OPTIONS FOR CANADA
BY VICE-ADMIRAL (RET’D) MARK NORMAN
We find ourselves at an historic crossroads in our evolution as a nation, and this previously otherwise unimaginable situation has enormous potential impact on HOW Canada approaches our defence and security priorities, strategies and their implementation.
As I write this column, we are roughly two weeks into the election campaign; as you read it, the outcome will be clear. A few things have crystallized over the preceding months: we are facing an economic crisis due to the ongoing tariff war; we need to significantly increase our defence and security spending; we need a new approach to our defence and security posture that mitigates the increasing risks of US dependence; and, we need to unleash the substantial potential available from our own defence industry. Other than that, everything is fine…
As promised in my previous column, we will explore “options for Canada”. Given where we find ourselves however, our “option-space” has been severely constrained and our approach therefore needs to be urgent and practical, rather than theoretical.
THE OPTIONS
At the risk of oversimplifying this, our options are: continue with the status quo – adding more demand to the already overloaded and ineffective procurement system while hoping for a better outcome; increase the use of sole-source/FMS contracting to deliver quick/easy solutions – thereby further intensifying the potential vulnerabilities of dependence on US suppliers and technology; or, methodically and deliberately implement radical legislative, procedural, and policy reforms to accelerate the timelines to acquire new capabilities and significantly invest in increasing Canadian industrial capacity.
Whatever path we chose, we cannot simply “wish away” the realities of our current economic and industrial circumstances. Further, we must avoid arbitrary cancellations of existing programs – no matter how good it might make us feel in the short-term. Alternative platforms or solutions, in most cases, are not easily implemented in the time required; and, as many of our allies are also looking for non-US alternatives, we run the risk of facing the military equivalent of being on “back-order” for high-demand capabilities.
Our focus therefore needs to be on how to deliver what is already “in contract” while ensuring that wherever possible we begin to develop and favour alternative (ie; non US or non-ITAR compliant) future solutions that encourage genuine Canadian opportunity while “disentangling” ourselves from the cultural, organizational, and industrial influence of the US. This, in my view, has been the most compelling suggestion from the recent electoral platforms. This approach offers the greatest promise for Canada to chart a vibrant and sovereign course for the future.
PROCUREMENT SYSTEM
As we have discussed previously in this column, our current procurement system is not optimized to deliver the levels of spending required. I will go as far as to suggest that the machinery of government is instead set up to control and regulate spending over time; not deliver significant increases in spending quickly – this might be partly why we keep believing that we can get a different outcome by simply wanting, or proclaiming, it to be so.
Wishing or hoping for a different outcome or believing that at some magic future moment problems will simply go away, are symptoms of ‘the conspiracy of optimism’ that plagues defence planning in Canada. The current crisis reinforces the need for a bold new approach to HOW we develop, deliver and sustain Canadian military capabilities.
TRANSFORMATIONAL INITIATIVES
My view is that the new government should take a lesson from Canada’s wartime experiences wherein a series of sweeping legislative, policy and organizational measures allowed government to swiftly harness the requisite raw materials, human talent, financial, and industrial capacity of the nation. Beyond simply building capacity however, we must also implement aggressive measures to encourage and protect Canadian innovation and intellectual property. Canada must stop allowing our ideas, property, competencies and capacities to either be gobbled-up, or squeezed-out, by foreign predators. This requires immediate attention if we have any hope of building the defence industry the country needs in the coming years and decades.
The new government has an undeniable responsibility to LEAD these transformational initiatives; however, industry must also step up in the context of this new reality. I’m not an expert in private sector/corporate structure and financing, but one of the glaring weaknesses of our current system is the financial vulnerability of many of the small to medium companies in the Canadian defence “ecosystem”. Perhaps the time has come to consider the consolidation of many of these disparate capabilities under one or two larger Canadian “Apex” corporations that can not only compete against some of the bigger foreign entities, but that can also maintain the unique innovation and ingenuity that makes them so capable. Such an approach might require additional policy changes, tax relief, and financial support, but it would definitely be worth the effort in my view.
I cannot imagine a more compelling set of conditions to implement the sweeping changes needed to HOW we deliver defence & security capabilities in Canada than where we find ourselves today. The question we must ask ourselves, and our political masters, is whether we will embrace the opportunity or whether we will squander it – can we please get this one right!
VAdm (Ret’d) Mark Norman is a former Commander of the RCN and Senior Defence Strategist with Samuel Associates. The views expressed here are his own and do not necessarily reflect a CDR editorial position.
