Federal government supporting diversity and skills development through defence spending
New Value Proposition Guide will bring greater economic benefits and jobs for Canadians
May 31, 2018 – Ottawa, Ontario
The federal government is using its purchasing power to ensure Canada’s men and women in uniform have the equipment and services they need, while promoting diversity and gender balance and creating skills training opportunities for all Canadians.
The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, today released the new Value Proposition Guide, which updates the government’s approach to assessing economic benefits to Canada under the Industrial and Technological Benefits (ITB) Policy.
Under the new guide, the Government of Canada will leverage its contracts in the defence sector to promote skills development and diversity.
The ITB Policy requires that for every dollar the government spends on equipment for our Armed Forces and Coast Guard, the supplying company reinvests a dollar back into the Canadian economy. That translates into a robust research and development environment and hundreds of well-paying middle-class jobs for Canadians.
The new guide also recognizes the contributions of a skilled and agile workforce to Canada’s innovation economy, encouraging bidders to provide skills development and training opportunities for Canadians. Bidders will also be required to describe their efforts to achieve gender balance and increase diversity within the Canadian defence industry as part of future Value Proposition proposals.
“Using our government’s purchasing power to promote gender balance and skills training for Canadians is not only the right thing to do but also the smart thing to do. The updated Value Proposition Guide will see more investments in people, ensuring our future workforce has the skills and diversity to make Canada resilient as it services the men and women that serve our country.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development
Enhancements to the guide include the integration of Key Industrial Capabilities, which Minister Bains announced in April 2018. These capabilities will motivate defence contractors to invest in emerging technologies and in areas where Canada has developed globally competitive capabilities.
To ensure continuous improvement in growing Canada’s defence industry, the Value Proposition Guide will be reviewed periodically and evolve through ongoing engagement with stakeholders.
The Canadian defence industry includes over 660 firms, with more than $10 billion in sales in 2016, and supports close to 60,000 jobs in Canada.
The industry is both innovative, with a research and development intensity that is 4.5 times the Canadian manufacturing average, and export-oriented, with 60 percent of its sales in 2016 taking place in the global market.
From 1986 to 2016, the overall portfolio of ITB obligations included 137 contracts valued at $41.5 billion, with $28.3 billion in business activities already completed, $9.4 billion of activities in progress and $3.8 billion in unidentified future work opportunities.
Follow the department on Twitter: @ISED_CA
Karl W. Sasseville
Office of the Minister of Innovation, Science and Economic Development
Innovation, Science and Economic Development Canada
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