National Defence Committee on June 1st, 2026

[The Chair, Liberal, Charles Sousa]

I call this meeting to order.

Welcome to meeting number 38 of the House of Commons Standing Committee on National Defence.

Today is the first day of National Indigenous History Month. We know there are a lot of partnerships that we are doing with first nations communities as we proceed forward with the defence industrial strategy.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, February 23, the committee is meeting to study the impact of the defence industrial strategy.

Today's meeting is taking place in a hybrid format. Members are attending in person and some may be watching remotely using the Zoom application. Before we continue, I ask participants to consult the guidelines on the table. These are measures to help prevent audio and feedback incidents in order to protect the health and safety of our interpreters.

As a reminder to witnesses and members, please wait until I recognize you by name before speaking. If you wish to speak, please raise your hand. The clerk and I will manage the speaking order as best we can. I remind witnesses that committee members may ask questions in either French or English. If you need interpretation, please take a moment now to prepare your earpiece and select a listening channel in advance. We oftentimes fuss over that, so if we can do it beforehand, all the better. All comments should be addressed through the chair.

I'd now like to welcome our witnesses.

We have, from Bombardier, Inc., Pierre Seïn Pyun, vice-president, government and industry affairs; from CAE Inc., France Hébert, vice-president, defence and security, Canada and international; from Canada Rocket Company, Hugh Kolias, chief executive officer; from MDA Space, Mike Greenley, chief executive officer; from Nordspace Corporation, Rahul Goel, chief executive officer; and from Reaction Dynamics Lab Inc., Bachar Elzein, chief executive officer.

We're going to proceed with five minutes each. We have a large panel today, so I'm going to keep it as tight as I can throughout the process. I look forward to an engaged conversation.

Why don't we begin with Pierre Seïn Pyun from Bombardier?

We'll go over to you, sir, for five minutes.

[Pierre Seïn Pyun, Vice-President, Government and Industry Affairs, Bombardier inc.]

Thank you, Mr. Chair.

Members of the committee, thank you for the opportunity to speak with you today.

My name is Pierre Pyun, and I am the vice-president of government and industry affairs at Bombardier.

Bombardier is a world-leading business aircraft manufacturer, headquartered in Canada. We employ directly more than 12,000 people in our Canadian operations. They are proud to participate in the Canadian aerospace industry and to contribute to making it one of the most pre-eminent, advanced technological sectors in Canada and a leading aerospace hub on the international scene. They're also extremely proud to have the opportunity to support Canada's national security objectives.

My remarks will focus on Bombardier's capabilities and impact in Canada and our contribution to Canada's defence sovereignty and the defence industrial strategy.

Bombardier has existed in Canada for nearly 85 years. Innovation is in our DNA. We have proudly developed and received certification for 30 aircraft programs in the last 30 years to the highest performance and safety standards. We have established a strong working relationship with Transport Canada.

Bombardier contributes around $7.4 billion Canadian to Canada's GDP annually. We support close to 50,000 jobs across the country. Bombardier's success is made possible by a robust network of more than 1,500 suppliers from coast to coast, demonstrating that the company is at the heart of a thriving national ecosystem.

Our expertise in business aviation allows us to contribute to airborne defence. An important pillar of our company is to leverage our portfolio of Challenger and Global aircraft with our unparalleled engineering and maintenance expertise to offer business jet-based solutions for defence missions. We have decades of experience in this space. Bombardier is known to be a collaborative, trusted and flexible partner. We have built long-term partnerships with governments and militaries worldwide. We have joined forces with the world's most advanced mission system integrators and providers.

Bombardier delivers multi-mission, long-range, high-performance aircraft platforms used for different solutions, including intelligence, surveillance and reconnaissance; airborne early warning; signals intelligence and electronic warfare; medical evacuation; and more. Business aircraft have become increasingly attractive as platforms for defence applications, because they are cost-effective in terms of acquisition, operation and maintenance costs compared with the legacy platforms, the larger commercial airliners. It's also because of their performance—for instance, the speed at which they fly and the range and altitude at which they fly of 40,000 feet to 45,000 feet. The Global 8000 is a case in point. It has a range of 8,000 nautical miles, connecting almost any two points around the world. Its certified speed is slightly below supersonic, at Mach 0.95.

We welcomed last week's federal government announcement to invest in the Canadian aerospace industry by favouring a solution based on the Bombardier Global 6500, a made-in-Canada aircraft. We also congratulate Saab on being selected as the preferred supplier for Canada's airborne early warning and control fleet, with its GlobalEye solution.

This announcement further highlights the versatility of the Bombardier Global 6500 aircraft as well as its growing role in Canada. Last December, the federal government announced the purchase of six Global 6500s to enhance the RCAF's multi-mission air transport capability. This March, the National Research Council of Canada announced it had acquired a Global 6500 aircraft for critical research and development activities.

Bombardier's business aircraft are chosen around the world for defence missions. Some examples among many include Germany, for the PEGASUS program for signals intelligence; Sweden, for ISR and multi-role government transportation missions; the U.S., with the U.S. Army and the U.S. Air Force in the HADES and BACN programs; and Switzerland, for medical evacuation and government transportation.

We have a strong reputation around the world for providing reliable and robust aircraft to perform critical, demanding missions. We have expertise in complex modifications, certifications and special mission integration. We also have a worldwide network of maintenance support infrastructure, not only for our civil customers but also for our government and military customers.

We are pleased to see that Canada is leveraging its own resources to strengthen its defence capabilities. This is very encouraging for Bombardier as one of the many proud Canadian companies that have much to offer this country.

As I said earlier, nothing would make our employees prouder than knowing the planes they build here in Canada are being used to defend our country and our borders.

Bombardier welcomes Canada's first defence industrial strategy and looks forward to working closely with the federal government to strengthen our country's sovereign defence capabilities. We are convinced Bombardier still has a lot to offer Canada in the years to come. Very few countries have the capacity to design, build, certify and maintain aircraft. This is a strategic capability we can all be very proud of.

We see the recent launch of the defence industrial strategy by the Canadian government as very positive, not only for Bombardier but also for the Canadian industry. The defence industrial strategy sends a strong signal that defence investments are intended to be an economic and innovation driver for the country, while ensuring—

[The Chair, Liberal, Charles Sousa]

Those are great words, but we have to move on to the next witness, sir.

[Pierre Seïn Pyun]

—that capabilities, preferably the types that Canada has sovereignty over, are provided to our armed forces.

I look forward to the conversation and to providing you with more input in terms of our views on the strategy—

[The Chair, Liberal, Charles Sousa]

I apologize for the interruption, but I am trying to keep to the time. Thank you very much for your presentation.

I'm going to go now to CAE and France Hébert.

[France Hébert, Vice-President, Defence and Security, Canada and International, CAE Inc.]

Good afternoon, Mr. Chair and members of the committee. Thank you for this opportunity to testify on the impact Canada's defence industrial strategy will have on the country, a strategy that was proudly announced from our plant and head office in Montreal.

My name is France Hébert, and I am vice-president and director general of the defence and security division at CAE, for Canada and international.

At CAE, our purpose is simple. We exist to make the world safer. On the civil side, we do this by training over 150,000 pilots annually. In defence, we train the women and men of the Canadian Armed Forces to support operational readiness through advanced training and simulation.

We are headquartered in Montreal and employ approximately 11,000 people globally, with approximately 5,000 here in Canada. We operate in more than 40 countries with over 240 locations worldwide. In defence and security, we employ more than 6,000 people and support over 85 military platforms from a wide range of manufacturers. This global experience allows us to deliver integrated training solutions across air, land and sea.

Here in Canada, we have a strong coast-to-coast footprint from Halifax, Nova Scotia, to Comox, British Columbia, with 11 more locations in between, including in Trenton and Petawawa. We also support a network of more than 400 Canadian small and medium-sized enterprises through our supply chain.

The defence industrial strategy identified 10 key sovereign capabilities, one of which is training and simulation. CAE is uniquely positioned to champion this priority in Canada. We already build right here in Canada with Canadian suppliers. We partner with all major manufacturers and over 400 small and medium-sized businesses across Canada. We can integrate any platform the government would want to buy.

Our experience shows that acquiring platforms alone is not enough to achieve mission readiness. Without integrated modern training systems, mission support and a skilled workforce, Canada will not fully unlock the value of its defence investments.

In defence, there are three trends.

First, operations are increasingly complex. Fifth and sixth-generation fighter jets, advanced sensors and integrated systems require high-quality training environments, including simulations.

Second, there is an urgent need for action. Canada and its allies need to deploy capabilities more quickly. Beyond acquiring platforms, this also means accelerating recruitment and training.

Third, we have a great opportunity to strengthen Canada's industrial base. National champions must ensure that defence investments benefit the entire ecosystem by being targeted and creating sovereign intellectual property to support industry over the long term.

CAE is a popular partner. We recently announced several partnerships with global defence leaders. We are having productive discussions with Canada's allies, including German defence minister Pistorius, who visited our offices last week. These are a direct result of Canada's defence industrial strategy. These partnerships benefit our vast supply chain while strengthening the country's sovereign capabilities, which then become internationally competitive.

Based on our experience, I would highlight three recommendations.

First, identify and engage national champions quickly. We are encouraged by the recent release of the strategic partnership framework. We hope the government will identify strategic partners swiftly so that together we can implement the defence industrial strategy.

Second, use defence investment to build a Canadian industrial base. With a deliberate strategic partnership between government and industry, large corporations, SMEs and academic institutions can work in unity to drive economic growth, support innovation and create export opportunities. Established players can help mobilize the ecosystem and are best positioned to help the government achieve maximum economic impact.

Third, prioritize sovereign training and sustainment capabilities. Canada should invest in domestic training systems and infrastructure as part of major acquisitions. It could reverse the current trend. Instead of relying on foreign support, Canada could welcome its allies, expand international defence collaboration and share its expertise with the world as a strategic export capability.

Thank you again for this opportunity.

[The Chair, Liberal, Charles Sousa]

Thank you.

Mr. Kolias, it's over to you.

[Hugh Kolias, Chief Executive Officer, Canada Rocket Company]

Thank you, Mr. Chair.

Thank you to the committee for the opportunity to speak today about the impact of Canada's defence industrial strategy and the efforts to develop a Canadian sovereign launch capability.

Before I begin, I want to acknowledge the Algonquin Anishinabe as the traditional stewards of this land.

My name is Hugh Kolias, and I am chief executive officer of the Canada Rocket Company. We are a Canadian owned and controlled company developing medium-lift launch capability in Canada. We are also one of three companies on today's panel that have received funding through the innovation for defence excellence and security—or IDEaS—program's launch the north initiative. In short, this initiative aims to accelerate the development of sovereign launch in Canada.

I want to start by emphasizing how grateful we are that the Government of Canada has launched this initiative. We are an example of how the defence industrial strategy is working. The public signalling and initial funding from the launch the north initiative have acted as a significant catalyst. To date, every single public dollar invested in the Canada Rocket Company has attracted nearly two dollars of private capital. This demonstrates that strategic government signals unlock private markets.

We believe that the best use of public contributions is to be multiplied by private investment. In just six months since incorporation, we have raised $22.8 million in total capital, $14.5 million in private investment, including from the BDC, and an $8.3 million non-dilutive grant through IDEaS. We have attracted over 20 experienced engineers from around the world, many of whom are Canadians repatriating back. These engineers have all worked at global launch and technology companies such as SpaceX, Blue Origin, ArianeGroup, Rocket Lab and Tesla.

I provide these examples to you today to demonstrate the real-world impact of the defence industrial strategy. It would not be possible to attract the engineers and private capital or move at the speed we are without the signalling and support from the Government of Canada.

The global space economy is expected to be $1.8 trillion by 2035. Our world runs on satellites. GPS-dependent systems underpin over 20% of our GDP from global financial networks, logistics, telecommunications, power grids, weather forecasting and defence coordination. Access to space is critical infrastructure.

Canada currently depends on our allies to place Canadian payloads into orbit. The current commercial launch market is dominated by one actor, SpaceX, which launched over 84% of payload mass to orbit in 2024. China is a distant second. There is a multi-year backlog for launch capacity globally, and the cost over the last few years has risen by at least 30%.

The current IDEaS launch the north framework is an exceptional first step, focused on establishing tactical, light-lift capabilities; however, to truly secure our sovereignty and economic future, Canada must look towards medium-lift capability.

The medium-lift launch market, classified as between 2,000 to 20,000 kilograms of payload to orbit, held over 56% of the commercial market in 2024 and is expected to be up to $20 billion in the mid-2030s. Medium-lift capability, especially on the higher end of payload delivery, is limited to a few global players and represents a substantial national security and economic opportunity for Canada to capture. To scale from the foundation laid by the IDEaS program to a fully operational medium-lift capability, we require three strategic commitments from the Government of Canada.

The first is to anchor demand. The government must become an early customer by committing to contract domestic launch capacity for future Canadian civil and military payloads. Underwriting first flights, exactly as NASA did in the early 2000s, is the single most effective way to crowd in the private capital required.

Second is continued co-investment in development. We need continued, cost-shared, milestone-based funding models that match private capital investments through the next phases of test, qualification and flight.

Third is regulatory alignment. Streamlined launch licensing, expedited permitting and appropriate export-control treatment for a Canadian sovereign launch program are necessary to make this viable at the pace that the strategic environment requires.

To quote Brigadier-General Christopher Horner, commander of the 3 Canadian Space Division, who spoke at the Space Canada Horizons conference last month, “The strategic question before us is no longer whether space matters.... The strategic question is, will Canada possess the freedom of action required to protect its sovereignty, security, and economic prosperity of the future?”

Canada has a narrow window to establish this capability. The talent exists. The private capital is available. The government investment to date is already producing results. The question before this committee is this. How do we continue to accelerate policy and investment?

Thank you very much, Mr. Chair. I'd be happy to answer any questions committee members may have.

[The Chair, Liberal, Charles Sousa]

Thank you.

Mr. Greenley, it's over to you for five minutes.

[Mike Greenley, Chief Executive Officer, MDA Space]

Thanks.

Good morning. As stated, I'm Mike Greenley, the CEO of MDA Space, Canada's largest space company. It was founded 57 years ago, has 4,000 employees and is headquartered in Canada and growing globally. We're active in the defence sector through the provision of earth and space observation satellites, space-based defence communication satellites and space control capabilities. Through our subsidiary 49North, we provide C4ISR capacity to the joint forces.

I have personally led companies in the Canadian defence sector for the past 35 years. I spent six years as the chair of the Canadian Association of Defence and Security Industries, and I'm currently the chair of Space Canada, the industry association for Canada's space companies.

MDA Space is a defence prime contractor and prime integrator, meaning that we sign the primary contract with the government, select and manage the supply chain, integrate our own systems, supply our subsystems and components to the platform, and shoulder financial and logistical burdens and risk in order to deliver complex national programs on time and on budget. In our case, that often means we are responsible for launching and operating satellite systems and networks.

I'd like to provide input for the committee's study of the defence industrial strategy in two areas: one, how the strategy should be implemented to achieve industrial expansion and job growth; and two, how procurement governance and ingrained culture need to change in order to realize the benefits of the defence industrial strategy.

The existence of the defence industrial strategy is excellent. We have been seeking policy like this for my entire 35-year career. It is a necessary start for Canada to achieve policy alignment with allied peer nations and to support the development and global competitiveness of our defence industrial sector. Canada now has a national policy stating that there are 10 key areas where the country needs to have sovereign capability and that the Government of Canada's priority is to build this capability in Canada, in partnership with Canadian industry. That is a strong statement and one that will need consistent and rigorous application and attention; otherwise, the strategy is a waste and we will continue to rely on foreign countries.

To ensure that this is achieved, the policy must have three tiers of capability procurement: mature solutions, technology acceleration and technology development.

Mature solutions are being produced today by established defence firms in Canada and should be procured as quickly as possible through strategic partnerships in order to meet the immediate needs of the Canadian Armed Forces. The new strategic framework will be very helpful with that.

Technology acceleration should be targeted at emerging Canadian defence companies with promising technologies in order to bring these to full operational capability and deployment.

Technology development should be targeted at mid- to long-term R and D cycles for next-generation technologies, and in a rapid, competitive process that iterates on solutions that are operational.

These tiers of capability require two road maps: one that maps the Canadian Armed Forces' capability needs in the 10 sovereign capability areas over the short, medium and long terms, and one that maps Canada's industrial capability from fully mature to emerging, with the core skills that can be applied to further capability development.

This multi-faceted strategic partnering with Canadian industry will be challenging for the government in the short term as the Defence Investment Agency acquires its organizational authorities, takes over decision-making from other departments and increases its staffing levels. It will require an unprecedented cultural change for the government, and particularly for the Canadian Armed Forces, when it comes to partnering on and promoting Canadian defence industrial capabilities. This has not occurred in Canada since the Second World War's industrial buildup but must now be reinvigorated.

Canadians and Canada's industrial base are proud of our Canadian Forces, and we massively appreciate the sovereignty and security they provide to our way of life. The CAF has best-in-the-world elite units like the JTF 2, large and growing professional military teams across the army, navy and air force, and—in some cases—emerging capabilities that need to be developed, matured and made more operational. Canadian industry is really proud of our industrial base, and we require that same pride in return: Be proud of the Canadian industrial base and work with us to build Canadian military capability as we move forward into the future.

All public servants, including those at DND and in the CAF, must commit—all the time—to the government's stated policy of engaging with trusted industry leaders in the key sovereign capability areas and developing the next generation with Canadian industry. We are seeing some early signs that this cultural shift is taking shape, but we're also seeing signs of early resistance as procurement teams flinch and revert to the old ways of buying from foreign countries and foreign companies. Executive levels of government must stand in and flow the policy downward in the 10 sovereign capability areas in order to reinforce that building with Canadian firms is mandatory, and that it begins now.

Overall, this is very exciting. This policy is a great opportunity for Canada. We just need to keep our focus on it every single day.

Thanks for the opportunity to speak.

[The Chair, Liberal, Charles Sousa]

Thank you, Mr. Greenley.

Mr. Goel, it's over to you—

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

On a point of order, Mr. Chair.

I understand you want to be very strict on speaking time and that the witnesses must respect the five minutes they are allotted. However, if they have to speak more quickly, it becomes more difficult for the interpreters. We need to take a moment to think about them; they do an exceptional job.

[The Chair, Liberal, Charles Sousa]

The point is well taken. Speak slowly. We'll have a lot of time throughout the debate to have these discussions. I apologize for rushing you. I don't mean to do so.

Mr. Goel, take your time, but you only have five minutes.

[Voices]

Oh, oh!

[Rahul Goel, Chief Executive Officer, NordSpace Corporation]

Thank you, Mr. Chair and members of the committee.

Thank you for the opportunity to appear today in my capacity of CEO of NordSpace, a 100% Canadian-owned company, dedicated for years to providing a made-in-Canada sovereign space launch capability with our manufacturing facility located in Markham, Ontario, and spaceport located in Newfoundland and Labrador.

Space is recognized in defence policy as critical to our sovereignty, our security and our prosperity. NordSpace's mission is to help Canada translate that policy ambition into practical, domestic capability. Today we have a choice to make and a narrow window of opportunity to make it. Will Canada choose to be a participant or a leader in space? Will we choose to be buyers or builders?

NordSpace builds orbital launch vehicles, a spaceport and spacecraft, designed, manufactured and soon to be launched in Canada. Our focus is simple: Canadian payloads on Canadian rockets from Canadian soil to save Canadian lives on and off the battlefield while securing thousands of Canadian jobs, components and intellectual property. This end-to-end approach is intended to complement the Government of Canada's procurement framework by strengthening the “build” pillar of build-partner-buy with a truly sovereign option for assured access to orbit. For NordSpace, launch is a means to an end. Our simple, scalable and proven architecture focuses on reliably progressing from light- to medium-lift vehicles and prioritizing urgent capability development over science experiments—experiments that unnecessarily delay achieving operational capabilities.

From a defence perspective, assured access to space is critical. It underpins navigation, communication, surveillance and command and control for the Canadian Armed Forces and our allies. In a crisis, we cannot assume that launch capability elsewhere in the world will be available or even prioritized for Canadian needs. Indeed, Canada and Canadian taxpayers have experienced this reality in recent times with RADARSAT-2. History will repeat itself. A sovereign launch capability helps to ensure that when a satellite must be deployed or replenished quickly, Canada has responsive options at home. If it does not, bluntly, foreign nations are making national security decisions for Canada.

Economically, a domestic launch capability supports high-quality jobs in engineering, manufacturing and advanced technologies. It draws on strengths in aerospace and automotive, aluminum and critical minerals. It generates significant economic activity and will create over 1,000 permanent jobs over the coming decade alone. It also keeps intellectual property in Canada, allowing us to innovate quickly in response to evolving CAF requirements while exporting competitive solutions to our allies.

NordSpace is working relentlessly to provide sovereign space solutions through our launch vehicle and our space systems division to build a self-sustaining launch cadence. We are working hard to demonstrate suborbital launch in the coming weeks, powered by our in-house designed, manufactured and tested patent pending Hadfield rocket engines, followed by orbital launch in 2028.

Our satellite, Terra-Nova, is headed to orbit later this year to demonstrate real-time, AI-driven space domain awareness and wildfire monitoring. We have also secured a ride to the moon for Canada's first lunar rover TERRY, named after Terry Fox, on an Artemis mission as early as next year.

These small, privately funded, internal pathfinder missions are carefully planned and executed today to scale and support a viable and commercially sustainable launch program for tomorrow, one that does not perpetually rely on the DND and government grants and contracts to thrive and is resilient against all odds so that we do not end up with another Avro Arrow moment. Building real businesses is indeed the reason why companies such as SpaceX and New Zealand's Rocket Lab have thrived, not just survived, and continue to provide resilient, defence-specific launch, hypersonic, surveillance and communication capabilities to defend their nations.

Let me be clear: NordSpace is here to win—to win in Canada, to win on the world stage and to establish a new Canadian prime born from this bold defence industrial strategy. We have been encouraged by recent federal initiatives, from launch the north to the Canadian space launch act. These measures send a strong signal to industry and investors that Canada is, in fact, serious.

Already, NordSpace is increasing the size of our manufacturing facility in Markham tenfold to support 235 employees and, as we speak, we are expanding our spaceport in Newfoundland. We are forging critical partnerships across Canada, including launch services agreements, most recently, just last week with Alberta-based Wyvern to demonstrate state-of-the-art deployable optics for Canada, potentially a first-ever fully sovereign Canadian space mission upon launch with NordSpace.

Finally, space is a powerful source of national unity and inspiration. As Minister Champagne recently noted, Canadian astronaut Colonel Hansen's journey around the moon reminded us that “the sky is no longer the limit!”

In closing, NordSpace has three key brief recommendations. First, we recommend that the Government of Canada ensure that Transport Canada has the resources it needs to develop the regulatory regime envisioned by the Canadian space launch act, and that the government consider Canada's own dedicated space command.

We further recommend that the government continue to invest in sovereign launch over the long term on the higher end of light-lift, extending to medium- and heavy-lift, alongside a spaceport that genuinely can support these scaled capabilities.

Finally, NordSpace would like to work with the government, under the defence industrial strategy, specifically to develop a framework for ensuring that the Government of Canada prioritizes building truly sovereign space launch solutions over buying foreign ones.

As Brigadier-General Horner, commander of the 3 Canadian Space Division, has said, “From the Arctic to cislunar space, Canada's strategic environment is expanding. And so must our ambition.”

Thank you, and I very much look forward to your questions.

[The Chair, Liberal, Charles Sousa]

Thank you.

Mr. Elzein, it's over to you. You have five minutes, nice and slow.

[Bachar Elzein, Chief Executive Officer, Reaction Dynamics Lab Inc.]

Mr. Chair and members of the committee, thank you for the invitation.

My father came to Canada as an immigrant seeking safety, opportunity and stability. Canada also gave that to me and to so many others, and this is why I'm starting this company here.

Today, the question is whether Canada remains a safe, sovereign and technologically capable nation or becomes dependent on others for its most critical infrastructure. This is the question the defence industrial strategy was written to answer.

As a student and a scientist, I have too often seen innovation leave Canada. Good people have left, and good ideas have emerged from elsewhere. As a founder, I decided to build a company that secures advanced manufacturing, highly skilled jobs and strategic capacity here, at home.

Reaction Dynamics isn't just a start-up. It's designed to underpin Canada's economy, sovereignty and role in allied security for decades.

I want to leave you with three problems and three things we, as industry, can offer in return.

The first problem is talent drain. The strategy puts a number on it: 125,000 new defence jobs by 2035. Those jobs will not appear on their own. They will come from keeping our best people in the country, not training them for someone else's industrial base.

The second problem is a lack of competition. Competition creates heat, and heat creates value. Invest in more than one winner. A strategy that builds national champions still needs more than one contender behind each capability. Otherwise, the champion has nothing to beat, and the country pays more for less.

The third problem is perception. We treat defence as a use case. It is not. Defence is an enabler. It is the root of navigation, communications, banking, imaging, sensing and timing. The farmer relies on it—the fisherman, emergency services, aviation and oil and gas. The defence base has always been the industrial base. They are one and the same. The strategy says this out loud when it comes to space, sensors and specialized manufacturing, etc. A modern army cannot fight without its space assets. Lose them, and you lose not only a weapon but also the backbone of the civilian economy.

Here's what the industry can offer. First, it can offer jobs and expertise only available here. Second, it can provide economic viability and banking for agriculture and energy sectors to strengthen the Canadian economy. Third, and most importantly, it can provide safety and security in Canada, and allow us to make our own decisions based on our own timelines and in our best interests and those of our allies. This is what “strategic autonomy” means in the strategy. Canada remains the only G7 country without a sovereign defence capability.

Canada's defence industrial strategy has started to change that through DRDC's launch the north program, which aims to be operational in the fourth quarter of 2028. Reaction Dynamics is one of the three companies to benefit from this funding, along with those of my two colleagues.

On that note, there are a few people I want to recognize.

The first of them are my team, my investors and my board. Without them, this company would not exist. As I speak to you, some of my engineers are at our test site preparing for our first flight. We had some very exciting testing on Friday. We stayed up until midnight. I was with the team. I'm really happy that things are moving forward.

I also want to highlight the champions who believed in space and who saw it for the strategic asset it is.

The first is Ahmad Khorshid of the IDEaS program at DRDC, whose exceptional ability to navigate the many pillars of government and breathe life into this program is why it will deliver orbital launch. Angelina Ermakov at ISED has advocated for sovereign launch since the inception of RDX, which was nine years ago. Cody Pelletier masterminded the program, identified the key needs and did so at a back-breaking pace. Last but not least is Brigadier-General Horner. His confidence means more than I can express here. His leadership in championing sovereign launch capability as a national imperative has been instrumental in securing the support and funding this industry has long needed.

Of course, there is the CSA, which has carried this country's space ambitions on its shoulders for decades, quietly and without enough credit, until a moment like this makes us look up. Lisa Campbell is a hero and a role model.

I will close with this. We cannot expect a different outcome when the outcome we are after is the product of the same processes that got us here. The strategy is the chance to change the process, and we should not waste it. Our first step to the stars is a first launch in Q4 2028, feeding into a medium-lift capability that meets this country's needs and gives Canada true space sovereignty through optionality.

The Prime Minister has asked us to be bold. Being bold is not about making better decisions. It is about accepting that on the heels of our success, we should be willing to accept failure. This is what we call autonomy. We pay it now in our own currency, or we pay it later in someone else's.

Thank you. I look forward to your questions.

[The Chair, Liberal, Charles Sousa]

Thank you all.

I really applaud your leadership in this industry. These are very thoughtful and powerful statements that all of you have made. Our committee appreciates that and welcomes it.

To start us off in our first round of questions, for up to six minutes, is Mr. Bezan.

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

Before you hit the clock, Mr. Chair, I want to give a notice of motion.

The motion reads:

That the Minister of National Defence and officials be invited to appear on the Supplementary Estimates (A), 2026-27, for two hours; and that this meeting take place at least five calendar days before the Supplementary Estimates (A), 2026-27, are to be reported to the House.

That's the notice of motion.

[The Chair, Liberal, Charles Sousa]

It's noted.

We'll go back to you again, sir.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Thank you. Now you can start the clock.

I want to thank all our witnesses for coming in.

I know a lot of you were here for CANSEC as well. We got to see some of you on the trade floor. It was interesting to listen to all of you. We have some newer start-up businesses here, and we have some well-established primes. It's interesting to have this conversation with you, especially with the aerospace sector.

Some of the comments stuck out to me.

Mr. Greenley, you talked about culture. We often talk about culture change within the Canadian Armed Forces, but you're talking about culture change within the industry itself, as well as for those in PSPC and other government departments, taking on more risk.

[Mike Greenley]

It's not necessarily to take on more risk but to make sure that people make decisions that align with the defence industrial strategy. It doesn't necessarily take on more risk. If we work with proven prime contractors, create strategic agreements with them and move forward with immediate procurements, and if we have our heads up and look at a road map of what defence capability we need and when, and work with other Canadian industries to fund technology acceleration or new R and D, then we can make sure that we have the right capabilities available and operational at the right time.

I think that's what we need to do, but while we're doing that, we need to stay committed to the Canadian defence industrial base in the sovereign capability areas that are in the defence industrial strategy.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Are we seeing any contracts actually getting signed out of the defence industrial strategy?

I know that there's a notice of contract, potentially, that was announced on the GlobalEye, but pen to paper, I don't believe.... We don't know value. We don't know quantity.

Mr. Pyun, definitely from Bombardier's standpoint, it was good news, but it's not necessarily a certainty.

[Pierre Seïn Pyun]

In the past, our defence business, when we looked at our projects and our success, to be quite frank, they've been mostly outside of Canada. What we've seen with the launch of the defence industrial strategy and with the creation of DIA.... You mentioned a culture change, and I think it is quite transformational. It is the first time that Canada has a defence industrial strategy in place.

Implementation will be key. We welcome the focus on exports. We welcome the focus on R and D, as well, in the defence space.

I gave two recent examples of contracts that were put in place. These are the Global 6500 for the RCAF's multi-role airlift capability project and the NRC's aircraft for research purposes.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

The last time you were at committee, you were complaining about lack of competition when it was down to the decision to buy the P-8. You mentioned the Defence Investment Agency. Have you guys looked at division 16 in Bill C-31, the budget implementation act, which establishes the defence investment agency act? Has anyone had a chance to read it?

I recommend that you read it because, in that act, they are providing over 20 different exclusions to limit competition as well as providing an out for the minister responsible for the DIA to explain why someone was excluded. The act smells more of sole-sourcing than competition.

Mr. Elzein, you talked about competition and how it will make us all stronger if we have competition. It also protects the taxpayer. On the side of competition, can you talk more about, first, how important it is to ensure that we are getting, first and foremost, what we need for the Canadian Armed Forces; second, how it is being brought forward in the best interest of the Canadian taxpayer, who is ultimately going to be paying for the procurement; and third how it removes the government's ability to select who they want as the champion?