Canada · Ottawa
Ottawa Plans to Make Defence Buying Agency a Crown Corporation
In brief
The federal government plans to turn the year-old Defence Investment Agency into a Crown corporation so it can buy military equipment faster, two federal sources told CBC News on Monday.
The agency was set up just over a year ago inside Public Services and Procurement Canada to speed up defence purchases. A bill to give it wider powers was introduced in the spring but has not passed. According to CBC News, Public Works Minister Joël Lightbound intends to table separate legislation that would make the agency an independent Crown corporation, and the bill’s title has already appeared in House of Commons documents.
Sources told CBC that the new corporation would likely report to an associate minister of defence. Details have not been released, but experts expect it could have its own board, chief executive and staff. A Carleton University procurement expert quoted by CBC said this could cut the number of departments involved in each purchase, but would also mean fewer ministers weigh in on large projects that use public money.
Canada’s defence procurement system has long been criticised as slow, and the government has pledged to increase military spending.
Why it matters
How Canada buys equipment affects how quickly the armed forces get new ships, aircraft and vehicles, and how billions of dollars of public money are overseen. A Crown corporation would trade some ministerial oversight for speed.
Sources
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