QUESTION PERIOD — Public Services and Procurement
Military Procurement
October 29, 2026
Government leader, a report in the National Post this morning highlighted the sale of International Submarine Engineering, or ISE, a B.C.-based autonomous underwater vehicle company, to a foreign defence firm without an apparent national security review.
ISE benefitted from decades of public investment and possesses unique expertise directly relevant to Canada’s Arctic sovereignty and our future autonomous marine capabilities. Given your government’s commitment to strengthening made-in-Canada defence capabilities, how does it justify allowing this transaction to proceed?
I don’t have the details about that transaction, Senator Martin. Thank you for raising the question.
Let me reiterate that the government knows that defending the North and Arctic requires a consistent, long-term, well-equipped and staffed Canadian Armed Forces. That is the main concern of the government at this time.
I know there is an article, but I have been told not to rely solely on what I read in the newspaper. If you provide me with more information, I will get back to you with an answer to your question.
Yes, I would be pleased to forward the link to the National Post, which is one of our major papers.
It says in the report that Canadian company Dominion Dynamics had expressed interest in acquiring ISE but was unable to compete before the deal was finalized. So my question has two parts: First, why wasn’t a Canadian buyer given an opportunity to make the purchase? Second, will your government review its policies governing foreign acquisitions of defence-related companies to ensure that strategically important Canadian defence capabilities — like this one — and expertise are not sold abroad?
It’s obvious from your question that I must check the precise facts about why a Canadian company was not able to meet the deadline for responding to the proposal. I will get back to you with a proper answer.
