The Hon. the Speaker: Pursuant to the order adopted by the Senate on December 7, 2021, Question Period will begin at 2:30 p.m.

Hon. Senators: Hear, hear.

[Translation]

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Honourable senators, I give notice that, at the next sitting of the Senate, I will move:

That, when the Senate next adjourns after the adoption of this motion, it do stand adjourned until Tuesday, November 7, 2023, at 2 p.m.

Hon. Victor Oh: Honourable senators, I rise today to speak at third reading of Bill C-42, An Act to amend the Canada Business Corporations Act and to make consequential and related amendments to other Acts.

This bill aims to safeguard Canadians from the threats of money laundering and terrorist financing, discourage tax evasion and avoidance and maintain Canada’s reputation as a favourable destination for conducting business. To meet those objectives, the government is implementing a publicly accessible beneficial ownership registry of corporations governed under the Canada Business Corporations Act, or CBCA.

Experts believe that this legislation will have a substantial impact on discouraging money laundering within the country. Internationally, among anti-corruption organizations, and notably among facilitators and criminals, Canada has gained a reputation as the “snow-washing” destination of the world. Right now, according to a Canadian Security Intelligence Service 2020 report, it’s estimated that $45 billion to $113 billion is laundered annually in Canada.

Bill C-42 will dispel that perception and will deter criminals who wish to take advantage of corporations governed under the CBCA. Transnational criminal groups will need to reconsider their shareholding structures or their strategies before infiltrating Canada’s economy. We need to put an end to those who seek to exploit Canada as a haven for their criminal activities.

The publicly available beneficial ownership registry proposed in Bill C-42 aligns with the practices of the G20 and Five Eyes nations. If Canada were to pass this legislation, as indicated by experts in committee, the country would make substantial progress on the global stage regarding beneficial ownership regulation.

Similar actions have already been taken in jurisdictions around the world. Among the Five Eyes nations, the implementation of this registry would place Canada on the same level as the United Kingdom and New Zealand, both of which are establishing publicly accessible registries. Additionally, Australia is also committed to developing a publicly accessible registry. Canada’s new public registry would be on par with what our allies have developed. This would ensure interoperability.

Bill C-42 is critically necessary to make a true difference in the fight against illicit financial activities around the world. However, there are some issues to consider when implementing a system of this nature.

First, the public disclosure of an individual’s information can raise concerns regarding privacy and the protection of personal security rights. I highlighted this issue as one that needed to be examined in committee during my previous speech. In fact, privacy and personal security rights were the reason a similar public registry in Europe was held to be invalid by the Court of Justice of the European Union in 2022. This highlights the implications that a public registry can have on beneficial owners’ rights and the balance between the public’s right to information and an individual’s right to privacy.

Second, interoperability on an international scale is important to detect the complex structures used by criminals. However, we need to make sure the registry is truly pan-Canadian with the inclusion of provincially and territorially incorporated corporations. If provinces and territories are not included, bad actors can incorporate under their laws and escape the proposed national registry altogether.

At this time, there seems to be no set agreement with any provinces or territories to adhere to the new system or to enable provincially or territorially incorporated corporations to transmit beneficial ownership data directly to the federal registry. Ministers Champagne and Freeland have written to their provincial and territorial counterparts urging them to take part in the system. However, I am not aware of any confirmation that the provinces or territories will do so.

Bill C-42 represents a pivotal step in ensuring the integrity of our financial system and safeguarding our nation against the misuse of corporate structures for illicit activities. With this legislation, Canada can further align itself with global standards in the fight against money laundering, tax evasion and corruption.

We will be supporting this bill at third reading. Thank you.

The Hon. the Speaker: Is it your pleasure, honourable senators, to adopt the motion?

The Hon. the Speaker: Honourable senators, the minister has arrived, and we will suspend until he is seated.

(The sitting of the Senate was suspended.)

(The sitting of the Senate was resumed.)

The Hon. the Speaker: Honourable senators, today we have with us for Question Period the Honourable Bill Blair, P.C., M.P., Minister of National Defence. On behalf of all senators, I welcome the minister.

Honourable senators, let me remind you that during Question Period with a minister the initial question is limited to 60 seconds, and the initial answer to 90 seconds, followed by one supplementary question of at most 45 seconds and an answer of 45 seconds. The reading clerk will stand 10 seconds before these times expire. Pursuant to the order adopted by the Senate, senators do not need to stand. Question Period will last 64 minutes.

[English]

Hon. Senators: Agreed.

(At 3:51 p.m., the Senate was continued until tomorrow at 2 p.m.)

The Hon. the Speaker: Is it your pleasure, honourable senators, to adopt the motion?

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you very much, Senator Plett, for the question. Thank you also, ladies and gentlemen, for the privilege and the opportunity to come before you today.

In the aftermath of the terrible attack and the murder of innocents that took place on October 7, there was, very importantly, a reaction. I think that we have been very clear on the government’s position with respect to affirming Israel’s right to defend itself. As a result of the bombing of the hospital that took place in Gaza, there were a lot of questions and, I think, a lot of misinformation with respect to what had taken place there.

I met with my officials at the Department of National Defence and the Canadian Armed Forces, and I asked them for a close examination of the ballistics of the event and the trajectory of the ammunition. They examined both the open-source information and the classified material that was available to us. Then, I had the opportunity to brief the Prime Minister on this matter on that Saturday afternoon, and, after briefing the Prime Minister, I made a public statement.

Senator, I would respectfully disagree with your characterization. I think the Prime Minister reacted in a very understandable way to the explosion that took place at that hospital and the loss of innocent life.

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you very much, Senator Marshall.

I would point out, senator, that I was recently appointed to this position. Although I work closely with my predecessor, Minister Anand — and I continue to work very closely with her — upon my arrival into that portfolio, I undertook a comprehensive review. I had previously seen some of the planning that had gone into the Strong, Secure, Engaged defence policy update in a different capacity — I was the chair of the security committee for cabinet. However, having gone in there, I have been working very closely with the Department of National Defence, the Treasury Board and our government in determining the right way forward. There have been some changing circumstances. There has also been extensive consultation with not just the Canadian Armed Forces, but also with industry. I have been meeting with them as well because, in many respects, the defence policy update is also industrial policy — it’s not just defence policy in my opinion — so I have been engaging with them as well.

I understand the importance of coming forward with that defence policy update. We are working on it very diligently, and I hope to have good news about that in the not-too-distant future.

The Hon. the Speaker: Thank you, minister.

Hon. Tony Loffreda: Minister Blair, thank you for joining us today.

Canada’s military and peacekeeping legacy is something that we should all be proud of. I, for one, felt much pride this summer when I joined hundreds of volunteers, military personnel and supporters in Sicily for the Walk for Remembrance & Peace in honour of the eightieth anniversary of Operation Husky. This rich history is worth celebrating, and I feel that commemorations of this nature are a great way of instilling pride in our fellow citizens.

Would you not agree that these types of events can also serve as a recruitment tool for the forces? More broadly, can you share with us the Canadian Armed Forces’ recruitment efforts, and how the department is modernizing the recruitment process to simplify and shorten the application process for candidates?

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you very much, senator.

First of all, let me acknowledge your initial comments. I believe those commemorations are important. It is important that we honour our history. I think the Canadian Armed Forces has a long and proud history with the incredible work they have done, and the service and sacrifice of their members. That history needs to not only be commemorated, but it is also a great opportunity, I think, to encourage young people — the talent that we need in the Canadian Armed Forces — to consider a career in the Canadian Armed Forces. I believe it is a very proud and noble profession, and we need to promote that.

There is a real challenge, sir — as I’m sure you are aware — in the Canadian Armed Forces. Over the last three years, we’ve actually seen a greater attrition — more people are leaving the forces than the Canadian Armed Forces has been able to recruit. I think that may be the greatest challenge that I face as the new defence minister — doing everything I can to support the Canadian Armed Forces in their efforts to recruit the talent we need and, just as importantly, to retain the excellent people they already have. I have asked them to look very carefully at some of the impediments to recruitment and how long things have taken — background checks, for example.

I’ll give you an example: Last year, in December 2022, my predecessor announced that we were going to open up Canadian Armed Forces recruitment to permanent residents of Canada. I think it’s a very appropriate and necessary opportunity. What we have not yet seen is a commensurate increase in the number of people. Almost 12,000 people indicated an interest. We need to move faster in our recruitment and onboarding processes.

Hon. Donald Neil Plett (Leader of the Opposition): Welcome, minister.

Minister, around ten o’clock at night on Saturday, October 21, you released a statement indicating that the Government of Canada does not believe Israel struck a hospital in Gaza earlier that week. After initial media reports blamed Israel for attacking the hospital, Prime Minister Trudeau made sure his rush to judgment was in the full light of day and in front of reporters. The timing of his comments implied that he believed Israel was responsible, which, of course, was the story spread by Hamas.

After your statement, minister — and many of us here agreed with your statement that Saturday night — the Prime Minister went days without saying a word about it. Why is that, minister?

Hon. Elizabeth Marshall: Minister, welcome to the Senate of Canada.

Shortly after Russia’s invasion of Ukraine last year, Canadians were told there would be an urgent review of your government’s defence policy: Strong, Secure, Engaged. There was an indication that the updated policy would be released this past summer. However, we have yet to see it. In September, there was a media report that the rewrite of the new policy had been sent back to National Defence for further revisions.

Minister, why is the updating of the defence policy taking so long? What is the cause of the delay?

The Hon. the Speaker: Thank you, minister.

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you, senator. I remain absolutely committed to doing everything we can. I met have with Minister Umerov, who is the Ukrainian defence minister, and President Zelenskyy three times in the last two months. We are part of the Ukraine Defense Contact Group and have been responding, in every case, to what they have asked of us. One of the conversations I had with Minister Umerov was about having proper winter equipment because they knew they were going into a winter campaign. We were able to quickly respond with $25 million in winter equipment, including uniforms, sleeping bags, tents and boots, which is what they said they needed.

We also talked to them about making sure they were properly fitting uniforms. When we talked about that, we made a commitment of 2,000 uniforms. They will need more, but there are a number of different needs that Canada has been responding to. I would also point out that just a few weeks ago we announced that we were making a commitment of $650 million for light armoured vehicles, and specifically, the Ukrainians told us they needed armoured medevac vehicles, so we have included those as well.

The challenge I face is that the Canadian Armed Forces need that equipment, too. They need those light armoured vehicles and those investments. On the one hand, I remain resolute in our commitment to support Ukraine, and on the other hand, I have to continue to support the Canadian Armed Forces.

Senator R. Patterson: When you are engaging with your departmental officials and the ministry and armed forces in Ukraine on proper equipment for women soldiers, would you also investigate what Canada can do to support other gender and sex-specific considerations to keep those Ukrainian women soldiers in the fight? I’m talking about military considerations to maintain women’s health in the field. We have an expertise in that area.

Hon. Bill Blair, P.C., M.P., Minister of National Defence: Thank you very much, senator. It’s a very important question. The Canadian Armed Forces and the Minister of National Defence have a great deal of priorities right now, but none is greater for me than our important work in maintaining Arctic sovereignty and the investments we have to make in the North.

As you rightfully pointed out, we have made a commitment of $38.6 billion to NORAD modernization, but a very significant portion of that — part will be for investments in over-the-horizon radar and other things — will include a $122 million contract to strengthen Canadian Forces in Alert. It also includes the purchase of offshore patrol ships, of which four of six have been delivered and are available for patrol. I recently met with Duane Smith from the Inuit Nunangat area, as well. Those conversations are also very important.

As part of our commitment on the expenditure of the $38.6 billion for NORAD modernization, there is a commitment in that as well for Indigenous procurement for as much as 5% of that money. I will share with you that I’ve travelled to the Yukon and talked to the territorial government and the First Nations and Inuit governments there about Arctic sovereignty and the work of the Canadian Armed Forces in their region, and they have made it clear that sovereignty for them is investment in airports, highways and infrastructure. We’re committed to doing that.