The Canadian Association of Defence and Security Industries (CADSI) and Aéro Montréal have released the following statements regarding Canada’s new defence policy entitled “Strong, Secure, Engaged,” which was announced on June 7, 2017.

Canada’s defence industry a key priority for Canada’s new defence policy

Christyn Cianfarani, president of CADSI, issued the following statement:

“The government’s new defence policy statement is the first time in over 30 years that such positive language has been used to recognize the value of Canada’s defence industrial base and how industry contributes to meeting Canada’s defence objectives. The Canadian Association of Defence and Security Industries commends the government for it.

“By setting Canada’s innovative defence sector as one of the five domestic priorities of the Department of National Defence, CADSI believes the government has acknowledged that Canadian industry is a critical member of Canada’s defence team.

“There are numerous areas where the defence policy brings to light the important role that Canada’s defence industry plays in our national defence:

• CADSI sees great value in the government’s commitment to “use procurement to incentivize Canadian research and development in important and emerging technological areas”;
• CADSI is pleased the government links a robust and innovative Canadian defence industry and Canada’s national defence, which is evident in their new Innovation for Defence Excellence and Security (IDEaS) program;
• CADSI welcomes the publication of a costed investment plan which will help Canadian industry prepare for and invest in upcoming defence acquisitions. The government’s new cost estimate for the Canadian Surface Combatant is a much more realistic assessment of the costs of that vital project;
• CADSI looks forward to engaging the government to streamline and improve the procurement cycle. A more efficient, less process laden, and leaner defence procurement process will benefit the Canadian Armed Forces (CAF), the government and Canadian industry and needs to remain a top priority for the government; and
• CADSI welcomes significantly enhancing Canada’s cyber defence and offence capabilities. Canada has world leading companies and technologies in the cyber defence domain that need to be utilized by the Department of National Defence in achieving its cyber defence objectives.

“‘Strong, Secure, Engaged’” is an ambitious agenda with long-term funding commitments and many new programs and initiatives. CADSI and Canada’s defence industry looks forward to working with the government on the implementation challenges associated with this agenda.

“I would like to thank Minister Sajjan, defence department officials and the Minister’s Expert Panel for their work and for consulting so extensively with Canadian industry.

Major investments in new capabilities, innovation and technologies will help promote collaboration among Quebec aerospace SMEs

Aéro Montréal, Quebec’s aerospace cluster, is delighted with the new investments announced on June 7, as part of Canada’s new defence policy, which increases total defence spending from $18.9 billion to $32.7 billion by 2026-2027. The federal government has already committed to spending upwards of $615 million in fiscal 2017-2018 and $6.5 billion over the next five years.

Several of the measures announced by Defence Minister, the Honourable Harjit S. Sajjan, are aligned with Aéro Montréal’s priorities and will help to enhance the business prospects of Québec aerospace companies.

“Innovation for Defence Excellence and Security (IDEeS)”-a promising program

The federal government is creating the IDEeS program, with an investment of $1.6 billion over 20 years. It aims to modernize the way National Defence generates solutions through new cooperative partnerships with the private sector and universities. A bidding process will be launched as early as 2018 to create innovation clusters.

“This new program will foster cooperation and collaboration among the sector’s key players,” said Suzanne M. Benoît, president of Aéro Montréal. “Innovation, collaboration and internationalization are the key to ensuring our companies remain among the best in the world. At Aéro Montréal, we have already put initiatives in place with this in mind. This new support will provide additional leverage for members of the cluster and we are very pleased.”

Replacement of CF-18s with 88 new fighter jets

In an effort to improve the CAF’s air attack capability, the Department of National Defence will replace the CF-18 fleet with 88 advanced fighter aircraft through an open and transparent procurement process.

“In Quebec, we have companies, including SMEs, that have developed a unique expertise with the CF-18 project, which has proven to be an economic success all down the line,” said Benoît. “We are in an excellent position to benefit fully from this acquisition of 88 new fighter aircraft, which is in addition to the 18 Super Hornet acquisition project. These projects will help to maintain the competitiveness and preserve over the long term the key competencies developed by our Quebec defence and national security SMEs.”

Replacement of the CP-140 with next-generation multi-mission aircraft

The Minister of Defence also announced his government’s support for the project to replace the CP-140 with next-generation multi-mission aircraft. “We applaud this initiative from the federal government, which it considers a priority. For our cluster companies, especially for our OEMs [original equipment manufacturers], this is a unique opportunity to position themselves on a Canadian platform,” added Benoît.

The importance of drones in Canada’s new defence policy

The federal government recognizes the importance of investing in a range of unmanned systems. This commitment is in line with another of Aéro Montréal’s priorities. Last April, the Quebec’s aerospace cluster signed a major collaboration agreement in the niche of drones excellence, with the UAS Centre of Excellence.

“The drones sector represents an enormous potential for Quebec’s aerospace companies active in defence and national security,” explains Benoît. “This new incentive from the federal government reinforces commitments already announced in its latest budget and in the recent budget of the Government of Quebec. Our strategy at Aéro Montréal is aligned with the potential benefits that could be generated by this niche of excellence and innovation.”

Cybersecurity and space capabilities

Aéro Montréal also welcomes the investment announcements related to cybersecurity and space capabilities. “The distinctive nature of our aerospace ecosystem in Québec is based on its diversity,” said Benoît. “Here again, key players in our industry could meet the requirements of the Department of Defence, notably in terms of improving cryptographic capabilities, global satellite communications and space surveillance.”

For Aéro Montréal’s president: “The commitments announced [on June 7] by the Government of Canada are in line with the proactive initiatives we are deploying at Aéro Montréal to maintain our leadership, which is recognized nationally and globally. They also are aligned with the crucial issue of the application of the Industrial and Technological Benefits (RIT) policy,” she adds, citing as an example that “SMEs content of 15 per cent of the value of a Super Hornet fighter jets purchase contract would give them a real chance to contribute to the program and better penetrate the defence and national security market.”

Canada’s new Defence Policy will help Aéro Montréal to better position Quebec companies in the sector on national programs. Aéro Montréal has already started to develop the Croissance Sécurité Défense Québec portal jointly with the Québec Ministry of Economy, Science and Innovation (MESI) and with the collaboration of STIQ and Québec International (QI). This web-based tool will cover all aspects of the sector ecosystem: aerospace, ground, naval, C4ISR. It will provide, among other things, technical training and coaching services, an active monitoring of business opportunities, and access to the content and resources of all relevant federal and provincial government departments and agencies.