Ottawa Proposes Crown Corporation to Speed Up Defence Buying
Ottawa has introduced Bill C-40 to re-establish the Defence Investment Agency as the Canadian Corporation for Defence Investment, a Crown corporation with its own board operating at arm's length from government. The proposal would give the procurement body more discretion over purchasing and the authority to invest in companies. The Globe and Mail
A Crown corporation is owned by Ottawa but run day to day by a board, much like VIA Rail. Under this structure, the organisation would sit outside daily ministerial control. It would answer to its board and report to Parliament through a new Associate Minister of National Defence for Procurement, a position the bill would create. Ottawa had not named anyone to the post at the time of the report.
The government says the legislation is intended to accelerate defence procurement, strengthen Canadian industry and reinforce Canadian sovereignty. Government of Canada As a Crown corporation, the Agency would use defence investment to support industry and secure critical supply chains. Federal officials say the model provides the tools, authorities and operational flexibility needed to deliver capabilities faster.
Defence Investment Agency chief executive Doug Guzman told staff the model is meant to provide flexibility, specialised expertise and tools to move faster, make strategic investments and deliver what the Canadian Armed Forces need. He said it would strengthen the Agency's ability to build Canada's defence industrial base, develop sovereign capacity, or the ability to make and maintain key equipment at home, and create economic and security benefits for Canadians.
Guzman also told staff the organisation will decide in the coming weeks which name to use. In an email, he said he intends to remain as chief executive and has no intention of quitting. Guzman joined the Agency from the Royal Bank of Canada, where he was deputy chair. He played a central part in the Carney government's July decision to buy up to 12 submarines from German company TKMS for the Royal Canadian Navy. Liberal MP and former fighter pilot Stephen Fuhr has worked on defence purchasing reform as Secretary of State for Defence Procurement.
The Agency's stated goal is to modernise, simplify and make defence procurement more efficient, ensuring faster delivery without compromising accountability. Its mandate documents describe reducing delays and red tape in response to current and emerging global security threats. The 2026 Defence Industrial Strategy positions the Agency as a central vehicle for procurement reform under a new Build-Partner-Buy framework.
The broader context here is machinery, not branding. A shift from agency to Crown corporation changes how buying power, investment power and ministerial accountability fit together. A board-governed corporation can hire differently, hold funds differently and buy stakes in firms in a way a department cannot. It also gives Parliament a clearer test: delivery against cost and schedule, and the state of made-in-Canada capacity.
In my view, three questions will matter as the bill moves through Parliament. First, the scope of investment power and how it will be overseen. Second, how accountability for the new associate minister will work in practice alongside the Minister of National Defence. Third, whether the promised speed holds up against contracting rules, litigation risk and expectations from other governments. The answers will decide whether this becomes a lasting procurement institution or another reorganisation that leaves timelines unchanged.
