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National Post
14 hours ago
- Business
- National Post
Canada's shooting at a moving target on defence spending, say military watchers
Article content 'You can have as many drones as you want, if you want to hold terrain, if you want to protect yourself, you're going to need boots on the ground.' Article content Article content Carney promised pay raises for those in uniform, but a technical briefing after his speech was short on details about who might get them. Article content 'Corporal Bloggins needs a lot more than General Smith does,' said defence analyst David Perry, who heads the Canadian Global Affairs Institute. Article content 'The senior ranks are pretty well compensated. The military has got an affordability cost-of-living issue in the lower ranks.' Article content For people who have to move regularly, like many in uniform, 'the total compensation package hasn't kept pace with changing cost pressures,' Perry said. Article content 'The military is having a difficult time both getting people in and keeping them there once they do join. So, I think depending on how the pay measures are actually structured, it could have quite a significant impact.' Article content Canada spent about 1.45 per cent of its GDP on defence last year. If Canada's defence spending does hit two per of GDP by March of 2026, 'by then the target probably will have moved,' Rigby said. Article content 'So, we've hit two per cent just as the target's likely to go to 3.5 per cent or even right up to five per cent if you throw in extra security capabilities … beyond pure defence.' Article content That will leave Canada 'playing serious catch up,' he said. Article content NATO leaders are meeting later this month to discuss boosting military spending. Article content 'Two per cent is not going to cut it in terms of where the rest of the alliance is,' Perry said. 'Pretty clearly there is a discussion about getting to a number much higher than that at the upcoming NATO summit. But given that we have been falling short of this now … 11-year-old target, I do think it's a good first step to help regain some Canadian credibility by putting the money in the window to actually get to the two per cent mark this fiscal year.' Article content The other question is whether Canada be able to spend all of the promised money by next March, Rigby said. 'We all know that one of the problems over the last number of years is National Defence can't spend the money quickly enough.' Article content The Canadian Armed Forces (CAF) returns between hundreds of millions and over a billion dollars annually to central treasury, Perry told National Post earlier this year. Article content Carney is creating a defence procurement agency to help in that respect, Rigby said. 'It's not easy setting up new agencies. There are big machinery issues. It costs money. You've got to find the people.' Article content
Hamilton Spectator
2 days ago
- Business
- Hamilton Spectator
U.S. envoy closely eyes Canada defence spending; says NATO about collective defence
OTTAWA - The American ambassador to Canada is closely watching as Ottawa shapes its defence budget, but says the U.S. will not dictate what the Canadian government must spend. 'We're not expecting anything; that's not our job to make those expectations,' Ambassador Pete Hoekstra said in an interview with The Canadian Press this past Friday, a day after NATO defence ministers endorsed new spending targets. Hoekstra also said the point of the NATO military alliance is to defend each other when under attack. He noted Americans haven't forgotten the 'investment and the sacrifice' Canadian troops made in Afghanistan when the U.S. invoked the NATO treaty's article on collective defence. 'They were fulfilling the commitment that they made to NATO — that when one of us is attacked we are all attacked, and we will defend each other,' Hoekstra said of Canadian soldiers. Hoekstra was not directly commenting on U.S. President Donald Trump's statement in March that Washington would not necessarily come to the aid of countries that don't pay their fair share on defence and that Canada has been freeloading on American defence of the continent. He did acknowledge Canada's defence spending has been an 'irritant' in the relationship with the U.S. This past week, defence ministers from NATO countries met in Brussels to discuss raising the member spending target on defence to as much as five per cent of GDP. Canada has never met NATO's existing spending target of two per cent since it was established in 2006. Trump and Prime Minister Mark Carney are engaged in what both sides have characterized as 'intensive' discussions toward the new economic and security deal the two leaders agreed to work on once the Canadian election concluded in April. NATO figures suggest Canada's defence spending rose from about one per cent in 2014 to 1.33 per cent in 2023. The NATO secretary-general's annual report, released in April, said Canada's defence spending would hit 1.45 per cent for 2024. In terms of absolute dollars, a Canadian Global Affairs Institute analysis last year said Canada ranks as the seventh largest spender in NATO, and the 14th largest in the world. Carney promised during the recent election campaign to move up Canada's deadline for meeting the 2 per cent threshold from 2032 to 2030 or sooner but has not yet shown a plan for how to do that. It will require Canada to add billions of new dollars annually. The prime minister is set to join other heads of government from NATO countries for an annual summit starting June 24 in the Netherlands. They are expected to approve a new defence investment plan that defence ministers hammered out this week, which would have member nations invest 3.5 per cent of GDP on core defence spending, and 1.5 per cent on defence and security-related investment such as infrastructure and resilience. That proposal is coming amid waning American commitments and a revanchist Russia. In recent years, both Democrats and Republicans have urged Canada to boost its Arctic defence, and the previous Biden administration praised much of what Ottawa outlined in an Arctic foreign policy last year. Trump has suggested defence of the Arctic is part of his 'Golden Dome' plan for a continental missile-defence shield. On May 27, the president said he told Ottawa it would cost US$61 billion to be part of the project. Hoekstra said he hasn't seen a breakdown of the costs, but said the 'really awesome technology' is likely estimated at 'proportionally what we think the Canadian share should be.' Defence Minister David McGuinty said Canada was reviewing its defence spending from 'top to bottom' and would have more to say about its plans soon, though the government isn't planning to table a budget until the fall. Hoekstra framed NATO as part of the wide partnership the U.S. has with Canada in security, which also includes secure energy flows and stopping illicit drugs. 'We need to do the things that will keep our citizens safe,' Hoekstra said. 'There are a lot of things that Americans and Canadians have in common, and we're looking forward to great days.' Hoekstra said Trump is trying to take the U.S. off an unsustainable trajectory, which he framed as millions of people crossing the U.S. border undocumented, spending way beyond government revenue and large trade deficits. 'The president is transforming that, because we need to,' he said. Trump's discussions with Carney will likely include the sweeping reform of border security that the Liberals tabled in Parliament last week. Hoekstra had yet to go through the legislation as of Friday. The ambassador said he's focused on win-win policies for both countries and not the prospect of Canada becoming an American state, despite Trump raising the notion as a way for Canadians to save on the cost of joining his Golden Dome project. Former Canadian diplomat Colin Robertson has said Hoekstra is limited in how much he can diverge from Trump's comments. But he said the ambassador has great access to the president, and his public messaging likely reveals how he has been advising Trump. This report by The Canadian Press was first published June 8, 2025.
Winnipeg Free Press
2 days ago
- Business
- Winnipeg Free Press
U.S. envoy closely eyes Canada defence spending; says NATO about collective defence
OTTAWA – The American ambassador to Canada is closely watching as Ottawa shapes its defence budget, but says the U.S. will not dictate what the Canadian government must spend. 'We're not expecting anything; that's not our job to make those expectations,' Ambassador Pete Hoekstra said in an interview with The Canadian Press this past Friday, a day after NATO defence ministers endorsed new spending targets. Hoekstra also said the point of the NATO military alliance is to defend each other when under attack. He noted Americans haven't forgotten the 'investment and the sacrifice' Canadian troops made in Afghanistan when the U.S. invoked the NATO treaty's article on collective defence. 'They were fulfilling the commitment that they made to NATO — that when one of us is attacked we are all attacked, and we will defend each other,' Hoekstra said of Canadian soldiers. Hoekstra was not directly commenting on U.S. President Donald Trump's statement in March that Washington would not necessarily come to the aid of countries that don't pay their fair share on defence and that Canada has been freeloading on American defence of the continent. He did acknowledge Canada's defence spending has been an 'irritant' in the relationship with the U.S. This past week, defence ministers from NATO countries met in Brussels to discuss raising the member spending target on defence to as much as five per cent of GDP. Canada has never met NATO's existing spending target of two per cent since it was established in 2006. Trump and Prime Minister Mark Carney are engaged in what both sides have characterized as 'intensive' discussions toward the new economic and security deal the two leaders agreed to work on once the Canadian election concluded in April. NATO figures suggest Canada's defence spending rose from about one per cent in 2014 to 1.33 per cent in 2023. The NATO secretary-general's annual report, released in April, said Canada's defence spending would hit 1.45 per cent for 2024. In terms of absolute dollars, a Canadian Global Affairs Institute analysis last year said Canada ranks as the seventh largest spender in NATO, and the 14th largest in the world. Carney promised during the recent election campaign to move up Canada's deadline for meeting the 2 per cent threshold from 2032 to 2030 or sooner but has not yet shown a plan for how to do that. It will require Canada to add billions of new dollars annually. The prime minister is set to join other heads of government from NATO countries for an annual summit starting June 24 in the Netherlands. They are expected to approve a new defence investment plan that defence ministers hammered out this week, which would have member nations invest 3.5 per cent of GDP on core defence spending, and 1.5 per cent on defence and security-related investment such as infrastructure and resilience. That proposal is coming amid waning American commitments and a revanchist Russia. In recent years, both Democrats and Republicans have urged Canada to boost its Arctic defence, and the previous Biden administration praised much of what Ottawa outlined in an Arctic foreign policy last year. Trump has suggested defence of the Arctic is part of his 'Golden Dome' plan for a continental missile-defence shield. On May 27, the president said he told Ottawa it would cost US$61 billion to be part of the project. Hoekstra said he hasn't seen a breakdown of the costs, but said the 'really awesome technology' is likely estimated at 'proportionally what we think the Canadian share should be.' Defence Minister David McGuinty said Canada was reviewing its defence spending from 'top to bottom' and would have more to say about its plans soon, though the government isn't planning to table a budget until the fall. Hoekstra framed NATO as part of the wide partnership the U.S. has with Canada in security, which also includes secure energy flows and stopping illicit drugs. 'We need to do the things that will keep our citizens safe,' Hoekstra said. 'There are a lot of things that Americans and Canadians have in common, and we're looking forward to great days.' Hoekstra said Trump is trying to take the U.S. off an unsustainable trajectory, which he framed as millions of people crossing the U.S. border undocumented, spending way beyond government revenue and large trade deficits. Monday Mornings The latest local business news and a lookahead to the coming week. 'The president is transforming that, because we need to,' he said. Trump's discussions with Carney will likely include the sweeping reform of border security that the Liberals tabled in Parliament last week. Hoekstra had yet to go through the legislation as of Friday. The ambassador said he's focused on win-win policies for both countries and not the prospect of Canada becoming an American state, despite Trump raising the notion as a way for Canadians to save on the cost of joining his Golden Dome project. Former Canadian diplomat Colin Robertson has said Hoekstra is limited in how much he can diverge from Trump's comments. But he said the ambassador has great access to the president, and his public messaging likely reveals how he has been advising Trump. This report by The Canadian Press was first published June 8, 2025.
National Post
5 days ago
- Business
- National Post
Canada's looking to buy new subs and new friends: are they in Europe or Asia?
A French nuclear submarine docking in Halifax in March. Article content Slick websites, sponsored press junkets to far-flung shipyards and Canadian media outlets given 'exclusive access' to executives. Article content Article content The competition to build Canada's new submarines is heating up. Article content The question for Prime Minister Mark Carney isn't just who gets to build them, it's also about whether in the changing global order we invest in Asian or European alliances? Article content Article content Carney is heading to the 2025 North Atlantic Treaty Organization summit, June 23-24 in the Hague. Article content Article content 'If he doesn't go into that meeting without making some significant announcements on defence spending, I think there will be some significant coal raking (of Canada by NATO allies),' said Dave Perry, CEO of the Canadian Global Affairs Institute, on Tuesday. Article content With an estimated cost of $60-$100 billion, the subs have the potential to be more expensive than either the River-class destroyers being built at Halifax's Irving Shipyard or the F-35 fighters, making them Canada's largest ever defence procurement. 'As of right now, not a single dollar's been budgeted,' said Perry. Article content 'If I were (the Prime Minister), I'd be making a budgeting announcement before the NATO meeting.' Article content Article content Article content That announcement wouldn't be expected to include whose subs we're buying, just a commitment of dollars down the road to eventually buy them after a process that may see an open competition. A lack of domestic experience building subs, along with the government's stated goal of having the first of them enter service before the Victoria class' anticipated 2035 retirement date, means we won't likely be building them here. Article content Five companies backed by their respective governments (South Korea, Germany/Norway, France, Sweden and Spain) replied to a request for information issued by the government last fall. Article content 'Canadian military procurement has been unbelievably crazy for the last 20-30 years,' said Andrew Latham, a Washington D.C.-based Canadian defence analyst. 'It doesn't matter whether its ships or tanks, we just don't do this well.'
Toronto Star
6 days ago
- Business
- Toronto Star
Joly commits to prioritizing Canadian steel, aluminum for defence, infrastructure
OTTAWA - Ottawa is committed to using Canadian steel and aluminum in national infrastructure and defence projects as U.S. President Donald Trump threatens to impose more tariffs, Industry Minister Mélanie Joly said Sunday. After meeting with aluminum industry leaders at a summit in Montreal, Joly said the government is waiting to see if Trump follows through on his threat to increase steel and aluminum tariffs to 50 per cent through an executive order. That tariff increase is set to go into effect on Wednesday. The United Steelworkers union welcomed Joly's announcement Monday. The union's national director Marty Warren said in a media statement the organization has 'consistently called for strong Buy Canadian policies to protect good jobs and rebuild domestic supply chains, especially in the face of a worsening trade war and unfair global competition.' ARTICLE CONTINUES BELOW Warren said his organization will be watching to ensure the federal government follows through on its promise to use Canadian metals. 'That means clear, enforceable rules that actually prioritize Canadian-made materials — starting with steel and aluminum, but also including wood, critical minerals and other key sectors. This must be the beginning, not the end, of a broader industrial strategy that supports Canadian jobs and production,' he said. The Liberals campaigned in the recent election on 'maximizing' the use of Canadian steel, aluminum and forestry products in public projects. In March, Trump imposed 25 per cent tariffs on steel and aluminum imports to the United States. Canada is the largest steel supplier to the United States, accounting for nearly 25 per cent of all imports in 2023. The tariffs are putting strain on Canadian metal producers and others throughout the metals supply chain. Last week, aluminum trader Sinobec Group Inc. filed for creditor protection, blaming the tariffs — as well as the wider political landscape and a weak market — for its financial troubles. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The Montreal-based company with about 76 staff said in its creditor filing that the economic pressures and global tariffs contributed to it being unable to raise debt financing to fund a turnaround. David Perry, president of the Canadian Global Affairs Institute and a specialist in defence procurement, said Joly's plan is 'definitely a worthwhile initiative' but it comes with risk. Introducing a Buy Canadian element to military procurement without introducing 'additional inefficiencies in our procurement system, at a time when the government also campaigned on making it more efficient and streamlined, is going to be the real trick.' He said while the government makes many purchases that use large amounts of steel and aluminum, they're split into dozens or even hundreds of different contracts. 'Figuring out a way to make Canadian involvement in a supply chain be a key consideration in a way that makes both economic and strategic sense, I think, is probably going to take some creativity on the part of the federal government, but (is) certainly worth exploring,' he said. Some naval and defence procurement applications require a special certification not all Canadian producers have, Perry said, adding the government could step in to help them obtain the certification. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW He said there is a difference between the steel used in general commercial applications, such as construction, and the steel used in defence applications — which, for example, might have to withstand the impact of a shell or an exploding landmine. 'Some of those applications in defence, they have to be both pretty thin, so that the vehicle or the ship isn't super heavy, as well as strong,' he said. 'And that's less of a consideration … with commercial construction-use steel.' — With files from Ian Bickis in Toronto This report by The Canadian Press was first published June 2, 2025. Politics Headlines Newsletter Get the latest news and unmatched insights in your inbox every evening Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. Please enter a valid email address. Sign Up Yes, I'd also like to receive customized content suggestions and promotional messages from the Star. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy. This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Politics Headlines Newsletter You're signed up! You'll start getting Politics Headlines in your inbox soon. Want more of the latest from us? Sign up for more at our newsletter page.
