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.
High expectations indeed. See the media release at https://www.canada.ca/en/defence-investment-agency/news/2026/10/government-of-canada-introduces-legislation-to-accelerate-defence-procurement-strengthen-canadian-industry-and-reinforce-canadian-sovereignty.html
Image: Logo of the Defence Investment Agency. Credit: Government of Canada
