PACP meeting 30 · 2026-04-13 — Committee Evidence — LegisWatch

Summary

The House of Commons Standing Committee on Public Accounts met to study the Auditor General of Canada’s report “Housing Canadian Armed Forces Members,” tabled in October 2025. Appearing were Auditor General Karen Hogan; Deputy Minister of National Defence Christiane Fox; Canadian Forces Housing Agency CEO Paola Zurro; Chief of Military Personnel Lieutenant-General Erick Simoneau; Office of the Auditor General Director Stuart Smith; and Assistant Deputy Minister for Infrastructure and Environment Peter Hammerschmidt.

Auditor General Karen Hogan stated that National Defence did not manage living accommodations to meet operational needs or the needs of members and their families. Her audit of three bases found that 32 of 35 quarter buildings inspected needed at least one high-priority repair, including problems like unsafe drinking water and non-functioning toilets. She noted that the Canadian Forces Housing Agency did not plan to build enough new units to fill existing gaps, with over 3,700 outstanding applications for residential housing but only 205 available units, and that needs assessments were based on outdated data from 2011 and 2019, not accounting for planned force expansion.

Deputy Minister Christiane Fox acknowledged the report’s findings and said the department accepted all recommendations. She outlined a comprehensive framework to define the role of quarters, improve data and tracking, and ensure regular inspections every three to five years. Fox highlighted a $1.4-billion, 20-year commitment to modernize housing, plus $490 million over 10 years, and noted that phases one and two of a national housing construction program will add up to 7,500 new residential units across 25 locations. She also addressed the Conflict of Interest and Ethics Commissioner’s report, stating she takes it seriously and is reflecting on her actions.

Canadian Forces Housing Agency CEO Paola Zurro said the current housing gap is between 7,000 and 10,000 units, based on an updated assessment. She detailed progress including 800 units in phase one, 7,500 planned in phase two, and alternative solutions such as acquiring 37 units in Esquimalt and 140 in Dartmouth, leasing in Yellowknife, and a pilot in Trenton giving members first right of refusal on vacant units. Zurro noted that 84% of the agency’s operating budget is reinvested into repairs and renovations, and that the agency is working with Build Canada Homes to align on modern construction methods.

Lieutenant-General Erick Simoneau emphasized that housing is critical for retention and readiness, noting that the waiting list for residential housing has decreased from 3,700 to about 1,200 recently, though he cautioned against directly linking this to pay increases. He identified a need for 2,000 additional quarters to support basic training and force growth, and said the Canadian Armed Forces is on track to reach 71,500 regular force members by April 2029. Simoneau also raised concerns about the home equity assistance program, which covers only 80% of losses since 2018, and said this is a top compensation priority.

Assistant Deputy Minister Peter Hammerschmidt stated that a recent survey has given the department a clear picture of quarter conditions across the country, and that maintenance and repair budgets will increase by 60% this year and double in each of the next two years. He noted that 75% of barracks now have Wi-Fi, with plans to cover the remaining 25%, and that the dual-use pathfinder initiative in Halifax is moving toward developing about 200 units on underutilized federal land.

Several members raised the Ethics Commissioner’s report on Deputy Minister Fox, with Conservative members pressing her to acknowledge wrongdoing. Fox reiterated that she takes the report seriously, is reflecting on her actions, and was motivated by a desire for organizational change and a public service that reflects Canadians. She stated the individual was not a friend but an acquaintance from university, and that she referred them as requested by the ADM responsible for the program.

The committee did not debate procedural motions or votes during this meeting.

AI-generated summary — may contain errors; verify against the official evidence.

Witnesses · 6

Karen Hogan

Auditor General of Canada, Office of the Auditor General

Opening remarks

Mr. Chair, thank you for giving us the opportunity to testify before the committee today to discuss our audit report titled “Housing Canadian Armed Forces Members”, which was tabled on October 21, 2025. I would like to begin by acknowledging that this hearing is taking place on the traditional unceded territory of the Algonquin Anishinabe people. Overall, National Defence did not manage living accommodations in a manner that would meet its operational needs and be responsive to the needs of Canadian Armed Forces members and their families. This is particularly important because the Canadian Armed Forces are planning to add additional members in the future. National Defence should have sufficient housing in appropriate locations to meet its operational needs and promote the morale, well-being and retention of members. National Defence did not have reliable data on furnished housing, also known as quarters. In particular, there was a lack of information on the number and location of beds intended for members in training, on short-term assignments, or in transit to other locations. The audit team visited three bases and found that many quarters were in poor condition, with…

Full testimony ↗

Christiane Fox

Deputy Minister, Department of National Defence

Opening remarks

Thank you, Mr. Chair and members of the committee. Good morning. Thank you for the opportunity to come and discuss the Office of the Auditor General's report on housing for Canadian Armed Forces members. Before I begin, I want to start by acknowledging the report of the Conflict of Interest and Ethics Commissioner. I take this matter very seriously. I respect the role of the commissioner and the office, and I need to focus on my role as a public service leader and my role at National Defence. I'm joined by my colleagues to speak to the very important issue of military housing. For CAF members, housing is more than a place to live. It is a fundamental part of their readiness. It provides our members with a place to rest and recharge so that they are prepared to carry out their duties. It ensures that our military families—the partners and children of those who serve—are well taken care of. It also helps us attract and retain the skilled personnel we need to assert our sovereignty and defend our security. Even in my short time at the Department of National Defence, I’ve learned a lot about the challenges we’ve faced providing suitable and affordable residential housing units,…