Ministerial statement in response to the Auditor General of Canada’s report on the Industrial and Technological Benefits Policy

Ministerial statement in response to the Auditor General of Canada's report on the Industrial and Technological Benefits Policy

From: Innovation, Science and Economic Development Canada

Statement

December 2, 2024 - Ottawa, Ontario

Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, welcomed the Auditor General's report on the Industrial and Technological Benefits (ITB) Policy:

"In an increasingly complex world, the service of our Canadian Armed Forces is of the utmost importance for defending Canada and securing our sovereignty. Canada's military needs to be well equipped to keep us strong at home, secure in North America and engaged in the world.

"The ITB Policy leverages large defence procurements to create and maintain highly skilled jobs and generate economic growth for Canadians. The ITB Policy's support of Canada's defence sector reflects the importance of fostering homegrown innovation and developing our industrial capacity, given industry's critical role in supporting Canada's national security. Overdependence on international suppliers creates significant risk when there are competing global demands. Innovation, Science and Economic Development Canada will continue to work with Public Services and Procurement Canada (PSPC) and National Defence (DND) to improve the ITB Policy, including through the Defence Procurement Review that is currently under way.

"As recommended by the Office of the Auditor General, the government will seek to:

• improve the transparency of the ITB Policy's application by providing more information on the scope of the policy and guidelines for applicants;
• update the policy's performance measurement framework to better demonstrate how the ITB Policy is meeting its objectives;
• collaborate with DND to review the Key Industrial Capabilities to enhance alignment of the operational requirements of the Canadian Armed Forces and the contributions of Canada's defence industry; and
• explore options, in collaboration with PSPC, to better identify the overall cost of applying the ITB Policy in the context of government objectives for procurement.

"The Government of Canada remains committed to supporting the long-term growth and sustainability of Canada's defence industry."

Associated links

• Industrial and Technological Benefits
• 2024 ITB Policy Annual Report
• Defence Procurement Strategy
• Strong, Secure, Engaged: Canada's Defence Policy

Contacts