The committee met to study Canada’s first defence industrial strategy (DIS). Appearing were Minister of National Defence David McGuinty; department officials Heather Sheehy, Stephen Kelsey, Christiane Fox, Lieutenant-General Erick Simoneau and Wendy Hadwen; and academics Robert Huebert, Christian Leuprecht, Richard Shimooka and Heather Exner-Pirot.
Minister McGuinty presented the DIS as a “build-partner-buy” framework to prioritize Canadian suppliers, create 125,000 jobs, increase defence exports by 50% and raise the share of contracts awarded to Canadian firms to 70%. He noted that Canada has reached the NATO 2% GDP spending target and is working toward 5% by 2035, and that the strategy includes $6.6 billion in new investments over five years. He confirmed that the F-35 decision remains under review, with 16 aircraft on order and deliveries on track for this year.
Heather Sheehy detailed infrastructure investments at 8 Wing Trenton, including $165 million in planned spending over three years, 92 housing units under construction and a further 384 units in phase two. She confirmed that the HIMARS procurement process began years ago and that the capability comes from an American firm because it is the only provider, adding that future procurements will follow the build-partner-buy approach.
Stephen Kelsey acknowledged that some personnel lack properly sized body armour, calling it “unacceptable,” and said the money is available but industry has not responded quickly enough. He noted that full re-equipping will take three years but that priority is being given to those deployed to Latvia.
Christiane Fox said the DIS aims to accelerate procurement and rebuild the workforce, and that the government is engaging with SMEs through regional development agencies and defence innovation support hubs. She confirmed that the fighter jet decision is under review and that the airborne early warning aircraft project is separate and in preliminary stages. On exports, she said the government is working with Global Affairs Canada to balance export growth with peace objectives, and that diversification toward Arctic nations, NATO and Indo-Pacific partners is a goal.
Lieutenant-General Erick Simoneau addressed the CSOR allowance issue, explaining that the allowance is tied to operational service and that the military is working to embed it in salary, as was done for pilots. On recruitment, he said the trained effective strength target is 71,500 by 2029, that the force is at just under 68,000, and that the recruit school is increasing bed capacity and prioritizing instructor staffing to handle higher intake.
Wendy Hadwen said the DIS aims to be more proactive in clearing companies for security access, including for drone production, to help them access international markets.
Robert Huebert argued the DIS underestimates the urgency of the geopolitical environment and does not address how Canada would equip its forces in a conflict, how to manage the political interface with procurement, or how to learn from allies like Ukraine. He said the strategy substitutes numerical targets for a real assessment of deterrence and warfighting capability, and that Canada needs a societal shift in awareness and a return to independent analytical capacity.
Christian Leuprecht said the DIS risks repeating Germany’s mistake of diverting defence funds to non-defence priorities, and that Canada must prioritize capability, interoperability and deterrence over industrial policy. He called for an expert commission to depoliticize trade-offs among political, financial, economic and defence priorities, and warned that without credible investments, Canada will lose leverage with both Europe and the United States.
Richard Shimooka said the DIS lacks a clear demand signal because Canada has no national security strategy, and that the 70% Canadian content target is arbitrary and may not be good wartime policy, since interoperability and scale with allies matter more. He noted that Canada’s deployable capability is very low and that allies privately express concern about what Canada can actually bring to operations.
Heather Exner-Pirot said Canada is in a strong position on critical minerals but needs a more sophisticated understanding of supply chain vulnerabilities beyond mining, especially in refining and processing. She recommended that the government act as a buyer of last resort using tools like cost-based floor prices and offtake agreements, and that Canada coordinate with allies rather than try to replicate every stage of the supply chain domestically.
The committee debated a motion by James Bezan to study CAF recruitment and training programs, specifically the January 2026 memo on basic training. Chris Malette moved an amendment to reduce the study to four meetings and add a reference to a 30-year high in recruitment. Bezan subamended to delete that reference, and the subamendment carried. The amended motion was then adopted. The committee also agreed to a motion to travel to 17 Wing in Winnipeg for its NORAD modernization study, subject to Liaison Committee approval.
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