National Defence Committee on Oct. 23rd, 2025

[Stephen Fuhr, Liberal, Kelowna, BC]

Sure. A newer model would be a strategic partnership, and we've already exercised a strategic partnership with a Canadian company to deliver future fighter lead-in training. I think that was announced before I was elected. We'll work with that company to deliver this capability, as opposed to having some longer process that takes much more time than working with a Canadian company that can deliver the capability.

Another way we can make things go more quickly is using commercial contracts where they're available. They won't always be available, but I'll be asking the department to use commercial contracts for things where we can. They are a much faster tool.

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

We also know that the agency will have significant contractual authority. It will manage all projects worth $100 million, which is no small amount, as I'm sure you'll agree.

Will you prioritize Quebec and Canadian companies in all this? Are there any objectives for local contracts?

[Stephen Fuhr, Liberal, Kelowna, BC]

We will prioritize Canadian companies, and that includes those in Quebec. Quebec has really good capacity in shipbuilding, aerospace and space—I'm very familiar with what's going on in Quebec—but so have other provinces, like Ontario, the Prairies and B.C. It really is everywhere. It's just a function of harnessing all of this capability and capacity and leveraging it so that we can take this massive defence spending and make sure it benefits Canadians and Canada.

[The Chair, Liberal, Charles Sousa]

Thank you.

It's over to you, Ms. Gallant. You have five minutes.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

First of all, I'd like to set the record straight about what the Conservative government did. We never recommended a new agency. We asked that all the pieces be put together in one place so the movement would be faster.

Secretary, you don't know why, at the end of the summer, the review on the F-35 was not received.

[Stephen Fuhr, Liberal, Kelowna, BC]

It's not complete. That's why it wasn't received.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

Mr. McGuinty said the review would not take into consideration how much taxpayers are going to lose if your government scraps the rest of the F-35 order. Do you think it's irresponsible to leave this crucial fact out of the F-35 review?

[Stephen Fuhr, Liberal, Kelowna, BC]

I had a chance to watch the committee proceedings in their entirety, and I don't think that was.... None of the witnesses I heard said....

Nothing is being lost. The program is continuing as it was designed and it's being reviewed. That's it. Nothing has been lost. It's not costing us time and it's not costing us money. It's just being reviewed.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

Okay.

You told us on October 2 that the F-35 review report was in the PMO and that he would make his decision known. Has the Prime Minister even opened the report?

[Stephen Fuhr, Liberal, Kelowna, BC]

I'm sure the Prime Minister has opened the report. You may have noticed that a number of things have been happening. The government has done a number of things, including this review, and the review is not complete.

The most important thing here, regardless of how long it takes, is that we make the right decision. It's a massive investment.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

This committee has been told in the past that the way to get procurement done quickly is for the Prime Minister to be the driving force behind it. Setting up this new agency seems like he's passing it off to somebody else.

Is the Prime Minister going to ride herd on this procurement?

[Stephen Fuhr, Liberal, Kelowna, BC]

If it's designed correctly, it should do the job on its own. The Prime Minister will be involved when he needs to be, but whether it's this agency or any other agency, if it's designed correctly it should deliver the results we've been mandated to deliver.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

Okay, so the Privy Council is not telling the department that this is the absolute priority.

The Prime Minister appointed his friend Doug Guzman to head the so-called Defence Investment Agency. He has a taxpayer-paid salary of $679,000 a year and is entitled to a 33% performance bonus, which brings him up to almost $1 million. Is this type of compensation appropriate—it's higher than any other bureaucrat's—and why would you say it's appropriate?

[Stephen Fuhr, Liberal, Kelowna, BC]

I had a look at this. Like you, I want to make sure we're doing things right.

The compensation packages for people of this calibre were set in 2000 by Treasury Board. They are administered by the public service. If I look back at the CEO of Canada Post, appointed under your previous government, and if I bring his salary up to 2025 dollars, it's virtually identical.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

Has he ever served in the military?

[Stephen Fuhr, Liberal, Kelowna, BC]

I don't believe Doug has served.

I have all that. I have all the expertise I need. What I needed was someone who was capable of delivering these massive projects at scale, and who could leverage Canadian businesses and Canadian content in a way that we deliver for the Canadian economy and Canadians.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

If we already have that, why are you hiring him?

[Stephen Fuhr, Liberal, Kelowna, BC]

Who has that? This is a brand new—

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

You just said, “I have all that.”

[Stephen Fuhr, Liberal, Kelowna, BC]

With respect, we have procurement specialists. I need senior-level support that can leverage this massive spend and build out our Canadian economy in a way that matters right now, because many of our sectors are getting beat up as is talked about in the House almost every single day.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

Has he ever worked in procurement before?

[Stephen Fuhr, Liberal, Kelowna, BC]

He's delivered large capital projects.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

Were there any other candidates for the Prime Minister's consideration before he appointed Mr. Guzman to that position?

[Stephen Fuhr, Liberal, Kelowna, BC]

You will have to ask the PCO. I don't know.

[Cheryl Gallant, Conservative, Algonquin—Renfrew—Pembroke, ON]

Are you confident that, should the Ethics Commissioner conduct a review of the process in the selection of Mr. Guzman to his current role, everything will be in order?