Thank you very much, Mr. Chair.
Good morning, everyone.
I am very pleased to be here today.
I would like to begin by acknowledging that we are gathered on the traditional and unceded territory of the Algonquin Anishinabe people.
The defence industrial strategy is built on a simple idea: Defence and economic security are mutually reinforcing.
The geopolitical assumptions that have shaped Canada's defence and industrial policies for decades no longer hold. By strengthening the operational readiness of the Canadian Armed Forces, we can also strengthen Canadian industry, support innovation, create good jobs and build greater resilience here at home.
To achieve these objectives, the defence industrial strategy introduced a new build-partner-buy framework. Through the Defence Investment Agency, we are applying this framework by building in Canada where practical, partnering with trusted allies where collaboration strengthens capability and industrial participation, and acquiring proven systems when speed and operational requirements demand it.
Let me begin with operational readiness, the first area examined by your committee. The Canadian Armed Forces requires modern equipment delivered at the speed of relevance. The capabilities identified in “Our North, Strong and Free” remain critical to Canada's security, but the pace of technological and geopolitical change has increased the importance of delivering them sooner.
Over the past year, we've accelerated the delivery of a number of key capabilities for the Canadian Armed Forces. For instance, we've accelerated the Canadian modular assault rifle program by approximately two years. We've accelerated Canada's submarine replacement program and, most recently, advanced Canada's airborne early warning and control capability, a key enabler for both NORAD and NATO operations. Together, these initiatives are helping ensure that the Canadian Armed Forces receive the capabilities they need faster while strengthening Canada's ability to sustain and evolve these capabilities over time.
Canada's defence industry is another key area examined by your committee. The strategy aims to increase the share of defence acquisitions awarded to Canadian firms to 70% over the next decade while increasing defence exports by 50%. This is already being reflected in the DIA procurements we've done. The Canadian modular assault rifle program is built here in Canada and supported by an approximately 80% Canadian supply chain, and Colt is already supporting allied demand, including exports to Denmark. Canadian-built Bombardier Global 6500 aircraft provide airlift capability here in Canada as well. This supports domestic aerospace manufacturing, engineering and sustainment. The Canadian patrol submarine project is placing significant emphasis on Canadian in-service support and supply chain participation.
Innovation is also central to the defence industrial strategy. The selection of Saab as a preferred supplier to provide airborne early warning and control is a strong example of this. It delivers significant Canadian industrial participation from the outset while allowing Canada to participate in spiral development of those systems over time. This also creates an opportunity for Canada to develop and export a finished AEWC capability to allied partner nations, a key defence industrial strategy objective of increasing Canadian defence exports. By bringing more of the missionization and systems integration work back to Canada, the project supports high-value jobs and sovereign expertise here at home. This approach helps ensure interoperability with allies while creating long-term opportunities for Canadian innovation, expertise and industrial participation.
The final area identified in this study is the creation of jobs here in Canada. The defence industrial strategy is expected to generate up to 125,000 new jobs across Canada, and we're already seeing evidence of that impact through the growing production capacity, investment and hiring across Canada's defence and aerospace sectors. As an example, I was told by Colt Canada that they were going to have to double their employee workforce to meet the demand of the Canadian order, plus the Denmark order, and I'm sure there are more coming for that great company in southern Ontario.
Mr. Chair, the defence industrial strategy is not simply about buying equipment. It's about providing capability for the Canadian Armed Forces while building out capacity for Canada. Through the build-partner-buy framework, we are strengthening readiness, supporting Canadian industry and encouraging innovation while creating jobs here at home in Canada.
Thank you.
I look forward to your questions.
Thank you.
