Assahafa.com
Canada’s defence minister has committed an additional $1.4 billion to boost the production of ammunition, saying the investment is essential to the future of the country.
Speaking from IMT Precision in Ingersoll, Ont., a company that makes shell casings, David McGuinty announced Wednesday the funding is part of the Canadian Defence Industry Resilience Program, which helps ramp up defence equipment manufacturing.
IMT Precision will receive up to $306.3 million to help build a new facility that makes metal shells for 155-millimetre artillery projectiles, McGuinty said.
The Liberal government has made several spending announcements in recent days, including investments in the Far North. Last summer, NATO leaders agreed to increase defence spending across the Western alliance to five per cent of gross domestic product over the next decade.
The move will protect the country from global supply disruptions, supply the armed forces with what it needs, and create jobs in communities like Ingersoll, he said.
Last week, the Liberal government unveiled a comprehensive $35-billion plan to modernized and expand Canada’s military footprint in the north.
On Monday, McGuinty announced Ottawa is investing $200 million over 10 years to lease a dedicated space launch pad near Canso, N.S., with the aim of establishing the foundation for a future spaceport for Canada and its allies.
A report from the Parliamentary Budget Office suggests meeting that target could blow a hole in the federal budget. The analysis estimates that between now and 2035, the annual defence budget will need an additional $33.5 billion to meet the benchmark of 3.5 per cent direct spending on the military.
McGuinty said that despite the recent investments, Canada won’t be able to meet its two per cent target by the end of March.
“This is not a last-minute spending spree,” he said. “This is the culmination of years of work, in some cases certainly in the last year, in laying track to set up the announcements to be able to actually now execute on a plan.
Video
Canada invests up to $1.4 billion in domestic ammunition production, new factory in Ingersoll, Ont.
“We have a plan, and the plan in this case is to make absolutely sure that Canada and our Canadian Armed Forces have the ammunition that they need.”
The defence strategy recognizes that artillery and munitions production in Canada needed bolstering, IMT Precision CEO Cheryl Hacking said.
“Canada needs to be prepared for the realities of today’s world, and IMT is ready to do its part to help re-equip the Canadian Armed Forces, our partners in NATO and other allies with the weapons they need to do their jobs safely and effectively,” Hacking said.
The location of IMT’s new site has not yet been selected, she said, but more information will be announced in the weeks to come.
IMT Precision employs 500 people, with approximately 300 new jobs available at the new facility.
Source: cbc
