Une innovation québécoise à l'assaut de l'armée américaine

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  October 22, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence

  Canada jumps closer to military-spending target thanks to COVID-19's economic damage

  The Canadian Press OTTAWA — Canada has taken a big leap closer to meeting its promise to the NATO military alliance to spend a larger share of its economy on defence thanks to an unexpected assist from COVID-19. New NATO figures released Wednesday show that largely thanks to the pandemic, Canada is poised to spend the equivalent of more of its gross domestic product on defence this year than at any point in the past decade. That is because the alliance expects the Liberal government to hold Canadian defence spending steady even as COVID-19 batters the country's economic output. Yet defence analyst David Perry of the Canadian Global Affairs Institute says the results are unlikely to appease the United States, as Canada continues to fall far short of its promise to NATO to spend two per cent of GDP on defence. "I think they'll be pleased to see positive momentum," Perry said of the U.S., "but it doesn't resolve their concern about where we are." All NATO members, including Canada, agreed in 2014 to work toward spending the equivalent of two per cent of their GDP — a standard measurement of a country's economic output — on defence within the next decade. The promise followed complaints from the U.S. about burden-sharing among allies and broader concerns about new threats from Russia and China as the two countries increased their own military spending. NATO and the U.S. have repeatedly criticized Canada for not meeting the target, with President Donald Trump in December calling Canada "slightly delinquent" during a meeting with Prime Minister Justin Trudeau. His predecessor, Barack Obama, also called out Canada over its defence spending during an address to Parliament in 2016. The U.S. spends more than any other NATO member on defence, both in terms of raw cash and as a share of GDP. NATO Secretary-General Jens Stoltenberg on Wednesday said the continued importance of increasing military spending would be discussed when defence ministers from across the alliance meet this week. The NATO figures show that Canada is poised to spend 1.45 per cent of its GDP on the military this year. That is not only a big jump from the 1.29 per cent last year, but the largest share of the economy in a decade. It also exceeds the government's original plan, laid out in the Liberals' defence policy in 2017, to spend 1.4 per cent of GDP on the military by 2024-25. That is when NATO members were supposed to hit the two-per-cent target. Yet the figures show the expected increase isn't the result of a new infusion of cash for the Canadian Armed Forces this year as spending is expected to hit $30 billion, up just over $1 billion from 2019. Rather, NATO predicts Canadian GDP will shrink by about eight per cent this year as COVID-19 continues to ravage the economy. The fact Canadian defence spending is expected to remain largely steady despite the pandemic is noteworthy, particularly as there have been fears in some corners about cuts to help keep the federal deficit under control. The NATO report instead appears to lend further credence to recent assertions from Defence Minister Harjit Sajjan, Defence Department deputy minister Jody Thomas and others that the Liberals are not readying the axe. Canada also remained 21st out of 29 NATO members in terms of the share of GDP spent on the military as other allies also got a surprise boost from the economic damage wrought by COVID-19. At the same time, Perry said the government has yet to lay out a timetable for when it plans to meet the two per cent target. Military spending is instead expected to start falling after 2024-25, according to the Liberal defence plan. Despite having agreed to the target during the NATO leaders' summit in Wales in 2014, successive Canadian governments have repeatedly described the NATO target as "aspirational." This report by The Canadian Press was first published Oct. 21, 2020. https://www.kamloopsthisweek.com/news/canada-jumps-closer-to-military-spending-target-thanks-to-covid-19-s-economic-damage-1.24224303

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  October 17, 2023 | Local, C4ISR, Security

  The Pentagon is running out of time to get zero trust right

  A successful zero trust transition demands more than technological prowess—it requires a reorientation of mindset and strategy.

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  May 19, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  Canada’s defence industry positioning for life beyond COVID

  Posted on May 15, 2020 by Chris Thatcher In an appearance before the Commons finance committee on May 12, Parliamentary Budget Officer Yves Giroux suggested the federal deficit could vastly exceed the $252 billion he projected in mid-April as the government continues to unveil relief measures to help Canadians and businesses withstand the economic impact of the coronavirus pandemic. Most admit it is to too early to tell what that will mean for future military procurement and the government's 2017 defence policy, Strong, Secure, Engaged (SSE), but think tanks and defence analysts are nonetheless forecasting turbulence ahead. “Over the past generation, recessions and the fiscal consolidation that has followed them have had a seriously negative impact on DND's (Department of National Defence) budget,” wrote Eugene Lang, an adjunct professor with the School of Policy Studies at Queen's University and Fellow with the Canadian Global Affairs Institute, in a recent policy paper for CGAI. “The future for SSE and its associated funding does not look bright. National defence probably has a year or two before the crunch hits.” Christyn Cianfarani is more cautious, but the president and chief executive officer of the Canadian Association of Defence and Security Industries (CADSI) admits the “rumblings are there that we are naturally concerned. Anybody who knows their history will tell you that when federal governments have been in these deficit spending situations — and this is the largest since the Second World War — they typically will be looking for strategies to reduce that deficit in the long term and DND unfortunately is a target.” But pulling government funding from a sector that has weathered the COVID-19 storm reasonably well might be “counterintuitive,” she suggested. The sector “right now is one of the few that is able to contribute to the economy under this persistent pandemic environment ... If there are multiple waves of [the virus], defence will be one sector that actually can shoulder the ups and downs and return to remote operations if we get to that stage again.” “Pure play” defence companies with few or no ties to commercial aerospace and the travel industry have managed the risks well, she said. Most have so far avoided the workforce layoffs and temporary downsizing experienced in other sectors, though manufacturing has slowed to meet provincial health regulations. Some, in fact, have been hiring. “Aside from some localized instances of companies facing real challenges, I would say the overall health [of the sector] is not too bad,” she said. Following what she called a “choppy” roll out of COVID-19 related policies that cut across federal and provincial jurisdictions, defence companies have adapted. Some have retooled shop floors and supply chains to manufacture critically needed personal protective equipment (PPE). Others with government contracts have continued operations where possible, albeit at reduced levels to match restrictions at government facilities. Maintenance on some platforms such as submarines has halted. The federal government has been “very conscious of trying to keep the contracts moving and executing,” said Cianfarani. “For example, if you are in the Canadian shipbuilding program, you are still pushing forward. If you are part of that supply chain, that hasn't seen any tangible change in the expectations.” Furthermore, many smaller defence firms specialize in software development and cyber security, both of which remain in demand as governments and companies try to protect expanded networks that now include thousands of employees working from home. The greatest concern for members has been liquidity, she said. CADSI encouraged the Business Development Bank of Canada and Export Development Canada to set aside their traditional risk aversion to the defence sector as they work with private sector lenders to support access to capital. The Business Credit Availability Program includes loans of up to $60 million and guarantees of up to $80 million. “We are quite proud of making a big intervention on that,” she said. “It was supposed to be open for all businesses and, irrespective of ... whether you characterize certain businesses as higher risk than others, it is an incentive program at the federal level.” An essential service At the outset of the COVID-19 economic slowdown, CADSI was a vocal advocate for defence as an essential service and greater harmonization of federal and provincial policies, including the rules that allow embedded contractors to access Canadian Armed Forces facilities. As provincial governments now begin easing restrictions and take the first tentative steps to open their economies, the association is calling for guidance and common standards, especially for the use of protective masks, gloves and other clothing. Of particular concern are the rules for employees of companies that embed on Wings and Bases to provide training, platform maintenance, healthcare and other services. “Who has to wear protective health equipment in a DND facility and is it the same [federal standard] across different provincial jurisdictions?” said Cianfarani. “If Ontario decides you have to stand two metres apart and Nova Scotia doesn't have the same policy,” it will create confusion. “If you need a particular face mask to go onto a DND base to perform maintenance on their aircraft, what does that look like? If it is so specialized, can you help us procure it? Or, if it is not so specialized, can you give us a specification so we can ensure that we do have it when we get spooled up to work?” Likewise, what PPE do companies need to provide when DND and other government employees visit their facilities? DND has released some information on “what they are starting to classify as health equipment versus PPE,” she said. “If companies have that information, they won't get to a DND facility and be surprised by a piece of PPE they need or a standard of working they need to accommodate.” Made in Canada The economic repercussions of the pandemic likely won't be felt in the defence sector for some time. Cianfarani noted that some companies have found opportunity in the crisis and will increase investments in automation, big data and other elements of Industry 4.0 as they position for the future. “This is probably an acceleration of something that has been going on slowly in the background for quite sometime,” she observed. But the pandemic has opened the door to a renewed discussion about a national defence industrial strategy, an issue CADSI has been flagging for over a decade. Buying made-in-Canada defence and security platforms and systems is more expensive, but the past months have demonstrated that protectionism is “alive and well.” President Donald Trump in early April asked U.S.-based 3M to stop supply N95 masks to Canada. “The crisis has certainly given us and the government, and Canadians in general, a renewed interest in the concept of having sovereign capability,” she said. Shifting to a procurement culture that accepts the risks and costs of Canadian-built equipment won't happen quickly or easily — it took about seven years to study and adopt recommendations for Canadian key industrial capabilities, she noted — “but I really do think if there is any opportunity, it is probably now, because the shock is still very prevalent in everyone's mind.” https://www.skiesmag.com/news/canada-defence-industry-covid