National Defence Committee on June 6th, 2022

[Bill Matthews]

Thank you for the question.

That competition is ongoing. Economic benefits to Canada are a big part of it. I really can't say much more than that. Troy may have something to add, given that he tends to run all things procurement.

Troy, is there anything you wish to add on this front?

[Troy Crosby]

Thank you for the question.

We have expressed an expectation that the training that's currently conducted in Moose Jaw, Southport and Winnipeg will continue in those locations.

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

Continue to be run by whom?

[Troy Crosby]

As the deputy minister has expressed, the competitive process is under way right now and will determine who provides the services in the future.

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

Through the chair, you're suggesting that there might be European companies training them here in Canada. Is that what you're saying? Is that a possibility?

[Troy Crosby]

The qualified suppliers in the competitive process include Babcock Canada and Leonardo Canada.

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

Thank you.

To the deputy minister, will the Prime Minister be announcing that Canada is joining missile defence?

[Bill Matthews]

I cannot comment, Mr. Chair, on future announcements of the Prime Minister.

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

The U.S. is retiring 10 Freedom-class littoral warships with fewer than 10 years on the hulls. They're heavily armed and have a similar crew to our aging coastal defence vessels. Have there been any discussions to acquire them from the U.S. for coastal defence?

[Bill Matthews]

I have not been involved in any discussions on that front, but I will ask Troy if he's aware of anything.

[Troy Crosby]

No, I'm not.

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

I am told that our Harpoon anti-ship missiles are older and that if we provided them to Ukraine, the U.S. might upgrade ours to much newer models for very little cost. Can someone confirm that? Mr. Crosby, maybe...?

[Bill Matthews]

Mr. Chair, that is not my understanding.

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

All right.

Some $15 billion in defence spending was included in the budget but not declared or attached to anything. Why? What is it for, then?

[Bill Matthews]

If you're referring to budget 2022, I think there's money for Ukraine in there, obviously, as well as some money for NATO membership.

We have the CFO here. She can articulate what else is in there.

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

I'm sorry. My understanding is that the monies for Ukraine are not part of this $15 billion.

[Bill Matthews]

You are correct that the estimates trail the budget. The money that was announced in budget 2022 is not in these main estimates. If you're looking for what's different in these main estimates versus the previous year, you'll see increases for the project around the Canadian surface combatants as that continues to advance. You'll see increases for the joint support ships, because that's hitting a higher pace than the previous year.

On the operating side, it's up due to wage increases for members of the Canadian Armed Forces. There's also a 3% escalator clause in there that actually bumps up defence resources to reflect inflation.

If you're looking for a comparison of this year's main estimates versus the previous year's, those are the main drivers.

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

Thank you.

Speaking of surface combatants, that program has grown in cost from $60 billion to an estimated $100 billion. Has there been any thought given to an off-the-shelf foreign purchase?

[Bill Matthews]

That number is not one that we're working with. I think the important part about the surface combatant is that it will be the workhorse for the navy for the next 20 years. There needs to be a lot of capability loaded onto that ship. We are still in the design phase, although we're getting close to the end.

It certainly is a complicated ship but a very important ship in terms of meeting the needs of the navy.

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

My understanding, Deputy Minister, is that the combat system has been declared “U.S. eyes only” and that all the Canadians working on the combat system have been let go. Can you confirm that?

[Bill Matthews]

That is not my understanding, but I will turn to Troy to see if he has anything to add.

[Troy Crosby]

Mr. Chair, that is not my understanding either. We do have Lockheed Martin Canada involved in the program, as well as a number of other Canadian suppliers that will provide equipment to the combat system. There is integration work and involvement of the U.S. Navy for certain aspects of the combat system solution, but there will certainly be Canadian involvement not only for the initial delivery but for in-service support as well.

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

Thank you.

[The Chair, Liberal, John McKay]

Thank you, Ms. Findlay.

Mr. Fisher, you have five minutes.

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

Thank you very much, Mr. Chair.

Thank you very much to all of our officials for being here for this hour and providing us with this information.

We did a study on retention and recruitment. I know that when you're doing estimates, you get a little bit of leeway from the chair on topics, but I know that this one does pertain to the estimates.

I want to know what tailored methods and programs are being used to recruit Canadians into the Canadian Armed Forces from backgrounds that we may not traditionally recruit from or that traditionally don't enter the Canadian Armed Forces. We talked about how to reach out to more Canadians with regard to recruitment. Is there something specific, a program or a method, that we are utilizing right now to reach those goals?