Liberal Government Plans to Transform Defence Investment Agency into Independent Crown Corporation
The Liberal government intends to convert the Defence Investment Agency into an independent Crown corporation through new legislation, aiming to accelerate military procurement while maintaining public accountability via an associate minister of defence.
OTTAWA — The Liberal government plans to transform the Defence Investment Agency (DIA) into an independent Crown corporation in an effort to move military purchases along more swiftly. Public Works Minister Joël Lightbound is expected to introduce new, separate legislation that would take the DIA one step further into independent Crown corporation status.
The DIA was created just over a year ago and has functioned as a special agency under Public Services and Procurement Canada. Under the proposed structure, the new Crown corporation would report to an associate minister of defence for public accountability purposes.
Speeding up defence procurement was an important campaign promise made by Prime Minister Mark Carney during the 2025 election. Philippe Lagassé, a defence policy expert at Carleton University, stated that a Crown corporation could reduce bureaucratic processes involving multiple departments and central agencies like the federal Treasury Board. This potential reduction in bureaucracy could lead to faster arrival of military equipment for the Canadian Armed Forces.
However, the shift raises concerns about reduced internal oversight and accountability. Critics note that fewer ministers would have a direct say over major projects involving large amounts of taxpayer money. There are also possible tensions between growing the defence industrial base and meeting specific technical requirements.
Defence Minister David McGuinty and Secretary of State for Defence Procurement Stephen Fuhr are scheduled to hold a media availability on Tuesday to answer questions regarding the initiative.