Strengthening Canada's Defence and Security Industries

News Release

Industry Minister Moore at Canada's largest defence trade show discussing measures to help the industry grow and create jobs

May 28, 2015 – Ottawa – Industry Canada

Minister of Industry James Moore spoke today at CANSEC, Canada's premier defence trade show, where he highlighted how government defence procurement policies strengthen the competitiveness of Canadian defence and security firms, while creating jobs and benefits across the supply chain.

Minister Moore discussed actions taken by the government to sustain the success of the defence and security industries. These include changes made to the Industrial and Technological Benefits Policy that will help attract earlier investment by prime contractors in Canadian firms, particularly small and medium-sized enterprises, while reducing red tape and increasing the transparency and accountability of the policy.

Minister Moore also reiterated the government's commitment to continue working with the industry to create high-quality jobs and grow Canada's economy.

Quick facts

Military procurement plays a major role in the Canadian economy. The Canadian defence sector includes over 650 firms, employs more than 65,000 full-time workers directly and indirectly, and contributes $9.4 billion in revenue.
The changes are being made to the banking and pooling provisions of the Industrial and Technological Benefits (ITB) Policy and to its Investment Framework, which applies a multiplier to investments made by prime contractors in Canadian small and medium-sized businesses. As well, administrative changes, such as introducing electronic forms and instituting a six-month service standard for crediting company investments in Canada, will reduce the administrative burden on defence contractors.
The ITB Policy encourages companies to establish or grow their presence in Canada, strengthens Canadian supply chains and develops Canadian industrial capabilities.
The ITB Policy applies to major Coast Guard, defence and security procurements announced after February 5, 2014.
The objectives of the Defence Procurement Strategy are to deliver the right equipment to the Canadian Armed Forces and the Canadian Coast Guard in a timely manner, to leverage purchases of defence equipment and services to create jobs and economic growth in Canada, and to streamline the defence procurement process.

Quotes

"Our government has worked to set the right conditions for strengthening the competitiveness of Canada's defence and security industries. The refinements to the Industrial and Technological Benefits Policy announced today will leverage greater economic benefit from defence procurement, and they are strong examples of how we are working in lockstep with industry to create jobs and economic growth for Canadians."
– James Moore, Minister of Industry

"The changes announced today will leverage investment in Canadian companies and make it easier for small and medium-sized businesses to secure contracts through the Defence Procurement Strategy and the Industrial and Technological Benefits Policy. This is good news for our industry, and it once again demonstrates how close consultation between government and industry is essential to ensuring that Canadian companies and jobs benefit from defence procurements. We applaud the government for their leadership on this important file and look forward to continuing to work with them to strengthen Canadian aerospace and defence capabilities going forward."
– Jim Quick, President & CEO, Aerospace Industries Association of Canada (AIAC)

"The improvements we are seeing made to the Industrial and Technological Benefits Policy should reduce the administrative burden on companies and enable Canadian SMEs to seize more business opportunities. These changes, which were developed in consultation with some of our members, build on the strong collaborative relationship the defence industry has enjoyed with Industry Canada throughout the development of the Defence Procurement Strategy."
– Christyn Cianfarani, President, Canadian Association of Defence and Security Industries (CADSI)

Associated links

Contacts

Jake Enwright
Press Secretary
Office of the Minister of Industry
343-291-2500

Media Relations
Industry Canada
343-291-1777
media-relations@ic.gc.ca

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Date modified:: 2015-05-28

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Strengthening Canada's Defence and Security Industries

News Release

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