Government of Canada delivers greater transparency in defence contract obligations

News Release

Canadian defence firms will be able to better take advantage of supply chain opportunities

May 24, 2016 – Ottawa – Innovation, Science and Economic Development Canada

In keeping with the Government's commitment to openness and transparency, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development (ISED), today announced that the progress defence contractors are making in fulfilling their obligations under the Industrial and Regional Benefits (IRB) Policy and the Industrial and Technological Benefits (ITB) Policy will be published for the first time.

This information will help Canadian companies and research institutions promote their business and develop partnerships with defence contractors while keeping Canadians informed about contractors' progress in fulfilling their obligations.

Under the IRB and ITB policies, defence contractors are required to undertake business activity in Canada equal to 100 percent of the value of their contracts. These policies are helping to build regional strengths across Canada in the defence and other sectors of the economy. Defence contractors and their major suppliers have created significant new opportunities for small and medium-sized firms in Canada, notably in the manufacturing sector. These investments are also fostering research, development and innovation and positioning Canada for export success and future growth.


"These government policies create opportunities for Canadian firms across all sectors. Releasing this information will help Canadian businesses gain a foothold in important and lucrative defence supply chains, growing both their business and our economy. Sharing this information with Canadians is also an important part of the Government being open, transparent and accountable."

– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

"CADSI welcomes the opportunity to communicate the progress defence contractors have achieved in fulfilling their Industrial and Regional Benefits and Industrial and Technological Benefits obligations to Canada. This will also help Canadian small and medium-sized enterprises access global supply chains. CADSI worked in close partnership with the Government to support enhanced transparency around policies that are enabling the Government to leverage economic benefit for Canada from defence procurements."

– Christyn Cianfarani, President, Canadian Association of Defence and Security Industries

Quick facts

  • The IRB and ITB policies have been applied to 125 contracts since 1986, resulting in obligations to invest $37.7 billion in Canada.
  • Of those obligations, $24 billion has been invested, $9 billion is in progress and $4.7 billion has yet to be invested in Canada over the life of the contracts.
  • Presently, 30 defence contractors have outstanding obligations and report annually to ISED on their progress toward fulfilling their commitments. The status of these obligations will be reported on an annual basis.

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Philip Proulx
Press Secretary
Office of the Minister of Innovation,
Science and Economic Development

Media Relations
Innovation, Science and
Economic Development Canada

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