I am seeing a lot of hot takes online, mostly from what I call defence bros, many of whom who have never served, or who have never served at the strategic/HQ level and have no idea how defence procurements fits into wider defence, industrial, economic and foreign policy. So naturally all the lists are just dreamlists of kit to buy. No thought to any other consideration, including on how we would operate a lot of these.
To start with, the government had a plan. Anand actually did present Cabinet with a plan to meet 2%. They shuffled her off into a basement office on Elgin street for that work. I am not even sure any of her Conservative predecessors had actually put in that work. So if they are drafting options (and I am already hearing chatter from friends and around the office about staff checks), I would assume that plan is a good place to start.
The new wrinkle here? The Trump administration is a wildcard. To begin with, 2% may not be enough. And beyond that, they might outright insist that procurement dollars substantially go their way. Hard as it was to raise defence spending before, it will be even harder if we have to tell voters that we're going to cut OAS and CCB to send dollars to sustain American factories.
With all that background in mind, here is what I think the government will do. They are going to ramp up what they can domestically. There's actually some easy wins here. We have a base infrastructure backlog of a few billion. We have an even longer infrastructure wishlist. Some of it is dual use that benefits remote communities. Heck,
just the new secure command centre in Ottawa could be a billion bucks. Next, as has been pointed out, housing. Again, creates jobs, improves retention and reduces burden on some members. Our housing situation is so bad,
in places like Ottawa, it's been flagged as a potential compromise risk.
Next up, recruiting and retention. I get paid well. But my pay hasn't kept up with housing inflation. When I was a newly minted Captain, with a small $20k downpayment from my parents, I was able to get my own condo. If they hadn't helped, I would have got there in 2-3 years. Today, it's become routine for young Captains to have roommates till they get a significant other. It's nuts. And that cost of housing is also why we often can't retain people. They just need more pay. So in addition to building more housing, we're going to need pay bumps. Especially for hard hit trades that have high training costs and tough retention like pilots, NDT techs, cyber officers, etc.
After all this comes the question of what kit to buy. Again, the priority has to be what can ramp domestically. We put in place a 25 yr building program for the frigates, because that is the pipeline of work necessary at current spending to sustain the shipyards. We can pay them to speed that procurement up and the use the saved years on the backed to start follow-on replacement program. There's other examples like this too. We can get GDLS speeding up LAV deliveries and buying more of them. We can look at Roshel to build a lot of armoured trucks. Etc.
And after this, if we have to spend abroad then the items to be prioritized are purchases that can be done in the US that both fit a need and would be low risk procurement. I'll give an example. One of my friends works in a project cells for an AEW capability. That is something that can be spun up quick and has an obvious choice: the
Boeing Wedgetail. We finally get the independent AEW capability that the RCAF has wanted for decades and it has commonality with the US and NATO. Bombardier mad about missing out? Buy
the same electronic warfare bird as the US Army using Bombardier Globals. Similarly, there's a desire for some kind of amphibious capability or flat-top for the navy. The army is short tanks, artillery, air defence and EW. And there's decent options for all of those things in the US.
There's also quick hits like top up orders. We could use more P-8s so that we can finally put a squadron in Newfoundland. We could convert some of our F-35 order and add a bit to get small (~30 frames) subfleet of carrier or amphib capable F-35Bs or F-35s to start working with the USN or USMC, to gain amhib or carrier experience. 30 frames would let us keep a 6 pack in the US year round. I am sure the USN would be happy to get a Canadian six pack of F-35Bs.
On the longer horizon there are partnership opportunities. For example, we're trying to wrap our head around
collaborative combat aircraft, beyond the drones of today. Or there's
the air force's desire to replace all our helicopters with a single type of tiltrotor or coaxial helicopter like the V-280 being developed by Bell in the US. Maybe we can convince the Americans to let us license manufacture V-280s at BHC in Montreal.
End of the day, this isn't a spending spree without context. It has to hit a number of defence and foreign policy goals. Quickly rising up that list of goals is keeping the Americans happy. But it's also about spending wisely and actually getting us decent return on our spending.