National Defence Committee on June 1st, 2026

[The Chair, Liberal, Charles Sousa]

Thank you.

Ms. Normandin, it's back to you. This time you have two and a half minutes.

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

Thank you very much.

The issue of timelines is something that comes up a lot in conversation. We need to move faster and faster, particularly when it comes to awarding contracts. I was wondering to what extent Canada's defence industrial strategy addresses this aspect and solves certain issues.

I'll give an example, something I hear from time to time. A fixed price policy makes it difficult to focus on projects, particularly when there is, for example, a large building portion. We know that construction costs are rising quite quickly, whereas a contract may only be awarded at the end of a two-year period.

Does Canada's defence industrial strategy answer the question of delays before contracts are awarded?

[Pierre Seïn Pyun]

I can comment.

In Canada's defence industrial strategy, a leading role was given to the Defence Investment Agency, or DIA.

We understand that one of the agency's mandates is precisely to speed up procurement in the defence sector. We experienced this with the two contracts with the National Research Council of Canada, or NRC, that I referenced earlier. One of them was for a research aircraft for defence, a Global 6500. The other one was for the multi-role aircraft, the six Global 6500. Procurement was accelerated for both projects and the Defence Investment Agency was a big part of that. For the six Global 6500, it was a separate process directly with the NRC.

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

I see, so this is the DIA's mandate. However, is the procedure clearly established so that, in the future, we don't wind up with really long delays and back and forth major expansions and recessions, where a lot of jobs are created and contracts are awarded, but followed by a slowdown? Are we missing something here?

[Pierre Seïn Pyun]

I want to add that Mr. Bezan was referring to that. What I understand from the legislation regarding the Defence Investment Agency is that it's precisely in relation to the processes that we need to clearly see what actions will be taken and what will be the agency's framework to speed up procurement processes.

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

Thank you.

[The Chair, Liberal, Charles Sousa]

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

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

Thank you very much.

Thank you to all of our panellists for being here. This is an important topic. Prior to asking a few questions here, I want to make a couple of comments.

I'm quite encouraged, and I'd say enthusiastic, about the direction for building our defence capacity. Having been raised in a military family and having been in the military myself, I think it is really important to be developing our capabilities here in Canada for jobs and for technology. I'm enthusiastic about that, but I also want to share a concern.

That concern is that we've seen how funding can so often be led into the mismanagement of funds. I'm not pointing to you right now, but I will mention that we have seen, for example, how the dollars have rolled out with the environmental funds, the green slush fund and all of these different commitments. It's been really good sometimes for Liberal insiders, friends and companies, but it hasn't been great for the taxpayers of Canada.

We've seen that also with the COVID contracts for the ArriveCAN app and for the ventilators. We've seen all sorts of money thrown out, hand over fist, with very poor results. That's the concern I have. I'm not pointing any fingers here, but I will also say that the announcement of a $200-million spaceport and the contract for 10 years for land that was already leased is very concerning to me, to taxpayers and to this side right here. This is the flashing red light, as much as I want it to just go forward.

Mr. Elzein, you mentioned building a real business that is not dependent on grants. There can be accountability issues, and it can get pretty sloppy, but it's important. You also mentioned having defence contracts that are not based just on Canadian defence, because that's boom or bust. We've always seen that, whether it's shipbuilding or whatever else. That's important. I just had that comment.

Ms. Hébert, Mr. Pyun, can you talk about the impact of U.S. tariffs on the auto sector, especially in Ontario? Are you also feeling an impact in your sector?

[France Hébert]

We haven't really seen a big impact from tariffs in our sector, because we do a lot of work in defence and in the aerospace sector. There are some exemptions, but we haven't really seen a big impact. Moreover, we manufacture a lot of products here, in Montreal, based on a domestic supply chain, so we haven't really suffered any repercussions.

[Pierre Seïn Pyun]

From our perspective, I will add that we are deeply invested in the U.S. We have suppliers in 49 different states that provide some of the key components for our aircraft. Although the Globals and the Challengers are assembled and completed in Toronto and Montreal, we do have a very integrated value chain with the U.S. We have over 2,000 suppliers in the U.S. and, as I mentioned, over 1,600 suppliers in Canada.

In what we've seen so far, as France—

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

If you don't mind, just because my time is going.... Just continue with the question.

[Pierre Seïn Pyun]

Just to confirm what France was saying, the impact for us so far has been quite minimal. The aircraft and main aircraft parts are not tariffed. There's a recognition on the U.S. side that the U.S. aerospace and defence industry has been hugely successful. They have a surplus of $100 billion in—

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

I'm going to have to interrupt. I hope you don't mind.

The question here is this: Does any entity in your ownership or core supply chain trace to a foreign state-owned enterprise or non-like-minded government?

I'll be clear: With China, there's a concern. It's important to have trade relationships, but with technology.... Do you see that? Maybe I can quickly get a yes or no.

Go ahead.

[Bachar Elzein]

No.

[Rahul Goel]

Not that we know of.

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

Those are good things.

It looks like my time is probably up. Is that right?

[The Chair, Liberal, Charles Sousa]

Yes, sir, it is.

It is now over to Mr. Earle. Go ahead, sir.

[Philip Earle, Liberal, Labrador, NL]

Thank you, Chair. Through you, I want to thank the witnesses. I assure you I don't have analysis paralysis, but it's obvious it's in the room.

I want to direct my question to you, Mr. Pyun. I will tell you that I've spent some time in the—

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

Mr. Chair, interpretation is not possible: There's a buzz in the microphones.

[The Chair, Liberal, Charles Sousa]

Who's mic is it?

Mr. Earle, it's your mic.

[Philip Earle, Liberal, Labrador, NL]

Shall I continue?

[The Chair, Liberal, Charles Sousa]

Can you use Mr. Watchorn's mic?

[Philip Earle, Liberal, Labrador, NL]

Now I do have analysis paralysis. I will speak up and make it quicker.

As I was saying, I come from the aviation-aerospace-defence sector.

Mr. Pyun, from your perspective as an industry leader, what are the most significant challenges that you may be able to tell us about as they relate to dealing with the Canadian regulator? Are there opportunities to improve the regulatory process while continuing to maintain Canada's strong commitments to safety, the highest standard in the world?

[Pierre Seïn Pyun]

Absolutely. We have a strong relationship with Transport Canada. I think that having a strong Transport Canada regulator is absolutely critical for the success of the aerospace industry. It is a key function of safety, for sure, but it's a function of market access as well. Our aircraft developed here in Canada are type-certified by Transport Canada. In order to facilitate exports of our products, we rely on the confidence that other authorities have in the standards and the certification processes that Transport Canada has in place.

Bombardier exports over 90% of its output to foreign countries from a very strong base here in Canada. However, in many ways we're punching above our weight. The strong presence of the aerospace industry is not necessarily commensurate with the size of the Canadian market. We are a very export-oriented company and a very export-oriented industry. For the overall industry, 80% of production is being exported to foreign countries. Transport Canada's work is absolutely critical in negotiating technical arrangements and bilateral safety agreements to facilitate the access for Canadian products and services to foreign markets.

There's one last point I would make. I think that a bottleneck we're seeing in aerospace—and we can come back to that if you're interested—is the workforce, for sure. If we look at our own situation at Bombardier, we do anticipate in the years to come that between employee retirements that we anticipate and supporting growth, there will be thousands of positions to fill.

[Philip Earle, Liberal, Labrador, NL]

Ms. Hébert, in your presentation I heard you talk a lot about teaming and the different partners you have for the different work you do in many countries around the world. How important is teaming and bringing partners on board with you to the success of the programs that you run?