Appearance before the House Standing Committee on National Defence (NDDN) – Defence Policy Update
Our North, Strong and Free (ONSAF)
- Date:
- 15 April 2024
- Time:
- 11h00 – 13h00
- Location:
- West Block, Room 125-B
Table of Contents
- Our North, Strong and Free
- Our North, Strong and Free Funding and Implementation
- NATO 2% Spending
- Defence Procurement Reform
- Capability Commitments in the Defence Policy Update
- Our North, Strong and Free Northern and Arctic Initiatives
- Recruitment Modernization
- Support for CAF Members and Their Families (Retention)
Our North, Strong and Free: A Renewed Vision for Canada’s Defence
Question: How is the Defence Policy Update supporting the Canadian Armed Forces and allowing the Defence Team to reach its full potential?
- In response to our Government’s Budget 2022 commitment to review our defence policy, I announced a renewed vision for Canada’s defence - Our North, Strong and Free.
- This policy will continue to strengthen the defence of Canada by investing in our people, capabilities, and capacity at home and abroad.
- For example, we will increase our defence spending by $8.1 billion over the next five years and $73 billion over the next twenty years.
- This is a significant downpayment on Canada’s commitment to reach expenditures of 2% of gross domestic product and fulfil our pledge to NATO.
- I am proud that we are continuing to invest in our world-class Defence team, who serve Canada with great courage and devotion.
- I would like to take this opportunity to reaffirm that Canada will always do whatever it takes to support them.
If pressed on specific initiatives:
- This policy prioritizes the defence of Canada, with a focus on the Arctic.
- One example is the establishment of Northern Operational Support Hubs, which will enable the Canadian Armed Forces to better assert Canadian sovereignty and a greater year-round military presence across the Arctic and the North.
- It also includes important initiatives that will support our military members.
- For example, we will establish a Canadian Armed Forces Housing Strategy to rehabilitate existing housing and build new housing.
- We will also provide Canadian Armed Forces members with greater access to affordable childcare at bases.
- We will further change how we work with industry, innovators and researchers to build strategic partnerships founded on transparency and trust.
- For example, we will seek to accelerate the establishment of a new Canadian artillery ammunition production capacity to meet the ammunition demands of the CAF and our allies.
- In addition to many new initiatives, we continue to build a more inclusive and supportive force by pursuing the proposed legislative changes outlined in Bill C-66 and implementing 206 external recommendations.
Quick Facts
Our North, Strong and Free is laid out in three sections:
- Section I assesses the current geopolitical context and the implications for Canadian interests;
- Section II articulates an updated vision for our miliary, focused on ensuring the CAF is ready, resilient, and relevant in the new security environment; and
- Section III and IV outline our plan to deliver on this vision, focused on strengthening the foundations of our military, modernizing existing capabilities and acquiring new ones, improving our capacity to implement through building civilian capacity, reforming procurement, digitalizing the military, leveraging innovations, and developing a stronger relationship with Canada’s defence industrial base.
Investments:
- $8.1 billion over the next five years.
- $73 billion over the next twenty years.
Review Cycle:
- Defence will undertake strategic policy reviews every four years, as part of an integrated update to Canada’s National Security Strategy.
- This deliberate approach will lay the foundations for sustainable, long-term success and continued growth in our defence capabilities.
Background
- Our North, Strong and Free was released on April 8, 2024, and responds to the significant global shifts since Canada’s comprehensive defence policy, Strong, Secure, Engaged, was announced in 2017.
- The policy sets out to address two core objectives:
- Strengthen the foundations of the Canadian Armed Forces (CAF), and
- Acquire new capabilities to deal with new threats.
- Canada will invest $8.1 billion over the next five years, and $73 billion over the next 20 years, to address out two core objectives:
1. Strength the foundations of the CAF
- $295 million over 20 years to establish a CAF housing strategy, build new housing and rehabilitate existing housing.
- $497 million over 20 years to accelerate development of an electronic health record platform to improve the continuity of care as CAF members move between provinces and territories.
- $100 million over five years to improve childcare access for CAF personnel on bases across Canada.
- Investing $10.2 billion over 20 years in current and new infrastructure to support the required tempo of training, operations, and day-to-day military activities.
- $1.8 billion over 20 years to increase the number of civilian specialists in priority areas to accelerate and improve the purchase of new equipment, recruit, and train new soldiers, and upgrade our infrastructure, among others.
- $9.0 billion over 20 years to sustain military equipment under the National Procurement Program to ensure the CAF can continue to receive the critical updates necessary to preserve its ability deploy on operations.
- $9.5 billion over 20 years to accelerate the establishment of new artillery ammunition production capacity in Canada and invest in a strategic supply of ammunition.
- $107 million over 20 years for Canada’s participation in NATO Innovation Fund.
2. Acquire new capabilities to deal with new threats
- $1.4 billion over 20 years to acquire specialized maritime sensors to conduct ocean surveillance.
- $222 million over 20 years to build a new satellite ground station in the Arctic.
- $18.4 billion over 20 years to acquire a more modern, mobile, and effective tactical helicopter capability.
- $218 million over 20 years for Northern Operational Support Hubs. These will better ensure Canadian sovereignty by establishing a greater year-round presence across the Arctic and the North, and investing in multi-use infrastructure that also meets the needs of the territories, Indigenous peoples, and Northern communities.
- $2.8 billion over 20 years to stand up a joint Canadian cyber operations capability with the Communications Security Establishment.
- $307 million over 20 years for airborne early warning aircraft.
- $2.7 billion over 20 years to acquire long-range missile capabilities for the army.
- $9.9 billion over 20 years to improve the sustainment of our naval fleets, including the extension of the Halifax-class frigate and the interim at-sea replenishment capability.
Defending North America
- $307 million over 20 years for airborne early warning aircraft.
- $2.7 billion over 20 years to acquire long-range missile capabilities for the Army.
Defending Canada’s Global Interests and Values
- $9.9 billion over 20 years to improve the sustainment of our naval fleets, which will include extending the life of the Halifax-class frigate and preserving the RCN’s interim at-sea replenishment capability.
- $5.5 billion over 20 years to acquire a comprehensive worldwide satellite communication capability.
Responsible Principals: Assistant Deputy Minister (Policy)
April 12, 2024
Our North, Strong and Free: Funding and Implementation
Question: How will the Canadian Armed Forces successfully implement its new defence policy amidst defence budget cuts and continuous spending lapses?
- The Canadian Armed Forces need to be ready to respond to new challenges, both here at home and around the world.
- That is why we’ve released a renewed vision for Canada’s defence – Our North, Strong and Free – which will increase our defence spending by $8.1 billion dollars over the next 5 years, and by $73 billion over the next 20 years.
- This renewed vision is an ambitious undertaking, and we are ensuring that the right conditions are in place to meet these commitments and deliver the capabilities and supports to our men and women in uniform.
- For instance, we are strengthening the foundation of the Canadian Armed Forces by boosting and modernizing recruitment and retention efforts, and we will reform how we manage our military members.
- This will include granting members increased career control and flexibility while enhancing performance management and succession planning.
- Further, in December 2023, a review of the defence procurement system was launched to examine how to get equipment into the hands of our members sooner, and we will continue to build upon this review.
- Additionally, we are committed to conducting a defence policy review every four years, to ensure we’re meeting our commitments and to update our plans and investments accordingly.
- Beyond this, we will continue to efficiently manage expenditures in order to minimize lapses and deliver for Canadians.
- Overall, this renewed defence policy comes at a critical time, and I’m ready to help implement this new vision for our Canadian Armed Forces.
If pressed further on spending reductions:
- Like all departments, National Defence has a responsibility to use taxpayer dollars in the most efficient and responsible way possible.
- The budget reduction exercise announced in Budget 2023 presented an opportunity for National Defence to find efficiencies in our spending and to ensure we are as lean as possible.
- This initiative reduced National Defence’s spending by $4.4 billion over the next 5 years.
- Notably, these reductions were focused on consulting, professional services, and travel, and have minimal impact on military readiness.
- Importantly, the previously announced spending reductions have already been identified and the new investments announced in Our North, Strong and Free, and in Budget 2024, are over and above these reductions.
- And, as a result of these investments, National Defence’s budget is forecasted to grow to approximately $49.5 billion in 2029-30.
If pressed further 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 reprofiled capital equipment and infrastructure project funding of $1.1 billion to future years, when actual expenditures will be realized.
- Additional funding received as part of Our North, Strong and Free is targeted to specific initiatives, which require additional funding to implement.
- We will continue to direct funding when needed, to support our people, deliver on operations, and undertake major equipment and construction initiatives.
Quick Facts
Spending Reductions:
- Budget 2023 announced a goal of saving $7.1 billion over five years through a 15% cut to discretionary spending on consulting, professional services, and travel over five years.
- The Budget also announced a planned phase-in of a 3% spending cut by departments and agencies by 2026-27, with a goal of saving $7 billion over four years.
- This refocusing initiative reduced DND/CAF funding by $4.4 billion over five years, starting in 2023-24.
Our North, Strong and Free:
- On a cash basis, Our North, Strong and Free represents a $10.7 billion investment over five years.
- This investment is over and above historical funding decisions, including Budget 2023 and NORAD Modernization.
Lapsed Funding:
- Of the $1.57 billion in lapsed funding in 2022-2023, $1.47 billion or 93% of the amount expected to be reprofiled for defence spending in future years. This includes:
- $1.1 billion for adjustments to spending on capital equipment and infrastructure projects;
- $240.3M in Carry Forward (operating expenditures);
- $122M for the Heyder-Beattie Final Settlement Agreement; and
- $16.2M in proceeds from the disposal of surplus Crown assets.
Background
Our North, Strong and Free Funding
- Through Our North, Strong and Free, the Government will invest $8.1 billion over the next 5 years, and $73 billion over the next 20 years, in new funding for Defence.
- These new investments, as well as those set out in Budget 2024, are expected to bring Canada’s defence spending-to-GDP ratio to 1.76% by 2029-30, a significant step forward in our efforts to reach the NATO commitment of 2%.
- These new investments come after the Government’s Budget 2023 spending reductions have already been taken into account.
Spending Reductions
- In Budget 2023, the Government committed to reducing spending by $15.4 billion over the next give years, starting in 2023-24, and by $4.5 billion annually after that.
- As part of this commitment, National Defence is planning the following spending reductions:
- 2024-25: $810,449,000
- 2025-26: $851,437,000
- 2026-27 and after: $907,539,000
- National Defence will achieve these reductions by doing the following:
- Travel
- Reduce spending on travel by $58,589,937 in 2024-25, and ongoing.
- Professional Services
- Reduce spending on professional services by $200,000,000 in 2024-25, and ongoing.
- General Operating Funds
- Reduce general operating expenses by $354,778,505 in 2024-25, $264,250,000 in 2025-26, and ongoing.
- Fiscal Framework
- Reduce spending to initiatives yet to be started and earmarked in the fiscal framework by $197,080,558 in 2024-25, $185,848,278 in 2025-26, $79,871,095 in 2026-27, and ongoing.
- Additional Targeted Spending Reductions
- The previously described measures do not fully meet targeted saving reductions. Further work is therefore currently underway to identify $142,748,785 in 2025-26 and $304,827,968 in 2026-27 (ongoing) to fulfill Department of National Defence targets.
- Travel
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; 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 (SSE) – Canada’s Defence Policy: 2024 Update – from 2017-18 to 2020-21, there was a cumulative shortfall of almost $12 billion between what National Defence spent on capital and what was originally planned under SSE.
- The report noted that, due to project delays and re-profiling, a majority of the total expenditures for SSE (62%) are planned for the latter half of the 20-year period of the study.
- On this, the PBO flagged concerns regarding the effect of inflation diluting the government’s purchasing power as expenditures are pushed further down the timeline.
Responsible Principals: Assistant Deputy Minister (Finance), Deputy Minister (Policy)
April 10, 2024
NATO 2% Spending
Question: Why does Our North, Strong and Free only commit to 1.76% of GDP in defence spending and not provide a plan to reach 2%?
- Canada is unwavering in its commitment to the NATO Alliance, to the defence of Euro-Atlantic security, and to the rules-based international order.
- Our renewed vision for Canada’s defence – Our North, Strong and Free – represents a significant step forward in our efforts to reach the NATO commitment of 2%.
- We will invest $8.1 billion over 5 years and $73 billion over 20 years in new funding for Defence.
- With recent investments, Canada’s defence spending in Budget 2024 is projected to increase to 1.76% of GDP by 2029-2030.
- Further, these investments put Canada on track to exceed NATO’s target of 20% for major equipment expenditures as a proportion of defence funding by 2025-2026.
- By the time the Defence Policy Update is fully implemented, we will have nearly tripled defence spending in Canada since 2014.
- We know there is more to do in the coming years, and we will continuously review our policy to ensure we remain on track to meet our commitments.
If pressed on methodology:
- Currently the Defence budget is $31 billion, which will grow to approximately $49.5 billion by 2029.
- The projected spending is across the defence investment portfolio – including spending outlined in Strong, Secure, Engaged; Canada’s NORAD Modernization Plan; and Our North, Strong and Free.
- This defence investment portfolio is projected to bring us to 1.76% of GDP by 2029-20230.
- On top of that, there is projected defence spending of $8-$9 billion from other government departments, which will correspond with eligible defence expenditures towards the NATO 2%.
- This includes peacekeeping and humanitarian operations; direct information technology support to defence; and payments made directly to veterans.
- Our North, Strong and Free, is a strategic framework to move forward on investments and we will continue to explore options to further increase our defence capabilities.
Quick Facts
Defence Spending
- Fiscal Year 2023-24: Canada’s defence spending is forecasted to be 1.33% of its GDP.
NATO Common Funding
- All NATO Allies contribute to NATO budgets based on an agreed cost-share formula derived from Gross National Income.
- Canada is the 6th largest contributor to NATO’s common funded budget.
Background
NATO Commitments Outlined in Our North, Strong and Free
- As a priority, Canada will meet NATO defence commitments as they evolve in response to shifts in the global security landscape.
- Canada will continue playing an important role confronting Russian aggression through a steadfast commitment to NATO assurance and deterrence measures.
- Together with the United States, Canada will defend NATO’s western flank, and with our Arctic Allies we will defend NATO’s northern flank.
- Canada’s support to Euro-Atlantic security will continue with a leadership role as a framework nation of NATO’s Forward Land Forces in Latvia, and enduring support to Ukraine in the face of Russia’s illegal and unprovoked invasion.
- More broadly, Canada will also be making investments to harden and better sustain Canadian troops deployed overseas, and to bring valued capabilities to the table in international operations.
- Funding for the NATO Innovation Fund:
- The Fund is the world’s first defence-focused multi-sovereign venture capital fund, providing investment in start-up firms developing dual-use, emerging and disruptive technologies (e.g., artificial intelligence, big-data processing, quantum-enabled technologies, autonomy, biotechnology and human enhancement, novel materials, energy, propulsion, and space capability).
- Establishing new artillery production lines in Canada to create a reliable Canadian supply of NATO-standard ammunition at a time of unprecedented need.
- Acquiring Airborne Early Warning aircraft and Long-Range Missiles (Land).
- Exploring options for acquiring ground-based air defences to defend critical infrastructure from a diverse array of incoming airborne attacks, including drones, missiles, and artillery.
- Exploring options for upgrading or replacing our light armoured vehicle fleet and establishing a production program to replenish our fleet while also enabling industry to invest in a sustainable defence production capacity to support Canada and our NATO allies.
- Exploring the Renewal and Expansion of Canada’s Submarine Fleet:
- This will make a robust contribution to our defence commitments to allies, particularly through the submarines’ ability to globally deploy to support NATO and allied operations in Europe and the Indo-Pacific.
- Restoring deterrence at home and in North America as a key component in the defence of NATO’s western and northern flanks and directly supporting NATO’s deterrence and defence agenda.
NATO Common Funding Contributions:
- National Defence’s contribution to NATO’s military Budget is $244.5M. This contribution will support:
- International Military Staff;
- NATO’s Command Structure, made up of bases and facilities across Europe and in the United States;
- NATO’s key air fleets: NATO Airborne Warning and Control System (AWACS), and Allied Ground Surveillance (AGS); and
- NATO operations and missions which include Canadian Armed Forces (CAF) deployments under Operation IMPACT (NATO Mission Iraq) and Operation KOBOLD (NATO Kosovo Force).
- National Defence’s contribution to NATO Security Investment Program is $91.4M. This will support:
- The capital costs for communications and information systems, installations and facilities such as radar, military headquarters, airfields, fuel pipelines and storage, harbours, and navigational aids to support the NATO military structure and activities, including deployed operations and missions.
- National Defence’s contribution to other NATO activities is $4.2M. This will support:
- NATO Centres of Excellence;
- NATO Naval Forces Sensor and Weapons Accuracy Check Sites;
- NATO Rapidly Deployable Corps Headquarters; and
- NATO Production and Logistics Organizations (NPLOs).
Parliamentary Budget Officer
- According to a Parliamentary Budget Officer (PBO) report published in June 2022 – Canada’s Military Expenditure and the NATO 2% Spending Target – Canadian military expenditure has increased significantly between 2014 and 2021, rising approximately 40% in nominal terms across this period.
- The report noted that in order for Canada to reach the 2% mark, the government would need to spend between $13 and $18 billion more per year over the next five years.
- The PBO is currently undertaking an updated analysis on NATO spending, with a report anticipated to be published in the coming months.
Responsible Principals: Assistant Deputy Minister (Finance), Assistant Deputy Minister (Policy)
April 10, 2024
Defence Procurement Reform
Question: National Defence is incapable of delivering projects on time and on budget. When will this Government finally fix the broken procurement system?
- Ensuring that our soldiers, sailors, and aviators are equipped with modern and effective equipment is a top priority for National Defence.
- Which is why we need to reform our defence procurement system.
- For instance, we will seek to accelerate the establishment of new artillery ammunition production capacity in Canada, creating skilled jobs for Canadian workers and economic benefits for Canadian communities.
- Additionally, to accelerate the integration of new technologies into our equipment Defence will pilot a Continuous Capability Sustainment approach to upgrading equipment.
- These activities will complement our work to compress timelines of major acquisitions, reduce operational and financial risk of delays and, perhaps most importantly, reduce capability gaps.
- This, along with working with Public Services and Procurement Canada on defence procurement reform, will provide us the flexibility to rapidly integrate the latest technology and innovation in more regular, incremental, maintenance cycles.
Quick Facts
- Each year, well over 100,000 contracts are awarded by, or on behalf of, National Defence.
- National Defence’s contracting authorities have risen to $7.5 million for competitive services contracts, to $5 million for the procurement of competitive goods (plus $2.5 million for contract amendments),to $375 thousand for non-competitive service contracts, and to $250 thousand for non-competitive goods contracts (plus $125 thousand for contract amendments.
- This is a significant step in streamlining the procurement process, allowing the Department the authority to proceed directly with 95% of its contracts in 2022.
- National Defence is working alongside other key government departments, such as Public Services and Procurement Canada (PSPC), to grow the project management and procurement workforce, including through the development of a ‘PG academy’ which will recruit and develop procurement and materiel management specialists throughout their careers
Background
Our North, Strong and Free
- Canada’s Defence Policy, Our North, Strong and Free: A Renewed Vision for Canada’s Defence, outlines how Canada will think differently about procuring equipment, including how to better maintain and upgrade it over time, and how to ensure it is optimized to meet the diverse needs of the Canadian Armed Forces. This includes compressing the timeline of major acquisitions to reduce the operational and financial risks of delays and gaps between capabilities being retired and new ones being added.
- In December 2023, Public Services and Procurement Canada, National Defence, Innovation, Science and Industry, and the Treasury Board Secretariat have launched a review of Canada’s defence procurement system. This includes examining internal processes used by Defence to define requirements and approve projects, and looking at the broader set of rules, regulations and policies that govern military procurement.
- This effort will clarify mechanisms to facilitate the timely delivery of military equipment, enable increased use of government-to-government arrangements where it makes sense to develop strategic partnerships, and look at how best to leverage existing programs to strategically invest in the domestic capacity needed by the military.
- The Defence Policy also outlines Canada’s commitment to pursue increased economic opportunities as part of newly forming defence trade arrangements among trusted partners.
Streamlining Defence Procurement
- National Defence has already taken a number of steps to ensure the members of the CAF get the equipment they need, when they need it, including:
- Updating defence procurement program management processes by eliminating redundancies and improving collaboration with industry.
- Accelerating procurement for low-risk, low-complexity projects.
- Working closely with colleagues across government to implement more agile and innovative procurement approaches.
- Investing in procurement professionals to make sure we have the expertise and capacity we need to advance projects.
- Working with industry and other government partners on how we can move forward on sustaining operationally capable solutions for platforms. This would mean providing National Defence with the flexibility required to rapidly integrate the latest technology developed by industry, to ensure platforms remain relevant and capable throughout their lifetime.
- Shifting from more traditional transactional relationships with industry on in-service support, to a more partnership-focused relationship. This will ensure we work together on setting out capability roadmaps for systems that will need to be continuously updated and integrated on various platforms throughout their lifecycles. This revised process will make sure industry is part of the solution and able to help predict and rectify any obsolescence as the platform progresses, thereby reducing our need for timely modernization or upgrade projects.
Urgent Operational Requirement (UOR)
- Portable Anti-X Missile (PAXM) – The PAXM systems include missiles, simulators, and associated support to empower CAF personnel deployed with the Canada-led multinational NATO enhanced Forward Presence Battle Group Latvia with training and the capability to destroy main battle tanks.
- Request for Proposal (RFP) was issued in summer 2023. In December 2023, a contract was awarded to Rafael Advance Defense Systems valued at $32.2 million USD.
- Initial Operational Capability (IOC) is expected end of 2026; while Full Operational Capability (FOC) is expected in 2027.
- Air Defence (AD) – The AD project will acquire a soldier portable Very-Short Range Air Defence System (VSHORAD) for the NATO enhanced Forward Presence Battle Group Latvia in order to defeat attack aircraft and hostile small unmanned aircraft its area of operations.
- RFP was issued in Summer 2023.
- In February 2024, the government announced the award of three contracts to Saab Canada, valued at $227.5 million, for the acquisition of the systems, supporting ammunition, and in-service-support.
- Counter Uncrewed Aircraft Systems (CUAS) – The CUAS Project will provide protection measures against hostile small unmanned aircraft for CAF personnel deployed in the Operation REASSURANCE.
- RFP was issued in Summer 2023. In February 2024, the Minister of National Defence announced the award of three contracts to TRD Systems (Singapore), CACI Inc. (USA) and Leonard UK Ltd. (UK) for approx. $46 million to deliver the first phase.
- IOC is expected end of 2024; while FOC is expected in 2027.
- PSPC-led Risk-Based Approach to Contract Approval enables lower complexity projects to progress through the acquisition process with fewer check points, allowing the overall program to progress towards a timely delivery of projects and capabilities.
- The Tailored Project Approval Process was implemented in 2017 to provide a flexible and scalable framework for National Defence to fully leverage its Organizational Project Management Capacity Assessment Level, through improved internal coordination, increased delegation, and strengthened approval processes. Low to Medium Risk Projects that follow the tailored approval process progress on average two to three times quicker.
- National Defence works with government and industry partners to optimize defence procurement, including through new initiatives such as Continuous Capability Sustainment (CCS).
- CCS seeks to identify ongoing investments in technology upgrades over the in-service phase of a capability to ensure CAF equipment remains technologically relevant, fit for purpose, and aligned with the extant high level mandatory requirements.
- Through its digital transformation initiative, the department will leverage necessary upgrades to its enterprise resource planning function to transform and modernize business processes, improve operational effectiveness and decision support at all levels. Through the increased use of analytics and a heightened trust in the data within the system, the Department will be able to better harness vital data to inform decision making.
Responsible Principals: Assistant Deputy Minister (Materiel), Assistant Deputy Minister (Policy)
April 10, 2024
Capability Commitments in the Defence Policy Update
Question: Why is the Government unable to deliver desperately needed capabilities to the Canadian Armed Forces?
- Canada is committed to procuring modernized and effective equipment for the Canadian Armed Forces.
- That is why through Our North, Strong and Free we have committed to new capabilities in order to provide the members of Canadian Armed Forces with the equipment they need.
- This includes a commitment to acquire airborne early warning aircraft, long-range missile capabilities, and tactical helicopters.
- Further, we will seek to improve our ability to surveil and control our underwater and maritime approaches by exploring options for renewing and expanding our submarine fleet.
- As we move forward on these investments, we will work with the Communications Security Establishment to bolster our ability to conduct cyber operations by establishing a new Canadian Armed Forces Cyber Command.
- These important investments make us more interoperable with our Allies and partners, and better able to protect and defend our own interests.
If pressed on the replacement for the Victoria-Class Submarines:
- As the Prime Minister said, we will be looking at what type of submarines are the most appropriate to protect our coastlines, which are the longest in the world.
- We recognize that with climate change, and the opening of the Northwest Passage to ship traffic, Canada will require a lot more capabilities to demonstrate and responsibly patrol its own internal waters.
- We also know that the Victoria-class fleet is nearing it’s end-of-life.
- That is why we are currently defining requirements for a replacement, and we have conducted initial engagements with countries and companies that currently have, or are in the process of building, submarines that meet Canadian requirements.
- Given the changing security situation and operational demands on the Royal Canadian Navy, our intent is to avoid a capability gap.
- Other important factors we will need to assess, aside from delivery timelines, are technological requirements, including under-ice capabilities and operational needs.
- Given the changing security situation and demands on the Royal Canadian Navy - such as in the Indo-Pacific, support for Operation REASSURANCE, amongst others – our intent is to avoid a capability gap.
- While nuclear propelled could meet the operational requirements of the RCN, they would be significantly more expensive to purchase and increase technological and operational complexity.
If pressed on how long-range land missiles will defend Canada:
- Given the rapidly improving capabilities of potential adversaries, the CAF faces growing obstacles in potentially gaining and maintaining air superiority during operations.
- A new long-range land missile capability for the Canadian Army will defend Canada by improving the Army's ability to deter threats from Canadian shores.
- It will also allow the CAF to match the range of our adversaries and strike back from a distance far beyond its current capability, engaging targets up to ranges of 499km.
- This new capability is fundamental to the Canadian Army's ability to engage in modern warfare against adversaries and will ensure our CAF members get the equipment they need.
Quick Facts
Our North, Strong and Free: Defending Canada
- Section III and IV outline our plan to deliver on this vision, focused on strengthening the foundations of our military, modernizing existing capabilities and acquiring new ones, improving our capacity to implement through building civilian capacity, reforming procurement, digitalizing the military, leveraging innovations, and developing a stronger relationship with Canada’s defence industrial base.
Investments:
- $8.1 billion over the next five years.
- $73 billion over the next twenty years.
Review Cycle:
- Defence will undertake strategic policy reviews every four years, as part of an integrated update to Canada’s National Security Strategy.
- This deliberate approach will lay the foundations for sustainable, long-term success and continued growth in our defence capabilities.
Background
Procurements Outlined in Our North, Strong and Free
- The revised defence policy, Our North, Strong and Free outlines includes new capabilities to make Canada more interoperable with our Allies and partners, and better able to protect and defend our own interests. These investments will:
- Explore options for renewing and expanding our submarine fleet;
- Acquire specialized maritime sensors that can be rapidly deployed on our Arctic and Offshore Patrol Ships to conduct ocean surveillance;
- Build a new satellite ground station in the Arctic; and,
- Explore options to acquire a new fleet of all-terrain vehicles adapted specifically for ice, snow, and tundra.
- The policy also builds on the $38.6 billion dollar investment in NORAD that Canada announced in 2022, including by:
- Acquiring airborne early warning aircraft;
- Exploring integrated air and missile defence of Canada and North America;
- Exploring options for acquiring ground-based air defences, and
- Exploring options for acquiring new long-range missile capabilities for our military.
- And, to better enable military operations abroad and build on lessons learned from Ukraine’s fight to defend itself, Canada will focus international investments on addressing threats to the security of our troops abroad, and on their ability to contribute to Canadian and Allied objectives. These investments will include:
- Exploring options for modernizing our artillery capabilities;
- Improving the sustainment of our naval fleets;
- Exploring options for upgrading our replacing our tank and light armoured vehicle fleets, including exploring options to establish a light armoured vehicle production program;
- Exploring options for acquiring a suite of surveillance and strike drones and counter-drone capabilities; and,
- Acquiring a comprehensive worldwide satellite communication capability.
Responsible Principals: Assistant Deputy Minister (Materiel), Royal Canadian Navy, Canadian Army, Royal Canadian Air Force
April 10, 2024
Our North, Strong and Free Northern and Arctic Initiatives
Question: What investments is Our North, Strong and Free making in Canada’s North and in the Arctic?
- As the Arctic continues to present new challenges to Canada’s security we are taking a new approach, which will improve and modernize our defences in the region.
- This includes $222 million over 20 years to build a new satellite ground station in the Arctic, which will improve our ability to detect, deter, and respond to malign activities.
- We are also committing $218 million over 20 years to set up Northern Operations Support Hubs to improve our presence and mobility in the Arctic.
- Moreover, we are exploring options to acquire new vehicles adapted to ice, snow, and tundra.
- At sea, to track and evaluate underwater threats along all three coasts, we will acquire specialized maritime sensors to conduct ocean surveillance.
- The Royal Canadian Navy is also exploring options to renew and expand its fleet with ice-capable and conventionally powered submarines.
- As we design and implement these initiatives, we will continue to work with our Indigenous partners to advance our national defence together and prioritize reconciliation.
Quick Facts
Our North, Strong and Free investments in the Arctic:
- $222 million over the next twenty years to build a Satellite Ground Station.
- $218 million over the next twenty years establish Northern Operational Support Hubs.
- $1.4 billion over the next twenty years to acquire specialized maritime sensors to conduct ocean surveillance, including in the Arctic and North.
- Our North, Strong and Free also commits to exploring options to:
- Acquire new vehicles adapted to ice, snow, and tundra.
- Enable Arctic and Offshore Patrol Vessels to Operate Helicopters.
- Renew and expand our submarine fleet.
Background
Investments in the North and in the Arctic
- Satellite Ground Station
- $222 million over 20 years to build a new satellite ground station in the Arctic.
- This will improve CAF ability to detect, deter and respond to malign activities and to communicate those threats quickly with partners.
- Northern Operational Support Hubs
- $218 million over 20 years to establish Northern Operational Support Hubs.
- They will increase military responsiveness, enabling the CAF to address challenges in remote northern regions on shorter notice and for longer periods.
- These will present opportunities to establish multi-purpose infrastructure that serve the CAF, territorial governments, Indigenous peoples, and Northern communities, wherever possible.
- Specialized Maritime Sensors
- $1.4 billion over 20 years to acquire specialized maritime sensors to conduct ocean surveillance.
- They will be used to monitor Canada’s maritime approaches, including in the Arctic and North.
- They will be a critical component of the CAFs’ ability to defend Canada from a growing range and sophistication of underwater threats including vessel-launched missiles, underwater systems, ships, and submarines.
- Renew and Expand Submarine Fleet
- Our North, Strong and Free commits to exploring options for renewing and expanding our submarine fleet.
- This will enable the Royal Canadian Navy to project a persistent deterrent on all three coasts, with under-ice capable, conventionally powered submarines.
- All-terrain Vehicles for Arctic Mobility
- Our North, Strong and Free commits to exploring options to acquire new vehicles adapted to ice, snow, and tundra.
- These versatile, all-terrain vehicles would be able to operate effectively in all Arctic terrains and climate conditions.
- These vehicles would allow the military to maintain awareness in remote regions and along Canada’s entire coastline, and better respond to unauthorized activity.
- Arctic and Offshore Patrol Vessels able to Operate Helicopters
- Our North, Strong and Free commits to exploring options to enable our Arctic and Offshore Patrol Vessels to embark and operate our maritime helicopters at sea.
- This will strengthen the CAF’s ability to respond to a range of requirements, including in support of search and rescue, disaster relief, and Arctic reconnaissance and surveillance.
Engagements with Northern Communities
- As the Government is designing and implementing Our North, Strong and Free’s initiatives, it will be working with northern partners in line with its commitments to reconciliation and to its related work under the Arctic and Northern Policy Framework.
Responsible Principals: Assistant Deputy Minister (Policy), Assistant Deputy Minister (Infrastructure and Environment)
April XX, 2024.
Recruitment Modernization
Question: How will Our North, Strong and Free address the Canadian Armed Forces’ recruitment deficit?
- Our North, Strong and Free highlights our priority to bring the Canadian Armed Forces back to its authorized strength by 2032, while also laying the foundations for future sustained growth.
- We will undertake a wide array of new and innovative measures to attract more Canadians to the unique opportunities of service offered by the Canadian Armed Forces.
- For example, we will streamline the security clearance process and establish a probationary period to enroll applicants faster.
- We will also re-evaluate medical requirements, and abolish outdated processes and criteria wherever possible, to support efforts to fill our personnel gap.
- People are at the core of everything we do, and we remain committed to modernizing and competing for diverse talent, without compromising the security or service standards of our members.
If pressed on specific measures:
- Our current efforts are focused on developing digital technology to improve the applicant experience, speeding up required screenings, and connecting with new pools of applicants.
- For example, we are staffing recruiting centres and training schools on a priority basis to increase our capacity to recruit.
- The Canadian Armed Forces is also modernizing training by optimizing new members' transition into service, streamlining training activities, and providing new recruits with meaningful work more quickly and effectively.
If pressed on the probationary period:
- We are taking a fresh approach to recruit and train more military members.
- To start, the Canadian Armed Forces will create a probationary period to enable the faster enrollment of applicants.
- This probationary effect will expedite suitability screening and re-evaluate medical requirements, and abolish outdated processes and criteria wherever possible to support efforts to urgently fill personnel gaps.
Quick Facts
Funding:
- Our North, Strong and Free invests $8.1 billion over the next five years, and $73 billion over the next 20 years.
- This includes:
- $10.2 billion over 20 years in current and new infrastructure to support the required tempo of training, operations, and day-to-day military activities.
- $1.8 billion over 20 years to increase the number of civilian specialists in priority areas to accelerate and improve the purchase of new equipment, recruit, and train new soldiers, and upgrade our infrastructure, among others.
Combined Regular Force and Primary Reserve total strength: 92,736 (as of February 29, 2024).
Recruitment Statistics:
- As of December 31, 2023, the CAF has received 53,213 applicants.
- Canadian citizens represent approximately 72.6% (36,473) of the total applicant pool, and Permanent Residents approximately 27.4% (13,740).
- Between November 1, 2022, and February 21, 2024, approximately 25,000 Permanent Residents have demonstrated an interest in joining the CAF.
- In 2023-2024 (as of 31 January 2024), 6,428 individuals joined the Regular Force and Primary Reserve, 16% of whom were women.
- 2022-2023 intake: 7,173 individuals.
- 2021-2022 intake: 8,071 individuals.
- Indigenous Representation: 3.0% (as of December 2023); goal is 3.5% by 2026.
- As of July 2023, the CAF is offering five Indigenous training programs nationwide, which combine military skills training and Indigenous cultural teachings.
Background
New measures related to security clearances:
- DND is taking several steps aimed at improving and modernizing the efficiency and effectiveness of our security screening processes. This includes:
- Efforts to streamline the security clearance process to reduce the time it takes for new recruits to move into their positions.
- Hiring more civilian specialists to speed up enrolment.
- Implementing a probationary period to get more people into uniforms while other processes are pending. More information specific additional measures to speed up security screening will become available in the coming months.
- In the meantime, security clearance assessments are continuing to be processed based on established priorities; staffing continues to be the number one priority.
- There are several factors which contribute to the timelines needed for completing assessments, including the level being assessed and availability of information from the candidate. Depending on the priority and level the process can take from few days to up to eighteen months. Processing the highest levels of security clearances in the CAF continues to be a challenge across occupation groups that require higher level security clearances.
- In particular, the CAF has made recent changes to security clearance processing for Cyber Operators so that they can complete their initial training and be employed in their first units with fewer delays.
- The CAF has aligned student training and employment with the security clearance process to reduce any potential delays as well as maximize education and experience opportunities.
Existing Measures:
Indigenous Recruitment
- National Defence implements a broad range of proactive and targeted recruitment programs aimed at increasing the representation Indigenous Peoples in the CAF. These programs and initiatives include:
- The CAF Indigenous Entry Program: A three-week hands-on experience program for Indigenous Peoples who are considering a career in the CAF.
- The Indigenous Leadership Opportunity Year: Provides Indigenous participants with exposure to the CAF military and academic disciplines. Enrolled and paid as Officer Cadets, participants experience university-level educational and leadership opportunities at the Royal Military College in Kingston, Ontario; Notably, it is the only Indigenous program focused on developing potential officers. Participants are enrolled into the Regular Force as Officer Cadets.
- Primary Reserve Indigenous Summer Programs: Multiple six-week paid programs available, which integrate cultural teachings with military training. Participants who successfully complete a program are granted the CAF Army Reserve Basic Military Qualification.
Recruitment of Permanent Residents
- The Canadian Forces Recruiting Group accepts trained applicants from foreign militaries. These applicants include pilots, logistics officers, infantry officers and other skilled professionals, who may become enrolled in the CAF if they have permanent resident status in Canada.
- This enables other permanent residents, who meet the same criteria as Canadian citizens to enroll in the CAF as new recruits or officer cadets.
- The Chief of the Defence Staff signed a document on October 18, 2022, that reinforces existing policy and designates authority to the Commander Military Personnel Command and the Commander Canadian Forces Recruiting Group for the enrolment of a citizen of another country who has permanent resident status under the Immigration and Refugee Protection Act.
Naval Experience Program
- The Naval Experience Program (NEP) offers Canadians the opportunity to experience Navy as a sailor for a one-year contract and provide them with exposure to a variety of naval trades before deciding if a career in the Navy is the right fit for them.
- Participants receive the same pay and benefits as any other CAF recruits.
- After the one-year contract, participants can choose to continue to serve with the RCN, either full-time or part-time, transfer to another element, or leave the RCN.
- As of February 22, 2024, there were 1,375 prospective applicants to the NEP program. These are individuals who have submitted an online application form. As of this same date, 146 NEP sailors have been enrolled.
CAF Retention Strategy
- On October 6, 2022, National Defence released the CAF Retention Strategy, which is composed of three elements:
- Better understanding the drivers that impact/hinder retention rates;
- Outlining key considerations, from leadership responsibilities to flexible policies to effective communication; and
- Identifying concrete levels of effort to guide a deliberate approach to this problem-set, including strengthening governance.
Recruitment Digital Modernization Initiative (ReMit)
- In response to recruiting challenges, National Defence has sought to create a modern, agile and human-centric recruitment system.
- Full rollout of this system is expected for the first quarter of the 2024-25 fiscal year.
- Some updates to the system expected through this initiative include:
- Online personality inventory tests to enable the conduct of many steps without having to visit a recruiting centre.
- Automated text message reminders to notify applicants of their file status, next steps and any items they need to complete.
- Multi-select tool will enable recruiters to process multiple similar files at the same time, reducing the time it takes to complete repetitive tasks.
Responsible Principals: Chief Military Personnel
April XX, 2024
Supports for CAF Members and Their Families (Retention)
Question: What is Our North, Strong and Free doing to support our Canadian Armed Forces members and their families?
- We know that Canadian Armed Forces members, and their families, face unique challenges due to job requirements, and that is why our people must be our first priority.
- As such, we are including new measures in Our North, Strong and Free that strengthen how we retain and take care of our people to make us a stronger, more effective, and inclusive organization.
- In particular, the policy includes investments that improve our members’ quality of life in service by prioritizing housing and childcare, which will help our members and their families with cost-of-living pressures.
- For instance, we will be investing an additional $295 million to build new infrastructure and rehabilitate existing housing.
- With this policy we will invest $100 million to provide members with better access to childcare on bases across the country.
- Further, we will accelerate the development of an electronic health record platform that improves the continuity of health services of members as they move between provinces and territories.
- These investments will ensure the Canadian Armed Forces recognizes and rewards military members and their families for the sacrifices that they make in the service of Canadians, which will in turn lead to a more diverse, efficient and operationally effective military.
If pressed on housing initiatives:
- In addition to investing $295 million to support efforts to build and renovate housing, we will create a Canadian Armed Forces housing strategy to improve access to housing for CAF members as we have done for all Canadians.
- The housing investments outlined in Our North, Strong and Free, will complement our ongoing work on housing, notably the construction of 650 residential housing units over the next five years.
- In the meantime, we will be constructing approximately 650 residential housing units in those areas with the greatest need over the next five years.
- In fact, plans are underway to build higher density units to better and more efficiently use land and infrastructure in Esquimalt, Edmonton, Borden, Kingston, Trenton, Halifax, Petawawa, Gagetown, Ottawa, and Valcartier.
If pressed on childcare initiatives:
- Military service often requires frequent relocations and deployments, making quality childcare more than just a convenience.
- While childcare is already available at 27 of 32 bases/wings’ Military Family Resource Centres, their services are often limited or run by provincially incorporated non-profit organizations.
- In order to enhance the support we offer to our military families, we will invest $100 million to improve members’ access to childcare at bases across the country.
- Details of how this money will be allocated across bases is still being worked.
- We will inform military members and their families as work progresses.
Quick Facts
Funding:
- $295 million over 20 years to establish a CAF housing strategy, build new housing, and renovate existing housing so CAF members have safe and affordable places to call home where they and their families are posted.
- $100 million over five years to improve childcare access for CAF personnel on bases across Canada.
Existing measures:
- National Defence maintains and operates approximately 11,700 residential housing units at 27 locations, through the Canadian Forces Housing Agency (CFHA).
- Key cost-of-living supports:
- Canadian Forces Housing Differential (CFHD) – it is estimated that about 28,000 Canadian Armed Forces members will qualify for this new housing benefit.
- Provision Post Living Differential (PPLD) – this support will ease transition to the CFHD and will gradually decrease until the end of the policy in July 2026.
Background
Existing Military Housing Investments
- A full breakdown of new residential units built since 2018 is included below:
| - | FY 18/19 | FY 19/20 | FY 20/21 | FY 21/22 | FY 22/23 | FY 23/24 | Total |
|---|---|---|---|---|---|---|---|
| BORDEN | - | - | 12 | - | 12 | ||
| COMOX | - | - | 12 | 12 | 24 | ||
| KINGSTON | - | - | - | 2 | - | - | 2 |
| MOOSE JAW | 6 | - | - | - | - | - | 6 |
| SHILO | - | - | 8 | 6 | 14 | ||
| TRENTON | 10 | - | - | - | - | - | 10 |
| Total | 16 | - | 24 | 2 | 8 | 18 | 68 |
- Investments are also being made to renovate existing residential housing units, in order to ensure that the housing portfolio continues to meet the needs of CAF members.
- In fiscal year 2021/2022, National Defence began allocating $40 million per year for 10 years to be invested in the residential housing program.
- Starting in fiscal year 2022/2023, National Defence increased this allocation by $15 million per year for three years, resulting in a total annual investment of $55 million for those years in residential housing for Canadian Armed Forces members.
- In 2023/24, funding was increased by an additional $15 million per year, for three years. The resulting funding breakdown annually is:
- FY 2023/24 & FY 2024/25: $70 million
- FY 2025/26: $55 million
- FY 2026/27 to FY 2030/31: $40 million
- In total, $490 million will be invested in the residential housing program over ten years, to construct new units and to continue renovating the existing portfolio.
- Current construction projects include:
- A 12-unit apartment building at 19 Wing Comox, British Columbia (ready for occupancy in April 2024)
- Two 6-unit apartment buildings at 3rd Canadian Division Support Base Edmonton are expected to begin construction in Spring 2024. These will be the first net-zero apartment buildings constructed by DND.
- Plans are also underway to begin constructing new housing units at CFB Borden, CFB Esquimalt, CFB Kingston, and 8 Wing Trenton.
- On-site work in Edmonton is anticipated to begin in May 2024. Meanwhile, buildings in CFB Kingston and CFB Borden are currently being designed, with construction anticipated to begin in late 2025 or early 2026. Projected timelines for construction at CFB Esquimalt and 8 Wing Trenton are still in development.
Existing Cost-of-living Supports
- Canadian Forces Housing Differential (CFHD) – The CFHD replaces the Post Living Differential (PLD) and took effect on July 1, 2023. Whereas PLD was based on general cost-of-living (i.e., housing, groceries, transportation, childcare costs, etc.) in the geographical area, compared to Ottawa/Gatineau, CFHD provides varying degrees of financial assistance toward housing at each place of duty.
- It is estimated that about 28,000 CAF members will qualify for CFHD.
- Provisional Post Living Differential (PPLD) – The PPLD took effect July 1, 2023, and will ease the transition from PLD to the CFHD. The 15-year rate freeze of PLD created an environment where members became accustomed to the allowance when cost-of-living stressors were eased through pay increases and local economic factors.
- The PPLD will cease on June 30, 2026.
- Pay Increases – In 2023, general service officers (Lieutenant-Colonel and below), pilots, medical and dental officers, and all non-commissioned members received a 12% pay increase over 4 years (from 2021 to 2024). Meanwhile, Colonels, Generals and Flag Officers received a 13% pay increase over years (from 2022 to 2025).
Responsible Principals: Assistant Deputy Minister (Infrastructure and Environment), Chief Military Personnel
April XX, 2024
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