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REMEMBRANCE DAY: REBUILDING CANADA’S MILITARY

Published

1 year ago

7 minute read

From the Frontier Centre for Public Policy

By Brian Giesbrecht | David Redman

 

In Flanders fields the poppies blow
Between the crosses, row on row,
………..If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields.

This is the iconic poem written by John McCrae while World War 1 raged, shortly before he too became one of the 40,000,000 million or so people who died during that horrific, meat grinder of a war.

More than 61,000 Canadian soldiers, like McCrae, died in that awful war, and at least 170,000 were seriously wounded – many losing limbs and eyes.

And only a few decades later, World War 2 – really just a continuation of that first European civil war – took in excess of 40,000 more Canadian lives. Canadians were fighting against pure evil. Most were young men struck down in what should have been the prime of their lives

These brave men fought to safeguard the freedom and values that Canada stands for. That Canada didn’t start in 1867. It was formed long before then in a crucible of ancient Greeks, the Jews of Jerusalem, through the Roman Empire, the building of Britain, and the enlightenment. Not every Canadian soldier could articulate every nuance of exactly what that long journey that created Canadian freedom stood for, but they certainly knew why they were willing to sacrifice their lives to preserve what they loved. John McCrae knew exactly what he was fighting for, and he paid the ultimate price.

But what about his challenge to Canadians of today? Have we accepted that torch from failing hands, and held it high?

Or have we broken faith with those who died to save the Canada that he and so many others gave their lives for? What would John McCrae think of Canada today?

Let’s take a look first at Canada’s armed forces. During McCrae’s time, and right through WW2, and the Korean War that followed, Canada punched well above its weight internationally. Canada had a strong army, and our leaders were universally respected. Prime Minister Lester Pearson became the first and only Canadian Prime Minister to win a Nobel Prize for his deft handling of the Suez crisis.

Canada continued to stand strong on the international stage into the 1960s. Our military was strong, Canadian leaders were respected, and we contributed our fair share to our international commitments, such as NATO.

Then came the Pierre Trudeau years. The integration of the Canadian Armed Forces (CAF) in February 1968, while supposedly to increase efficiency, was in fact a brutal exercise in cost cutting, reducing the Army, Navy, and Air Force strengths from over 105,000 to 70,000. The senior Trudeau even wanted to take Canada out of NATO, and was only dissuaded from that bit of insanity by dire warnings from advisers, and threats from allies that doing so would have dire consequences for Canada, domestically and internationally.

The 1980s saw a return to the common-sense realization that Canada must support its armed forces. Total strength of the combined armed forces was expanded to 85,000, and commitments to NATO were honoured. Canada once again was respected by its allies, and once again Canada was punching above its weight on the international stage. In fact,  the Mulroney government’s contribution to the ending of South African apartheid was one of our finest hours.

Canada’s armed forces once again felt supported and respected.

But that was then. And this is now. Canada has gone from that place of respectability to a very low place indeed. And virtually everything that has been done since the Justin Trudeau Liberals took power in 2015 has made things so much worse. Slash and burn is probably the best way to describe their military policy. A series of cuts since 2015 have rendered our armed forces virtually toothless. The latest cruel decision to cut a further one billion dollars from the armed forces can almost be seen as an in-your-face insult to our people in uniform.

Canada still has proud and capable men and women in our armed forces. But they are being emasculated by an uncomprehending government that insists on using Canadians’ hard-earned money for every Woke cause in the book – everything except our defence needs. We now completely rely on the Americans to defend us. We have extremely diminished capacity to honour our NATO commitments. Our international partners no longer take us seriously.

I think we can safely say that John McCrae would not be impressed with what has been done with his beloved army, and our reputation abroad.

The current federal government has no interest in rebuilding our debilitated armed forces. In fact, the Prime Minister candidly admitted that he has no intention of even trying to meet Canada’s NATO commitments.

Under his leadership only further cuts to our armed forces can be expected.

As stated in the National Post, there is simply not enough money to fund both a strong army, and the Trudeau government’s socialist pet projects. So, the army must go begging.

However, the current government will not be here forever. Planning must begin now to rebuild our forces, honour our international commitments, and regain our rightful place on the world stage.

In 1967, Canada proudly celebrated the centenary: a country to be proud of for our freedom, peace and internal unity. These values had been bought with the blood of our youth. Today, Canada is no longer considered a trusted ally. Until our nation takes national security seriously, Canada will remain irrelevant, both externally and internally.

Brian Giesbrecht, retired judge, and David Redman, retired Lieutenant Colonel in Canadian Army, are Senior Fellows at the Frontier Centre for Public Policy

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Canada among NATO members that could face penalties for lack of military spending

Published on December 21, 2024

By

 

From the Daily Caller News Foundation

By J.D. Foster

Trump should insist on these measures and order that unless they are carried out the United States will not participate in NATO. If Canada is allowed entry to the Brussels headquarters, then United States representatives would stay out.

Steps Trump Could Take To Get NATO Free Riders Off America’s Back

In thinking about NATO, one has to ask: “How stupid do they think we are?”

The “they,” of course, are many of the other NATO members, and the answer is they think we are as stupid as we have been for the last quarter century. As President-elect Donald Trump observed in his NBC interview, NATO “takes advantage of the U.S.”

Canada is among the “they.” In November, The Economist reported that Canada spends about 1.3% of GDP on defense. The ridiculously low NATO minimum is 2%. Not to worry, though, Premier Justin Trudeau promises Canada will hit 2% — by 2032.

A quarter of NATO’s 32 members fall short of the 2% minimum. The con goes like this: We are short now, but we will get there eventually. Trust us, wink, wink.

The United States has put up with this nonsense from some members since the collapse of the Soviet Union. That is how stupid we have been.

Trump once threatened to pull the United States out of NATO, then he suggested the United States might not come to the defense of a NATO member like Canada. Naturally, free-riding NATO members grumbled.

In another context, former Army Lt. Gen. Russell Honore famously outlined the first step in how the United States should approach NATO: Don’t get stuck on stupid.

NATO is a coalition of mutual defense. Members who contribute little to the mutual defense are useless. Any country not spending its 2% of GDP on defense by mid-year 2025 should see its membership suspended immediately.

What does suspended mean? Consequences. Its military should not be permitted to participate in any NATO planning or exercises. And its offices at NATO headquarters and all other NATO facilities should be shuttered and its citizens banned until such time as their membership returns to good standing. And, of course, the famous Article V assuring mutual defense would be suspended.

Further, Trump should insist on these measures and order that unless they are carried out the United States will not participate in NATO. If Canada is allowed entry to the Brussels headquarters, then United States representatives would stay out.

Nor should he stop there. The 2% threshold would be fine in a world at peace with no enemies lurking. That does not describe the world today. Trump should declare the threshold for avoiding membership suspension will be 2.5% in 2026 and 3% by 2028 – not 2030 as some suggest.

The purpose is not to destroy NATO, but to force NATO to be relevant. America needs strong defense partners who pull their weight, not defense welfare queens. If NATO’s members cannot abide by these terms, then it is time to move on and let NATO go the way of the League of Nations.

Trump may need to take the lead in creating a new coalition of those willing to defend Western values. As he did in rewriting the former U.S.-Mexico-Canada trade agreement, it may be time to replace a defective arrangement with a much better one.

This still leaves the problem of free riders. Take Belgium, for example, another security free rider. Suppose a new defense coalition arises including the United States and Poland and others bordering Russia. Hiding behind the coalition’s protection, Belgium could just quit all defense spending to focus on making chocolates.

This won’t do. The members of the new defense coalition must also agree to impose a tariff regime on the security free riders to help pay for the defense provided.

The best solution is for NATO to rise to our mutual security challenges. If NATO can’t do this, then other arrangements will be needed. But it is time to move on from stupid.

J.D. Foster is the former chief economist at the Office of Management and Budget and former chief economist and senior vice president at the U.S. Chamber of Commerce. He now resides in relative freedom in the hills of Idaho.

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armed forces

You wouldn’t believe how complicated distributing public money can get

Published on December 15, 2024

By

The Audit

 David Clinton

Veteran Affairs: the Big Picture

While researching posts for The Audit, I’ll often confront massive datasets representing the operations of agencies with which I’m not in the least familiar. Getting to the point where all the raw numbers turn into a useful picture can take considerable effort, but it’s a satisfying process.

But my first attempts to understand Veteran Affairs Canada (VAC) felt a bit different. I wasn’t just looking at funding and costs, but at the frustrations and suffering of people who, to a greater or lesser degree, were harmed through their service to the country. Here, I hope, is part of their story.

The Audit is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

Veterans Affairs Funding

There are currently more than 460,000 living veterans of the Canadian military. The estimated 2024-25 spending allocation for Veteran Affairs Canada – whose mandate is to serve that population – is around $4.8 billion. The department employs less than four thousand people, which is actually around eight percent fewer than in 2010. Having said that, employment at the distinct Veterans Review and Appeal Board has grown from zero to 161 since 2017.

Besides VAC, the Office of Infrastructure of Canada will spend around $16.5 million on their Veteran Homelessness Program, and Department of National Defence has another $1.6 million budgeted for Community Support for Sexual Misconduct Survivors Program – something for which veterans will also be eligible.

In addition, nearly $2.5 million in grants from various government agencies (including Canada Mortgage and Housing Corporation) was given in 2023 to the Homes for Heroes Foundation, which provides housing and support for at-risk veterans.

Non-government agencies also work to support veterans. In 2023, for instance, the War Amps reported spending $2.7 million on “Service Bureau and Advocacy” and around $700,000 on “Veterans Issues – Special”. The Royal Canadian Legion Dominion Command spent around $1.15 million on veterans services in 2022.

The True Patriot Love Foundation is also a big player in this area, channeling nearly $2.7 million in 2024 to other charities working for veterans. At the same time, more than 30 percent of their own budget came from government sources.

One example of such flow-through funding was the $360,000 given by True Patriot Love to Veterans Transition Network in 2024. In 2023, Veterans Transition Network themselves received another $2.2 million from government along with a total of $1.7 million from other charities.

These kinds of ultra-complex relationships are common in Canada’s charitable sector. The complexity may provide benefits that outsiders can’t easily see. At the same time, knowing whether moving funds through multiple organizations leads to unnecessary inefficiencies and waste is something that would probably require a serious forensic audit.

Veterans Affairs Spending

The largest line items in this year’s VAC spending include $1.6 billion for pain and suffering compensation, $1.34 billion for the Income Replacement Benefit, and $990 million for pensions for disability and death.

In 2023, VAC awarded $41.6 million in external contracts. The largest of those was worth $13.8 million and went to 674725 ONTARIO LTD for “Other Business services not Elsewhere Specified”. 674725 Ontario Ltd. appears to be closely associated with a company called Agilec which, in turn, is a part of Excellence Canada. Here’s how Excellence Canada describes itself:

“Founded in 1992 by Industry Canada as the National Quality Institute (NQI), then rebranded as Excellence Canada in 2011, we are an independent, not-for-profit corporation that is dedicated to advancing organizational performance across Canada.”

In that context, it’s interesting that in 2022, VAC awarded a $159 million contract to a joint venture between WCG International Consultants Ltd. and March of Dimes Canada for “Other Health Services not Specified Elsewhere”.

What makes that interesting? Well, WCG also shows up on an Innovation, Science and Economic Development Canada (ISED) page related to compliance with the Investment Canada Act (ICA). The ICA exists to provide transparency relating to foreign investments in the interest of maintaining a fair and competitive marketplace

This particular page identifies a “U.S.” company called Ancora BidCo Pty Ltd as the new owners of a number of businesses under contract with the federal government. Those businesses include 674725 Ontario Ltd. and WCG International Consultants Ltd.

In fact, Ancora isn’t really a U.S. company at all. They’re actually Australian (as the Pty designation suggests). But their parent company – the private equity firm Madison Dearborn Partners, LLC – indeed operates in Chicago.

There’s no direct evidence to suggest there’s anything dark and nefarious happening here. But it is strange that so many discrete contracts turn out to be awarded to what now amounts to a single foreign for-profit company.

External Contracting Patterns

Has VAC been increasing their reliance on external contracts in recent years? Well, as you can see from this graphic, it’s complicated:

I don’t know what policy changes drove those two huge spikes in 2014 ($933 million) and 2021 ($2.25 billion). But I can tell you which specific vendors are responsible for most of the increase.

In 2014, three contracts worth a total of $803 million went to Medavie Inc for “Other Business services not Elsewhere Specified”. That was 86 percent of the sum of all VAC contracts from that year.

An eye-popping 98 percent of 2021’s external spending went to just six contracts worth $2.2 billion. Medavie Inc received one of those contracts – worth $228 million. But the other five (worth a total of $1.99 billion) were all joint ventures involving WCG International Consultants Ltd.

Lifemark Health Corp. (currently owned by Loblaw) partnered with WCG for three of those contracts, and March of Dimes Canada had the other two dance slots.

What Is Medavie?

Medavie Inc. is the owner of:

  • Medavie Blue Cross
  • Medavie EMS Inc.
  • Medavie health Services New Brunswick Inc.
  • Emergency Medical Care Inc.

Between them, those companies provide health insurance, healthcare training, and emergency management services. They also provide public health program administration – which would probably account for the majority of those contract amounts.

What’s not clear to me is why there’s no record of Medavie receiving any federal contracts of any sort since 2021 – despite the fact that the VAC website tells us that they’re still actively engaged in service provision through Partners in Canadian Veterans Rehabilitation Services (PCVRS).

What Is WCG International Consultants Ltd?

As we’ve seen, WCG is now owned by an American private equity firm and is most certainly no longer not-for-profit. Their website tells us that they’re part of the APM Group, which is an Australian company providing “services in early childhood, youth, employment, insurance, justice, veterans, health, disability, and aged care”.

You’re correct to assume the APM Group is more or less synonymous with Ancora BidCo Pty Ltd. More specifically: all of APM’s publicly-traded shares were bought out in the past couple of months on behalf of Madison Dearborn Partners.

Just one more detail: according to WCG’s website, they’re:

“Partners in Canadian Veterans Rehabilitation Services (PCVRS) coordinates and administers the Rehabilitation Services and Vocational Assistance Program on behalf of Veterans Affairs Canada (VAC).”

Curious about PCVRS? Since late 2022, they’ve been tasked with administering all medical, psycho-social and vocational assistance services on behalf of VAC. However, reports suggest that not everyone has been happy with either accessibility or responsiveness under the new system.

None of this is necessarily inappropriate. And if you’re willing to work at it, you’ll be able to use public information sources to uncover a wealth of related relationships and details. But the vast amounts of money involved, along with the operational complexity make abuse possible. Which means external oversight is a good thing.

Besides all that logistical stuff, what really matters is whether veterans themselves are receiving the support and services they deserve. And that’s a question only they can answer.

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