Canada’s defence industrial strategy is big on ambition, but not details, critics say

Prime Minister Mark Carney at Rideau Hall in Ottawa, Ont. Photo by Minas Panagiotakis/Getty Images filesArticle contentCanada’s new defence industrial strategy sent a message that the federal government intends to use some of the $82 billion being set aside to give the economy a shot in the arm, but some in the industry say the policy lacked policy detail, while others said it sets the country on an ambitious path.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“The entire thing is predicated on building up our industrial capacity,” said Naresh Raghubeer, managing partner and co-founder of the Sandstone Group, a lobbying firm with experience in defence procurement. “It’s a nice general document and its implementation will be interesting to watch.”Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe 57-page defence strategy lays out a series of goals for the next decade and includes increasing the share of government defence contracts awarded to Canadian companies to 70 per cent, increasing defence exports by 50 per cent and creating 125,000 jobs in the process.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe strategy commits to an 85 per cent increase in government investment in defence-related research and development over the next decade and to principles such as making it easier for Canadian companies to navigate and become accredited for defence procurement.Article contentBut the document drew criticism from some as being overly general. For example, it lists 10 areas where Canada will establish “sovereign capabilities,” from aerospace and communication to uncrewed autonomous systems.Article contentAlan Williams, a former government official who now advises companies on defence procurement, said the list risks being overly broad.Article content“I was hoping to see specifics in terms of what areas our country wants to be best in,” he said.Article contentBy laying out goals, such as creating 125,000 jobs or awarding 70 per cent of acquisitions to Canadian companies, without providing clear policies to achieve these objectives, Williams said there is a risk that “the ‘best’ equipment for the military (may) be sacrificed in order to buy Canadian.”Article contentArticle contentThe document was specific about some policies that he challenged. For example, a newly created Defence Investment Agency — which will be established through legislation later — would be responsible for defence contracts of more than $100 million.Article contentRead More Opinion: The rupture is here: Why Canada needs an economic security act like Japan's 'Sole-source' clause in new U.S.

National Security Strategy runs roughshod over Canadian sovereignty Article content“It is hard to understand why a $95-million acquisition should be treated differently from a $105-million acquisition,” said Williams, who added that he believes it will likely add bureaucracy.Article contentHe said the federal government should consider publicizing “a long-term Cabinet-approved capital plan” for organizing defence expenditures so that Canadian companies can position themselves to win future contracts.Article contentOthers also said the federal government is finally addressing a litany of criticisms it has faced on defence procurement in the past.Article contentDana O’Born, chief strategy officer at the Council of Canadian Innovators, said she was optimistic that the government is heeding advice that it must take new steps to protect intellectual property created through its investments and spending.Article contentThe document mentions intellectual property a half-dozen times, she said, whereas the phrase was rarely, if ever, mentioned in the past.Trending Garry Marr: For young Canadians who bought at peak of market, Home Buyers' Plan was invitation to disaster First-Time Homebuyers Cooler inflation gives Bank of Canada an opening to cut rates if economy falters, say economists Economy Posthaste: Canada's biggest city is losing momentum, and that's a problem for the whole country News Canada's home sales plunge in January, led by Ontario Real Estate Carney Poaches Third Conservative Defector, Chasing Majority PMN Business Article content“If we don’t own the ideas coming out of our country, then we just continue to be this branch plant,” she said.Article contentO’Born said the government still needs to show it is serious by crafting policies to protect IP and other value chains.Article contentIn that sense, most agreed that the document is aspirational in tone in that it lays out principles and goals, but does not always prescribe the exact policy to get there.Article content“What is good about this document is that finally we have one,” said one defence procurement insider speaking on background. “Great. We are now at the beginning of the starting point, but from here we need to get better.”Article content• Email: gfriedman@postmedia.com Article contentShare this article in your social network Get the latest from Gabriel Friedman straight to your inbox Sign Up CommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Garry Marr: For young Canadians who bought at peak of market, Home Buyers' Plan was invitation to disaster First-Time Homebuyers Cooler inflation gives Bank of Canada an opening to cut rates if economy falters, say economists Economy Posthaste: Canada's biggest city is losing momentum, and that's a problem for the whole country News Canada's home sales plunge in January, led by Ontario Real Estate Carney Poaches Third Conservative Defector, Chasing Majority PMN Business