Pre-Budget consultation responses lean towards defence recommendations

As is the tradition, the government of Canada Standing Committee on Finance (FINA) in June opened up the annual consultation ahead of the budget.

The budget has now moved to the fall and will be released tomorrow. The government fiscal year has not changed and will begin on April 1 as usual. Some of the announcements coming tomorrow will come from fiscal year 2025-26 pots of money while other spending will fall into the following fiscal year.

This year 948 submissions were made. Unlike previous years when companies could request to be invited and speak in front of FINA, this year no meetings related the pre-budget consultation have been scheduled since parliament resumed. And with the budget dropping tomorrow it seems unlikely there will be an opportunity for participants to discuss their recommendations at a FINA meeting.

Of the 948 submissions we found 7 that either directly had recommendations related to the space sector or where from organizations who had constituents related to the space sector. As well, one other submission from the consultancy Polaris Aerospace, was included as they sent their recommendations to us, though we could not find it on the FINA website.

While there was no overarching theme in the submissions this year, there were a few that did have recommendations related to defence.

Below are the organizations and either all of their recommendations or only the ones related to the space sector.

Aerospace Industries Association of Canada (AIAC)

AIAC brief link.

Not all their recommendations related but these do.

Defence Industrial Strategy and Aerospace Industrial Strategy

• Recommendation: Implement a well-developed defence industrial strategy alongside a comprehensive plan for defence investments.
• Recommendation: Develop and Implement an Aerospace Industrial Strategy as committed by the federal government.

Export Permits and Sanctions Harmonization

• Recommendation: Reform the export permit system to increase speed, transparency, and consistency
• Recommendation: Sanctions policies should be more closely aligned with those of our key allies

Innovation Funding

• Recommendation: Reinvestment in the Scientific Research and Experimental Development (SR&ED) program
• Recommendation: The Strategic Innovation Fund (SIF) should be restructured to include a dedicated aerospace stream that includes civil and defence applications while being responsive to industry timeline
• Recommendation: The BOREALIS research agency must be well-funded, bold in its research, and empowered to take risks

Canadian Association of Physicists

Canadian Association of Physicists brief link.

• Recommendation #1: To secure Canada’s future prosperity and sovereignty, we urge the government to make significant investments in the research and development ecosystem. This includes accelerating growth in critical technology sectors—such as clean energy, AI, quantum computing, and advanced biosensing—and bolstering the foundational science that fuels this innovation pipeline. A strategic increase in funding is essential to attract and retain top talent, drive economic competitiveness, and ensure Canada is a leader, not a follower, on the global stage.
• Recommendation #2: That the government accelerate the timetable laid out in Budget 2024 for increased investment in the Tri-council agencies’ core grant programming to ensure the younger generation has access to affordable education and Canada’s workforce has the access to the highly skilled workers needed for expanding the innovation economy and increasing productivity.

Canadian Science Policy Centre

Canadian Science Policy Centre brief link.

• Recommendation 1: Build One Canadian Economy through alignment of Pan-Canadian Research and Innovation Policies
• Recommendation 2: Leverage Science and Innovation for National Security and Sovereignty.
• Recommendation 3: Create a Cross-Jurisdictional STI Policy Alignment Framework
• Recommendation 4: Dedicate 20% of the defence budget to Research and Development
• Recommendation 5: Enhance the Science Diplomacy Policy Interface

Coalition for Canadian Astronomy

The Coalition is made up of these two organizations: ACURA (Association of Canadian Universities for Research in Astronomy) and CASCA (Canadian Astronomical Society). Here’s their brief link.

Of note, they only have one recommendations and it’s for the CASTOR mission which is waiting on a final decision from the government.

• Recommendation – Seize the opportunity to lead CASTOR, a Canadian-led mission poised to be the unique successor to the Hubble Space Telescope, by investing $20 million in its Phase A+ development to capitalize on a decade and a half of development by the Canadian Scientific community, establish a firm fixed price for the mission, and secure the global partnership and financing to build it.

Perimeter Institute for Theoretical Physics

Perimeter Institue brief link.

• Recommendation #1: That the government continue to support theoretical physics as a core foundation upon which future innovation rests.
• Recommendation #2: That the government develop and implement the Canadian Sovereignty and Resilience Research Fund to further attract world-leading research talent.
• Recommendation #3: That the government ensure that the Canadian Sovereignty and Resilience Research Fund is accessible to non-degree granting institutions, including Canadian-based institutes and research projects.

Polaris Aerospace

Polaris Aerospace brief link.

• First, Formulate and Implement a National Space Strategy Which Includes Space Launch as a Core Component – This strategy must, as part of its goals, commit to develop, support,and invest in domestic capabilities which allow for space missions to be conducted end-to-end from Canada. This must include space launch as a core component and the Government of Canada must support and invest in developing this technology.
• Second, Include Space Launch in Canada’s Next Defence Strategy – Canada must designate access to space and related dual-use technologies (hypersonic and anti-hypersonic systems, missile defence,and long-range munitions) as critical for national defence. Budget 2025 must implement measures to support such a strategy, including measures to invest in the development of these dual-use technologies and services, and to acquire these dual-use technologies or services from Canadian suppliers.
• Third, Designate Spaceports and Launch Sites as Critical National Infrastructure – Canada should designate spaceports and launch sites as critical national infrastructure and afford additional priority and funding to their development and upkeep. Additionally, Canada should include the development of spaceport infrastructure in any space funding programs proposed by the Department of National Defence, the National Research Council, the Canadian Space Agency, and others.
• Fourth, Commit to Being a First Customer for Canadian Launch Companies – Receiving and executing contracts from the Government of Canada would give Canadian launch companies needed experience and credibility. Foreign launch providers receive a significant number of government contracts and grants, and Canada should make similar investments to support its own space launch capability. In line with this goal, the Department of National Defence and Public Services and Procurement Canada should work to streamline and accelerate procurement.
• Fifth, Take Steps to Nurture Talent and Build a Space Launch Workforce – The Government of Canada should invest in or otherwise support academic and research institutions, and not-for-profit organizations that work to train Highly Qualified Personnel for the space launch industry. The Government of Canada should also establish and fund new grant structures focused on undergraduate student teams to allow them to gain industry relevant experience in space launch, and increase funding and support for student internships at companies engaged in the development of space launch capabilities. Finally, the Government of Canada should engage with local communities near space launch development facilities or spaceports to provide them with relevant training so that they can assist in the development of Canadian space launch.

Viasat

Viasat brief link.

• Recommendation 1: The government needs to prioritize space programs and dual-use functionality of goods and services for space, ranging from short- to long-term.
• Recommendation 2: The government should create a stakeholder advisory group as part of the National Space Council that provides policy and program ideas and helps drive awareness across industries on Canada’s capabilities and talents.
• Recommendation 3: That the government creates a reasonable, attainable, and improved year-over-year goal for investments in programs and policy considerations to do with space infrastructure.
• Recommendation 4: The government quickly commits to a large, short- and medium-term defence modernization strategy, through year-over-year consistent budget specific line-items. This strategy must include policy and funding arranged in tandem with key industry and government stakeholders.

Wyvern Space

Wyvern Space brief link.

• Recommendation 1 – Introduce and implement a national strategy for commercialization in the Canadian space sector.
• Recommendation 2 – Update the Remote Sensing Space Systems Act to reflect the modern space industry in Canada