National Defence Committee on June 6th, 2022

[Christine Normandin, Bloc, Saint-Jean, QC]

Thank you very much.

I'll come back to a point that you raised, Mr. Chair.

We've committed to NATO to provide 2% of GDP to the defence budget, and 20% of that budget is for major equipment. However, we can see year after year that procurement problems lead to the budget not being entirely spent. We've heard in the past about $1 billion being returned to the consolidated revenue fund.

I'd like to know, based on the objectives for 2022‑23 and the budget, what measures are being taken to improve the procurement system.

[Bill Matthews]

Thank you for your question.

I'll raise two points on this topic.

First, at the Department of National Defence, if we don't spend funds, we can keep them for subsequent years. As the chair has just said, factors like increased costs will have an impact. That's an important point.

Secondly, the Department of National Defence receives a 3% increase each year to reflect inflation.

What are we doing to prevent that? I think we're coming out of a year where spending was difficult for a period of time. Because of COVID, it impacted our suppliers. We are pressing our suppliers and also collaboratively discussing with them what their plans are to deliver.

We are often hearing about labour shortages and we are often hearing about increases in raw materials. It's an ongoing discussion as to how we, together, tackle those risks the industry is facing and ensure that defence gets the capability it needs. It is something that I would encourage committee members to ask us every time we're here, because it is a real challenge in terms of getting delivery given the current labour markets and economies.

[The Chair, Liberal, John McKay]

Mr. May, you have the final question.

[Bryan May, Liberal, Cambridge, ON]

Thank you, Mr. Chair.

Changing gears a bit here, we've heard that DND's greenhouse gas emissions have increased over the past few years, while at the same time we've seen an increase in the need for CAF due to climate change issues, which, again, will undoubtedly further increase emissions. How do you plan to reconcile these pressures to ensure that DND hits their goal of zero emissions?

[Bill Matthews]

Maybe a couple of quick points.... I know that the natural instinct when we talk about greenhouse gas emissions is to talk about jet fuel and fuel for various capabilities. When the CAF is called into service, they need to deploy the assets we have at hand, and that will continue. Where we can really focus is on the greenhouse gas emissions that come from our buildings.

We have an awful lot of really old buildings and really old warehouses. If we can streamline those, modernize them and make them more energy efficient, that will be where the bulk of our greenhouse gas emission reductions will come from. It's doable. There are projects under way on the east coast to make some of those facilities more efficient as well.

The CFO may have more to add here, but I would focus in on infrastructure as opposed to planes and trucks.

Cheri, do you have anything to add there?

[Cheri Crosby]

I'll just say that you're exactly right, Deputy Minister, in that our focus has been on what we can do, which tends to be in infrastructure.

For example, these estimates are requesting access to funding to help us modernize one of our largest research laboratories, at Valcartier, and as far as I know, we're actually on track to achieve a 40% reduction by 2025, so we are making progress.

[The Chair, Liberal, John McKay]

Thank you.

With that, Mr. May, we're close to bringing our meeting to an end.

On behalf of the committee, I want to thank each and every one of you for your patience over these two hours. We appreciate your availability to the committee. I'll let you sign yourselves out.

Just to remind you, colleagues, tomorrow morning we're meeting with the Danish Defence Committee in Room 025-B—I think that's correct—in West Block.

For Wednesday, I'm rather hoping that we can deal with the threat assessment report and finish that off. If we have any kind of time available, I'd like to be able to try to get at least a cut at the recruitment and retention report as well. It may be available as early as this time tomorrow. It's a short report—30 pages—and there's some chance that we might actually be able to deal with it. If we deal with it on Wednesday, then there's an even better chance that we can report it, hence my—

[Darren Fisher, Liberal, Dartmouth—Cole Harbour, NS]

When will we see the draft?

[The Chair, Liberal, John McKay]

We may see it as soon as tomorrow afternoon.

[Darren Fisher, Liberal, Dartmouth—Cole Harbour, NS]

Do you want us to deal with it Wednesday afternoon?

[The Chair, Liberal, John McKay]

Yes. You read quickly.

[Kerry-Lynne Findlay, Conservative, South Surrey—White Rock, BC]

Just you, Darren, the rest of us will be trying to catch up.

[Darren Fisher, Liberal, Dartmouth—Cole Harbour, NS]

Looking at my schedule, I don't see many openings.

[The Chair, Liberal, John McKay]

Do it during question period.

With that, the meeting is adjourned.