Mr. Speaker, with regard to (a), the Government of Canada is committed to working with Canada’s defence-related industries to better leverage military procurements in support of Canadian jobs, economic growth and the competitiveness of these industries, particularly in regard to innovation and technology development. With this objective in mind, it has received the Jenkins report, including the industrial and regional benefits, IRB, context described therein. It is currently examining the various recommendations and supporting analyses.

The Jenkins report provides an overview of potential economic opportunities related to planned major acquisitions under the Canada First defence strategy. In support of this analysis, the report estimated that $49 billion in IRB obligations will accumulate by 2027.

As indicated in annex 3 of the Jenkins report, this estimate was calculated based on two key elements: data on planned major acquisitions and current IRB obligations, which was sourced from the Department of National Defence and Industry Canada, and assumptions that were based on observed patterns from past defence acquisitions projects.

As noted in the Jenkins report, the resulting estimate of $49 billion could only be considered as a rough estimate given substantial uncertainty on the annual rate of IRB fulfillment over the planning period of 2012-2027.

The validity of the estimate, and its interpretation, must therefore be understood within that context. At this time, and subject to the context, purposes and assumptions of the Jenkins report, this estimate is deemed to be reasonable.

With regard to (b), IRB obligations are part of contractual commitments, and for projects already under contract, specific obligations are listed on the IRB website at http://www.ic.gc.ca/eic/site/042.nsf/eng/h_00017.html.

As IRB obligations apply only to contract values rather than project values and will form part of any negotiated contracts, the government cannot determine IRB obligations that will apply to planned procurements. Therefore, the government cannot provide an estimate of IRB obligations that will be accumulated by 2027.

With regard to (c), as per the response to part (b), the government cannot provide an estimate of IRB obligations that will be accumulated by 2027.

With regard to (d), as per the response to part (b), the government cannot provide an estimate of IRB obligations that will be accumulated by 2027.

With regard to (e), two lists related to planned acquisitions were provided: Capital Equipment--Future Procurement--Beyond 2016, and Capital Equipment--Potential Contract Awards--Short Term, 2013-2015 estimated.

These lists were prepared by the Department of National Defence and were valid as of October 2012.

Rona Ambrose