Canada needs to get on with NORAD modernization

“NORAD modernization is the unfinished chapter of Strong, Secure, Engaged (SSE),” asserted Defence Minister Anita Anand at a recent conference hosted by the Canadian Chamber of Commerce. The minister has pledged to produce a “robust package” of options to modernize NORAD to meet today’s national security challenges, including the growing concern over Russian aggression and Arctic sovereignty. NORAD—the Canada-U.S. bi-national command for aerospace defence of North America—has been at the core of Canada’s defence policy for more than 60 years, so why it was omitted from SSE has always been a bit of a mystery. What exactly NORAD modernization means is also elusive, as the government has not articulated clearly what it is contemplating. What we do know is that the technology that underpins NORAD in Canada—specifically the North Warning System (NWS) and its 39 sites across the Canadian North—is more than 30 years old and generations behind modern detection technologies. But there are likely many other pieces to a modernized NORAD that go well beyond the replacement of the NWS. The cost for NORAD modernization is also unknown, with estimates currently ranging from $30-billion-$90-billion. Even at the low end, the initiative has a price tag that rivals the recapitalization of the Royal Canadian Navy and Coast Guard, the most expensive acquisition in Canadian history. Two successive governments recognized that the usual tool used to leverage defence procurements for Canadian benefit—the Industrial and Technological Benefits Policy—was insufficient in that case, given the scale of public investment and the opportunity the Navy and Coast Guard projects presented to drive innovation, industrial development, and high-wage employment in Canada. It was concluded that a more strategic approach was required, aimed at ensuring Canada had sustainable domestic capability in naval shipbuilding, while maximizing domestic economic returns from this once-in-a-generation investment. The National Shipbuilding Strategy was born out of that recognition and ambition, and it’s starting to work. Even during a global financial crisis, Canada’s marine sector revenues grew by 41 per cent between 2018 and 2020, 20 per cent of which came from exports. Because of its scale, a similar mindset needs to animate the government’s approach to NORAD modernization. Unfortunately, there is little evidence Ottawa is thinking about how to leverage it to Canada’s national security and economic advantage. The starting point for this would be meaningful consultation with the Canadian defence industry, which to date hasn’t happened. Canadian companies produce world-leading capabilities relevant to NORAD modernization. The government’s list of “Key Industrial Capabilities”—that they want to grow through defence procurements—includes at least six areas directly relevant to NORAD modernization, namely: cyber resilience; remotely piloted systems and autonomous technologies; space systems; aerospace systems and components; electro-optical/infrared systems; and artificial intelligence. It is also worth noting that any government-estimated cost of NORAD modernization would not be worth the paper it is printed on without serious industry engagement. Meanwhile, as usual, the Americans are eating our lunch. Washington knows that its share of NORAD modernization is large enough, and the technology needed is sophisticated enough, to require a collaborative approach with the U.S. defence industry. The Pentagon has been working with American defence companies for several years, including at a classified level, as it seeks to develop capabilities together. Ottawa is several steps behind Washington. Just last week, the defence minister committed for the first time to engage industry, though the government has been talking about NORAD modernization for years. It’s as if the Department of National Defence believes it has the market cornered on knowledge about the emerging and disruptive technologies that modernizing NORAD will require. It does not. Most of this knowledge and expertise resides within industry. If Canada is serious about NORAD modernization—and how this massive investment in technology can and should produce lasting gains for both Canadian sovereignty and the Canadian economy—it needs to get on with consulting industry in a serious way before considering NORAD modernization options, and not wait until after tabling their “robust plan.” More fundamentally, Ottawa needs in this instance to adopt the kind of philosophy and ambition to defence industrial policy that animates the National Shipbuilding Strategy. It will take a determined effort and uncommon collaboration to turn that ambition into reality. Nicolas Todd is vice-president of policy, communications, and government relations with the Canadian Association of Defence and Security Industries (CADSI). The association represents the interests of over 500 defence, security, and cyber companies across Canada. The Hill Times