Appearance before the house standing committee on National Defence - Supplementary estimates b 2019-20

From: Communications Security Establishment Canada

Apperance overview

  • Appearance details

    Date: Wednesday, March 11, 2020

    Location: Room 415, Wellington Building, 197 Sparks Street

    Time: 15:30  – 17:30 hours

    Appearing: Honourable Harjit S. Sajjan, Minister of National Defence

    Witnesses:

    • Department of National Defence
      • Jody Thomas, Deputy Minister of National Defence
      • LGen Jean-Marc Lanthier, Vice Chief of the Defence Staff
      • Cheri Crosby, Assistant Deputy Minister (Finance) / Chief Financial Officer
      • Troy Crosby, Assistant Deputy Minister (Materiel)
      • Rob Chambers, Assistant Deputy Minister (Infrastructure and Environment)
    • Communications Security Establishment
      • Shelly Bruce, Chief
  • Copy of the Minister of National Defence’s opening remarks

    Speaking Notes for:

    The Honourable Harjit S. Sajjan
    Minister of National Defence

    NDDN:
    Supplementary estimates b

    Ottawa, Ontario
    March 11, 2020

    Madam Chair,
    Members of the Standing Committee.
    Good afternoon.

    I am joined by:

    • Deputy Minister of National Defence, Jody Thomas,
    • Vice Chief of the Defence Staff, Lieutenant-General Jean-Marc Lanthier,
    • Mrs. Shelly Bruce, Chief, Communications Security Establishment,
    • Chief Financial Officer, Cheri Crosby,
    • Mr. Troy Crosby, Assistant Deputy Minister Materiel, and
    • Mr. Rob Chambers, Assistant Deputy Minister Infrastructure and Environment.

    I want to take a brief moment to thank Lieutenant-General Lanthier for his more than 31 years of service.

    Thank you for the opportunity to present the Supplementary Estimates B for the Department of National Defence and the Communications Security Establishment.

    Our allies and partners, and Canadians know the Defence team is always there, ready to answer the call, at any given moment.

    Our Canadian Armed Forces assisted with record snowfall in Newfoundland as well as wildfires in Australia…

    They helped bring Canadians home safely from China and elsewhere, and as they mobilised to establish a safe and comfortable quarantine space at CFB Trenton in face of the Covid-19.

    And that is just in the first two months of the year.

    These events all underscore the need for a strong and agile defence team.

    And it is our job to make sure that team has the support they need to be effective.

    That is why my number one priority has always been to look after the women and men of our defence team and their families.

    Two and a half years into Canada’s defence policy, Strong, Secure, Engaged, we are moving forward with our plan to support our people so they can do the challenging jobs we ask of them.

    Through these Estimates, we are requesting approximately $796.9 million to continue implementing SSE.

    Care for people - class actions [148.6 M And 26 M]

    The majority of that funding relates directly to the care of our people.

    We take our responsibility to care for our members and their families seriously.

    That is why we stood up the Canadian Armed Forces Transition Group to support ill and injured CAF members and ease transition for members, veterans and their families.

    We also enhanced tax relief for CAF members on deployed international operations — to recognize them for their hard work and to ease some of the stress for them and their families.

    Our Reservists also form a critical part of our defence team.

    They help with flood relief efforts and fighting wildfires.

    And they do all of this — often while maintaining a career outside of the military. They deserve our full support.

    That is why we made sure Reservists take home the same day’s pay for the same day’s work as their Regular Forces colleagues.

    We also recognize how challenging it can be for the families that serve alongside our members. It is one of the reasons that we are working through Seamless Canada with provinces and territories to make relocations easier.

    And we are helping give military spouses dedicated access to jobs with national employers in the private and public sectors through the Military Spousal Employment Network.

    All the while, we are focused on changing the Defence team culture to make the organization more welcoming, equitable, and reflective of the Canadians we serve…

    That is why we apply a Gender Based Analysis Plus lens during the development of our programs and policies to enhance our capabilities and make us more responsive to the needs of our workforce — and the people we are called upon to protect.

    And it is why we are working hard to recruit more women into our Forces.

    Since 2015, we’ve increased women enrollment in the Reserve Force by 110%, and by 72% in the Regular Force.

    Women now make up 15.9 % of CAF members.

    And in NATO, where the average is 11%, Canadian women are taking on important leadership roles.

    But there is more work to do but we will not waiver in our commitment to success.

    Part of that work also means recognizing that the CAF has not always been a welcoming and safe environment for everyone.

    These estimates include $148.6 million for Defence team members who were victims of sexual assault, harassment, and discrimination based on gender or sexual orientation.

    We hope that this settlement will help bring the survivors closure and healing. 

    And we continue to work towards a respectful work culture that is free from harassment and discrimination.

    The Department is also working with other government partners to implement the Final Settlement Agreement of the LGBT Purge Class action lawsuit.

    We have evolved our military justice system to better deal with harmful behaviours through Bill C-77, which received royal assent last summer.

    And we will not stop until all of our members feel valued, cared for, and supported.

    Capital investments: $490.8 M

    Madam Chair, taking care of our people also means equipping them do their jobs.

    SSE provides the roadmap and carves the funding out of our fiscal framework to allow us to do this.

    And we have already completed or started more than two-thirds of the projects it outlines.

    These projects not only ensure the Defence team is ready to meet modern security demands, but have a significant impact on the Canadian economy.

    Take the Joint Support Ships for example.

    To date, under that project we have awarded contracts that contribute close to $950 million dollars to Canada’s GDP, and this maintains close to 740 jobs annually.

    And we have selected the design of our new Canadian Surface Combatants…

    Modernized our Halifax Class Frigates…

    And launched the second of six new Arctic and Offshore Patrol Ships for our Navy.

    Through these estimates, we are requesting $490.8 million to advance many more capital projects such as:

    - Upgrading capabilities on helicopters, ships, planes and submarines
    - Procuring new surveillance capabilities through satellite and space-based technologies.
    - And modernizing equipment, facilities and infrastructure.

    Infrastructure

    Madam Chair, our government is committed to reducing our emissions to help reduce the impact of climate change. It is why all of our Defence infrastructure projects are done with an eye toward greening defence.

    We built LEED Silver standard or equivalent armouries in Halifax, Saint-Hubert and Sainte-Foy.

    Investments like these have helped reduce our greenhouse gas emissions by 32% from 2005 levels.

    Our investments are also produce economic benefits for communities across Canada. Investments like Nanisivik Naval facility and upgrades to runways in Inuvik and Goose Bay increase access to these communities and bring economic opportunity.

    And just as we partnered with Treaty One First Nations to transfer the Kapyong lands, we are working closely with Indigenous partners as we look to enhance our ability to operate in the North.

    We collaborated with more than 25 Indigenous partners on the new whole-of-government Arctic and Northern Policy Framework.

    And we are advancing research and development, and investing in innovation to help solve key challenges that will benefit all, including our northern and indigenous communities.

    Arctic

    And, the Canadian Rangers are our direct link to those communities.

    As Canada’s eyes and ears in the North, they are instrumental in both Arctic sovereignty and search and rescue operations.

    The CAF will continue to work with the Canadian Rangers to defend Canada’s rights and sovereignty…

    Keep the North safe and well-defended…
    And ensure the Arctic remains a region of peace and stability.

    CSE

    Madam Chair, in this ever-evolving security environment, we need every advantage to help us identify, prepare for, and defend against threats to our country.

    That is why our government is committed to building on the successes of the Communications Security Establishment and the Canadian Centre for Cyber Security.

    Through these estimates, we are requesting funding transfers so that CSE will keep pace with advancements in quantum technology, and exercise new authorities to conduct cyber operations to support National Defence.

    Operations: Op REASSURANCE and Op PRESENCE [$132.5 M]

    Yet, even with all the right people, all the right resources, and all the right technology, Canada cannot tackle modern defence challenges alone.

    We cannot be an island of stability in an ocean of turmoil. Eventually negative ripples will reach our shore.

    That is why we are committed to being a reliable partner and good global citizen.

    We continue to collaborate with our closest partner, the United States on continental defence and modernizing NORAD.

    We are pleased that the Iraqi Government has reaffirmed its support for NATO’s continued presence and its training mission, which Canadian Major General Jennie Carignan proudly leads.

    And through these estimates, we are requesting $132.5 million to continue supporting NATO assurance and deterrence measures.

    Canada leads the battlegroup in Latvia and supports NATO air policing in Romania. We contribute to Standing NATO Maritime Groups and NATO’s high readiness force. And we rejoined the NATO Airborne Early Warning and Control Force.

    We also play an important role within the UN.

    Last summer, we completed our Air Task Force deployment to the UN’s peacekeeping mission in Mali and we continue to maintain staff officers in support of the mission.

    We also began providing a cross-mission tactical airlift support to two other UN missions as part of Operation PRESENCE in Uganda.

    Conclusion

    The funding we are requesting today will allow us to keep our people at the centre of everything we do.

    Every day, they represent Canada with professionalism, leadership and excellence.

    And for that, we owe them the right tools to get the job done, as well as our unwavering support and our most profound gratitude.

    Madam Chair, the Defence Team is here to answer the questions that you and the Committee members may have. We are ready to answer questions. If we happen to not have the specific facts on hand, we will provide them to you at the earliest opportunity.

    Thank you.

Minister’s Binder – Table of contents 

Supplementary estimates (b)

  • Transfer from Shared Services Canada to CSE for the Digital Communications and Collaboration Program
    • To enable the effective delivery of critical programs and services to Canadians, the Government of Canada needs access to modern and reliable digital communications and collaboration services.
    • At the same time, Canadians rely on the Government of Canada to provide secure digital services.
    • In this effort, Shared Services Canada is transferring $4.7M to the Communications Security Establishment in these Estimates to support security monitoring for the cloud based Digital Communications and Collaboration Program.
    • This program will help ensure that Government of Canada departments using various cloud services will be able to communicate securely up to the Protected B classification.
    • CSE continues to assess its role in DCCP and avenues for funding requirements.

    Details

    • The Government of Canada (GC) is committed to continuing to invest in cyber security to ensure that GC data is protected and secure.
    • CSE’s 2019-20 Supplementary Estimates (B) include a transfer of $4.7M from Shared Services Canada to support security monitoring for the cloud based Digital Communications and Collaboration Program (DCCP).
    • In support of this program, CSE is responsible for the development of the cyber security services and incident management capabilities necessary to protect cloud-based services.
    • CSE continues to assess its future role in DCCP and avenues for funding requirements.

    Expected results

    • As a result of CSE services in support of DCCP, government departments using various cloud services will have assurance that they are communicating and collaborating on a secure environment which will protect the data of the GC and of Canadians.

    Linkages to digital government initiatives

    • The objectives of the Digital Communications and Collaboration Platform are in alignment with the Government of Canada’s (GC) Strategic Plan for Information Management and Information Technology, which aims to improve programs and services for Canadians and GC employees by developing a more modern, reliable, interoperable and accessible IM-IT environment.
    • It is also in line with the GC’s Cloud Adoption Strategy, which seeks to make adopting cloud services the preferred option for delivering IT services, while managing security risks to safeguard Canadians’ data and privacy
    • To enable the effective delivery of critical programs and services to Canadians, the Government of Canada needs access to modern and reliable digital communications and collaboration services.
    • At the same time, Canadians rely on the Government of Canada to provide secure digital services.
    • In this effort, Shared Services Canada is transferring $4.7M to the Communications Security Establishment in these Estimates to support security monitoring for the cloud based Digital Communications and Collaboration Program.
    • This program will help ensure that Government of Canada departments using various cloud services will be able to communicate securely up to the Protected B classification.
    • CSE continues to assess its role in DCCP and avenues for funding requirements.
  • Transfer from CSE to Global Affairs Canada for administrative support to departmental staff located at liaison offices abroad
    • CSE’s 2019-20 Supplementary Estimates (B) include a transfer of $0.7M associated with various CSE liaison office positions in other countries for which GAC provides administrative support.
    • GAC is a common service provider for Government of Canada operations abroad and receives compensation for the increased cost of operations resulting from staff being posted at Canadian missions and liaison offices by other government departments.
    • This funding will help to ensure that our liaison offices can operate effectively.

Page proofs 
CSE’s supplementary estimates (b) 2019-20  
Transfer from the Department of National Defence to CSE for joint initiatives  
Transfer from CSE to the Department of National Defence for joint Co-operative Research and Development 

Other issue notes of interest in the Minister's binder

Canada and China  
Canadian Armed Forces Cyber 
Framework for defence intelligence 
National Security and Intelligence Committee of Parliamentarians annual report 

Committee information and potential questions

  • Potential questions

    Estimates Details

    1. What funding is CSE requesting in these Estimates?
      • Transfers included in the Supplementary Estimates (B) will provide necessary funding to enable the Communications Security Establishment to:
        • Operationalize new authorities in the Communications Security Establishment Act;
        • Fund research that will ensure CSE can keep pace with advancements in quantum technology;
        • Secure cloud services used by the Government of Canada; and
        • Transfer funds to Global Affairs Canada for staff posted abroad.
    2. How will these funds help ensure Canada’s cyber security?
      • CSE has three items in these Estimates that will help protect Canada’s cyber security.
      • First, CSE is requesting a combined transfer of $6.9M from the Department of National Defence for joint initiatives.
      • This transfer will enable CSE to operationalize its new authorities under the Communications Security Establishment Act to provide assistance to National Defence on cyber activities.
      • Second, CSE is also requesting a transfer of $4.7M from Shared Services Canada to support security monitoring for the cloud based Digital Communications and Collaboration Program (DCCP).
      • This program will ensure that Government of Canada departments using various cloud services will be able to communicate securely up to the Protected B classification.
      • Finally, CSE is transferring $80,000 to the Department of National Defence to be redirected to the Natural Sciences and Engineering Research Council (NSERC) to support research in quantum technologies.
      • CSE is supporting research and development projects relating to quantum technology to ensure it is able to assess both the threats and opportunities posed by advances in this field.
    3. How does the Government evaluate how much we are spending on cyber security and whether it is enough funding? How do we know it is enough?
      • Like all Government of Canada departments and agencies, CSE has performance measurement indicators to evaluate the effectiveness of its programs.
      • Performance measurement is very important in the stand up the new Cyber Centre and as we look to fully integrate the functions of other government departments, including Shared Services Canada and Public Safety.
      • More broadly, the Government of Canada’s National Cyber Security Action Plan for 2019-2024 provides a whole of government roadmap for how to implement the three major goals identified in the 2018 National Cyber Strategy.
      • For CSE, the Action Plan includes several CSE-led initiatives, with corresponding milestones.
      • For example, under the goal of “secure and resilient systems”, CSE is looking to prepare the Government of Canada for advances in quantum technology. Funds in these Supplementary Estimates (B) for research and development in this area will help us meet this goal.
      • Ultimately, when it comes to investments in cyber security, CSE’s goal is that the security of information systems of importance to the Government of Canada is strengthened.
    4. What joint initiatives between CSE and DND are being funded in these Estimates?
      • In these Estimates, the Department of National Defence is transferring $6.9 million to CSE to, in part, plan, coordinate, and monitor the efforts to establish a unified approach to foreign cyber operations.
    5. Why is Shared Services Canada (SSC) transferring funds to CSE in these Estimates?
      • Shared Services Canada is transferring $4.7 million to CSE to support the Digital Communications and Collaboration Program (DCCP).
      • This program will help ensure that Government of Canada departments using various cloud services will be able to communicate securely up to the Protected B classification.
      • In support of this program, CSE is responsible for the initial development of the cyber security services and incident management capabilities necessary to protect cloud-based services.
      • CSE continues to assess its role in DCCP and avenues for funding requirements.
    6. What joint co-operative research and development is CSE funding in these Estimates?
      • In these Estimates, CSE is transferring $80,000 to National Defence to support joint research on quantum computing and communications.
      • This important research will help ensure that CSE is able to assess both the threats and opportunities posed by advances in quantum research.
      • Grants enable CSE to leverage external, cutting-edge expertise, increases CSE’s presence and reputation in this field, and will serve as a workforce multiplier.
    7. What kind of administrative support does CSE require from Global Affairs Canada for departmental staff located at liaison offices abroad?
      • CSE is transferring $0.7 million ($738,869) to GAC for administrative support to CSE liaison office positions.
      • GAC is a common service provider for Government of Canada operations abroad and receives compensation for the cost of staff being posted abroad by other government departments.
      • This funding will ensure that our liaison offices can operate effectively.

    Other Potential Questions

    1. What is CSE doing about Huawei and the development of Canada’s 5G network?
      • CSE takes the security of Canada’s critical infrastructure very seriously.
      • 5G networks will be a key driver of innovation and enabler of new technology.
      • While I cannot comment on specific companies, the Government is currently reviewing its approach to emerging 5G technology.
      • CSE’s expertise and experience will be important in assessing cyber threats and risks, as well as providing advice and guidance about possible mitigations.
      • CSE and the Cyber Centre will continue to contribute to the development of cyber security best practices that can be promoted in the interests of Canada’s national and economic security.
    2. What is CSE’s Security Review Program?
      • As part of its cyber security mandate, CSE works with telecommunications service providers representing over 99% of Canadian subscribers.
      • In this role, CSE provides advice and guidance to mitigate supply chain risks in telecommunications infrastructures upon which Canadians rely, including, since 2013, the Security Review Program that has been in place to test and evaluate designated equipment and services considered for use on Canadian 3G and 4G/LTE networks.
      • Third party labs accredited by CSE perform this testing. CSE’s role includes accrediting the third party labs that perform this assurance testing and defining the testing requirements. CSE reviews the testing results and provides tailored advice and guidance to Canada’s telecommunications sector.
      • CSE, through its Canadian Centre for Cyber Security, will continue to work in collaboration with all relevant TSPs vendors, service providers, laboratories, and allies to help deliver secure and resilient Canadian systems.
      • While non-disclosure agreements prohibit CSE from disclosing further details of this testing process, Canadians can be assured that the Government of Canada is working to make sure the strongest protections possible are in place to safeguard the systems Canadians currently rely on.
    3. According to the 2018-19 Annual Report of the Office of the CSE Commissioner (OCSEC), CSE targeted a foreign national identified as possibly holding Canadian citizenship from 2010 to 2015. What happened in this case?
      • As reported in OCSEC’s most recent annual report, CSE inadvertently targeted a foreign national identified as possibly holding Canadian citizenship from 2010 to 2015.
      • This incident was discovered, reported, and fully mitigated in 2018, when a Second Party inquiry drew CSE’s attention to the fact that this incident had not been fully addressed.
      • CSE took all appropriate steps to mitigate this incident and prevent it from happening again.
      • The Commissioner was satisfied that CSE’s mitigative actions were adequate and undertaken in a timely manner.
    4. How did the coming into force of the Communications Security Establishment Act change CSE’s authorities?
      • The Communications Security Establishment Act gave CSE new authorities which are needed to keep up with rapid advancements in technology.
      • These new authorities enable CSE to work more effectively and proactively to protect Canada and Canadians.
      • CSE is now able, upon request, to deploy its cyber defence services to protect Canada’s critical infrastructure and other important systems.
      • CSE is also now authorized to undertake active and defensive cyber operations to defend Canada’s cyber security and to support broader government priorities.
      • At the same time, CSE is also now subject to a new oversight and accountability regime to ensure the protection of the privacy of Canadians.

Committee membership & profiles 

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