QUESTION PERIOD — National Defence
Military Spending
June 10, 2025
My question is for the Honourable Senator Gold. I’d also like to take this opportunity to sincerely thank him for his outstanding contribution to our venerable institution.
Senator, on Monday, the government announced its plan to increase and accelerate its investments in defence. The plan calls for an annual spending increase of more than $9 billion.
Having studied the expenditures of the Department of National Defence on the Standing Senate Committee on National Finance for close to a decade, I recall quite clearly that the problem isn’t so much the size of the budget but rather the department’s chronic inability to spend the funds allocated to it. The Parliamentary Budget Officer has indicated that, since 2017, the department has spent $12 billion less than the amount budgeted due to significant delays in military procurement. The many shortcomings of the shipbuilding policy are a case in point. This isn’t the first promise we’ve been given about improving the effectiveness of military procurement. Why should we believe that this time will be different?
Thank you for the question and for pointing out the careful work done by the Standing Senate Committee on National Finance. The Government of Canada has committed to taking immediate and firm action to rebuild the Canadian Armed Forces, hence the announcement you’re referring to. Minister McGuinty recently stated that concerns surrounding the defence procurement process have been heard. The government is well aware that more work remains to be done with regard to the defence procurement process, and it’s seriously examining those issues.
Thank you. Despite the industrial benefits programs that are supposed to maximize economic activity in the country, the government has made decisions that harm Canada’s industries as a whole.
There was the awarding of an untendered contract to Boeing to replace CP-140 Aurora aircraft to the detriment of Bombardier.
Under the historic investment announced Monday, what improvements will be made to ensure that Canadians get their money’s worth and that the investments will produce real benefits?
Prime Minister Carney was very clear: One of his objectives is to ensure that Canadians, industries and businesses benefit more from the government’s investments in this area.
That is exactly what is happening through the planning process.
