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Prime Minister Mark Carney unveiled a new defence industry strategy this week, and P.E.I.’s premier says the province will create an advisory panel to advise Island companies on how to take advantage of the billions in spending the plan contains.
Carney’s long-awaited strategy includes a goal to use defence investment to leverage national jobs and the economy.
Lantz said Innovation P.E.I. will seek applications that would eventually lead to a provincial defence strategy advisory panel. The intention is to “help guide the development of a provincial strategy to capitalize on emerging opportunities within the defence sector,” according to Innovation P.E.I.’s website.
“We’re well positioned, some of our industry here in Prince Edward Island, to take advantage of increased defence spending,” Lantz said. “I’d like to make sure that we’re ready to take advantage when this rolls out.”
WATCH | Province hopes P.E.I. businesses can tap into Ottawa’s $6-billion defence fund:
Province hopes P.E.I. businesses can tap into Ottawa’s $6-billion defence fund
The P.E.I. government hopes Island businesses will be able to take advantage of some of the billions of dollars in new defence spending announced this week by Ottawa. Officials say there will be opportunities for some companies that have already carved out a niche in the industry. CBC’s Wayne Thibodeau reports.
Carney’s strategy lays out important benchmarks to achieve over the next decade, and includes spending of more than $80 billion.
It includes buying and maintaining most of Canada’s military equipment domestically, and prioritizes buying from Canadian defence manufacturers. If that is not possible, Ottawa will partner with allied nations to obtain the equipment.
The goal of the strategy is to bring 70 per cent of the country’s defence contracts to Canadian firms within a decade. It identifies 10 sectors where military equipment can be built within the Canada, which could also include creating an arms and high-tech weapons export sector.
Carney has said the country relies too much on the United States for its weapons systems, and that 75 cents for every federal dollar spent on military purchases heads south of the border.
“Only after exhausting these options will we buy from abroad,” Carney said Tuesday while making the announcement.
“Even then, we will ensure that the maximum benefits are returned to Canada throughout the value chain, including through a modernized industrial and technological benefits regime.”
‘Niche expertise’
Lantz said the planned advisory panel will consist of three to five members with backgrounds related to defence, procurement, innovation, industry development or economic strategy. Candidates have until March 18 to apply.
“We already have a nascent aerospace industry that does a lot of defence contracting. We have naval, marine opportunities here from some of our engineering firms that could play a part in defence procurement,” Lantz said.
“There’s lots of opportunities and we want to continue to grow the economy of Prince Edward Island. This is a very good opportunity.”
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Jeff Collins, an assistant professor of political science at UPEI who researches and writes about defence procurement, called Carney’s plan “amazing.”
“The word ‘historically’ is thrown around a lot, but it really is,” Collins said. “We have not really had a type of focused approach to industrial spending in national defence since the early days of the Korean War.”
Collins said he believes it is realistic for a province such as P.E.I. to tap into the federal funding to develop a “niche expertise.”
He said the funding is about both propping up the economy and investing in the military.
“It’s not about simply buying stuff for the sake of buying stuff.”
‘An exciting time’
Jason Aspin, CEO of Aspin Kemp and Associates, said his company has been waiting for Carney’s announcement for the past year.
He said Aspin Kemp is already investing “significant money” to get the business ready.
“It’s something that we are actively pursuing and developing … our resources around and our strategy around,” he said.
“It’s good to hear Canada now saying that they’re interested in engaging with Canadian companies because I think there have been Canadian companies, countrywide for sure but also here in P.E.I., that have not been able to get that sort of engagement.”
Aspin said he’s confident P.E.I. businesses can compete in the defence market.
“We need to be able to support startup businesses, but also medium-size companies that are delivering, manufacturing and developing technologies around us,” he said.
“It’s an exciting time for us and we’re hoping that we can, as a province, deliver to the defence industry. And I believe strongly that we can.”