Business · Companies · 1 hr ago
Canadian defence firms want domestic ownership to count in contracts
Canadian defence firms want domestic ownership to count more when Ottawa awards military contracts.
The Alliance of Canadian Defence Companies, which represents mostly small and medium-sized businesses, brought that request to officials and MPs in Ottawa.
Prime Minister Mark Carney has said Canada should build more control over its defence industry and reduce the share of military procurement spending that goes to the United States.
The group says some Canadian businesses have struggled to win contracts even after the military successfully tested their products.
Advocates also want Ottawa to block some foreign takeovers in critical industries, pointing to purchases of Canadian companies by foreign firms.
A think-tank leader cautioned that restricting takeovers could limit choices for private companies and make it harder to attract investment.
Government plans have helped some firms raise capital, but the government has not announced changes to procurement rules or takeover policy.
A lobby group representing Canadian-owned defence companies is urging Ottawa to give domestic ownership more weight when awarding military contracts.
The Alliance of Canadian Defence Companies says members have struggled to secure contracts even after successful trials by the Canadian Armed Forces.
The group’s representatives met MPs and government officials in Ottawa this week.
Advocates also want Canada to be more willing to block foreign takeovers in critical sectors, while a think-tank president warned that restricting purchases could limit private companies’ options.
Prime Minister Mark Carney has said Canada should build sovereign defence capabilities and reduce reliance on foreign suppliers.
- Who
- The Alliance of Canadian Defence Companies, a group representing 200 Canadian-owned defence companies. Its executive director is Dasha Cohen.
- What
- The group wants domestic ownership to count more in military procurement contracts.
- When
- The group visited Ottawa this week.
- Where
- Parliament Hill and government offices in Ottawa, Canada.
- Why
- The group says Canadian companies can struggle to win contracts even after successful trials of their products by the Canadian Armed Forces.
Advocates for restricting foreign takeovers
David Perry, president of the Canadian Global Affairs Institute
Foreign takeovers
Advocates for restricting foreign takeovers
Canada should be prepared to reject foreign takeovers when necessary, according to Social Capital Partners chair Jon Shell.
David Perry, president of the Canadian Global Affairs Institute
Perry said he could not envision simple measures to address concerns about takeovers without limiting private companies’ options.
Foreign investment
Advocates for restricting foreign takeovers
Shell said foreign acquisitions leave a “big hole” in Ottawa’s strategy to build domestically owned capabilities.
David Perry, president of the Canadian Global Affairs Institute
Perry said investment in Canadian defence often comes from other countries, where investors are more comfortable funding military contractors.
Carney told reporters in Istanbul that Canada needed to diversify away from Starlink and build sovereign capabilities.
Alliance of Canadian Defence Companies representatives met MPs and government officials on Parliament Hill.
- ACDC membership
- 200 Canadian-owned defence companies
- Group representative
- Dasha Cohen, executive director
- Procurement official
- Stephen Fuhr, Secretary of State for procurement
- Foreign acquisition
- Elbit bought Vancouver-based International Submarine Engineering
- Starlink
- Carney cited instances in which Ukraine’s access to the service was turned on and off
What people are saying
critical capability areas that should be prioritized for Canadian-owned, Canadian-controlled companies.
At some point, we’re going to say no to one of these and it’s going to make a bunch of people angry
To say that companies can’t be bought by our closest close allies is a little bit of a difficult proposition.
Once you realize that, as … this government has, it leads to a series of decisions and partnerships that are necessary in order to diversify and to build up sovereign capabilities within Canada or with partners