Canada: "Strong, Secured, Engaged": Canada Issues Its Long-Term Defence Policy

On June 7, 2017, the federal government unveiled its new defence policy, outlining its plan to increase the annual defence budget by 73 per cent over the next decade, from C$18.9-billion in 2016–17 to C$32.7-billion by 2026–27. With C$62.3-billion in additional military spending allocated over the next 20 years, the policy aims to assist the Canadian Forces across the full spectrum of military operations, from humanitarian assistance and disaster relief, to peacekeeping and combat, and would result in a forecasted C$553-billion in total defence spending over 20 years. This spending increase presents significant long-term opportunities for defence contractors, manufacturers and suppliers, both at home and abroad.

POLICY OVERVIEW

In what the government calls "the largest defence modernization effort in decades", the policy contains a comprehensive plan to invest in key emerging domains while simultaneously recapitalizing the core capabilities of the Royal Canadian Navy, the Canadian Army and Royal Canadian Air Force. While a full 20-year breakdown of the existing budget and new funding under the policy has not yet been made available, the government has indicated certain areas of focus.

Investments in the Navy include:

  • Recapitalizing the surface fleet through investments in the 15 Canadian surface combatants military vessels and two joint support ships
  • Acquiring five to six Arctic offshore patrol ships
  • Operating and modernizing the four Victoria-class submarines
  • Acquiring new or enhanced naval intelligence, surveillance and reconnaissance systems and upgraded armament

Investments in the Army include:

  • Acquiring ground-based air defence systems and associated munitions
  • Replacing the family of armoured combat support vehicles, including command vehicles, ambulances and mobile repair teams
  • Upgrading the light armoured vehicle fleet
  • Modernizing logistics vehicles, heavy engineer equipment and light utility vehicles
  • Investing in modernized communications, shelters, power generation, advanced water purification systems and equipment for austere environments
  • Acquiring all-terrain vehicles, snowmobiles and larger tracked semi-amphibious utility vehicles optimized for use in the Arctic environment

Investments in the Air Force include:

  • Purchasing a fleet of 88 advanced fighter aircraft
  • Acquiring space capabilities meant to improve situational awareness and targeting, including replacement of the current RADARSAT system, surveillance of Canadian allied space-based systems and global space-based systems
  • Recapitalizing next generation strategic air-to-air tanker-transport capability
  • Acquiring next generation multi-mission aircraft
  • Operationalizing the newly acquired fixed-wing search and rescue aircraft fleet

SPECIFIC INVESTMENTS

Among the core investments promised by the policy are pledges to purchase new fighter aircraft and ships. Ottawa will hold an open competition to buy the 88 advanced fighters to replace its fleet of 77 CF-18 planes, at an estimated cost of C$15–19 billion (up from previously announced plans for 65 fighter jets). The policy also confirmed the government's long-standing plans to buy 15 new surface combatant vessels for the Navy, which the Liberal government said could cost roughly C$56–60 billion — far higher than the previous Conservative government's forecast of C$26.2-billion.

In addition to its pledged spending on military equipment, the policy aims to grow the size of the Canadian Forces itself. The proposal increases military ranks by 3,500 regular force (to 71,500 total) and 1,500 reserve force members (to 30,000 total), while the Department of National Defence will hire an additional 1,150 defence civilians to support military operations in areas such as intelligence and procurement.

WORKING WITH INDUSTRY

The policy articulates a new approach to defence research and development. The government will invest C$1.6-billion over the next 20 years to implement a new Innovation and Defence Excellence and Security program (IDEaS), which will include the establishment of research "clusters" to stimulate collaboration and the exchange of ideas, bringing together academics, industry and other partners. The policy highlights key areas for advanced research within the research clusters, including cyber tools for defence, space, alternative fuels and remotely piloted systems. The policy also indicates that IDEaS will introduce new procurement tools to allow the Canadian government to commit early in the development process to promising ideas.

The policy also highlights other proposed improvements within the defence procurement process, including:

  • The reduction of project development and approval times for low-risk and low-complexity projects (to be achieved through improved internal coordination, increased delegation and strengthened approval processes)
  • Increasing the Department of National Defence's contracting authorities for goods up to C$5-million by 2018
  • Increasing the transparency and timeliness of communication with the defence industry
  • Expanding the defence procurement workforce

FUNDING REFORMS

The policy proposes a number of reforms to the management of the defence budget, which are meant to provide flexibility in managing key investments in defence spending. These reforms include:

  • Amendments to defence funding that promote clarity and transparency in investments, to be divided between asset acquisition (capital budgeting) and operational expenditures needed to run the department (operational budgeting)
  • Amendments to the federal procurement model to include more thorough cost-modelling, to ensure that funding is available for both procurement as well as ongoing maintenance and operation throughout the life cycle of key equipment
  • Implementation of more thorough costing on major equipment acquisition, including third-party reviews

The policy does not discuss these reforms in great detail, but does propose that there will be another defence investment plan published in 2018 (with a commitment to publish updated plans every three years) that will provide clarity and transparency to Canadians with respect to the defence budget. This 2018 plan, along with the federal government's 2018 federal budget, is expected to provide greater detail on the sources and uses of this additional defence funding in both the short and long term.

POLICY AIMS

The policy further signals the federal government's desire to demonstrate to the United States and its other NATO allies that Canada is making a bigger commitment to defence expenditures. In 2014, NATO members agreed to work towards a defence spending target of two per cent of GDP. Only five countries have reached that goal and Canada is not one of them; it currently spends about one per cent of GDP on defence, ranking it in the bottom half of allies. The new policy will increase Canada's defence spending from roughly one per cent of GDP to 1.4 per cent of its annual economic output by 2024–25.

Ultimately, the policy goes beyond capital expenditures, with proposed changes including a comprehensive approach to health and wellness while in uniform, a family support program and ongoing support during the transition back to civilian life. The policy also contains efforts to improve diversity and gender balance in Canada and places added attention on improving recruitment, retention and training to capitalize on the talents and skillsets of Canada's highly diverse population.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
12 Sep 2017, Seminar, Toronto, Canada

Please join us as we take an in-depth look at the legislation and the impact on the industry.

14 Sep 2017, Seminar, Toronto, Canada

Change, stress and uncertainty are ever]present factors in todayfs legal environment, and specific aspects about the practice of law make it difficult to thrive in the profession long term. Luckily, there are specific research]based strategies that have been shown to help lawyers thrive and lead to more effective ways to manage stress and pressure.

5 Oct 2017, Seminar, Toronto, Canada

Blakes is proud to host our New to In-House Series, designed to bring together junior and mid-level in-house counsel for a candid exchange of insights to highlight and address some of the challenges and opportunities facing in-house lawyers in their roles today.

 
In association with
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.