This Week in Defence — Ottawa (#4, 2026)

Aeronautics Act amendments reviewed in Senate; repatriation ceremony for fallen CAF member; Raytheon secures US missile contract; Hanwha pursues Canadian submarine deal; fiscal watchdog warns on defence deficits; anti-drone tech investigation in Ontario; Trump limits defence CEO pay; Canada’s MDA...

This Week in Defence — Ottawa (#4, 2026)

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning Canada's national defence, cybersecurity, weapons systems, military commitments, and Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF). Once a week, we break down the most important updates in this space in under five minutes.

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Dates: 2026-02-02 to 2026-02-08

📋 In This Week's Newsletter

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


This Week's Parliamentary Calendar

Federal Government News

Senate Committee Examines Aeronautics Act Amendments for Aviation Safety

The Standing Senate Committee on Transport and Communications, chaired by Senator Larry Smith, met on February 4 to review Division 28 of Bill C-15, proposing modifications to the Aeronautics Act. Representatives from the National Airlines Council of Canada and Air Transport Association of Canada supported enhanced legislative protections for voluntarily shared safety data, positioning Canada in line with international standards and advancing a 'just culture' framework. The session addressed expanded interim orders and higher administrative penalties. Wei Li of the Canadian UAV Association raised the necessity for an industrial strategy for drones. Senator Dasko referenced a drop in Canada’s civil aviation oversight score, attributed by Shannon Saunders to updated ICAO standards. Senator Wilson queried interim order use, and Senator Aucoin sought clarification on penalty impacts for small airlines. Issues around enforcement, collaboration, safety standards, transparency, and proportional penalties were considered.

Sources: senparlvu.parl.gc.ca
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Repatriation Ceremony Announced for Gunner Sebastian Halmagean

National Defence announced a repatriation ceremony scheduled for February 3 at 8 Wing/CFB Trenton for Gunner Sebastian Halmagean, who served with the NATO Multinational Brigade in Latvia under Operation REASSURANCE. The circumstances of Halmagean's death are under investigation by Canadian Forces Military Police with Latvian State Police. The motorcade will proceed to Toronto along the Highway of Heroes following arrival at 2:30 p.m. Media arrangements require advance accreditation, and there will be no family interviews per their wishes. Coordination for information requests is directed to Captain Aaron Niles, Public Affairs Officer.

Sources: www.canada.ca

Fiscal Watchdog Signals Soaring Deficits with Defence Targets

Reporting from February 5 indicates the federal fiscal watchdog cautioned that meeting future defence investment targets would significantly expand budget deficits. The warning follows increasing government commitment to defence spending amid international pressure for greater military investments. The projection considers ongoing procurement needs and modernization requirements, weighing on current fiscal policy priorities.

Sources: nationalpost.com

Hanwha Targets Canadian Defence Deal and Pacific Submarine Mission

Hanwha, a South Korean defence conglomerate, is pursuing a major Canadian defence agreement, aligning with plans to send its attack submarine across the Pacific. The bid, reported February 2, positions Hanwha as a contender in Canada's ongoing naval procurement activities, potentially impacting future fleet compositions. The voyage is intended to demonstrate operational capabilities, with implications for Canadian maritime strategy.

Sources: www.ctvnews.ca

Canada’s MDA Courts Global Talent Amid Defence-Driven Space Expansion

Canada’s MDA has reported efforts to attract international experts, supporting growth in the defence-aligned space sector. The organisation is leveraging the surge in space-focused defence contracts, shaping industry recruitment and enhancing technological capacities. The evolving workforce reflects increased demand for advanced space surveillance and satellite systems.

Sources: financialpost.com

Weekly Aircraft Movements Data Released by Statistics Canada

Statistics Canada published weekly aircraft itinerant movement data covering January 17 to 23, 2026. The dataset provides insight into domestic aviation activity, supporting analysis of mobility trends and operational capacity in the sector.

Sources: www.statcan.gc.ca

Provincial Government News

Ontario Ships Made-in-Ontario Steel for Key Coast Guard Icebreaker

On February 5, Ontario marked the first shipment of steel produced by Algoma Steel heading to Davie Shipyard in Quebec for construction of the Polar Max icebreaker. The initiative is intended to reinforce domestic supply chains and steel sector resilience amid shifting market conditions.

Sources: news.ontario.ca

Manitoba Engages Indigenous Leaders on Churchill Plus and Arctic Defence

The Manitoba government, alongside federal officials, met with First Nations and Métis leaders on February 4 in Thompson to discuss the Churchill Plus project, including implications for Arctic sovereignty and national defence logistics. The project has been referred to the federal Major Projects Office.

Sources: news.gov.mb.ca

Government Consultations

Consultation Opens on Safeguards and Nuclear Material Accountancy

The Canadian Nuclear Safety Commission launched consultation for REGDOC-2.13.1 on February 15, detailing safeguards requirements for licensees managing nuclear material and conducting relevant fuel-cycle research or manufacturing.

Sources: www.cnsc-ccsn.gc.ca

Consultation Commences on Import and Export of Nuclear Substances

On February 15, REGDOC-2.13.2 consultation opened, providing guidance for licensees seeking to import or export controlled nuclear substances, equipment, and related information.

Sources: www.cnsc-ccsn.gc.ca

What We're Reading This Week

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