among the provinces? Did you personally wonder whether Quebec was receiving its share and whether the organizations were adequately funded?

Have you taken the time to look at that a little?

[Jill McKnight, Liberal, Delta, BC]

I've spent a lot of time committed to ensuring that veterans are being supported through the programs and services that Veterans Affairs offers, and ensuring that they are able to have access to benefits and services that meet their needs.

[Jean-Denis Garon, Bloc, Mirabel, QC]

My time is up.

Thank you, Minister.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Garon.

Mr. Lefebvre, you have the floor for five minutes.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Thank you, Madam Chair.

Thank you, Minister and witnesses.

First of all, allow me to recognize our veterans. I have the utmost respect for the men and women who have served our country, and I especially want to acknowledge the veterans in my riding of Richmond—Arthabaska.

Minister, as members of Parliament, we are the eyes, voice and ears of our constituents. There's a veteran in my riding who served his country for more than 20 years. Every year, he did his taxes, submitted all his documents, but there were some miscalculations. Now, he's being asked to give money back. He's being pressured.

It is said the financial pressure caused by these recoveries can lead to homelessness, increased stress and serious mental health consequences among veterans who are already suffering from post-traumatic stress, including suicidal ideation.

What do you have to say to these veterans, victims of the department's mistakes?

[Jill McKnight, Liberal, Delta, BC]

As with many Canadians, there can be adjustments in the life circumstances of individuals and, as such, it may be necessary to review the benefits and services as their individual circumstances change.

I cannot speak to your specific constituent's circumstances, but I'm happy to have the officials explain more about how that process works.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

With all due respect, I have other questions for you.

Madam Chair, Minister, playing politics means making choices. I see that veterans' services are being cut by $4.2 billion. Meanwhile, the cost of the Cúram computer platform has gone from $1.7 billion to $6.6 billion. The difference is about the same as the cuts made to veterans' services. If we managed things properly and didn't lose $4.2 billion in IT, we'd be able to keep that money for our veterans. That's a little aside I wanted to make.

Regarding the women veterans council that has been set up. Minister, are you aware that members of the women veterans council have resigned?

[Jill McKnight, Liberal, Delta, BC]

Yes.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Do you know how many resigned?