Mark Carney at a Policy Exchange summer party, August 2015
OTTAWA — Prime Minister Mark Carney says Canada is entering negotiations to acquire a new airborne surveillance system as Ottawa pushes to rapidly expand defence spending, strengthen Arctic security and grow Canada’s domestic defence industry.
Speaking Wednesday at the CANSEC defence trade show in Ottawa, Carney announced negotiations are underway to procure Saab’s GlobalEye airborne early warning and control aircraft platform for the Canadian Armed Forces.
The federal government says the proposed procurement is expected to support roughly 3,000 jobs in Canada’s aerospace and defence sectors, including engineering, manufacturing and skilled trades positions.
Ottawa says at least one-third of the projected GlobalEye fleet, including aircraft ordered by allied countries, would be manufactured in Canada over the next 15 years using Bombardier’s Canadian-built Global 6500 aircraft platform.
The GlobalEye system combines airborne surveillance with real-time monitoring of air, land and maritime activity and is intended to strengthen Canada’s ability to detect and respond to threats across the Arctic and North America.
The announcement comes as Canada faces mounting pressure from NATO allies to significantly increase defence spending amid growing geopolitical tensions and concerns over Arctic sovereignty.
The federal government says Canada has now reached the NATO benchmark of spending two per cent of gross domestic product on defence for the first time since the end of the Cold War.
Carney’s government also unveiled several new defence procurement and industrial policies aimed at accelerating military projects and expanding Canada’s domestic defence manufacturing base.
The measures include a new 90-day approval standard intended to reduce procurement delays, incentives for foreign defence contractors to invest in Canadian supply chains and a “Canadian Company Boost” designed to favour firms performing most of their work domestically.
Ottawa also announced the creation of a new Defence Concierge Service intended to help smaller Canadian businesses navigate federal procurement programs and connect with export opportunities.
In addition, applications for a new Defence Advisory Forum are expected to open June 1. The forum will include senior industry executives advising government on defence production priorities and investment barriers.
Defence Minister David McGuinty said advanced airborne surveillance capabilities are becoming increasingly important as Canada modernizes continental defence systems tied to NORAD and NATO operations.
Industry Minister Melanie Joly said the government views defence manufacturing as both a national security priority and an economic growth opportunity tied to innovation and high-paying jobs.
The federal government says Canada’s defence industrial strategy could position Canadian companies to compete for roughly $180 billion in defence procurement opportunities and another $290 billion in related capital investments over the next decade.
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