Mr. Speaker, I want to thank my colleague from Calgary East for his intervention today and for laying out exactly how bad the Liberals have been, especially when it comes down to things like balancing the budget.
Bill C-31 is over 330 pages. We look at this thing and they are doing everything in here. So much of it has nothing to do at all with the budget. I want to speak specifically about division 16, which is on the establishment of the defence investment agency act and amending the Defence Production Act and renaming it the defence and national security production and procurement act.
We are talking about substantive changes to the way the Liberals want to do procurement. When we start dealing with major changes like this, like giving a new minister new powers with up to $1 billion of spending without any oversight or accountability tied to it, I think these types of changes need to be legislated through their own bills and debated separately. Because this is part of the budget implementation act, we are not even able to study this at the defence committee. It is going to be done through the finance committee, which has to look at everything else in the budget, not just the changes that are happening to the defence investment and procurement processes that are currently under way with the government.
We have been quite critical of how the government has gone and set up the Defence Investment Agency. What we are seeing is more layers of bureaucracy, another level of red tape, and it is just another illusion the Liberals are trying to pull on Canadians and the Canadian Armed Forces. They are saying they are doing something when, in actuality, they are doing nothing. They went and hired a CEO. Doug Guzman is a lovely gentleman and I had a chance to meet him, but he comes to the table with no defence experience. He has no procurement background at all. His claim to fame is that he is an investment banker, and a very successful one at that. He used to be the Prime Minister's colleague at Goldman Sachs back in the day.
We have a junior secretary of state who is overseeing the Defence Investment Agency, but again, it does not provide that one point of accountability in ensuring that our parliamentary processes are properly respected. We have a junior minister who is still reporting to another minister who then has to report back up to the Prime Minister. A junior minister, being the Secretary of State for Defence Procurement, does not sit at the cabinet table. We also have been critical about the fact that the Defence Investment Agency is about how the government can coerce more jobs out of other companies that are going to want to do defence contracts, but will those jobs ever actually materialize? How much is it going to cost the taxpayer? How much more is the defence equipment we are buying for the Canadian Armed Forces going to cost because they have tied in all these extra things they want to do with the dollars they are spending?
The top priority has to be making sure we are getting the right equipment for the Canadian Armed Forces. As Conservatives, we have always supported the proud women and men who serve in uniform. We expect them to do dangerous things in the protection of Canada and to work with our allies. We have to make sure every decision we make is a prioritization of the equipment and kit that is required by the Canadian Armed Forces to do that job. We have to be capable. We have to be ready. We have to make sure the stuff we are buying is meeting those operational requirements and that we are interoperable with our allies and neighbours. Let us make sure we are not just creating more red tape, more bureaucracy or more cost in the name of a defence investment agency.
We have been down this path before. The Liberals' track record on this for the past 10 years has been pitiful, as it was under the decade of darkness back in the day under Jean Chrétien and Paul Martin. What we get is all rhetoric and no action. We need to make sure we are taking action. It has been more than four years since the full-scale invasion of Ukraine. The minister of the day talked about putting Canada on war footing with the defence industry. That never ever materialized.
Here we are, four years after the fact, and the only increases in the production of munitions, artillery shells and rockets in this country have all been through contracts with the U.S. armed services, whether that is its army, air force, special services or navy. Those same benefits are not occurring for the Canadian Armed Forces, because the government has not signed any contracts.
We can have all the agencies, bureaucracies, red tape and fancy announcements, but it means nothing unless we are actually putting ink to the dotted line and signing contracts with our defence industry that would then create the jobs because we are buying stuff that the Canadian Armed Forces needs to replace the hollowed out air force and army and the rusted out navy we currently have.
Just to make that point, the results for 2024-25 for the Department of National Defence show that only 59.6% of the maritime fleet is serviceable and ready to go out on operations. The only reason it is at 60% is that it had to retire the entire fleet of our Kingston-class coastal maritime vessels. Only 51% of the land fleets are sitting at the ready and are well maintained so troops can use them. It is because of the underfunding for the national procurement of the aging fleet and because of the high operational tempo. They have been worn out and have not been properly maintained, because of budget cuts that happened under the Liberals. Over $2.7 billion a year was cut from 2021 to 2025.
We know that the aerospace fleet is even worse, with only 42% of our aircraft in the Canadian Armed Forces ready to serve and having the proper maintenance, but they are so aged out and so worn out. All we have to do is look at our CF-18s and the debacle with respect to their replacement. Because of the political games the Prime Minister plays with the F-35s, we have to get the F-35s to do the job.
What we are seeing in Bill C-31, in division 16, with the establishment of the defence investment agency act, is that it would lock in all the inefficiencies that are already under the Defence Investment Agency. The bill does not name who the designated minister would be. There is no title or styling for that minister; it would just be a designated minister. It could be the Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, or the Minister of National Defence, which I think would not be a bad idea, or there may be the creation of another junior minister who would not have the power and strength to go to the cabinet table and make the investments that are required to drive home what is asked for by our forces.
The bill would establish more boards, more advisory committees and more people who are going to be hired. We are talking about more patronage and more Liberal insiders. We see, as we read through the bill, in clause 310, more opportunities for sole-sourcing and not running competitive competitions. Although it says in clause 322 that there would be a competitive procurement process, if we look at the exceptions, we see that almost everything could be excepted from it, and the minister would have the power to exclude companies and individuals from participating in the procurement but never say why they were excluded. There would be no transparency.
What would the procurement ombudsman say about this lack of competition and the ability to sole-source without proper explanation? If the national security exemption is required, let us make sure we use it. This would create more contracting, more consultants and more Liberal insiders getting rich, which is the type of corruption we have to prevent. That is why we are asking why there are some rather strange definitions in the bill, such as “things”.
There would be no guardrails, other than defence services, which is in clause 318, proposed paragraph 16(3)(d): “acquire defence services or professional or commercial services other than defence services”. Why are we even putting that under the defence investment act?
The fact there would be no reporting, no performance and no transparency really raises a lot of red flags. Clause 312 would provide for the ability of the minister to procure shares of corporations; replace all members, directors and officers; and then place people in there the minister wants to run those organizations or those companies. It sure sounds a lot like nationalization. We have been down this path before with the Liberal government. It is called the Emergencies Act, and this reeks of having that overreach and that unaccountable style that we saw with the Emergencies Act.
To conclude, I move, seconded by the member for Calgary East:
That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, since the bill fails to address meaningfully the cost of the living crisis which Canadians are facing through measures such as complete fuel tax relief, removing taxes and red tape which drive up housing costs, cutting the industrial carbon tax imposed on farmers and everyone else in the country's food chain, and eliminating wasteful government spending, all of which have driven up inflation including food price inflation”.
