Thank you, Mr. Chair and members of the committee, for the opportunity to be here today.
Before I begin my remarks, I want to recognize the Royal Canadian Air Force and its 100th anniversary this year. I want to acknowledge and thank all currently serving members and also the veterans of the RCAF. Many veterans are currently employed within the industry, and their experience is so valuable. I often say that while the Canadian aerospace industry is amazing with the products we produce, in reality it's about the people. I think the same can be said about the RCAF.
Speaking of people, our aerospace sector contributes approximately 218,000 jobs and nearly $29 billion in GDP to Canada's economy, with defence accounting for 25% of that.
Turning back to that relationship between industry and the Canadian Armed Forces, to quote the current NATO Secretary General, “Without industry, there is no defence.” This underscores the importance of working closely with our aerospace defence sector as a strategic asset for Canada's defence.
Canada's defence policy update, and its recognition of the need for close collaboration with industry, is a positive step forward and something that our industry has long been advocating. We are seeing this kind of relationship in places such as Australia, where they have not only a policy but also an industrial strategy. This is the next step that is required here in Canada.
The last time I appeared before this committee, I made several recommendations, including building stronger, meaningful and strategic partnerships with industry through ongoing and sustained engagement, and working together early, often and regularly to help develop the requirements that ensure capability relevance for current and future needs. I am pleased to see these recommendations and our language woven into the DPU.
However, while the DPU lays out a high-level framework, it lacks concrete steps as to how the goals and objectives will be operationalized. In my view, the best way to ensure this is through the development and adoption of an aerospace industrial strategy for Canada that includes defence. We're pleased that the government and Minister Champagne have committed to this development. A well-conceived strategy would provide clear direction and timing and institutionalize the objectives outlined in the DPU, giving industry the predictability and clarity it needs to support Canada's defence requirements. I would go so far as to say that it would equally benefit the many other partners in government and other external players in their own planning and support efforts.
By institutionalizing this partnership between government and industry, and this includes the small and medium-sized businesses here in Canada that often feel overlooked by the Department of National Defence, not only can we address current pressing areas with the NORAD modernization and NATO's 2% defence spending, but we can look beyond to foresee, plan and prepare for the new challenges on the horizon. We welcome the additional $8.1 billion in funding over the next five years and the long-term commitment of $73 billion, but, like many, I am concerned about the government's ability for timely procurement and concerned about the significant cuts to the defence spending, to the tune of $1 billion. While the investments and initiatives are critical for Canada's readiness in a rapidly changing global environment, we need a clear road map and industrial strategy.
It's also important to stress that this is not a partisan issue. The future of Canada's aerospace sector and our ability to protect our nation's interests and people are matters of national security and economic prosperity. We need a clear strategy that details how and when investments highlighted in the DPU will be implemented.
NATO's 2% defence spending commitment and the NORAD modernization are front and centre as a measure of commitment by our allies. While the DPU acknowledges this, it lacks the urgency and concrete actions needed to meet these targets. Investment and commitment must start now.
As I said before, we need political leadership to lay the foundation for today and for the future of all Canadians. I encourage all parties to make this a priority.
In summary, the DPU is a start, an encouraging start, but we must ensure it is operationalized effectively. An aerospace industrial strategy will be key to achieving this and institutionalizing the goals and objectives.
The AIAC and our members look forward to working with the government and Parliament to ensure that the objectives laid out are met and that Canada's aerospace sector remains a pillar of our national security and economic prosperity.
Thank you, Mr. Chair.