The Canadian government has introduced a new agency, the Defence Investment Agency (DIA), aimed at streamlining and expediting the procurement and delivery of military equipment. Prime Minister Mark Carney’s office made the announcement on Thursday morning.
The DIA will simplify procurement processes by eliminating redundant approvals and bureaucratic hurdles. It also aims to offer the defense industry clearer insights and certainty regarding government plans.
By centralizing the review process, projects are expected to move forward more swiftly, as stated by Carney, who emphasized the importance of ensuring that the Canadian Armed Forces receive necessary equipment promptly.
The establishment of the agency will enhance Canada’s defense industrial capacity, generate new job opportunities, and underscore the nation’s strength and values in global leadership.
Notably, the DIA will collaborate closely with allied countries such as the United Kingdom, Australia, and France, with dedicated procurement bodies, facilitating joint defense acquisitions and partnerships.
Currently, a significant portion of Canada’s military equipment is sourced from the United States. Carney, during the previous election campaign, pledged to diversify procurement sources and signed a defense partnership with the European Union to participate in the $1.27-trillion ReArm Europe initiative.
In an interview with Radio-Canada prior to the announcement, Stephen Fuhr, the secretary of state overseeing defense procurement, highlighted the shift away from heavy reliance on U.S. imports and the aim to invest more in Canadian industries.
The DIA will handle defense contracts exceeding $100 million, while ongoing agreements will continue under existing procurement services.
Personnel from the purchasing department of National Defence and Public Services and Procurement Canada will be transferred to the new agency.
Fuhr clarified that while the military will outline equipment requirements, the agency will handle contracting responsibilities.
The Opposition Conservatives raised concerns about the agency’s necessity, given that existing projects will remain under separate departmental tracks.
Former Royal Bank of Canada deputy chairman Doug Guzman has been appointed as the agency’s CEO by the prime minister.
Carney praised Guzman’s three decades of experience in investments, finance, and leadership, qualifying him for the role.
Fuhr expressed confidence in the agency’s ability to deliver results, emphasizing the government’s commitment to equipping the military and supporting the defense industry’s growth.
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