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CADSI’s Recommendations for 2021 Federal Budget

As the Government of Canada seeks ideas and opportunities to drive growth, investment, and employment into the Canadian economy following the COVID-19 crisis, CADSI has proposed four key recommendations ahead of the 2021 Federal Budget. Their proposal, Partners in Economic Restart, shows that Canada’s defence and security companies can be key partners supporting national economic recovery and focuses on optimizing spending already booked into the government’s fiscal framework. These recommendations will not add to the government’s deficit. 

With a proven track record for innovation, export-led growth, technological spin-offs, and a well-paid STEM-focused labour force, Canada’s defence and security industries stand ready to support the Canadian economy through COVID-19 and beyond. 

Recommendations to Government for a Fiscally Neutral National Economic Recovery Agenda

1. Honour existing defence spending commitments over the next two years, as committed to in Strong, Secure, Engaged (SSE) and the Department of National Defence’s Capabilities Blueprint. These projects should be reprioritized based on their impact on the Canadian Defence Industrial Base (DIB) or economy, as determined by the Department of Innovation, Science and Economic Development (ISED) and the Department of National Defence (DND).

2. Favour Canadian SMEs and Canadian supply chains to ensure that as much of defence spending as possible is driven into the Canadian DIB, to the benefit of the Canadian economy and Canadian workers by: 

a)      using National Security Exceptions to procure capability where it exists in Canada;
b)      assertively using Public Services and Procurement Canada’s (PSPC) procurement authorities to favour Canadian industry, especially from an SME and supply chain perspective; and 

c)       aggressively applying ISED’s Industrial and Technological Benefits (ITB) and Value Proposition (VP) policy to defence capital procurements valued between $20-100m, which is currently optional.

3. Quickly eliminate the large backlog of defence export permit applications, which are awaiting approval at Global Affairs Canada, and improve these processes to avoid future backlogs. We estimate this could unlock as much as $2 billion worth of business for Canadian firms.

4. Make greater use of Canadian-based cyber firms as the government procures solutions needed for its transition to a more flexible and remote work posture. 

Click here to read the full proposal

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