Hot Issues
Allegations of Training Chinese Pilots
- National Defence is committed to upholding democratic principles and the rule of law at home and abroad.
- We are aware of reports of pilots being recruited by China to train People's Liberation Army pilots and have referred this matter to the RCMP.
- We trust and expect current and former Canadian Armed Forces members to adhere to these values.
- There is legislation and policies in place to ensure that current and former Canadian Armed Forces members respect their obligations to safeguard information gained during their military careers from unauthorized disclosure or misuse.
- The breach of these obligations may result in consequences, including potential criminal liability under the Security of Information Act.
- The Canadian Armed Forces does not have jurisdiction over post-employment activities of former members.
- We are enhancing and reinforcing our internal processes to ensure that all Canadian Armed Forces members and Department of National Defence employees have a clear understanding of post-employment responsibilities regarding government information.
- We are committed to the security of Canada and Canadians, and we will make sure our federal partners receive the support they require.
If pressed on Defence’s role in the investigation:
- We stand ready to assist our federal partners if and when required.
- Matters pertaining to non-military members falls to the purview of civilian agencies.
- Given that the allegations are under investigation by the RCMP who have jurisdiction, we cannot comment on the specifics.
Key Facts
- The BBC, among other British media outlets, reported on Tuesday October 18, 2022, that up to 30 former military pilots had gone to train members of China’s People’s Liberation Army.
- An Australian newspaper reported that Australians were among this group of pilots. The British and Australian governments are investigating.
- The Daily Mail [UK] said Canadians were also being recruited. The Department of National Defence is also investigating.
- Early September 2023: The Globe And Mail newspaper reported that the RCMP are investigating three former RCAF fighter pilots who are training military and civilian pilots in China under the auspices of the Test Flying Academy of South Africa.
- National Defence does not have jurisdiction over post-employment activities of its former members but is ready to support other federal partners as needed.
House Standing Committee on National Defence (NDDN):
- During two appearances at NDDN in October and November 2022, National Defence officials were asked to comment on reports that former Royal Canadian Air Force personnel were among western former military pilots recruited by China to train the People’s Liberation Army pilots.
Details
The Security of Information Act
- The Security of Information Act applies to both current and former members, and breaches of applicable portions of the Act could result in serious consequences.
- Application of Security of Information Act is highly contextual. The Act applies to information that the Government of Canada intends to keep confidential, and violations of the Act can result in criminal liability.
CAF members military release administrative framework
- The release of members from the CAF is governed by an administrative framework, including the Security Screening Certificate and Briefing Form which obliges CAF members to acknowledge their obligation to continue to safeguard information both during and after their service.
- All CAF members are also subject to DAOD 7021-0 (Conflict of Interest and Post-Employment) relating to post-employment obligations to not divulge any information that could cause harm to the DND or its personnel.
- Releasing members at the rank of Lieutenant-Colonel and above must also complete form DND 2840-E (Post-Employment Declaration [PDF, 598 Kb]). These ranking officers must declare their intended post-service employment and abstain for one year from any employment which might generate a real or apparent conflict of interest.
Spending Reductions and Lapsed Funding
- Budget 2023 committed to reducing government spending by more than $15 billion—while ensuring the services and direct supports that Canadians rely on.
- As one of the largest federal departments, National Defence has an important role to play in ensuring effective and efficient government operations to deliver the best results for Canadians.
- National Defence will continue to ensure that the spending in our budget is directed toward top defence and government priorities.
- Potential reductions in spending are being considered carefully and will not negatively impact the ability of the CAF to perform its core functions — keeping Canadians safe and contributing to international security.
If pressed on lapsed funding
- National Defence manages a large budget with major equipment and construction initiatives that need funding over many years.
- As such, Defence uses a flexible funding model to ensure that projects get the money they need when they need it.
- This means that money can be re-allocated to support priority projects and initiatives within a given year, or moved forward to support needs in future years.
- For example, last fiscal year, we used $91.5 million in previously lapsed funding for the in-service support of maritime helicopters and Arctic and Offshore Patrol ships.
- We will continue to direct committed funding when needed, to support our people, deliver on operations, and undertake major equipment and construction initiatives.
Key Facts
- Budget 2023 announced a goal of saving $7.1-billion over five years through a 15-per-cent cut to discretionary spending on consulting, professional services and travel over five years.
- The Budget also announced a planned phase-in of a 3-per-cent spending cut by departments and agencies by 2026-27, with a goal of saving $7-billion over four years.
- Of the $2.5B in lapsed funding in 2021-2022, $2.27B was made available to National Defence for future years. This included:
- $1.1M for adjustments to Vote 1 and Vote 5 spending on capital equipment and infrastructure;
- $787.6M in Carry Forward (operating expenditures);
- $209.6M for the Heyder-Beattie Class Action settlement;
- $91.5M for in-service support for maritime helicopters and AOPS; and,
- $17.7M in proceeds from the disposal of surplus Crown assets.
Details
Spending Reductions
- Early efforts are underway to reduce National Defence’s spending. Reductions related to operating expenditures will be phased in over three years and are not expected to result in job losses outside of normal attrition, or reallocation, ensuring that National Defence’s work is focused on high-priority initiatives.
- Similarly, reductions identified related to professional services and travel will have no impact on employment levels.
Lapsed Funding
- National Defence introduced a flexible funding model in 2017 to re-allocate lapsed funds to support emerging priorities or future needs.
- This flexibility facilitates the delivery of major projects which require multi-year funding.
- Despite sound long-term planning, most defence procurement projects do not advance exactly as planned—some progress faster, others slower, for a variety of operational, logistical, and program reasons.
- To mitigate lapses in funding authorized by Parliament, National Defence is taking the following actions:
- Improving its capital funding forecast to ensure that the Department does not request more funding authorities from Parliament than required;
- Funding new projects from surplus in-year funding rather than requesting additional funding from Parliament;
- Requesting funding for additional military deployments later in the process to ensure only the required funding authorities are requested (to prevent operating lapse); and
- Monitoring forecasted exchange rates to better forecast their impact on funding estimates (to mitigate grants and contributions lapse).
Parliamentary Budget Officer
According to a Parliamentary Budget Officer (PBO) report – Planned Capital Spending Under Strong, Secure, Engaged – Canada’s Defence Policy: 2022 Update – from 2017-18 to 2020-21, there was a cumulative shortfall of almost $10 billion between what National Defence spent on capital and what was originally planned under Strong, Secure, Engaged (SSE).
- Of note, at the time of the PBO’s report (March 2022), National Defence was navigating the impacts of COVID-19 on supply chains.
- Given the complexity of the projects in question, National Defence adjusts spending as project schedules and timelines are refined and lessons are learned.
- As National Defence continues to advance and deliver on all SSE projects, flexibility in our funding model will in fact allow us to redistribute funds effectively.
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