Carney government to name private-sector 'strategic partners' in new defence strategy.

A senior government source told the Star that Ottawa will select private firms as 'strategic partners' to receive contract access and supports under a defence industrial strategy due to be published Wednesday; the move accompanies large planned increases in defence spending and an ongoing review of the F-35 purchase.

The federal government plans to select a set of private-sector "strategic partners" under a defence industrial strategy scheduled for release Wednesday, a senior government source told the Star. The partners are intended to receive special access to federal defence contracts and supports for research and export promotion. The strategy is presented as a way to maximize domestic economic benefits as Ottawa increases defence spending. Recent budgets included an $81.8-billion increase in cash spending over five years and earlier allocated $6.6 billion to the defence strategy. Key points: - A senior government source said selected Canadian defence firms would act as "anchors" for future sector growth and receive targeted supports. - The partners would be offered access to federal defence contracts and special assistance for research and export promotion. - The strategy accompanies large planned defence investments, including an $81.8-billion boost in the latest federal budget and prior funding directed to the strategy. - Prime Minister Mark Carney confirmed the government has begun making small additional payments tied to potential purchases beyond the 16 F-35 jets already agreed, while a review of the larger F-35 deal continues. - Officials noted there are contractual obligations related to the F-35 program and said, to their knowledge, Ottawa has not committed to more than 16 aircraft. Summary: The announced approach aims to concentrate government support on selected private firms to strengthen domestic defence industrial capacity while major procurement programs proceed. The full defence industrial strategy is due to be published Wednesday; which firms will be chosen and the exact nature of supports are undetermined at this time.