Evidence of meeting #36 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 capabilities.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

David McGuinty  Minister of National Defence
Sheehy  Assistant Deputy Minister, Materiel, Department of National Defence
Kelsey  Vice Chief of the Defence Staff, Canadian Armed Forces, Department of National Defence
Fox  Deputy Minister, Department of National Defence
Erick Simoneau  Chief of Military Personnel, Commander Military Personnel Command, Department of National Defence
Hadwen  Assistant Deputy Minister, Policy-Industry, Department of National Defence
Huebert  Professor, University of Calgary, As an Individual
Leuprecht  Professor, Royal Military College of Canada and Queen's University, As an Individual
Shimooka  Senior Fellow, Macdonald-Laurier Institute, As an Individual
Exner-Pirot  Director, Energy, Natural Resources and Environment, Macdonald-Laurier Institute

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC

Let's set aside the issue of future fighter jets and early warning aircraft for a moment.

Under Canada's defence industrial strategy, this is how the government plans to increase the Canadian share of defence equipment procurement to 70%. Let me get this straight: Are we talking about 70% of the value of the contracts or the number of contracts?

David McGuinty Liberal Ottawa South, ON

Give me a second.

The goal is for 70% of the share of defence acquisitions to be awarded to Canadian firms.

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC

There is no interpretation.

David McGuinty Liberal Ottawa South, ON

It's for 70% of the share of defence acquisitions to be awarded to Canadian firms.

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC

So when we talk about acquisitions, we're talking about the contracts themselves, right?

David McGuinty Liberal Ottawa South, ON

I don't think we're talking about contracts exactly. We're talking more about equipment volume. It's not a question of dollars; it's a question of equipment.

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC

Thank you. I'll make a note of that.

Does that include aircraft that have already been selected but haven't been paid for yet, such as the F‑35s?

David McGuinty Liberal Ottawa South, ON

No, I don't think so. What's already under way will continue. The focus now is on moving forward as soon as the strategy is implemented.

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC

I'll use the example of the purchase of High Mobility Artillery Rocket System, or HIMARS, launchers manufactured by the United States. It's been kept virtually under wraps so far, but we've already heard a little about it. Will this purchase be covered by the 70% quota, or are we not there yet?

David McGuinty Liberal Ottawa South, ON

This procurement process started several months, if not years, ago.

Heather, can you go ahead?

5:05 p.m.

Assistant Deputy Minister, Materiel, Department of National Defence

Heather Sheehy

Thank you.

The HIMARS is something we have been working on for several years. The congressional notice has gone out, in terms of our intention to purchase these. We are very much looking at procurements through the build-partner-buy strategy that the minister has already spoken about.

There was a large assessment done in terms of where we could get this capability. This was done a few years ago. The capability is coming from an American firm at this point, because that is the firm that actually provides the capability. Moving forward, we will continue to look at every instance to make sure that we buy domestically when we can.

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC

So, if I understand correctly, that matter has already been settled. The 70% quota wasn't in effect yet, so this contract isn't affected for now.

I have another question. There's been a wave of closer ties with Europe regarding military equipment procurement. Please correct me if I'm wrong, but that is, at the very least, the impression we have. How do we justify the “buy Canadian” policy while pursuing this alignment? Are we able to meet the targets while also committing to another partner?

David McGuinty Liberal Ottawa South, ON

We're confident that we will meet these targets.

That said, we have decided to diversify our defence-related economic ties with other countries. That's why Canada is the only country outside the European Union that has been granted permission to join the Security Action for Europe, or SAFE. It's a procurement system within the European Union, a phase I market worth 160 billion euros. So, there are enormous business opportunities for Canadian companies from Quebec and elsewhere, depending on the sector.

At the same time, we are doing more and more work and entering into more agreements with countries such as Denmark, the Philippines, Australia, Japan, Norway, New Zealand and South Korea.

So, we are increasingly diversifying our relationships.

The Chair Liberal Charles Sousa

Thank you.

We're in the second round now.

Ms. Gallant, you have five minutes.

5:10 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Thanks.

Minister, you mentioned that members of the armed forces need the tools and equipment to do the job. You also mentioned that we need the people to do the job.

Injured CSOR support personnel are just finding out that they are losing their allowance if they're injured and not back on the job in 30 days. That means that category one support personnel take a $600 per month hit, and for level two, it's $1,200 per month. They're used to getting this, in some cases, for years. Then, all of a sudden, that's taken from their paycheques.

Were you aware that this is going on?

David McGuinty Liberal Ottawa South, ON

I'm not sure if that's 100% accurate, Ms. Gallant. I'm hearing countervailing explanations about this. That's one of the reasons why I'm really happy that General Simoneau is here today, as the head of human resources for the Canadian Armed Forces.

If you would permit—through you, Mr. Chair—he's in the best position to answer that detailed question.

5:10 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

We have him for an hour later, but we only have you for an hour, so I'll ask you some more questions.

With close support, do you know how long it takes to train somebody from the time they're a regular CSOR member up to the point where they're a category one or a category two?

David McGuinty Liberal Ottawa South, ON

That depends.

5:10 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Yes, it does depend, but roughly how long is it—in months or years?

David McGuinty Liberal Ottawa South, ON

Are you talking about the special forces?

5:10 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Yes.

David McGuinty Liberal Ottawa South, ON

I don't know. If I did know, Ms. Gallant, I'm not sure if I would share that.

5:10 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

When you learn about our injured CSOR close support losing the $600 to $1,200 a month, will you ask Treasury Board to reverse that?

David McGuinty Liberal Ottawa South, ON

I will certainly look into it. If it's a real loss, of course, it's something that I'll take up with General Simoneau. I hope he's in a position to better explain it to you in the next hour.

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Thank you.

For which looming conflict do we need an extra 300,000 reservists?