Island companies could dig in to Ottawa's increased defence funding, says P.E.I. premier

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.”

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."

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."

Jeff Collins, an assistant professor of political science at UPEI who researches and writes about defence procurement, called Carney's plan "amazing."