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We can do more than just remember. Let’s actually support those who serve.

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From the MacDonald Laurier Institute

By Richard Shimooka

Many veterans transition to civilian life feeling rudderless and alone and missing necessary support structures

Remembrance Day is the one time in the year that the lives and issues facing soldiers and veterans intrude into the public consciousness in any substantial way. Yet the image that is evoked is heavily based on the Second World War and Korean War experiences—conflicts that have directly affected a dwindling generation of individuals. Meanwhile, the lives and challenges of our current generation of soldiers and veterans are very different and not well understood.

The reality can be grim. A 2014 Statistics Canada Study showed that 48 percent of Canadian Armed Forces (CAF) members will experience a major mental health condition or alcoholic abuse in their lifetime. While currently serving personnel do not see an increase in suicide rates relative to the population, the suicide rate for male veterans after their release is 50 percent higher than the general population, 200 percent higher for female veterans, and 250 percent higher for male veterans under the age of 25.

These sorts of statistics, backed up by anecdotal evidence, cast a dour light on their overall military experience. I think the problem can be distilled down to a series of lies that exist at the heart of Canada’s relationship with its military members.

The government asks members of the Canadian Armed Forces for unlimited liability, and in return, CAF members trust the government to provide them with the tools to do their jobs and the policies and systems to take care of them in their most vulnerable times. This social contract is at the core of military service—and the government is essentially lying when it claims that it is upholding its side of the agreement. And due to that failure, soldiers often suffer a lifetime moral injury as a result.

First, it is fairly evident that military personnel are not being provided the resources required to carry out their jobs properly. In procurement, for example, considerations such as “social license” and “industrial and technical benefits” edge out the needs of soldiers, often leaving them with inadequate capabilities to achieve their missions. It often leaves soldiers across the CAF feeling disrespected despite their ongoing sacrifices,

But this is only one part of the issue. The CAF and Veterans Affairs Canada’s (VAC) personnel policies towards current and former military members are simply inadequate. It takes a certain type of person to join the CAF and remain in service for any length of time. In most cases, those very skills, knowledge, and work habits that are in demand within the CAF today are also highly sought after in the Canadian workforce—and often at significantly higher pay scales than what is offered within the military. CAF members are often shuttled to remote bases in places like Cold Lake, Shilo, or Oromucto, then sent on months-long deployments abroad. The continued outsourcing of key military benefits, such as housing and movement grants, and the inability to have a credible grievance mechanism, have produced a military experience that varies wildly from soldier to soldier in an already complex and stressful job.

Furthermore, spouses and families often bear the brunt of the challenging military lifestyle. Many of Canada’s bases are located far from major metropoles. Remember, with the CAF requiring more highly trained soldiers, it is likely that their spouses also have similar educational and employment skill sets—ones that cannot be met in remote military towns. While official statistics are scarce, there is some evidence suggesting that divorce rates for current and former military members are significantly higher than in the general population.

Most destructive is just how inept the government’s personnel management policies are. First, systems for overseeing current members and veterans employ antiquated data management systems, which creates barriers to accessing services.

This brings us to a broader point: the relationship between the bureaucracy and soldiers and veterans is not a harmonious one. At best it can be described as adversarial. At every step, current and former military members have to prove their eligibility for programs to skeptical public servants and/or contractors. They must become records packrats as they never know when a key piece of information will become critical to proving the validity of their claim.

The focus of the “system” seems like it is less there to assist individuals in need and more there to prevent the almost minuscule possibility that fraud may occur. This lack of trust manifests itself in so many different ways, altering health benefits for dependents, even for the widows/widowers of soldiers and veterans, cost of living rebates, and more.

Furthermore, even the programs and policy alternatives that are available are deliberately left unpublicized, perhaps in a misguided effort to keep departmental costs down. It is often through word of mouth or online communities that the existence of these policies (and how to access them) is disseminated amongst veterans or serving members. This illustrates the reality of the situation and the lie that the government is doing its best to help current and former military members. Rather, it actively works against them in some important instances.

Despite all of this, it can be surprising that so many members choose to remain in service to their country. Certainly, the higher calling that comes with public service is an important motivator: they strive hard to uphold their side of the social contract.

Another issue, though, is that there is also a “big lie” that current soldiers and veterans tell themselves to make it through: that everything is alright.

I can’t tell you how many allied personnel will rave about the relentless resourcefulness of Canadian military personnel. This is colloquially referred to as the “can-do” attitude. A culture of essentially getting things done regardless of the risk.

But there is more to it than that. Certainly, there was an element of masculinity that has inhibited soldiers from seeking help. Furthermore, the fears exist among personnel that acknowledging mental defects could impact their future service progression. The failure to repeal or mitigate Paragraph 98 (c) of the National Defence Actwhich criminalizes self-harm, is one of several policies that stigmatizes those who suffer mental health episodes.

At its root, the broader CAF culture explains some of the relationship dynamics between superiors and subordinates. If soldiers are conditioned to not express how they feel, it makes it difficult for them to then turn around and be effective at dealing with the issues within their organization. We can laud the perceptive leaders who intrinsically understand the corrosive effect these issues have on their subordinates’ lives and try to rectify them, but it is a challenge for many in command positions because they have been conditioned within this culture to avoid these questions.

Moreover, there’s the pervasive reality that the CAF requires a unique culture to undertake its primary task of providing for the security and defence of Canada and its interests. As I mentioned in a previous column, the CAF’s culture is the glue that holds the force together in extremely difficult operations. Yet that focus on conformity can also result in destructive effects on some members’ psyche.

Given all of these considerations, it is not at all surprising that soldiers essentially lie to themselves about their situation in order to get through each day. Fortunately, they have a clear sense of purpose while serving their country; often, however, veterans do not. Many transition to civilian life feeling rudderless and alone, without the support structures that allowed them to operate at high levels while in the service. Even worse, some veterans are deliberately made to feel the burden of a system that was created to treat service-related injuries.

In the end, usurping these lies is not insurmountable, but it will require dedicated time, effort, and resources to overcome them. In short, robust political support across all parties has been lacking for many decades. Overhauling the relationship will have practical benefits that will go far beyond just meeting the needs of soldiers and their families. It will go a long way in addressing the retention and potentially the recruitment crisis that has deeply affected the CAF for the past decade.

But aside from that, it is just the morally right thing to do, and that really should be the guiding position for any policy in this area. Beyond just taking the time to remember their sacrifices for one day once a year, providing tangible improvements to the lives and working conditions of soldiers and veterans would be a meaningful way to thank them for their service.

Richard Shimooka is a Hub contributing writer and a senior fellow at the Macdonald-Laurier Institute who writes on defence policy.

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

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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.

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

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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.

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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 CanadaHere’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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