Good morning, everyone.
Good morning, Mr. Chair and members of the committee. Thank you for inviting us today to present our comprehensive expenditure review on behalf of the Department of National Defence. I am joined today by the assistant deputy minister of HR-civilian, Renée de Bellefeuille.
National Defence was given a target last year of $460 million in annual savings through the comprehensive expenditure review exercise. This is based on 2% of our vote 1 and vote 10 allocations. The reduction across the department has been developed through a comprehensive efficiency program covering a number of different initiatives to achieve these ongoing savings, in particular the following: retiring selected fleets that are nearing the end of their service lives; streamlining the real property portfolio through the divestment of underutilized and surplus properties; expanding the use of energy performance contracts across our infrastructure, both increasing energy efficiency and reducing greenhouse gases; and finally, modernizing our internal business processes and our governance to reduce the administrative burdens and address any efficiencies identified.
The department has experienced a period of significant growth over the last year. We have a 35% increase in our authorities of $12.3 billion. This follows the announcement last summer of a significant increase in order to meet the NATO 2% of GDP target. In order to deliver these priorities, no job losses are anticipated because of the comprehensive expenditure review savings. Any personnel who may be affected by proposed changes in our organization will be repositioned toward high-priority work.
As you are aware, the Canadian Coast Guard transitioned to DND on September 2, 2025. The Canadian Coast Guard completed an analysis of potential spending reduction measures. However, a decision on the Canadian Coast Guard's proposals has not yet been finalized. Together, National Defence and the Canadian Coast Guard will continue to explore cost savings, looking for opportunities for greater alignment of project delivery and acquisitions. It's also looking at the use of shared infrastructure, logistics warehousing and specialized technical services across our two organizations.
The department remains committed to continually identifying and realizing efficiencies across its programs and projects, ensuring that effort and resources are focused where they deliver greatest value for the taxpayer and enhance our military capabilities.
My colleagues and I would be pleased to address any questions or comments you may have.
Thank you very much.