Prioritizing defence projects will both address emerging threats and create the conditions needed for economic growth and social development, said Harry Culham. (Credit: ANDREJ IVANOV/AFP via Getty Images)
Ottawa’s push to expand its defence sector is one of the most significant financing initiatives in Canada’s history, says the head of Canadian Imperial Bank of Commerce.
“Let me be clear: we recognize the urgency of this moment,” Harry Culham said at a CIBC defence summit on Wednesday. “This presents a once-in-a-generation opportunity to invest in our economy.”
He also said investments would extend beyond the traditional forms of defence.
“They include dual-use infrastructure — airports, seaports, energy and critical roads connecting our North — as well as advancements in cybersecurity, digital solutions and artificial intelligence,” he said.
For example, Culham said prioritizing projects that enhance the Arctic’s defence capabilities both address emerging threats and create the conditions needed for economic growth and social development.
Such investments could also pour money into Canada’s mining sector, he said, since the country produces 10 of the 12 materials designated as critical for defence equipment by the North Atlantic Treaty Organization.
“By investing in these areas, we are not only protecting our institutions, but also positioning Canada as a global leader in technology and intellectual property,” he said.
The federal government’s budget last fall pledged to spend $81.8 billion on defence over five years. The sector already comprises about 600 defence companies and 81,200 jobs and contributes more than $9.6 billion in gross domestic product (GDP) to the Canadian economy.
Canada will also be the headquarters of a new multinational Defence, Security and Resilience Bank, an institution focused on financing defence-related projects.
The government said in a statement last year that it wants to “dramatically expand” Canada’s defence capacity and add up to 125,000 jobs in the sector over the next decade.
Its defence industrial strategy also expects more than $500-billion worth of public and private investments by 2035, but government investments alone will not be enough, Defence Minister David McGuinty said at the event.
He said he has met thousands of Canadian companies that say they are ready to scale and innovate, but don’t have access to capital.
“That’s where you come in,” he told the audience of financial players. “It requires institutions willing to think long term. Institutions willing to back Canadian innovation. Institutions willing to recognize that investing in defence today is investing in our long-term security, our resilience, our prosperity and our sovereignty.”