Gatineau poised to benefit from federal defence spending, ministers tell business leaders

Tashi Farmilo

National Defence Minister David McGuinty, Mayor Maude Marquis-Bissonnette and Transport Minister Steven MacKinnon addressed business leaders at a Gatineau Chamber of Commerce breakfast on April 16, outlining federal investment in cybersecurity and defence and proposing new initiatives to position Gatineau as a hub for the defence sector.

The event, held at the Régiment de Hull, marked the first time a federal minister has participated in the mayor's breakfast, which the chamber hosts regularly. The ministerial presence was described as reflecting the growing importance of defence and cybersecurity issues for the National Capital Region.

The breakfast focused on the theme of defence and cybersecurity as a growth sector for Gatineau. Canada's defence expenditures reached two per cent of GDP in the last fiscal year, the first time the country has hit that threshold since the Cold War. Budget 2025 allocates $6.9 billion over five years to strengthen the digital infrastructure of the Department of National Defence and the Canadian Armed Forces.

Cybersecurity was described as a critical capability for both military effectiveness and national resilience. The Canadian Centre for Cyber Security has assessed that ransomware attacks pose the primary cybercrime threat to Canadian critical infrastructure, and that state-backed hackers have targeted essential networks in transportation and communications.

A procurement framework described as "build, collaborate, buy" was outlined, which prioritizes Canadian-made solutions for defence needs while acknowledging the necessity of partnerships with allies and, in some cases, purchasing off-the-shelf foreign capabilities.

The Business Development Bank of Canada has made up to $6 billion available for small defence sector businesses. Canada has also joined the European Security Action Program, becoming the only non-European Union member admitted, which provides access to EU funds worth 150 billion euros and opens European markets to Canadian companies.

Gatineau and the surrounding area are home to 330 defence companies employing more than 10,000 workers, with what was described as the largest concentration of technology talent in North America. The area offers advantageous costs for labour, energy and commercial rent, along with available office space.

A joint working group on defence innovation for the National Capital Region, involving the city and the chamber of commerce, was discussed as part of efforts to define strategy for the sector.

The proposed creation of an international defence, security and resilience bank was also raised. The multilateral institution, backed by multiple countries, would finance investments in defence, security and resilience. Planning discussions are underway, with the choice of host country still to be determined. The project could mobilize up to $9 billion in public and private investment.

The event concluded with a call for strengthened collaboration between public institutions, the military, academia and technology companies to build a unique expertise hub in Canada.