Share this Story : National Post Copy Link Email X Reddit Pinterest LinkedIn Tumblr

John Ivison: Let the turf war over Carney’s defence-spending bonanza begin

A move away from market competition toward economic nationalism risks mismanagement, inefficiency and corruption

You can save this article by registering for free here. Or sign-in if you have an account.

The sight of David McGuinty as a silent presence at the prime minister’s announcement Tuesday of a new defence industrial strategy was a reminder that, while that government purports to be a team, it is really a confederation of warring tribes.

Enjoy the latest local, national and international news.

Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.

Unlimited online access to National Post.

National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.

Daily puzzles including the New York Times Crossword.

Support local journalism.

Enjoy the latest local, national and international news.

Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.

Unlimited online access to National Post.

National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.

Daily puzzles including the New York Times Crossword.

Support local journalism.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account.

Share your thoughts and join the conversation in the comments.

Enjoy additional articles per month.

Get email updates from your favourite authors.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account

Share your thoughts and join the conversation in the comments

Enjoy additional articles per month

Get email updates from your favourite authors

Sign In or Create an Account

The defence minister is ostensibly the lead author of the plan, but it seems to have been hijacked by the industry minister, Mélanie Joly.

John Ivison: Let the turf war over Carney’s defence-spending bonanza begin Back to video

The new strategy is an ambitious document that promises to act as an engine of growth over the next decade, adding 125,000 jobs, improving Canada’s record of innovation and making the country more resilient.

This newsletter tackles hot topics with boldness, verve and wit. (Subscriber-exclusive edition on Fridays)

There was an error, please provide a valid email address.

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

A welcome email is on its way. If you don't see it, please check your junk folder.

The next issue of Platformed will soon be in your inbox.

We encountered an issue signing you up. Please try again

Interested in more newsletters? Browse here.

If everything goes to plan, the share of defence acquisitions made in Canada will rise from around 30 per cent today to nearer 70 per cent. Government investment in defence-related research and development will increase by 85 per cent; defence industry revenue by 240 per cent; and defence exports by 50 per cent.

The plan is aimed at raising maritime fleet serviceability to 75 per cent; the land fleet to 80 per cent and the aerospace fleet to 85 per cent in terms of training and operational readiness (those numbers were 50, 56 and 44 per cent respectively in 2022).

Those sound like quixotic targets but it should be remembered that the sums of money the Carney government has said it will commit to military spending are unprecedented: an additional $80 billion over the next five years. If it hits the target of 3.5 per cent of GDP on “core” defence spending by 2035, annual expenditure will be $132 billion in today’s dollars.

The government said the plan is to provide Canadian industry with “a clear long-term demand signal” that provides enough confidence for companies to invest.

John Ivison: Canada's pivot to Europe for trade gains traction as Trump loses momentum

John Ivison: Carney seeks 'parliamentary exchange' with a China that targets our MPs

Advertisement 1Story continues belowThis advertisement has not loaded yet, but your article continues below.document.addEventListener(`DOMContentLoaded`,function(){let template=document.getElementById(`oop-ad-template`);if(template&&!template.dataset.adInjected){let clone=template.content.cloneNode(!0);template.replaceWith(clone),template.parentElement&&(template.parentElement.dataset.adInjected=`true`)}});

Prime Minister Mark Carney said that none of the goals will be attained easily.

“But Canadians are up for it,” he said. “The various assumptions which have defined Canadian policies in terms of defence and foreign affairs have been completely upended.”

The policy has popular support, even if it drives up deficits in the short term, because it reduces dependency on a more hostile United States.

Carney said Canada will partner with “trusted allies” in the U.K., Europe and the Indo-Pacific (he didn’t mention the U.S.), and the new strategy will ensure the country “is not hostage to the decisions of others when it comes to our security.”

That comment and his insistence that the government is determined to be resilient against “any single point of failure” may or may not have implications for the purchase of America’s F-35 fighter jets.

But, if the government intends to finance increased spending with deficits for now, it is clear that in the longer term that kind of outlay will suck up an impractical amount of government program spending — unless it starts to generate the kind of economic benefits Carney is predicting.

'Shame on' Swiss commentator who made remarks about Israeli athlete, head of Israeli Olympic bobsleigh says Olympics

'Shame on' Swiss commentator who made remarks about Israeli athlete, head of Israeli Olympic bobsleigh says

Marco Rubio: America is not interested in polite managed decline of the West NP Comment

Marco Rubio: America is not interested in polite managed decline of the West

Advertisement 2Story continues belowThis advertisement has not loaded yet, but your article continues below.document.addEventListener(`DOMContentLoaded`,function(){let template=document.getElementById(`oop-ad-template`);if(template&&!template.dataset.adInjected){let clone=template.content.cloneNode(!0);template.replaceWith(clone),template.parentElement&&(template.parentElement.dataset.adInjected=`true`)}});

Canadians now spending $1 billion per year to cover health-care costs of refugee claimants NP Comment

Canadians now spending $1 billion per year to cover health-care costs of refugee claimants

Tasha Kheiriddin: Carney's defence strategy is a plan to bloat the bureaucracy NP Comment

Tasha Kheiriddin: Carney's defence strategy is a plan to bloat the bureaucracy

John Ivison: Canada's pivot to Europe for trade gains traction as Trump loses momentum NP Comment

John Ivison: Canada's pivot to Europe for trade gains traction as Trump loses momentum

For that to happen, everything has to go to plan.

Central to the implementation is the new Defence Investment Agency (DIA), headed by Doug Guzman, a former investment banker charged with strengthening the defence industrial base and accelerating procurement timelines.

The document said the DIA will become a standalone entity through legislation this spring.

But, as of now, it is a tiny agency with 40 or so staff that sits squarely in the middle of a decades-long turf war over defence procurement between three giant government departments: McGuinty’s Department of National Defence (DND), which sets the technical demands for the kit; Joly’s Department of Innovation, Science and Economic Development (ISED), which is responsible for the Industrial and Technological Benefit policy; and Public Services and Procurement Canada (PSPC), which has historically managed procurement.

“DIA will address these (fragmentation) challenges,” the document said, consolidating processes, reducing duplication and providing certainty to both military and industry partners.

Eugene Lang, a former chief of staff to two former Liberal defence ministers, said he thinks National Defence “will see this as a challenge.”

“I think it’s going to be a slow process turning the ship of state and there will be passive resistance,” said Lang, currently interim director of the School of Policy Studies at Queen’s University.

It remains unclear which functions (and staff) will be removed from DND, which will come from ISED, and which will be taken from PSPC.

As anyone who has followed the defence file for any length of time knows, a prime ministerial imperative becomes a request from the defence minister and a mere suggestion from the civilian bureaucracy to the military, as it is handed down the chain.

Richard Fadden, a former deputy minister of defence and ex-national security adviser, testified at a House of Commons committee in 2023 that conflicting interests between politicians, the military brass and the defence industry were dealt with by a risk-averse public service. The whole picture is complicated by the politics of regional development, which he said should be suspended for urgent defence acquisitions.

The biggest problem though, said Fadden, was the push by the generals and admirals for “gold-plated solutions,” to which the civilian side rarely said no.

The River-class destroyers currently being built at the Irving Shipyard in Halifax are a good example. They originally included Canadian combat and electronic warfare systems, but they were replaced with American equivalents as the project evolved.

The plan to “grow national champions” is common among advanced industrial economies, particularly in defence.

As Lang pointed out, Canada has been passive and dependent when it comes to its defence industrial policy. This plan is simply Ottawa joining the mainstream, he said.

But it is a paradigm shift for Canada: a move away from market competition toward economic nationalism, with all the risks of mismanagement, inefficiency and corruption that accompany it.

The military will welcome the injection of taxpayers’ money but not the fresh intrusion into the procurement process.

As such, the barriers to success are so formidable that the defence industrial strategy should be judged by its results, rather than its intentions.

Share this Story : National Post Copy Link Email X Reddit Pinterest LinkedIn Tumblr

Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

Made-in-Canada skin care brand still going strong since 1948 Granddaughter of Elizabeth Grant founder keeps skin care story alive 2 hours ago Fashion & Beauty

Made-in-Canada skin care brand still going strong since 1948

Granddaughter of Elizabeth Grant founder keeps skin care story alive

Can't get enough Heated Rivalry? Let the hit show inspire your next getaway Filming locations in Ontario attract fans of the breakaway hockey romance 5 hours ago Travel

Can't get enough Heated Rivalry? Let the hit show inspire your next getaway

Filming locations in Ontario attract fans of the breakaway hockey romance

KitchenAid fully-automatic vs. semi-automatic espresso machine: Which is better? It depends on how much control you want over the brewing process 5 hours ago Kitchen & Dining

KitchenAid fully-automatic vs. semi-automatic espresso machine: Which is better?

It depends on how much control you want over the brewing process

Advertisement 3Story continues belowThis advertisement has not loaded yet, but your article continues below.document.addEventListener(`DOMContentLoaded`,function(){let template=document.getElementById(`oop-ad-template`);if(template&&!template.dataset.adInjected){let clone=template.content.cloneNode(!0);template.replaceWith(clone),template.parentElement&&(template.parentElement.dataset.adInjected=`true`)}});

I didn’t want to buy maternity clothing: A lululemon haul to the rescue High-rise pants, oversized shirts and the ultimate diaper bag 6 hours ago Lifestyle

I didn’t want to buy maternity clothing: A lululemon haul to the rescue

High-rise pants, oversized shirts and the ultimate diaper bag

These are the 3 best beauty products we tried this week Beauty Buzz: The 3 best beauty products we tried this week from Henry Rose, Bubble Skincare and Rare Beauty 1 day ago Fashion & Beauty

These are the 3 best beauty products we tried this week

Beauty Buzz: The 3 best beauty products we tried this week from Henry Rose, Bubble Skincare and Rare Beauty

© National Post