The Readiness of Canada's Naval Forces Report of the Standing Committee on National Defence Stephen Fuhr Chair June 2017 42nd PARLIAMENT, 1st SESSION Published under the authority of the Speaker of the House of Commons SPEAKER’S PERMISSION Reproduction of the proceedings of the House of Commons and its Committees, in whole or in part and in any medium, is hereby permitted provided that the reproduction is accurate and is not presented as official. This permission does not extend to reproduction, distribution or use for commercial purpose of financial gain. Reproduction or use outside this permission or without authorization may be treated as copyright infringement in accordance with the Copyright Act. Authorization may be obtained on written application to the Office of the Speaker of the House of Commons. Reproduction in accordance with this permission does not constitute publication under the authority of the House of Commons. 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Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca The Readiness of Canada's Naval Forces Report of the Standing Committee on National Defence Stephen Fuhr Chair June 2017 42nd PARLIAMENT, 1st SESSION STANDING COMMITTEE ON NATIONAL DEFENCE CHAIR Stephen Fuhr VICE-CHAIRS Cheryl Gallant Randall Garrison MEMBERS Leona Alleslev Pierre Paul-Hus James Bezan Yves Robillard Darren Fisher Sven Spengemann Mark Gerretsen OTHER MEMBERS OF PARLIAMENT WHO PARTICIPATED Ziad Aboultaif Ken McDonald John Aldag Hon. John McKay Chris Bittle David McGuinty Rachel Blaney Cathy McLeod Michel Boudrias Robert J. Morrissey Nicola Di Iorio John Nader Neil R. Ellis Alexander Nuttall Joël Godin Joe Peschisolido Cheryl Hardcastle Hon. Michelle Rempel Angelo Iacono Jean R. Rioux Wayne Long Yves Robillard Alistair MacGregor Sherry Romanado Steven MacKinnon Deborah Schulte iii Robert Sopuck Dianne L. Watts Hon. Kevin Sorenson Salma Zahid Arnold Viersen CLERKS OF THE COMMITTEE Elizabeth Kingston Phillippe Grenier-Michaud LIBRARY OF PARLIAMENT Parliamentary Information and Research Service Martin Auger, Analyst Melissa Radford, Analyst iv THE STANDING COMMITTEE ON NATIONAL DEFENCE has the honour to present its SIXTH REPORT Pursuant to its mandate under Standing Order 108(2), the Committee has studied Canada and the Defence of North America and has agreed to report the following: v TABLE OF CONTENTS THE READINESS OF CANADA’S NAVAL FORCES ...................................................... 1 GLOSSARY ............................................................................................................... 1 INTRODUCTION ....................................................................................................... 3 THE MARITIME SECURITY ENVIRONMENT AND NAVAL THREATS TO NORTH AMERICA ..................................................................................................... 5 1. An Uncertain and Unpredictable World ............................................................ 5 2. A Transforming Maritime Security Environment ............................................... 7 3. China and Naval Tensions in the Indo-Asia-Pacific Region .............................. 9 4. Russian Naval Power Renewal ...................................................................... 11 5. The Impact of Climate Change on the Maritime Domain ................................ 12 6. The Opening of the Arctic Ocean ................................................................... 13 7. Organized Crime, Piracy and Terrorism at Sea .............................................. 15 8. Cyber Threats in the Maritime Domain ........................................................... 17 9. Maritime Challenges and Threats to Canada ................................................. 18 NAVAL READINESS AND THE DEFENCE OF CANADA’S MARITIME INTERESTS ............................................................................................................. 19 1. Maritime Domain Awareness in Canada ........................................................ 19 2. Maritime Control ............................................................................................. 21 3. The State of the RCN ..................................................................................... 22 4. Aging Fleet and Capability Gaps .................................................................... 24 5. Recruitment and Training Issues .................................................................... 30 6. The State of the Canadian Coast Guard ........................................................ 32 THE RECAPITALIZATION OF CANADA’S NAVAL FORCES ................................. 34 1. The National Shipbuilding Strategy ................................................................ 34 2. Naval Procurement Challenges ...................................................................... 40 3. Mitigating Capability Gaps .............................................................................. 44 4. Prioritizing the Canadian Surface Combatants ............................................... 46 5. Improving the National Shipbuilding Strategy ................................................. 49 INVESTING IN CANADA’S NAVAL FUTURE .......................................................... 53 1. Boosting the Defence Budget and Increasing Naval Spending ...................... 53 2. Investing in Submarines ................................................................................. 57 vii 3. Developing New Naval Capabilities ................................................................ 63 4. Enhancing Arctic and Maritime Domain Awareness and Control Capabilities ..................................................................................................... 67 5. A Strong Defence Industrial Capability to Support Naval Readiness .............. 74 CONCLUDING REMARKS AND RECOMMENDATIONS ....................................... 78 APPENDIX A: COMBAT FLEETS OF THE WORLD’S TOP 60 NAVIES (2016) ........... 83 APPENDIX B: MAJOR SHIPBUILDING PROGRAMS OF THE WORLD (2016) .......... 85 APPENDIX C: LIST OF WITNESSES ........................................................................... 87 REQUEST FOR GOVERNMENT RESPONSE ............................................................. 91 SUPPLEMENTARY OPINION OF THE NEW DEMOCRATIC PARTY ......................... 93 viii THE READINESS OF CANADA’S NAVAL FORCES GLOSSARY AOPS: Arctic/Offshore Patrol Ship AOR: Auxiliary Oil Replenishment ASW: Anti-Submarine Warfare CADSI: Canadian Association of Defence and Security Industries CAF: Canadian Armed Forces CANSOFCOM: Canadian Special Operations Forces Command CBSA: Canada Border Services Agency CCG: Canadian Coast Guard CCGS: Canadian Coast Guard Ship CFB: Canadian Forces Base CFINTCOM: Canadian Forces Intelligence Command CJOC: Canadian Joint Operations Command CPF: Canadian Patrol Frigate CSC: Canadian Surface Combatant CSIS: Canadian Security Intelligence Service DCC: Defence Construction Canada DFO: Department of Fisheries and Oceans DND: Department of National Defence DRDC: Defence Research and Development Canada EEZ: Exclusive Economic Zone FFS: Federal Fleet Services HADR: Humanitarian Aid and Disaster Relief HCM / FELEX: Halifax Class Modernization / Frigate Life Extension HMCS: Her Majesty’s Canadian Ship IISS: International Institute for Strategic Studies ISED: Innovation, Science and Economic Development Canada ISR: Intelligence, Surveillance and Reconnaissance JSS: Joint Support Ship JTF: Joint Task Force 1 JUSTAS: Joint Unmanned Surveillance and Target Acquisition System MARLANT: Maritime Forces Atlantic MARPAC: Maritime Forces Pacific MCDV: Maritime Coastal Defence Vessels MSOC: Marine Security Operations Centre NATO: North Atlantic Treaty Organization NDDN: House of Commons Standing Committee on National Defence NORAD: North American Aerospace Defense Command NSPS: National Shipbuilding Procurement Strategy NSS: National Shipbuilding Strategy PCA: Permanent Court of Arbitration PSPC: Public Services and Procurement Canada PWGSC: Public Works and Government Services Canada RCAF: Royal Canadian Air Force RCMP: Royal Canadian Mounted Police RCN: Royal Canadian Navy SAR: Search and Rescue SIPRI: Stockholm International Peace Research Institute UAS: Unmanned Aircraft System UNCLOS: United Nations Convention on the Law of the Sea U.S.: United States 2 INTRODUCTION In early 2016, the House of Commons Standing Committee on National Defence (the Committee) decided to undertake a study of the defence of North America, with initial emphasis on the Canadian North American Aerospace Defense Command (NORAD) region and aerial readiness. After several months of hearings and a visit to NORAD headquarters in Colorado Springs, Colorado,