Ottawa to Transform Defence Investment Agency into Crown Corporation
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The Liberal government plans to grant the year-old agency operational independence to accelerate military procurement.
The Liberal government intends to transform the Defence Investment Agency (DIA) into a Crown corporation to accelerate the acquisition of military equipment, according to reporting from CBC News.
Currently operating as a special agency under Public Services and Procurement Canada, the DIA would gain significant operational independence under the new plan. Public Works Minister Joël Lightbound is expected to introduce legislation to grant the body its own CEO, board, corporate plan, and workforce. According to CBC News, the Crown corporation would likely report to an associate minister of defence for accountability purposes.
Philippe Lagassé, a procurement expert at Carleton University, told CBC News that this shift could reduce bureaucratic friction by bypassing central agencies such as the federal Treasury Board. Lagassé compared the proposed model to Defence Construction Canada, noting that the DIA could serve as the primary contracting agent for the Canadian Armed Forces and the Department of National Defence.
While the move aims to fulfill a 2025 campaign promise by Prime Minister Mark Carney to speed up procurement, Lagassé warned that increased independence could lead to reduced internal oversight and transparency. He noted that while ministers would still answer for the corporation in Parliament, they might be less directly accountable.
Secretary of State for Defence Procurement Stephen Fuhr and Defence Minister David McGuinty are both scheduled for a media availability on Tuesday to provide further details. The move follows spring legislation that proposed expanding the number of procurement process exceptions from four to 14.