Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning Canada's national defence, cybersecurity, border security, weapons systems, military commitments, and the Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF). Every Monday, we break down the most important updates in this space in under five minutes.

Want to track GR news in industries related to Defence? Don’t miss this week’s updates in ICT & Cybersecurity.

Dates: 2025-10-19 to 2025-10-25

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Committee Calendar
• 🇨🇦 Canadian Federal GR News
• 💬 Government Consultations
• 📚 What We're Reading This Week

This Week's Parliamentary Committee Calendar

• House Committee on National Defence to Examine Bill C-11 Amendments: The National Defence Committee will review Bill C-11, amending the National Defence Act, on October 27 from 3:30 to 5:30 p.m.; Minister McGuinty and senior CAF and Defence officials are scheduled as witnesses.
• House Committee on Public Safety to Hear Witnesses on Bill C-8, Cyber Security Legislation: On October 28 from 11:00 a.m. to 1:00 p.m., the Public Safety and National Security Committee will continue its study of Bill C-8, which amends the Telecommunications Act and various other Acts for cyber security; officials from Industry, Public Safety, and the Communications Security Establishment will present.
• Senate Committee on National Security Scheduled to Study the Impact of Russia’s Disinformation: The Standing Senate Committee on National Security, Defence and Veterans Affairs will meet on October 27 at 4 p.m. to examine the influence of Russian disinformation in Canada, with sessions featuring Justin Ling, Simon Hogue, Chris Alexander, and Aengus Bridgman.
• Senate Committee on Fisheries and Oceans Examines Federal Policy for Fisheries and Maritime Safety: The Senate Fisheries and Oceans Committee meets October 28 at 6:30 p.m. to study the policy framework for Canada’s fisheries and oceans management, including maritime safety; witnesses include Davide Cargnello (Privy Council), Tricia Mitchell (DFO), and Niall Cronin (Global Affairs).

Canadian Federal GR News

Minister of National Defence Responds to Auditor General’s Report on Military Recruitment

On October 21, the Minister of National Defence, David McGuinty, provided a detailed response to the Auditor General of Canada’s report addressing gaps in military recruitment and training. The report revealed that 6,706 new members were enrolled in the Canadian Armed Forces Regular Force from April 2024 to March 2025, surpassing recruitment goals and marking a 55% year-over-year increase. Key measures include a substantial compensation and benefits package, featuring an 8%–20% pay raise depending on rank, a newly instituted military service pay, and additional allowances for both recruits and instructors. Updates have also been made to recruitment infrastructure and digital systems, with initiatives such as an Online Applicant Portal and revised medical and assessment standards. These efforts are part of a broader CAF reconstitution strategy aimed at improving recruitment efficiency and aligning with operational requirements for domestic and international missions.

Sources: Announcements: www.canada.ca

Defence Housing Strategy Receives New Investments and Oversight Measures

Following the release of the Auditor General’s audit on military housing, Minister McGuinty confirmed substantial investments: $1.4 billion over 20 years through Budget 2024 and ‘Our North, Strong and Free’ policy, supporting construction of up to 1,400 new units and renovation of approximately 2,500 units nationwide, including net-zero apartments in Edmonton and multiple new buildings in Kingston, Valcartier, Borden, Halifax, Petawawa, Gagetown, and Trenton. The Canadian Forces Housing Agency is conducting a reassessment of requirements this month to identify shortfalls. The Department has implemented accelerated project delivery in Esquimalt, acquiring a 37-unit apartment building in five weeks. A national residential housing allocation oversight framework is scheduled to be in place by March 2027 to prioritize fairness, accountability, and data accuracy in housing assignment.

Sources: Announcements: www.canada.ca

Government of Canada Funds Alberta Defence Technology Commercialization

On October 23, Prairies Economic Development Canada announced $2 million in federal funding for ConvergX Global Solutions Foundation. The investment is designed to facilitate the commercialization of Canadian-made defence technologies by Alberta small and medium businesses, including launching the Xpand Commercialization Zone (Xpand) for testing, validation, and export readiness training. Partners such as Boeing and the Opportunity Calgary Investment Fund (OCIF) have also committed funds, supporting services for industry expansion into international defence markets. These technologies, many dual-use, have applications in defence as well as energy, agriculture, and AI, with a focus on enabling SMEs to secure global market access.

Sources: Announcements: www.canada.ca

Federal Government Reaffirms Commitment to Cybersecurity of Government Networks

In a joint statement on October 21, Ministers Joël Lightbound and Shafqat Ali responded to the Auditor General’s audit findings on cyber defence, reiterating the federal government’s resolve to modernize and secure digital infrastructure. The government continues to deploy real-time monitoring and threat detection technology through Shared Services Canada, Treasury Board Secretariat, and Communications Security Establishment. Investments are ongoing in advanced technologies, coordinated efforts across departments, and data-driven processes to protect critical federal systems from malicious attacks, supporting continuity of government services.

Sources: Announcements: www.canada.ca

Annual Procurement Ombud Report Calls for Foundational Change to Federal Procurement System

Alexander Jeglic, Procurement Ombud, released the 2024-25 annual report on October 20, tabled in Parliament by Minister Joël Lightbound. The report details ongoing problems in federal procurement policy and recommends five foundational changes to address persistent challenges. The Ombud’s oversight has resulted in improvements in process fairness and evaluation criteria, with federal departments acting on multiple recommendations. While progress has been recognized, the report stresses that further system-wide transformation is required to create a more accessible and efficient procurement environment for industry participants.

Sources: Announcements: www.canada.ca

Canada’s Industrial Leadership Plan Emphasizes Defence Sector Investments

Minister Mélanie Joly outlined the federal government’s three-pillar industrial policy in remarks to business leaders: Protect, Create, Attract. Under 'Protect,' government measures support Canadian steel, aluminium, and auto sectors, with interventions such as a $400 million loan for Algoma Steel and defence shipbuilding procurement tied to domestic manufacturing. The 'Create' pillar includes significant new investment in defence industries, referencing active submarine procurement with Germany/Norway and South Korea, aiming for strong Canadian supply chain involvement and IP retention. The plan also targets export growth for shipyards and aerospace firms, development of a Defence Industrial Strategy, and use of the Defence Investment Agency to drive contract-based innovation. The 'Attract' component boosts foreign direct investment via regulatory clarity and permitting speed, reinforcing Canadian firms’ position in global defence and technology supply chains.

Sources: Announcements: www.canada.ca

Canada Hosts German and Norwegian Defence Ministers in Ottawa

On October 20, Minister McGuinty welcomed Germany’s Boris Pistorius and Norway’s Tore O. Sandvik to National Defence Headquarters. The event marked ongoing discussions on defence cooperation, particularly regarding submarine procurement, with German and Norwegian firms actively bidding for upcoming Canadian contracts. The meeting underscores continued efforts to integrate Canadian suppliers into major defence acquisition projects.

Sources: Announcements: www.canada.ca

Senate Committee on National Security, Defence and Veterans Affairs Reviews Border Security, Cyber, and Firearms Policy

Minister Gary Anandasangaree met with the Standing Senate Committee on National Security, Defence and Veterans Affairs on October 20. Discussion topics included a $1.3 billion border security initiative; progress on the National Action Plan on Auto Theft; updates to Bill C-12 and Bill C-21 regulations; plans for Arctic Chief Firearms Officers by January 2026; and federal funding for new RCMP positions. Foreign interference and disinformation, particularly Russian activity, were addressed with strategies involving CSIS, RCMP, and Global Affairs Canada. The minister outlined upcoming recruitment efforts and data governance improvements, referencing Indigenous community safety and police diversity.

Sources: Transcripts: senparlvu.parl.gc.ca

Senate Committee on Foreign Affairs Highlights Canadian Military and Financial Aid to Ukraine

On October 22, Ukrainian Ambassador Andrii Plakhotniuk appeared before the Senate Committee on Foreign Affairs and International Trade. Ambassador Plakhotniuk thanked Canada for its provision of key military assets and training, identified continuing needs in energy infrastructure and weapon supplies, and called for new aid packages in future budgets. The committee discussed international sanctions against Russia, proposed legal frameworks to repurpose frozen Russian assets, and addressed humanitarian aspects including the displacement of Ukrainian children. The session linked Canada’s defence industry participation directly to Ukraine’s operational resilience and diplomatic engagement.

Sources: Transcripts: senparlvu.parl.gc.ca

Senate Committee on Agriculture and Forestry Reviews Use of Drones and Tech in Disaster Response

On October 23, the Committee chaired by Senator Robert Black focused on wildfires and corresponding insured losses. The Insurance Bureau’s Liam McGuinty proposed integrating wildfire risks into national flood mapping and called for a national emergency management agency. NRC researchers described guidance for resilient rebuilding with economic and mental health considerations. Tech firm FireSwarm presented drone solutions for wildfire response, highlighting operational and logistical support needs. Public-private partnerships and advanced defence tech deployment were identified as mechanisms to enhance disaster management capabilities.

Sources: Transcripts: senparlvu.parl.gc.ca

StatsCan Reports Monthly Increase in Industrial Product and Raw Materials Price Indices

On October 20, Statistics Canada released price indices showing industrial product prices rose 0.8% month-over-month and 5.5% year-over-year in September, with raw materials up 1.7% monthly and 8.4% annually. These figures hold relevance for defence sector suppliers managing procurement costs and input sourcing.

Sources: Open Government Data Set: www.statcan.gc.ca

Government Consultations

Artificial Intelligence Strategy Consultation from Innovation, Science and Economic Development Canada

The federal government's 30-day consultation on the 2026–2030 Artificial Intelligence Strategy remains open to public input through November 1, with feedback sought on priorities for AI research, commercialization, and governance.

Sources: Canadian Government Consultations: ised-isde.canada.ca

Consultation on Customs Broker Business Number Use for Importers

Canada Border Services Agency is accepting comments through October 31 regarding regulatory changes allowing customs brokers to use their business number for accounting declarations for importers not yet registered in CARM.

Sources: Canadian Government Consultations: www.cbsa-asfc.gc.ca

What We're Reading This Week

• New defence investments coming to Canadian military to combat money being sent to the U.S.: Carney: Details on upcoming Canadian military procurement priorities.
• Volatus Aerospace to Launch Innovation Centre and Drone Manufacturing Hub at Mirabel to Strengthen Canada's Defence Readiness and Support NATO Allies: News on drone tech expansion and NATO-related defence readiness.
• Walking a fine line: Economists caution Canada on commitment to defence sector: Economic perspectives on government defence sector commitments.
• Canada ‘definitely in a rush’ to make a decision on submarine procurement: German defence minister: Insight into Canada’s submarine acquisition timeline.
• McGuinty says Canada’s first defence industrial strategy will land weeks after budget: Timelines for Defence Industrial Strategy release.
• True Launches Cybersecurity & Defense Tech Practice to Meet Evolving Global Defense Tech Talent Demands: Industry response to cyber and defence tech labour shortages.
• How the military is using drones, 3D printers to counter improvised explosive threats: Application of new technologies for counter-IED operations.
• Auditor finds gaps in federal government’s cybersecurity shield as threats multiply: Auditor General’s findings on federal cybersecurity shortfalls.
• Finland sees quantum tech, defence as priorities under strategic partnership with Canada: Canadian-Finnish priorities in emerging defence technologies.

.