Hon. Marty Klyne: Minister Blair, welcome. According to a recent article in the Ottawa Citizen, the Department of National Defence has announced a $6-million Polar Over-the-Horizon Radar project as part of NORAD modernization, scheduled to be fully operational by 2033. This system, primarily designed to track incoming missiles in our Arctic region, represents one of our largest defence investments.

While announced in June 2022, construction is not set to begin until 2030, with current planning led by a small team of five military officers and three contractors. The project’s significance to American defence, not to mention its substantial cost, warrant careful scrutiny.

Can you please explain why, for a project of this magnitude and urgency for North American defence, we are seeing a seven-year gap between the announcement and the start of construction? What activities will occur in that time?

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you very much. It is an important question. The NORAD modernization project involves an investment of $38.6 billion, which is very significant for both Canada and the United States with respect to our situational awareness, particularly in the High North with Over-the-Horizon Radar and Polar Over-the-Horizon Radar installations. We have put together a team and begun the work.

Respectfully, we cannot just go out and build a facility before the important work that is being done in concert and collaboration with the Americans on determining exactly what technology will be utilized in this important project; that is the work that is taking place right now. I won’t call it a delay, but there has been rethinking on some of the types of technologies that we would employ, as well as looking at integrating more thoroughly some satellite technologies that are available. That work, which is taking place right now with both Canadian and American participation in that analysis, is taking place before any site selection might then occur with respect to the acquisition of the property where this will be located.

Ultimately, if we go with the existing technology, it would require about a thousand hectares of land being required somewhere in southern Ontario for the installation of our receiving site and a transmission site slightly further to the north. The determination of that site will depend entirely on what the technology eventually selected is.

I have some good news to your subsequent question.

Senator Klyne: Thank you for that. In light of concerns from domestic aerospace and defence companies about the government favouring foreign technology, what percentage of this $6 billion project will be allocated to Canadian companies? What measures are being taken to ensure Canadian technological expertise is appropriately utilized?

Mr. Blair: We are making very significant investments. Two per cent of our GDP is, as has been indicated, an enormous new investment for Canada. It is incumbent upon me not only to make sure we make the investments that secure our defence and security along with our allies, but it’s also an opportunity to invest in Canadian workers, Canadian industry and the Canadian economy. For example, the new ships we’re building in Nova Scotia will sustain 10,800 jobs in Nova Scotia. It’s going to add $40 billion to our economy.

Your question is an important one. We work very closely with the Americans and we are doing all that is necessary to ensure that our industry is an innovator and our workers have every opportunity to participate in this project and the investments that we have to make. I’m confident that we will be able to secure a significant amount of that investment.

I also wanted to share with you —

The Hon. the Speaker pro tempore: Thank you, minister.