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January 14, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security

Economic Benefits of Defence Spending

Neither the December 2021 economic and fiscal update nor the 2021 budget contained much new spending for defence beyond some very targeted incremental funding to deal with more recent issues not covered in the 2017 defence policy. These issues include NORAD’s renewal, increased support to the NATO alliance and funding for operations and resources to address sexual misconduct and gender-based violence. This should not be surprising to those who follow defence issues. The 2021 budget emphasizes that the 2017 defence policy, Strong Secure Engaged, “set out a vision for a long-term, fully-funded plan to renew and re-equip the Canadian military, built around people.” Perhaps more important for DND’s longer term funding requirements are the projected deficits in the budget, beginning at $354 billion in FY20-21 and reducing to $30 billion in FY 2025-26. Historically, when governments in Canada face large deficits and start reducing costs, the largest discretionary spending category – defence – invariably takes a hit. Based on the government’s desire to focus on getting Canadians back to work by promoting innovation and small business, it is worth discussing whether continuing defence spending at the levels planned in Strong, Secure, Engaged will help achieve those goals.

https://www.cgai.ca/economic_benefits_of_defence_spending

On the same subject

  • Feds, Irving ask trade tribunal to toss challenge to warship contract

    December 27, 2018 | Local, Naval

    Feds, Irving ask trade tribunal to toss challenge to warship contract

    By Lee Berthiaume, The Canadian Press — Dec 25 2018 OTTAWA — The federal government and Halifax-based Irving Shipbuilding are asking a trade tribunal to throw out a challenge to their handling of a high-stakes competition to design the navy's new $60-billion fleet of warships. In separate submissions to the Canadian International Trade Tribunal, the federal procurement department and Irving say the challenge filed by Alion Science and Technology of Virginia does not meet the requirements for a tribunal hearing. Alion was one of three companies, along with U.S. defence giant Lockheed Martin and Spanish firm Navantia, vying to design the new warships, which are to be built by Irving and serve as the navy's backbone for most of this century. While Lockheed was selected as the preferred bidder and is negotiating a final design contract with the government and Irving, Alion alleges the company's design did not meet the navy's requirements and should have been disqualified. Two of those requirements related to the ship's speed, Alion alleged, while the third related to the number of crew berths. Alion has asked both the trade tribunal and the Federal Court to stop any deal with Lockheed. But the government and Irving say the contract is exempt from normal trade laws, which the tribunal is charged with enforcing, because of a special "national security exception," meaning there is "no jurisdiction for the tribunal to conduct an inquiry." Another reason the challenge should be quashed, they argue, is that Alion is not a Canadian company, which is a requirement for being able to ask the tribunal to consider a complaint. Alion's challenge has been formally filed by its Canadian subsidiary, but the government and Irving say that subsidiary was never actually qualified to be a bidder in the competition — only its American parent. The responses from the government and Irving are the latest twist in the largest military purchase in Canadian history, which will see 15 new warships built to replace the navy's 12 aging Halifax-class frigates and three already-retired Iroquois-class destroyers. The trade tribunal ordered the government last month not to award a final contract to Lockheed until it had investigated Alion's complaint, but rescinded the order after a senior procurement official warned that the deal was "urgent." The procurement department has not explained why the deal is urgent. Lockheed's bid was contentious from the moment the design competition was launched in October 2016. The federal government had originally said it wanted a "mature design" for its new warship fleet, which was widely interpreted as meaning a vessel that has already been built and used by another navy. But the first Type 26 frigates, upon which Lockheed's proposal was based, are only now being built by the British government and the design has not yet been tested in full operation. There were also complaints from industry that the deck was stacked in the Type 26's favour because of Irving's connections with British shipbuilder BAE, which originally designed the Type 26 and partnered with Lockheed to offer the ship to Canada. Irving, which worked with the federal government to pick the top design, also partnered with BAE in 2016 on an ultimately unsuccessful bid to maintain the navy's new Arctic patrol vessels and supply ships. That 35-year contract ended up going to another company. Irving and the federal government have repeatedly rejected such complaints, saying they conducted numerous consultations with industry and used a variety of firewalls and safeguards to ensure the choice was completely fair. But industry insiders had long warned that Lockheed's selection as the top bidder, combined with numerous changes to the requirements and competition terms after it was launched — including a number of deadline extensions — would spark lawsuits. Government officials acknowledged last month the threat of legal action, which has become a favourite tactic for companies that lose defence contracts, but expressed confidence that they would be able to defend against such an attack. —Follow @leeberthiaume on Twitter. Lee Berthiaume, The Canadian Press https://www.nationalnewswatch.com/2018/12/25/feds-irving-ask-trade-tribunal-to-toss-challenge-to-warship-contract-2/#.XCT7OFxKjIU

  • US State Dept OKs possible sale to Canada of drone munitions | Reuters

    September 17, 2023 | Local, Aerospace, C4ISR

    US State Dept OKs possible sale to Canada of drone munitions | Reuters

    The U.S. State Department has approved the possible sale to Canada of munitions and other systems to be integrated into MQ-9Bs drones for $313.4 million, the Pentagon said on Friday.

  • Halifax Shipyard launches Canada’s lead Arctic and Offshore Patrol Vessel

    September 17, 2018 | Local, Naval

    Halifax Shipyard launches Canada’s lead Arctic and Offshore Patrol Vessel

    Canada's lead Arctic and Offshore Patrol Vessel, the future HMCS Harry DeWolf, was launched today, Sept. 15, 2018, marking a significant milestone for the National Shipbuilding Strategy (NSS) and the revitalization of the Royal Canadian Navy's combatant fleet. At 103 metres and 6,615 tonne, the future HMCS Harry DeWolf is the largest Royal Canadian Navy ship built in Canada in 50 years. The ship was transitioned from our land level facility to a submersible barge yesterday, Sept. 14, 2018, and launched in the Bedford Basin today. The lead ship in the Arctic and Offshore Patrol Ship program is now pier side at Halifax Shipyard where our shipbuilders will continue working to prepare the ship for sea trials in 2019. HMCS Harry DeWolf is scheduled to be turned over to the Royal Canadian Navy in summer 2019. Construction of the second and third ships, the future HMCS Margaret Brooke and Max Bernays, are well underway at Halifax Shipyard. Later this month, the first two major sections of the future HMCS Margaret Brooke will be moved outside. The National Shipbuilding Strategy was created to replace the current surface fleets of the Royal Canadian Navy and the Canadian Coast Guard. Through a competitive, open and transparent process, Irving Shipbuilding was selected to construct the Royal Canadian Navy's future combatant fleet—Arctic and Offshore Patrol Vessels followed by Canadian Surface Combatants. As a result of the National Shipbuilding Strategy, Irving Shipbuilding has become one of Atlantic Canada's largest regional employers, with thousands of Canadians now working in skilled, well-paying jobs. The Halifax Shipyard, long at the centre of Canadian shipbuilding, is now revitalized and home to the most modern, innovative shipbuilding facilities, equipment, and processes in North America. http://shipsforcanada.ca/our-stories/halifax-shipyard-launches-canadas-lead-arctic-and-offshore-patrol-vessel

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