The Liberal government plans to transform its year-old Defence Investment Agency (DIA) into a Crown corporation to move military purchases along more swiftly, two federal sources told CBC News. The proposed overhaul could fundamentally reshape Canada’s defence procurement system and raise questions about oversight and accountability.
The DIA was created just over a year ago and has functioned as a special agency under Public Services and Procurement Canada. Legislation giving the agency broader powers to bypass the decades-old procurement system was put before the House of Commons in the spring and has yet to pass.
Public Works Minister Joël Lightbound plans to introduce new, separate legislation taking the DIA one step further into independent Crown corporation status, according to the sources, who were not authorized to speak publicly. The title of the proposed bill has appeared in House of Commons documents.
The confidential sources said it is expected the Crown corporation would report to an associate minister of defence for public accountability purposes. While details of the new legislation have not been released, it is expected the agency could have its own board, CEO, corporate plan and workforce.
Philippe Lagassé, a defence policy and procurement expert at Carleton University, said the planned move would be significant.
“A Crown corporation could reduce the bureaucratic processes involved with multiple departments and central agencies, notably the federal Treasury Board,” Lagassé said, pointing to Defence Construction Canada as an example of an independent defence agency. “Based on how Defence Construction Canada operates, DIA as a Crown could be the contracting agent for [the Department of National Defence and Canadian Armed Forces], which would slim down the number of actors involved.”
Lagassé noted that fewer ministers would have their say over major projects involving large amounts of taxpayer money, and that there might be less internal oversight. He said the DIA could commit to transparency and its CEO could still appear before parliamentary committee.
Prime Minister Mark Carney made speeding up defence procurement an important campaign promise in the 2025 election. When the first bill to formally create the DIA was tabled earlier this year, it gave the new agency sweeping powers. For decades, the federal government could use four exceptions to suspend the normal procurement process. In the spring, the government proposed to allow up to 14 exceptions, including procurements of national interest, and made economic security a key pillar of the DIA mandate.
Defence Minister David McGuinty and Secretary of State for Defence Procurement Stephen Fuhr are scheduled to hold a media availability on Tuesday to answer questions.
Sources: CBC Politics · CBC Politics