QUESTION PERIOD — National Defence
Defence Industrial Strategy
April 16, 2026
Senator Moreau, last month I asked a question about a gap facing Canadian small- and medium-sized enterprises, or SMEs, attempting to scale under Canada’s Defence Industrial Strategy. This is similar to a question you heard earlier. I would like to follow up on what I asked previously.
Specifically, in response, the government pointed to the Regional Defence Investment Initiative, which provides grants and contributions to support SMEs. While that program may provide grants and contributions to help companies develop technology, it doesn’t create a pathway to contracts that allow existing technologies to be deployed and scaled.
Today, the primary path to large procurement opportunities remains through major defence primes, often foreign-owned subsidiaries operating in Canada. Canada needs to become the first and best customer for Canadian innovators if we wish to become globally competitive. I see you nodding. I know that you agree with this intention.
Could the government explain what mechanisms it plans to introduce —
Thank you, Senator Deacon.
Thank you, Senator Deacon. There is a link to Senator Martin’s question.
The most important thing is that the government has grouped all the procurement concerning the military under one agency. For instance, I know very well that in Quebec there is a small business that is now making uniforms, not only parade uniforms but also tactical uniforms, because of the government’s new approach.
A key part of the mandate of the agency is to better target procurement towards the strategic defence sector here at home, ensuring Canadian capabilities are a part of the solution from the outset. By centralizing major procurements and engaging industry earlier, the agency will ensure that Canadian SMEs can align their technology with military needs before contracts are even issued.
So, there will be a direct link between the SMEs —
Thank you, Senator Moreau.
