Ottawa gives defence buying agency more muscle — and more independence

Source: CBC Politics
Date: 2026-10-06 21:31:19.0
Tags: [National, Defence, Governance, Economy, Infrastructure]

The federal government tabled Bill C-40 in the House of Commons to transform the Defence Investment Agency from an entity within Public Services and Procurement Canada into an independent Crown corporation with its own board, CEO, and permanent structure. The newly structured agency will report to an associate minister of defence and is empowered to negotiate complex procurement contracts, engage in defence production, and invest in strategic industries to accelerate military purchases. Secretary of State for Defence Procurement Stephen Fuhr and Defence Minister David McGuinty stated the changes are designed to handle an expected historic defence spending surge projected by the Parliamentary Budget Office to reach over $163 billion annually by 2035. Critics, including federal Conservative defence critic James Bezan and Carleton University defence expert Philippe Lagassé, raised concerns that the arm's-length structure could obscure parliamentary accountability and lead to institutional finger-pointing regarding procurement decisions.