Defence Crown Corporation: A Solution?

By Dr. Ann Griffiths, 10 October 2026

A few days ago, the government introduced legislation – Bill C-40: Strengthening Canada’s Defence Sector -- to change the Defence Investment Agency (DIA) into a Crown corporation. The idea behind this is to give the DIA more authority, autonomy and flexibility in defence procurement. The government also hopes that it will “strengthen our industrial base, supply chains, and sovereign capabilities.”

According to the government, this legislation:

• Creates the Canadian Corporation for Defence Investment, which will continue to operate under its existing name, the Defence Investment Agency. It will have more independence, its own Board of Directors, and greater authority to negotiate and manage contracts;
• Empowers the DIA to engage in defence production, procurement, and investment activities in support of national defence and the operational priorities, capability requirements and acceptance criteria established by the National Defence (DND) and the Canadian Armed Forces (CAF);
• Maintains the Government of Canada’s oversight of the new Crown Corporation;
• Amends the National Defence Act to create an Associate Minister of National Defence for Procurement, who will be responsible to Parliament for the DIA, consolidate procurement and commercial authorities and strengthen accountability for procurement delivery within the National Defence portfolio, and
• Integrates the DIA with the National Defence portfolio to further reduce red tape that slows procurement down and ensures that defence procurement in Canada is focused on equipping the National Defence and CAF with the tools they need to defend Canada.

The government has high expectations. Among other things, the new Crown corporation will speed up procurement, support Canadian businesses, generate private sector investment in defence, drive innovation, enhance Canadian security, and build a “stronger, more self-reliant country.”  According to the media release, it will also ensure greater international collaboration, improve interoperability, obtain more access to allied markets and supply chains, capitalize on economies of scale, and support Canada’s broader security and diplomatic objectives.

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Preview CNR Next Issue: Vol. 22 No. 2 (2026)

In his Editorial “The Art of Naval Thought,” Brian Santarpia notes that “the RCN dedicates relatively little effort to professional education in the foundations of strategic thought,” and that this is unfortunate. To start off the line-up of interesting articles, we have the winning essay of the 2026 CNMT essay competition. The author, C.A.M. Al Wahi, won with an impressive essay entitled “Vulnerable Arteries: Protecting Critical Subsea Infrastructure and the RCN’s Mandate.” Our second article, “A Submarine-First Royal Canadian Navy?” argues that, as Canada’s main strategic asset, submarines should receive more focus in the RCN. Our third article, “Slow Procurement is Canada’s Greater Risk,” outlines problems and solutions in the military procurement process from the perspective of a Canadian company. The next article, “Of Hulls and Sailors: Why Fleet Recapitalization Depends on Personnel Generation,” focuses on the importance of ensuring there are enough trained personnel as a crucial element of naval capability. The final article discusses HMCS Sackville and the ship’s recommissioning ceremony in the spring.   

We have a good selection of Making Waves commentaries. There is material about the future US Arctic Security Cutters, discussion of the importance of trained personnel, underwater surveillance in the Arctic, and suggestions about the design of Canadian amphibious forces.

And, of course, we have our regular columns. In “Allies of Necessity: Japan and South Korea,” “A View from the West” looks at the uneasy relationship between two key players in the Indo-Pacific region.  “Dollars and Sense” examines the shift from austerity to abundance in defence, and “Warship Developments” updates us on Tomahawks and aircraft carriers.  

No issue of CNR would be complete without the amazing photos! And there are many of them!

Stay tuned. In a few weeks, the issue will be available to people who are lucky enough to be subscribers! It’s not too late for you to subscribe. See here for the Table of Contents.

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Looking for Books about Maritime Matters?

Over the last 20 years, Canadian Naval Review has published over 200 book reviews. These books cover a variety of topics but they all relate to maritime matters, history, or security and defence at sea. This is an amazing resource. Go through the list of reviews, pick out a few books that look interesting, read the reviews, and then order the books from your nearest bookstore or from the publisher. See the list of book reviews at https://www.navalreview.ca/book-reviews/