Evidence of meeting #17 for National Defence in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

David McGuinty  Minister of National Defence
Moor  Chief Financial Officer, Department of National Defence
Sheehy  Assistant Deputy Minister, Materiel, Department of National Defence
Mes  Deputy Commissioner, Canadian Coast Guard Programs, Department of National Defence
Beck  Deputy Minister, Department of National Defence
Kelsey  Vice Chief of the Defence Staff, Canadian Armed Forces, Department of National Defence
Xavier  Chief, Communications Security Establishment

9:50 a.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Thank you.

With the emergence of agentic AI, what amount is being directed toward the magnification of the threat environment?

9:50 a.m.

Chief, Communications Security Establishment

Caroline Xavier

If I understand the question correctly, the threat of AI is definitely something we have seen from the various threat assessments we've done, including a national cyber-threat assessment that was published in the fall of 2024 and what we saw when we put out our threats to democratic processes report.

We were clear about seeing artificial intelligence as an amplifier when it comes to threats. We were clear that we know artificial intelligence will lower the bar of entry for cybercriminals and state actors to be able to leverage artificial intelligence to multiply the efforts they have. We know cybercrime, particularly ransomware, continues to be a persistent threat we see from cybercriminals, and we know artificial intelligence is used by cybercriminals to continue to amplify that threat.

It is something we're very conscious of. In working in the cyber-defence domain and working with partners, both domestically and internationally, we continue to find solutions to defend against those threats.

9:50 a.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

What additional amount is the government providing for you to tackle this threat amplification?

9:50 a.m.

Chief, Communications Security Establishment

Caroline Xavier

Fundamentally, we are now at a budget of almost $1.6 billion. That budget allows us to do what we call cybersecurity and cyber-defence. That is folded into my budget on a day-to-day basis for what I do in the mandate of CSC in leveraging foreign intelligence and staying on top of knowing what is required from a threat perspective. That includes artificial intelligence and all of the other threats we're concerned about when it comes to Canada's defence.

9:50 a.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

We're still suffering from incursions. What is it you need that you don't have right now to get ahead of the game?

9:50 a.m.

Chief, Communications Security Establishment

Caroline Xavier

I have to say that I'm quite pleased about the ongoing investments that CSE has continued to receive. What we need is for Canadians to recognize that the cyber-defence of the country is a whole-of-society activity. We can't do it alone.

We have a role to play as government. We have a role to play as the Communications Security Establishment and the Canadian centre for cybersecurity, but this is where we work with industry and critical infrastructure. We have governance set up to ensure we're sharing foreign intelligence with them so they know what's coming at them. I'm proud to say that we have issued over 300 pre-notifications on ransomware to Canadian industry members to prevent them from having incidents occur. That's the type of work we're going to continue to do.

The investments are there. What I would ask Canadians to do—in particular, the private sector—is to continue to invest in their cybersecurity. It's not enough for government to do it alone.

9:50 a.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Thank you.

I'm going back to the housing of our troops. Two thousand new units sound like a lot, but divide that over the different bases that you mentioned. Then there are the existing barracks, which in the usual municipal sector would be condemned. Where will the money come from for the replacement housing, let alone the surge you're anticipating?

9:50 a.m.

Vice Chief of the Defence Staff, Canadian Armed Forces, Department of National Defence

Stephen Kelsey

It's a significant hole that we need to climb out of. Every location has suffered with the choice of whether we invest in readiness or in the infrastructure.

The good news is that our ADM for infrastructure has new authorities under the deputy to act quickly. There's more money for maintenance and repair, and the recapitalization of key infrastructure, starting with where our people are, is under way.

9:50 a.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

I understand that it's on a rotating basis. There's a list and whoever is in crisis is at the top, and then the constantly decrepit places never get that funding.

Is there some kind of injection so that these base commanders or the housing authority can get the money needed to do right away what needs to be done?

9:50 a.m.

Vice Chief of the Defence Staff, Canadian Armed Forces, Department of National Defence

Stephen Kelsey

This is exactly what's occurred—

9:50 a.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

We have unemployed contractors right now, so now is a perfect time.

9:50 a.m.

Vice Chief of the Defence Staff, Canadian Armed Forces, Department of National Defence

Stephen Kelsey

Absolutely, yes, and what's great about the way we have the authorities—and now the money—is that we can execute not in a linear fashion but in every location and can use local contractors to help us.

We're now in a different position than we've ever been in for a long time. We have the right folks working on it and, thankfully, we have the money and the authorities to do it quickly.

9:50 a.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

When is it anticipated to be complete?

9:50 a.m.

Vice Chief of the Defence Staff, Canadian Armed Forces, Department of National Defence

Stephen Kelsey

It will never be complete. We'll never be satisfied, because it's an enduring.... I'm just thinking of the locations of many of the members here. In Petawawa, for example, it's such an extensive transformation that there will always be recurring maintenance and repair investment, as well as recapitalization.

We have work to do and we have the right leaders doing it.

The Chair Liberal Charles Sousa

Thank you.

Mr. Malette, you're up next. We had suspended for a couple of minutes, and I do want to proceed with the votes for the supplementary estimates. Do you have one last question that you want to proceed with before I get to the votes?

Chris Malette Liberal Bay of Quinte, ON

Yes, if I could, Mr. Chair. My question is for Ms. Beck.

I had the good fortune to be at the Halifax International Security Forum, as we discussed prior to the session here today. I was at one session that was on Sunday morning, I believe, and you were seated at that one as well. We had former defence minister Mr. Blair in attendance.

One of the questions directed to the panel was, I believe, towards Mr. Blair. Mr. Blair served it back to you. The question was this: Do we have the bandwidth? Now that we have the commitment dollar-wise, do we have the bandwidth to carry out all of the very ambitious plans—and we're hearing it here today—that are being heard?

We heard earlier from Mr. Anderson some of these questions on the challenge. Your answer was an emphatic “absolutely”. Could you expand on that for me, please?

9:50 a.m.

Deputy Minister, Department of National Defence

Stefanie Beck

I was very pleased to have the opportunity to have that discussion in Halifax, in part because of the people in the room. They are the ones who are going to make this happen—all of us together. I think that's an important point. This is not an endeavour taken up only by this department. It's really the whole of government.

Of course, we have our priorities from an infrastructure perspective, from changes to how we help the rangers through to the Coast Guard's integration in the north. That is planned for the whole of the north, through our department. We are working very closely, for instance, with the new Major Projects Office, with our colleagues at CanNor and with those elsewhere to make sure the investments we're making are done with timing that works for everybody else, because there are lots of investments under way in the north.

We also want to ensure we are making them at a time and in a place that works for our communities. We're talking constantly to ITK, first nations and different levels of communities—in person, online and in writing—to make sure their needs are taken into account as we make our decisions throughout the year, in fact. This is an ongoing process.

The Chair Liberal Charles Sousa

Thank you, all, for participating and for being here. You may want to remain so we don't disrupt our timing.

There are four votes on the supplementary estimates (B) for 2025-26. Unless anyone objects, I would like to seek unanimous consent for the committee to group those votes together for a decision.

Is there unanimous consent to proceed?

Some hon. members

Agreed.

The Chair Liberal Charles Sousa

Ladies and gentlemen—

9:50 a.m.

Conservative

James Bezan Conservative Selkirk—Interlake—Eastman, MB

You grouped them, but now we need to vote on them.

The Chair Liberal Charles Sousa

Shall all votes referred to the committee in the supplementary estimates (B), for the fiscal year ending March 31, 2026, carry?

Sherry Romanado Liberal Longueuil—Charles-LeMoyne, QC

I would like a recorded division.

The Clerk

The count is four yeas and four nays. As it's a tie, the chair has the deciding vote.

The Chair Liberal Charles Sousa

I vote in favour.

COMMUNICATIONS SECURITY ESTABLISHMENT

Vote 1b—Program expenditures..........$29,955,913

(Vote 1b agreed to: yeas 5; nays 4)

DEPARTMENT OF NATIONAL DEFENCE

Vote 1b—Operating expenditures..........$258,640,183

Vote 5b—Capital expenditures..........$770,520,439

Vote 10b—Grants and contributions..........$75,063,048

(Votes 1b, 5b and 10b agreed to: yeas 5; nays 4)